Page 174 - The Digital Financial Services (DFS) Ecosystem

ITU-T Focus Group Digital Financial Services
Ecosystem

• Could have rudimentary ecommerce / remote order transactions in the future

• Ability to interface with growing number of marketplaces and apps that support individual and coop
selling

• Immediate funds availability, but perhaps to a slightly lesser extent than M2
• Cross scheme utility – must be able to accept payments from multiple schemes; should be transparent
to the merchant which scheme the customer is using (as feasible)

• Some access to cash in/cash out agents
• Similar to M1 and M2:

• Could be taking remote (i.e., phone) orders for delivery
• Might also be taking remote payments for small credits extended to customers
• Some, perhaps small, likelihood that the merchant will have a bank account, so may need to utilize
eMoney/bank transfer capabilities

3.4.3 Economics/cost sensitivity

• Cost sensitive, but perhaps less so than smaller segments
• May be willing to pay a small amount for remote transactions to the extent that they can generate
incremental sales

3.4.4 Appetite for risk and need to manage risk

• Likely to have higher value transactions than M1 and M2
• Unlikely to pose meaningful financial or reputational risk on the system

3.4.5 Operational assumptions
• Largely cash on delivery today

• May have access to a bank account for some/all settlement, but not necessarily
• Similar to M1 and M2
• Must be easy to enrol as a merchant but will likely put up with more friction than other segments

• Some tax-related accommodations may be required from governments, particularly in the early stages,
so as to not disincent merchant adoption

3.5 M4: Mid-Sized Retailer

• Rural and urban retailers with multiple tills

3.5.1 Technology

• Low cost/low feature electronic cash registers
• Today, each till would have a dedicated phone, likely a feature phone
• Owner may have access to a personal computer

3.5.2 Key function and feature requirements
• Could have rudimentary ecommerce / remote order transactions in the future

• May use "merchant wallet" as settlement to buy inputs/supplies or even pay employees

146