vritti
Technically Speaking
interoperable transactions, no cash-out
happens for sending operator and it saves
on commission. For the receiving mobile
money provider, since the incoming remi-
ttance from an interoperable transaction is
in digital form, hence no cash-in commission
needs to be paid. Thus an interoperable
transaction is a win-win for both sending and
receiving mobile money providers. Moreover,
interoperable transaction is also good for
the vision of a cash-light economy as it
allows money to remain in a digital form.
F I G U R E
19
March 2018
The statistics obtained from the markets
which have adopted interoperability show
the consumers preference of interoperable
transactions over off-net transactions. An
African operator which has enabled
interoperability has seen the proportion
of interoperable transactions rise
exponentially and proportion of off-net
transactions decline in total P2P Send
transactions (Figure 2)
2
P2P Send Transaction Volume Split P2P Send Transaction Volume Split
(Pre Interoperability) (Post Interoperability)
11%
P2P Off-net
89%
P2P On-net
(Send to Same
Mobile Network)
Source: Mahindra Comviva analysis
48%
48%
P2P Interoperable
(Send to Other
Mobile Networks)
P2P On-net
(Send to Same
Mobile Network)
4%
P2P Off-net
Note: These graphs are based on monthly data.
The Post Interoperability graph represents February 2018 data.
In October 2016, the GSMA Mobile Money team
published harmonized mobile money APIs.
The GSMA is encouraging its members to
adopt these APIs. These APIs will enable faster
integration with third party systems facilitating
quicker interoperability between mobile money
and banks, or among mobile money providers.
In October 2017, Bill and Melinda Gates
Foundation launched Mojaloop, an open-source
software to enable interoperability between
banks and financial service providers.
Mojaloop is free-of-cost, thus can be used
by financial service provider, governments
and regulators to develop an inclusive payment
platform at low cost. It is designed with the
aim to serve as a model for national payment
switching systems. Mojaloop has been
developed in collaboration with fintech firms
including Ripple, Dwolla, ModusBox, Crosslake
Technologies and Software Group, and
employs technologies such as the Interledger
Protocol for settling funds among multiple
providers across their individual systems.