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ITU-T Focus Group Digital Financial Services
Ecosystem
Figure 7 – M-PESA Merchant Acceptance
8.3.1.2 Model Two: MSP (Merchant Service Provider) Approach
New providers have emerged on the acceptance landscape to propel the expansion of eMoney into merchant
payments. These third party providers, which we call Merchant Service Providers partner with MMOs to
fulfill critical activities across the merchant acceptance value chain to enable merchants to accept electronic
payments. The support provided by MSPs can vary and there may be multiple providers supporting activities
across the value chain for a single deployment.
A number of potential variations may emerge from this model. The MSP can have responsibility for a narrowly
defined set of activities such as acquiring merchants, then passing the relationship and corresponding contract
on to the MMO. At the other end of the spectrum that MSP can also play a broad role across the value chain.
For example, KEENU, was contracted by Easypaisa, to provide merchant recruiting, on-boarding and education,
furthermore they activate merchant POIs, directly manage the merchant relationship, and provide value-added
services.
10
In many cases MMOs don’t have expertise in building merchant networks, managing merchant accounts, or
maintaining merchant relationships through value-added services. MMOs that prefer not to heavily invest in
building the merchant network themselves benefit from relationships with merchant aggregators. We define
a merchant aggregator as an entity with pre-existing merchant relationships, in which supporting merchant
acceptance is a natural extension or complement to core activities. This represents another broad approach
to outsourcing activities across the value chain.
10 Telenor Pakistan (2015), Easypaisa and KEENU launch Easypay NFC Payments at Dolmen Mall and Ocean Mall in Karachi [Press
Release]. Retrieved from https:// www. telenor. com. pk/ about- news- events/ easypaisa- keenu- launch- easypay- nfc- payment. ; Mas-
terCard Representative. Phone Interview. 24 Nov 2015.
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