NIBSS to complete Interoperability for MMO to boost Mobile Money Opeartions

National Central Switch (NCS) has begun interoperability services for mobile money transactions, having completed integration of 15 out of the 16 already licensed mobile money operator.

The commencement of interoperability service in mobile money transaction is coming barely one month after the expiration of Central Bank of Nigeria (CBN) directive to mobile money operators to connect to National Central Switch (NCS) operated by Nigeria Inter-Bank Settlement System (NIBSS).

It would be recalled that Central Bank of Nigeria (CBN) directed the 16 Mobile Money Operators (MMOs) in the country to fully connect to the National Central Switch (NCS) before Feb. 28.

The CBN gave the directive in a circular entitled “Timeline for Interoperability and Interconnectivity”. The circular was signed by Mr. Dipo Fatokun, CBN’s director of banking and payment system.

The circular stated that full connection to NCS would enhance MMOs’ “inter-operability and interconnectivity“.

It added that “for avoidance of doubt, appropriate sanction will be imposed on any mobile payment operator that fails to comply with the circular“

Nigeria CommunicationsWeek investigations revealed that NIBSS is offering operators in that space switching, settlement services as well as enable cashload and cashunload.

Cashload service is transferring of money from mobile wallet to subscribers’ bank account while cashunload is transferring of money from ones bank account to mobile wallet.

It was gathered that all the 15 fully integrated mobile money operators have been assigned unique codes for easy identification and switching of transactions among operators.

Nigeria CommunicationsWeek also learnt that NIBSS is presently compiling status of compliance among operators including new licensed mobile money operators before sending it to CBN for possible sanction.

Interoperability is basically the ability of the user of one mobile money service to send money directly to the wallet of a user on any other service.

Without interoperability the difficult decision of which mobile money service to choose might be influenced by which members of the customer’s peer group are already using a given service.

People familiar with the workings of mobile money said that interoperability among operators is responsible for the slow growth of mobile money in the country.