Understanding Mobile Money
“Mobile Money” is an electronic wallet concept that allows consumers to store, send, and receive money using their mobile phones, as opposed to a traditional bank. Such services are available around the world and are especially popular in developing countries in which large populations have access to mobile devices but fewer have access to traditional banks. The convenience of such services for consumers is easy to understand, but users understandably want assurance that their funds will be safeguarded by the Mobile Money Providers (MMPs) responsible for the service.
Mobile Money Certification
The GSMA Mobile Money Certification Scheme has been established to provide the mobile money ecosystem with an independent, third-party review of Mobile Money services. The scheme is rooted in the Code of Conduct Toolkit, which defines principles that sound MMPs should follow to ensure that their service is sound, the mobile network channel is secure, and that customer funds and information are securely maintained.
At a high level, the GSMA Mobile Money Certification Scheme functions as follows:
- An MMP, such as a Mobile Network Operator (MNO), establishes a Mobile Money programme;
- The MMP downloads the Code of Conduct Toolkit and self-tests to evaluate its compliance;
- Optionally, the MMP hires a Consultant to improve its compliance;
- The MMP selects an Assessor to conduct a thorough, independent evaluation of its Mobile Money programme;
- The Scheme Operator evaluates the Assessor’s report and either issues or denies certification.
Mobile Money Certification is conducted on a best effort basis, meaning that it is not a guarantee that a programme will be free from issues. However, it is the Mobile Money ecosystem’s standard for showing an MMP’s commitment to industry best practices.