Page 263 - The Digital Financial Services (DFS) Ecosystem

ITU-T Focus Group Digital Financial Services
Ecosystem

feel, particularly on feature phones. A new visitor must pause and spend time understanding the navigational
structure before gaining any real value. Additionally, chat platforms may speed up the learning curve through
‘conversational commerce,’ in which several back-and-forth messages between buyer and seller (chatbot, etc.)
complete the transaction, much like familiar face-to-face commerce.

• Multiple revenue streams (subsidy potential): Social networks are well-positioned to provide subsidies
because they offer a wide range of services to a diverse group of stakeholders. Importantly, these
stakeholders are mutually dependent – e.g., increasing consumer adoption creates more monetizable
merchant opportunities. By contrast, MNOs have less subsidy flexibility since their offerings are narrower
– e.g., lowering data prices to poor populations would not necessarily generate offsetting revenue.

4.1.1 BoP use cases and benefits
For a new Internet/social network user, initial use cases may involve replacing existing activities with lower
cost, easier alternatives, and performing basic information gathering (weather reports, etc.).

Low-cost messaging
Chat has been a "killer app" for current social network users. For example, in early 2016, Facebook Messenger’s
and WhatsApp’s global user base was sending 60 billion daily messages, three times the global SMS volume.
6
Chat should also appeal to the BoP given: SMS familiarity; OTT cost savings; BoP price sensitivity; and easier
interface (e.g., searching for names in a directory, clicking on user pictures).

Low-cost voice calls

Chat applications often include VoIP calling capabilities. Voice service should appeal to the BoP given OTT cost
savings, BoP price sensitivity, and easier interface. Service quality may be a challenge, as data networks are
not universally reliable. Calls on data networks can experience noticeable delays and drop outs. It is important
to note that phone calls are not necessarily limited to other users on the same chat application, as some chat
applications permit calls to landlines and mobile phones.

Information gathering
Chat can deliver basic information, such as weather reports, agriculture prices, or community announcements.
The BoP could receive this information within a single interface without needing to leave the chat application.

Free or subsidized data plans
It may be economically attractive for social networks to subsidize the BoP’s MNO data costs. In other words,
future revenue potential or indirect revenue from advertisers, ecommerce commissions, and other sources
may more than offset the data subsidy. Free Basics by Facebook provides free Internet access, however it is
unclear whether Facebook or the MNOs provide the subsidy.

4.2 Platforms for BoP ecosystems

Besides being the digital on-ramp for consumers, social networks can also bring merchants and other entities
online (e.g., Facebook Pages, WeChat Official Accounts). Additionally, social networks also allow consumers
and organizations to organize themselves into communities and ecosystems, such as agricultural value chains,
farmer groups, NGO group lending programs, parent/school groups, and any other type of group. Each
consumer and entity can participate in ecosystems relevant to them.

6 Goode, Lauren. Messenger and WhatsApp process 60 billion messages a day, three times more than SMS. The Verge. April 12,
2016. http:// www. theverge. com/ 2016/ 4/ 12/ 11415198/ facebook- messenger- whatsapp- number- messages- vs- sms- f8- 2016
(accessed August 12, 2016).

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