Page 171 - The Digital Financial Services (DFS) Ecosystem

ITU-T Focus Group Digital Financial Services
Ecosystem

• Cash in/cash out agents

3.1.3 Economics/cost sensitivity
• We assume that poor people will not pay for electronic transactions, as either payors or payees

• Since costs are so critical, transactions should not utilize much/any data costs (any costs should be
somehow subsidized/covered by other revenue streams)

• Low cost CICO transactions are essential, particularly in the early stages of rollout

3.1.4 Appetite for risk and need to manage risk

• Most transactions will be low value and face-to-face, posing little financial or reputational risk on the
system

• Will likely require only "light weight" know your customer account set-up

3.1.5 Operational assumptions

• Must be easy to enrol as a merchant (to the unlikely event that anything beyond P2P processes are
required)

3.2 M1: Sole Proprietor

This segment includes merchants selling goods or services, often in a marketplace or stall. This segment may
have only slight, often indiscernible, differences from segment M0.

3.2.1 Technology

• Similar to P2P transactions, the lowest common denominator, low cost feature phones, will be the
predominant form factor

• Users will likely conduct transactions via SMS and USSD interactions, but some buyers will likely be
initiating payments on smart or semi-smart phones

• Single till, single employee such that personal phone can be used for business purposes as well

3.2.2 Key function and feature requirements

• Similar to M0:
• Ease of use (and, if possible, use of icons vs. words)

• Immediate funds availability
• Cross carrier utility (users in this segment will likely carry multiple SIM cards in order to take advantage
of the lowest possible rates)

• Must be easy to enrol as a merchant (to the unlikely extent that anything beyond P2P processes are
required)

• Cash in/cash out agents
• Could be taking remote (i.e., phone) orders for delivery
• Might also be taking remote payments for small credits extended to customers

• Unlikely to have a bank account, so would not be utilizing any eMoney/bank transfer capabilities

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