How would Mojaloop change the commercial world of MFS?

Wednesday October 21, 2020
3:30 PM UTC

Session Leads: Jacques Voogt (@jacquesvoogt), Michael Richards (@MichaelRichards), Innocent Ephraim

Session Description:

How would Mojaloop change the commercial world of MFS? A changing commercial landscape and how it could impact merchant payments

Session Slides: https://github.com/mojaloop/documentation-artifacts/blob/master/presentations/October%202020%20Community%20Event/presentations/How%20Mojaloop%20would%20change%20the%20commercial%20landscape%20of%20mobile%20financial%20services.pdf

Session Recording: https://www.youtube.com/watch?v=f29zQfv2ROU&list=PLhqcvNJ3bJt7U8ab05ayGv16-6n5jZOH2&index=20

Please post questions, suggestions and thoughts about this session in this thread.

Post by clicking the “Reply” button below.

2 Likes

there was some interesting chat in this conversation. i grabbed it before we lost zoom.
thanks anant in particular for highlighting some important research:

there is also multiple pieces of work from CGAP o this topic to point out:



From Anant Nautiyal to All Panelists: 04:45 PM
Do you feel the paperwork typically required by banks may be a deterrent for small merchants to access banks?

From Jacques Voogt to All Panelists: 04:47 PM
Banks are getting better at onboarding - offering limited value accounts with reduced KYC /paperwork or even none…
not everywhere though

From Me to All Panelists: 04:48 PM
anant - the paperwork for mobile money is also a well known painpoint for merchants

From Miller Abel to Everyone: 04:49 PM
And Banks have to want to onboard low-value merchants rather than focusing on the mid- and upper-markets. MMOs can help bridge that gap to serve the MSMs

From Me to All Panelists: 04:49 PM
we aren’t seeing lots of tiered merchant style mindset - the fact a duka owner might benefit from the flows but really only needs the account limits of a normal customer account at times

From Miller Abel to Everyone: 04:49 PM
Yes, please please pay for those burgers!

From Jacques Voogt to All Panelists: 04:50 PM
:slight_smile:
From Miller Abel to Everyone: 04:50 PM
And a benefit for Miller’s Burgers!!

From Me to All Panelists: 04:50 PM
I loved when I spotted in the UK with a neobank as a developer I could get going with my personal wallet via PISP - didn’t need a full blown merchant account

From Steve Haley to All Panelists: 04:50 PM
Leslie-Ann - we’re seeing a lot of enlightened regulators wanting to enable “customer accounts” to act as merchants up to certain limits

From Me to All Panelists: 04:51 PM
that’s great :slight_smile: its important
I’ve not done landscaping of where regulators are - its anecdotal to markets I’ve been working in

From Miller Abel to Everyone: 04:51 PM
Can an association with MFIs solve for the problem of access to credit to satisfy banking risk management?

From Steve Haley to All Panelists: 04:51 PM
we’d be hard pressed to find a “regulatory body” that believes in that - but individuals within them

From Miller Abel to Everyone: 04:51 PM
I’m thinking now of the work we are starting in Myanmar

From Steve Haley to All Panelists: 04:52 PM
Yes Miller… that is the vision
From Steve Haley to All Panelists: 04:53 PM
these small merchants ARE the credit target segment of the MFIs
in fact, the last stage in the industry transformation vision is that MFIs are acquirers

From Jacques Voogt to All Panelists: 04:53 PM
and they have cash velocity measures that can be used to determine credit

From Anant Nautiyal to All Panelists: 05:02 PM
Some research that showcased value that merchants derive from mobile money, and some interesting views expressed on banks by small merchants on slide 13: https://www.gsma.com/mobilefordevelopment/wp-content/uploads/2019/02/GSMA-Mobile-Money-for-Enterprise-Customers.pdf

From VictorAkidiva to Everyone: 05:02 PM
In Kenya we have an association of Banks (Kenya Bankers Association), Association of Microfinances (AMFI) but these still must check in with the respective regulators for any business initiatives. However they are gaining traction in terms of convincing the regulator to accept emerging technologies in digital banking.

rom Anant Nautiyal to All Panelists: 05:03 PM
Research based on eight focus groups
(comprising more than 50 participants) gathering senior professionals from a range of MSMEs across different sectors.

For the quantitative phase, 200 interviews were
conducted with a mix of formal and informal
businesses, spanning urban and rural areas, with
respondents who were banked as well as mobile
money users. Results have only been shown when statistically significant.

Thanks Anant for the additional research share. Much appreciated.