Page 182 - The Digital Financial Services (DFS) Ecosystem

ITU-T Focus Group Digital Financial Services
Ecosystem

Selling: Current Environment
Segment
POS (Face to Face) Remote (eCommerce, mCommerce)
M5 Prepaid, postpaid, and pay as you go Prepaid, postpaid, and pay as you go models
Services models Limited remote via online banking (not BOP) and
Mostly cash payments requiring travel to some mobile services
office or via third parties

M6 Cash Could facilitate prepaid pack of tickets ordered by
Transit Electronic payments may reduce speed phone/SMS
at point of interaction
M7 Big box /multi-lane/ upscale retailers, Omni-channel airlines, and "Amazon equivalents"
Large Retailer hotels, and restaurants generally accept selling remotely exist in many parts of the develop-
cash, cards (not universally but much ing world, but may not be serving BOP
more prevalent), and eMoneys

The second table shows how electronic commerce platforms may change this. It also addresses the issue of
how these new commerce platforms may change the ways in which merchants deal with banks.

Table 3 – Impact of New Commerce Platforms
Possible Impact of Electronic Commerce
Segment Possible Impact on Banking
Platforms
M0 Ad hoc/on demand sale of labor e.g., labor Neutral/Negative: Would likely reduce the need
P2P marketplaces such as Task Rabbit where par- for / usage of traditional bank accounts for the
ties discover and contract with each other poor
(may require smart phones)
M1 Could spark and increase in local remote Neutral/Negative: Would likely reduce the need
Sole Prop orders and delivery for / usage of traditional bank accounts for the
Merchants could more easily extend small poor
credits to customers (attract new customers,
increase revenue from existing customers)

M2 New payment-enabled commerce platforms Neutral/Negative: Would likely reduce the need
Small Shop should increase ecommerce activity. As with for / usage of traditional bank accounts for the
smaller segments, could spur some level of poor
credit extension to customers.
Transaction data may be of value but not
clear that it could be monetized; may be just
an added incentive for adoption
M3 Could expand market with ecommerce Neutral/Positive: Could increase bank balances,
Small Farmer Extension of credit more feasible/attractive transfers between bank accounts and eMoneys,
to lenders with electronic payments data and possibly increase SMB lending for banks

M4 Could spur electronic payments to employ- Neutral/Positive: Could increase bank balances,
Mid Size Retailer ees and suppliers transfers between bank accounts and eMoneys,
Possible enabling of/increase in remote and possibly increase SMB lending for banks
commerce. Extension of credit more feasi-
ble/attractive to lenders with data

M5 Growth in "pay as you go" for services Positive: would reduce cash processing and enable
Services Could enable government or third party more revenue-generating transactions (assuming
co-payments or subsidies more easily "receiver pays" scenario)

M6 If transaction speed problem solved, would Positive: would reduce cash processing and enable
Transit likely reduce theft, reduce cash handling more revenue-generating transactions (assuming
costs, and perhaps increase fare collections "receiver pays" scenario)

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