The Mojaloop Foundation defines the digital financial services provider (DFSP) ecosystem as banks, government offices, merchants, mobile network operators, national payment providers, regulatory bodies, technology companies, and any other players developing and implementing digital payment systems.
It can be costly and complex to build interoperable systems that are inclusive to all. A lack of interoperability between digital financial services and payment platforms is a large part of the problem. According to the World Bank’s Global Findex 1.7 billion people still lack access to digital financial services, despite mobile money services emerging in nearly 100 countries. Mojaloop serves as a blueprint for how to simplify and reduce the cost of payment interoperability so that banks and other providers can develop tools that meet the needs of emerging markets and unbanked. Increasing access to digital financial services and tools are critical to accelerating the rate at which the financially excluded move into the formal financial system and hold on to the gains they have made, especially in developing economies. If widely adopted, interoperable digital financial services could provide more of the population with access to important financial tools, while adding $3.7 trillion to emerging countries’ GDP by 2025, according to McKinsey Global Institute.
