Page 9 - The Digital Financial Services (DFS) Ecosystem

3.5 M4: Mid-Sized Retailer 146
3.6 M5: Utilities and Services 147
3.7 M6: Transit 148
3.8 M7: Large/Top Tier Merchants 148
3.9 M8: Government 149

4 Payments Acceptance Economic Models 150
4.1 Merchant Payments Revenue Sources 150
4.2 Costs to Merchant Services Providers 152
4.3 Electronic Commerce Platforms 153
4.4 Priority Segments and Supporting Business Models 155

5 Policy Considerations for Financial Inclusion 156

Part II: Driving Acceptance by Merchants and Other Payments Acceptors 157

6 Introduction 157
6.1 Overview 157
6.2 Disruption in Financial Services 157

7 Hypotheses 160

8 Overview of Key Model Characteristics 160
8.1 Business Model 160
8.2 Overview of Operational Models Observed 161
8.3 Overview of eMoney Merchant Acceptance Models 162
8.4 Conclusion and Next Steps 169

Appendix I: Profiled Models 171

Appendix II: Additional Profiles 175

Bibliography 176

V Merchant Data and Lending: Can Digital Transaction History Help Jumpstart Merchant Accep-
tance? 179

1 Introduction 180
1.1 Situation 180
1.2 Emerging model 181

2 Digital financial services and the poor 182
2.1 Hypothesis 183
2.2 Use of ACD 183
2.3 Approach 184
2.4 Assumptions 184

3 Survey of In-Market Programs 184

4 Further analysis of the underwriting and loan process 188

5 Summary of findings and conclusions 190

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