Page 175 - The Digital Financial Services (DFS) Ecosystem

ITU-T Focus Group Digital Financial Services
Ecosystem

• Immediate funds availability not critical (i.e., next day may be acceptable in many circumstances)

• Cross scheme utility – must be able to accept payments from multiple schemes; should be transparent
to the merchant which scheme the customer is using (as feasible)

• Will likely settle to a bank account (versus using cash in/cash out agents)
• Similar to M1 – M3:
• Could be taking remote (i.e., phone) orders for delivery

• Might also be taking remote payments for small credits extended to customers

3.5.3 Economics/cost sensitivity

• Cost sensitive, but likely less so than smaller segments
• May be willing to pay a small amount for remote transactions to the extent that they can generate
incremental sales

3.5.4 Appetite for risk and need to manage risk

• Likely to have higher value transactions than M1 and M2
• Unlikely to pose meaningful financial or reputational risk on the system

3.5.5 Operational assumptions

• Largely cash today
• Could be surcharging eMoney transactions

• Similar to M1 and M2
• Some tax-related accommodations may be required from governments, particularly in the early stages,
so as to not disincent merchant adoption

3.6 M5: Utilities and Services

This segment includes utility billers, schools, and a wide range of service providers such as hospitals and clinics.
This excludes small or personal service providers, who are included in M0.

3.6.1 Technology

• In many ways, a traditional "biller" with PCs and sometimes more sophisticated "enterprise" systems

3.6.2 Key function and feature requirements

• Ability to accept, post, and confirm eMoney payments originating from a range of interfaces – from
feature phones, smart/semi-smart phones, mobile and desktop browsers, etc., without the receiving
party needing a mobile phone

• Real-time or near real-time confirmations important; next day funding usually acceptable
• Remote transactions

• Pay as you go models
• Direct bank settlement

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