The types of accounts included for each country are listed in digital. Multilateral agreements include three or more providers and a formalized set of shared common rules. The ghana interbank payment and settlement systems limited ghipss is a wholly owned subsidiary of the bank of ghana. As applied to mobile money which effectively covers both the retail banking and payments sectors the ideal state of interoperability refers to interaction between any service provider financial institution, mobile network operator, thirdparty vendor through any form factor card, mobile, tablet, pc and for a range of products. The study used both qualitative and quantitative data from the four main mobile money providers in. Mobile money, also referred to as mpesa, was first introduced in tanzania in 2008. Mobile money service providers mmsp are required to hold, in an escrow account in their partner sfi, the equivalent of all the mobile money that has been issued to their customers and agents. Press release mobile money interoperability the central bank of kenya cbk welcomes the implementation of interoperability of mobile phone financial services from april 10, 2018. In what appears to be phase one, mobile money customers in ghana will. Review of interoperability and regulations of mobile money. Interoperability of mobile money international growth centre. Interoperability between mobile money operators is an indicator of the growing maturity of the mobile money market and evolving service offerings.
Mpesa, safaricom kenyas mobile money product, was until recently entirely non interoperable. Regulatory impact on mobile money and financial inclusion in. The system was launched by vice president of ghana, dr. In many markets, it is no longer a question of if, but.
Mobile money interoperability is a major breakthrough, which is expected to deepen financial inclusion in ghana. A blockchain based mobile money interoperability scheme article pdf available in international journal of advanced computer science and applications 111 january 2020 with 57 reads. Public disclosure authorized building inclusive payment. Mobile money interoperability records 800,000 transactions.
It was incorporated in may 2007 with a mandate to implement and manage interoperable payment system infrastructures for banks and non bank financial institutions in ghana. Mobile money interoperability can be achieved through different models and the mobile money industry needs to have a choice as to which option to implement. Mobile financial services in ghana subregional workshop on mobile money in west africa. Analysis of pakistan, bangladesh, india, serbia and. It includes documents available from cgap, usaid, the world bank, gsma, and other organizations that are doing research in the realm of mobile money. Interoperability is the ability for customers to undertake money transfers between two accounts at different mobile money companies or to transfer money between mobile money accounts and bank accounts. This case study is a useful addition to the body of literature on what has driven this success story.
Achieving interoperability in mobile financial services ifc. It further examines different regulations that have influenced the development of financial inclusion through the use of the mobile financial services in the 4 countries. Enabling mobile money policies in kenya foreword the innovative use of mobile phone technology to drive financial inclusion in kenya has been widely acclaimed around the world. The bank of ghana in 2016 reported that mobile money volume of transactions registered a growth rate of 737. To subscribe for this service, mobile money users must visit their bank branch to link their mobile money walletphone number to their bank account.
The product is a collaboration between mtn ghana, ecobank capital ghana and ecobank ghana. On the contrary, depending on the maturity of a countrys financial services market, different services are more likely to prevail than others. It can be used on both smartphones and basic feature phones. Enabling mobile money policies in kenya fostering a.
To be successful, mtn would need to have an open approach, allowing interoperability with its competitors. The marked increase in mobile money usage is not unique to ghana. Ghanas first mobile money interoperability system deepens financial inclusion and promotes cashless agenda. Interoperability of mobile money services the mobile money channel. In africa, the dwindling revenues in the mobile telephone voice business as well as the proliferation of mobile phone handsets further enticed the operators to undertake the provision of mobile money. The advantages and disadvantages of mobile money on the. Mobile money payments have been slower to take hold in advanced countries, but are predicted to grow rapidly in the near future. Indonesia, pakistan, sri lanka, tanzania 2 will launch before end of 2015.
User insights in enabling interoperable mobile money. An innovative mobile money investment product, namely. The volume went up from 1,118,210 in the first quarter of last year to 5,126,919 transactions, according to figures. Financial inclusion enabler itut technology watch report may 20 globally, more than 2. Following a brief introduction to mobile money and interoperability, we present an overview of the status of mobile money in the 46 selected countries.
These regulations may be cited as the banking money. This means mobile money users can transfer funds directly from their wallets to any ezwich card. Assessing the value that the interconnection of mobile money services would create for customers and operators. Transfer money from an ezwich card to a mobile money wallet ezwich to wallet e2w. The mobile money subsector is set to experience high growth in the years ahead on account of favourable regulatory environment and profinancial inclusion policies. Mobile money guidelines, 20 communications for all. Review of interoperability and regulations of mobile money pierre. Nigeria, kenya, uganda, and south africa also registered significant growth in mobile money transactions diniz, albuquerque and cerney, 2011. The impact of mobile money interoperability in tanzania gsma. Mobile money in uganda international growth centre. In mozambique, there is no interoperability between mobile money providers, but partial interoperability between the latter and commercial banks is emerging. Mobile providers in tanzania began to interconnect their services first with a bilateral arrangement between tigo and airtel in september 2014 with the official commercial launch in february 2015.
First quarter mobile money interoperability up by over 350. Low levels of financial inclusion represent a barrier to socioeconomic development in developing countries. Since then, over 40m mobile money accounts have been registered making 95m mobile money transactions per month in total, transacting an average of usd1. Pdf a blockchain based mobile money interoperability scheme.
An example of customerlevel interoperability is mtn mobile money in south africa, which allows vodacom customers to open mtn mobile money accounts on vodacom sim cards i. Read the first post that presented the overall framework for the discussion and the second post that looked at the interconnection of mobile money platforms. Interoperability is considered important because of its potential effects on consumers, businesses and the economy. The classic example is the nonbankissued mobile money account that is popular across regions such as africa, but the definition extends to bankissued, lowvalue accounts in markets such as mexico and pakistan. Zambia has begun to reach financially excluded families as cell networks expand, providing mobile money. With branchless banking, users can take advantage of services allowing them to make basic paymentsutilities and other billsand domestic and international.
The gsma mobile money interoperability program has listed different models to support mobile money interoperability. When money is sent to a user outside of the mobile money scheme, a voucher code is created and sent to the recipient via sms. Although technology is not a major barrier for mobile money services, the applications and platforms need to be both telcograde in terms of uptime and responsiveness, and bankgrade in terms of accuracy, security, and auditability. Each part contains a number of documents or tools, some specifically designed for this toolkit, others collected from the public domain.
On 10th may 2018, mobile money interoperability was officially launched in ghana. The mobile money interoperability also opens way for fintechs and other financial institutions to come out with various products that will run on the system and create convenience for customers. The opportunity for interoperability is massive because out of the 60 countries that have two or more mobile money services, 45 countries do not have accounttoaccount interoperability. How mobile money interoperability in ghana affects fees. Interoperability should not be confused with interconnection, which is the ability to technically connect with another network. Phase one of the project, launched on may 10th, 2018 saw the interconnection of the mobile money platforms and the ghana national switch ghlink system, but not the ezwich payment systems. The mobile money operators are the lead initiators for the mobile scheme and shall be. Mobile money and interoperability in growth markets part. In december 2014, tigo connected with zantel, and in february 2016, vodacom announced connecting with. The success of mobile money services mms led many mobile network operators mnos around the world to venture into offering similar products. With 271 services in 93 countries at the end of 2015, mobile money is now available in most developing and emerging markets gsma, 2016a.
Citation and commencement these guidelines may be cited as the bank of uganda mobile money guidelines, 20 and shall come into force on october 1, 20. Mobile money services started in kenya in 2007 through mpesa m for. Mobile money is an ev olving sector b oth in volume and i n economic impact especially in the develo ping world. Mobile money and interoperability arrangements by country. Interoperability the ability for mobile money operators to interconnect to each other and to the banking system is expected to offer benefits to consumers and. The link between mobile money and financial inclusion will also be discussed. Regulatory impact on mobile money and financial inclusion. Pdf on jan 1, 2020, fickson mvula and others published a blockchain based mobile money interoperability scheme find, read and cite all. Branchless banking interoperability and agent exclusivity this is the third post in our series on interoperability and related issues in branchless banking and mobile money. Mobile money services have been deployed in developing countries as a means of extending financial services to the unbanked, but more robust research is needed on the direct link between the use of mobile money services and easier access to finiancial services.
Mobile financial services accessing levels of interoperability. This is available in many countries and allows users to store, send, and receive money using their mobile phone. A mobile money platform offering interoperability towards. This means that you can now transfer mobile money across networks at a fee. A scheme operator can either be a bank or a licensed corporate organization. Bou mobile money guidelines, 20 in view of the above mm risks, the guidelines provide the. Mobile money operators typically leverage an agent network to. Why does interoperability matter for financial inclusion. This paper a presentscrosscountry comparison of mobile money ownership and its determinants together with the factors affecting mobile money adoption. Transfer of money from a mobile money wallet to an ezwich card wallet to ezwich w2e. Banking and payment conversion chains mobile money services are not necessarily independent from each other within the group or across groups. Mobile money operators are required to connect to the national central switch ncs for the purpose of ensuring interoperability of all schemes in the system.
Bawumia launches phase two of mobile money interoperability. An active member of the alliance for financial inclusion afi network, bank of ghana bog launched the countrys first mobile money interoperability system through the ghana interbank payment and settlement systems limited. The bou has only approved mobile money operations when this is done in partnership with a supervised financial institution sfi. Today, the vice president dr mahamudu bawumia has launched the first mobile money payments interoperability system in ghana. The impact of mobile money interoperability in tanzania. Ghanas first mobile money interoperability system deepens.
For more information on full subscription access, contact us. Yet despite the over 100 mobile money deployments around the world, only a handful have reached economies of scale. Mobile money transfers across different networks also known as mobile money interoperability mmi have shot up by 358 percent in the first three months of this year, compared to the same period last year. The role of mobile money in financial inclusion in the. In the countries where interoperability is already in place, interoperability only interconnects mobile money service providers, not banks, in the first phase of the interoperability. Interoperability of mobile payments is one of the key priorities of ghana. The socioeconomic impact of mobile financial services. Three insights for digital payments interoperability. Nov 28, 2018 phase one of the project, launched on may 10th, 2018 saw the interconnection of the mobile money platforms and the ghana national switch ghlink system, but not the ezwich payment systems. In 2012, however, responding to customer demands, it jointly launched a savings and loan product with a local bank. Promoting payment digitisation in ghana via mobile money. Improvements in mobile money channels worldwide have created product options among financial institutions and merchants alike. Please provide your account email and password below new users can sign up for a public account.
Interoperability of mobile money services eservglobal. I wrote part of this piece a few days after the launch because interoperability brought up some interesting questions for me. The advantages and disadvantages of mobile money on the profitability of the ghanaian banking industry article by edmund amponsah opare ph. Assessing the value that the interconnection of mobile money services would create for customers and operators introduction and summary in just a few short years, the mobile money industry has undergone a remarkable spurt of growth.
Using mobile money you can withdraw and deposit cash, pay money to others, and keep money stored for later use. Background these guidelines address mobile money issues. Banking money transmission, mobile banking and mobile money interoperability regulations, 2020 it is hereby noti. It highlights differences among the 4 countries and their financial regulatory environment. Bou shall have powers to supervise the mobile money service mobile money service providers and partnering financial institutions to provide. The question is no longer whether mobile money services are available, but how to ensure that the industry. Multilateral agreements may include some providers, but may not necessarily include a majority of providers in a given market. The safe and easy electronic payments make mobile money a popular alternative to bank accounts. Mobile money services design and development for financial. Customers will be able to transfer funds across networks in real time, at low cost, and in a secure environment. Since then, significant things have happened within the space which. In this report, we define mobile financial services by including two broad categories. Customer experience remains critical for interoperability to scale. The gsma reports that in 2015 almost two thirds of mobile money markets.
The role of mobile money on financial inclusion in the sadc region. Phase one of the project, launched on may 10th, 2018 saw the interconnection of the mobile money platforms and the ghana national switch ghlink system, but not the e. A blockchain based mobile money interoperability scheme. User insights in enabling interoperable mobile money merchant. Since 2014, the share of adults with a mobile money account has grown roughly twice as fast 9 percentage points as the share of adults with an account at a formal financial institution 4 percentage points demirguckunt et al.
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