Page 99 - ITU-T Focus Group Digital Financial Services – Interoperability

ITU-T Focus Group Digital Financial Services
Interoperability

Annex I: Case studies

Egypt

The introduction of the Automated Clearing House (ACH-EG) in 2010 enabled interoperability across banks by
allowing the exchange and clearing of transactions among participating financial institutions. Mobile payments
entered the ecosystem in 2013. It is expected that mobile payment interoperability will also be achieved by
layering it on the ACH-EG via a mobile payments gateway solution, i.e. a mobile payments switch.

As of now, only one MNO e-wallet service is equipped with a function that allows funds transfers to other
e-wallets. This is due to close integration of the MNO that operates this e-wallet service with the banking
infrastructure (due to mobile money regulations in Egypt, MNOs are required to contract with a bank). Once the
mobile payments switch in ACH-EG is released for production, which is expected for late 2016, mobile payments
would flow seamlessly between e-wallets of different issuers, and between e-wallets and any bank account.

Among other responsibilities, ACH EG will be responsible for clearing, and settlement will be done at the RTGS
system operated by the Central Bank of Egypt. As only banks are allowed as direct participants in this RTGS
system, non-banks participating in the switch will have to be sponsored into settlement, most likely through
the same bank that they will have contracted for providing the e-wallet service.

Jordan

The National Mobile Payment Switch (JoMoPay) was developed and built following an initiative of the Central
Bank of Jordan (CBJ) for the purposes of exchanging "on us" and "off us" payments among PSPs, including
banks and MNOs that operate e-wallets.

MNOs need to open account at a commercial bank in order to be able to settle transactions in the country’s
RTGS system (the "RTGS-JO", operated by the CBJ). In other words, MNOs are direct participants in JoMoPay
which allows them to exchange payment transactions directly, but need to be sponsored into settlement in
the RTGS-JO by a direct participant of the latter (i.e., a commercial bank).
In parallel, the CBJ issued the Mobile Payment Instructions and Operational Framework that set the technical,
financial and other requirements for MNOs to connect to JoMoPay, which is compulsory in order to ensure
all levels of interoperability among all PSPs and PSOs involved in mobile payments throughout the Kingdom.
For example, in terms of the technical requirements, MNOs cannot connect to JoMoPay unless they have the
certification and approval from CBJ. As for financial requirements, a minimum capital of JOD 1.5 Million has
been established. The Mobile Payment Instructions and Operational Framework also empowers the CBJ to
oversee MNOs with regard to their role as PSPs.
The CBJ has made available access to JoMoPay without collecting the testing fees and annual infrastructure
fees from PSPs for the first two years in order to facilitate that mobile payments customers receive the lowest
price possible and increase financial inclusion levels in the country.
Mexico

Banco de México regulates mobile payment services in order to achieve mobile payments adoption, foster
competition among mobile payments PSPs, and to reduce the associated costs. The mobile payments regulation
has focused on achieving interoperability among PSPs. The regulation establishes that transactions across
ecosystems must be settled through the RTGS system operated by Banco de México (i.e., SPEI) for "off us"
mobile payments, either directly by the paying and payee mobile payments PSPs, or through a connected
clearinghouse (see below).

Mobile payments are bank-led, in association with MNOs. It is compulsory to provide mobile payment services
"on us" and "off us" in similar conditions regarding hours of service, times of processing and costs. In the case
of "off us" transactions, banks can additionally charge SPEI costs.

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