Page 67 - ITU-T Focus Group Digital Financial Services – Interoperability

ITU-T Focus Group Digital Financial Services
Interoperability

Equens: A Payment Processor

Equens SE is a European full-service card and payment processor headquartered in Utrecht,
Netherlands, with offices in Frankfurt, Stuttgart, Milan, Rome, Helsinki, and London. With an annual
processing volume of 9.7 billion payments and the switching of 5 billion POS and ATM transactions,
Equens is one the largest payment processors in Europe, leading the market for future-proof
payment and card solutions. Equens provides payment and card processing solutions for POS
and ATM transactions. More specifically, it delivers vendor-independent card services (including
payment terminal solutions); acquiring services, such as POS and ATM acquiring hosting, POS terminal
solutions, and merchant services; issuing services, including issuing transaction processing, payment
clearing, and issuance and management services; risk and fraud, affiliate, co-branded, and managed
services; mobile NFC and contactless payments; and clearing and settlement services. The company
also provides automated clearing house and business process outsourcing services for payments;
SEPA services, including domestic payment processing, SEPA credit transfer, and SEPA direct debit
services; and corporate payment services for banks, companies, service agencies, and software
developers. In addition, it provides digital services, including digital routing, e-Mandate routing, and
mobile payment services.

17. Bilateral international PSI interlinking is an example of the partnership between MTN Côte d’Ivoire and
Airtel Burkina Faso. In April 2014, MTN and Airtel launched a landmark collaboration to allow MTN Mobile
Money customers in Côte d’Ivoire to transfer money to Airtel Money customers in Burkina Faso. It was the
first time two operators from different groups interconnected their mobile money services internationally to
offer cross-border remittances. Given their limited experience with international money transfers, MTN and
Airtel were keen to work with an intermediary that would act as a hub between their two services. In June
2013, they engaged with HomeSend, which was the most established remittance hub at the time. HomeSend
provided two main services to MTN and Airtel: a real-time money transfer messaging platform and interface,
and the management of anti-money laundering activities. To keep all transactions in the local currency (CFA
franc), MTN, Airtel, and HomeSend decided it would be easier for the two operators to settle funds directly
between themselves. Technical integration was completed within four months. As a next step, MTN, Airtel, and
HomeSend agreed on a commercial model that would be transparent for customers . Whereas the operators
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see cross-border mobile money remittances as a substantial strategic opportunity, their initial objective was
not to maximize revenues, but rather to create a demonstration case for deciding whether or not to pursue
new remittance corridors. MTN and Airtel then began working with their partner banks (Société Générale
and Ecobank, respectively) to secure approval from the BCEAO to send and receive remittances using mobile
money, which they obtained a few months later .
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18 Based on the commercial agreement, the sender on MTN’s side would pay a service-specific transfer fee, but Airtel’s receiving
customers would not pay to receive a cross-border transfer. The standard cash-out fee would apply to the receiver if customers
were to withdraw cash from their mobile money account.
19 In both countries, MTN and Airtel had a ‘360 degree marketing’ strategy that combined a strong above-the-line (ATL) campaign
on TV and radio with below-the-line (BTL) actions on the ground. Focusing promotion on the sending market is key to the success
of any remittance product, however, and MTN effectively carried most of the communication efforts. In the case of MTN, the
customer experience was designed to be very similar to sending money domestically, and marketing materials closely mirrored
those used to promote domestic transfers. Marketing materials were simple and focused on just one use case – ‘Send money
home’ – and one competitive advantage: affordability. Focus groups targeting Burkinabé migrant workers in Côte d’Ivoire who
send money back home have responded very positively to this marketing campaign. Following the launch campaign, MTN has
continued to promote the service as part of its regular BTL activities, particularly in the western part of the country, where many
Burkinabé migrants work as cocoa harvesters. (See Scharwatt C. and C. Williamson, "Mobile Money Crosses Borders: New Remit-
tance Models in West Africa", GSMA. March 2005.)

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