Building an agent network to do cash-in-cash-out transactions, using Mojaloop
EthioPay (ETS) is owned by a consortium of Ethiopian banks and operates a central switching platform for ATMs throughout the country.
What they want
EthioPay wanted to continue adding value for the Ethiopian banking sector through additional services and products. They wanted to add a number of different switch use cases (e.g. merchants, CICO, etc) to their ATM switch.
What they built
They conducted a technical evaluation of the Mojaloop platform. While Mojaloop seemed to provide the required functionality, for a live deployment it lacked definition around auxiliary requirements to move into production.
How Mojaloop helps
With over 40 million phone subscribers and most banks having their own mobile banking system in Ethiopia, there is no mobile based inter-bank fund transfer. Mojaloop is potentially an efficient and scalable way to easily interconnect these disparate services.
The Opportunities and Challenges
ETS was actively seeking a switching solution for an agent interoperability project deployed in Q3 of 2019. Three basic use cases were desired for this project:
- Merchant Initiated Cash In/Out
- Customer Initiated P2P Transaction
- Customer Initiated Merchant Payment
To that extent, EST attended the hackathon to conduct a technical evaluation of the Mojaloop platform. While Mojaloop seemed to provide the required functionality, for a live deployment it lacked definition around auxiliary requirements to move into production. Specifically, it lacked clarity around the following
- Dispute & Fraud Management
- Availability of different Report
- Support and Maintenance
- Unproven technology (Not rolled out commercially yet)
- Feature readiness, like bulk payments, Multi quotes, user management, and auditing
The ETS team required more details on how a live deployment would handle each of these things and worked with ModusBox to scope these items in more detail, but because of the compressed time frame, could not recommend Mojaloop for the core switching solution they planned to deploy in July of 2019.