Page 330 - The Digital Financial Services (DFS) Ecosystem

ITU-T Focus Group Digital Financial Services
Ecosystem

Executive summary

The digital finance industry is both young and dynamic, and as it grows, it is constantly innovating to address
the issues it faces. One of the key contemporary issues is over the counter (OTC) transactions. The delivery
of mobile money over the counter raises a number of questions since it can: 1) limit product and ecosystem
evolution; 2) decrease provider profitability; and 3) lead to unregistered transactions, which run the risk of
money laundering and terrorism financing.
This report explores these questions and, with the help of data from the Helix Institute, InterMedia, and the
Groupe Spécial Mobile Association (GSMA), provides an analytical perspective on the pros and cons of the
OTC to arrive at conclusions and key considerations which move the industry forward.
The report begins with an all-inclusive definition of OTC which considers the typology of different types of
OTCs based on the different usage behaviours. In the next section, key concerns that the industry has, and
validity of these concerns with respect to OTC methodology have been analysed. The authors of this report
argue that certain types of OTC should be seen as a stepping stone to mobile money account adoption and
usage. Lastly, the report presents the conclusion and highlights four key considerations for the industry to
mull over which would accommodate the preferences of all stakeholders, namely users, agents, providers and
regulators, given the data presented and some of the new developments in the field.

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