Page 198 - The Digital Financial Services (DFS) Ecosystem

ITU-T Focus Group Digital Financial Services
Ecosystem

In the MSP model various entities were observed to have emerged providing valuable services to enable
MMO’s to drive merchant acceptance. The presence of these third parties reduce the burden for the MMO
by not requiring them to support all activities across the value chain. Furthermore, several features of this
model may support scaling acceptance as MMOs evolve. These characteristics include: the adoption of new
technology, different from that deployed for P2P, to drive merchant acceptance; pressures to move towards
open loop or inter-operable structures; and finally, adoption of the Payment Facilitator model.

Finally, we have seen MMOs adopt a merchant acquirer model because of their desire to pursue a card centric
approach coupled with a physical POI to drive their evolution into merchant acceptance. While this approach
presents opportunities to scale merchant acceptance, question still remain.

All of three of these approaches warrant continued monitoring and further investigation. To build on this effort,
there are a number of additional activities considered, these include:

1 assigning the profiled deployments in the appendix of this chapter to a model, create a more robust
sample and focus on the points evolution identified in the MSP model;
2 development of merchant acceptance KPIs and their systematic on-going tracking;

3 further investigation into these deployments with a focus on merchant acceptance;
4 identifying, understanding and profiling third parties that have emerged to play a role in the acceptance
value chain;

5 identify growth inflection points, drill down and distill key learnings.

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