Building a mobile money ecosystem
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LAYING THE FOUNDATION
For partners, the decision whether to join a mobile money network hinges on one critical question: Will the expected future profits from joining the network exceed the required investment to become a part of it? There are two main factors that telcos can influence to make joining the network for potential partners more attractive:
Attractive pricing policy
Partners' expected revenues are dependent on the growth of the number of end-users and the terms and conditions of joining the network. While the growth of end-users is difficult to forecast, telcos can favorably impact the equation through an attractive pricing policy. Ideally, the pricing policy allows partners to capture a significant share of the value that they bring to the network, thereby creating a strong financial incentive.
Low initial network entry costs
Another important aspect is the initial cost of joining the network. When the number of end-users is still low, partners are likely to shy away from high investments. While some investment is always required to establish the link between the partner's system and the mobile money network, the extent of those costs is highly dependent on the type of platform the telco is providing. The more accessible the platform, the lower the cost of becoming a part of it, and the more likely partners are to join. Telcos can maximize accessibility by using efficient, standardized APIs (Application Programming Interfaces), allowing partners to connect without having to build expensive interfaces themselves and by offering close collaboration, especially during onboarding and the time immediately succeeding it.
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