Page 197 - The Digital Financial Services (DFS) Ecosystem

ITU-T Focus Group Digital Financial Services
Ecosystem

Figure 11 – EcoCash Merchant Acceptance

While Steward’s POS device enables interoperability of payment types and mobile wallets at the POI, the bank
is primarily focused on card-based merchant payments. Their role as BIN sponsor for EcoCash’s companion
debit card was driven by its desire to be connected to the card network’s open loop system and its connection
to ACI Worldwide switch enables acceptance from other banking platforms. While the Easypaisa network also
17
offers a companion card, its bank, Tameer Microfinance Bank, does not yet perform the merchant acquiring
functions done by Steward Bank. Furthermore, its companion card is an ATM card linked to the national ID
scheme, not yet allowing purchases at merchant locations. In many ways, EcoCash is moving towards greater
operational standardization and its approach to merchant acquiring allows it to focus on creating scale while
complementing other banking services. Finally, similar to the MSP model, market forces may drive merchant
acquirers to work more closely with Payment Facilitators.

8.4 Conclusion and Next Steps
This chapter has identified three models currently being leveraged by MMOs to drive merchant acceptance.
By identifying and detailing these models we have attempted to create a foundation for better understanding
how eMoney deployments are driving nascent merchant acceptance and lessons learned. These models can
be expanded to other deployments to create a robust evidence base. Furthermore, initial learnings can help
to inform decision about critical paths. Nevertheless, additional work is warranted to improve our baseline
understanding as well as provide for the on-going monitoring of new and existing deployments.

The In-House model, while successful, appears to be a response to unique market circumstances. In the
case of ZAAD as a mechanism for protecting against hyperinflation. In the case of M-PESA Kenya, a result of
Safaricom’s dominant market position. Both situations are uncommon and present barriers to the ability to
scale this model. The in-house model does not provide a robust path to scale because it is difficult without
with a dominant market player to create the necessary network effect in house to create compelling value
for merchant acceptance.

17 MasterCard Representative. Phone Interview. 12 Nov 2015

169