- The Solution provides a high value result to stakeholders as well as a fee per transaction that is significantly lower than the regulatory mandated one.
- The Solution provides a high value result to stakeholders as well as a fee per operation(transaction, clearing and cash in/out) that is significantly lower than the actual US market.
- Instantaneous transaction (end to end) < 2 seconds.
- Reduce the account holder’s physical mobility, measured as time to find where to cash in/out, to 10 minutes.
- MoMo’s chain fee structure provides the ability to affordably transfer payments, as low as US$5.00.
- MoMo accounts are cash accounts. The funds of the account holders are securely deposited and reside at a Federal Reserve Bank account.
MoMo account holder services include (but are not limited to):
Money transfers between individuals
Cash-In and Cash-Out services via our Agent Network
- Recurring and non-recurring bill payments (P2B, P2G)
- Purchase of goods and services (P2B)
- Government and commercial payments to individuals for Social Welfare, Subsidies, Payrolls, etc. (G2P, B2P)
- Transfer of funds between businesses (B2B)
- e-commerce payments.
MoMo will support the following mechanisms for transferring money between MoMo accounts and accounts with other financial institutions.
- Manual transfers.
- Net balance transfers.
- Single or bulk transaction requests can be initiated by MoMo account holders.
- Mobile and Internet based services are used by most Account holders.
- Enrolment in the form of an Account Opening Form registration is not required prior to receiving funds within the system, but to access the funds requires appropriate levels of registration.
MoMo’s business model will provide financial services (INCLUSION) to the unbanked and, Underbanked American citizen, (FDIC: more than 80 Million) as well as other US banked citizens, and its proof of concept is already in operation.
The solution has been implemented in El Salvador, which demonstrates that the design is viable in practice. The solution is well designed, and the proposer has been diligent in addressing the criteria.
"The solution has been described in detail. There are a few concerns related to dependencies and assumptions described in the proposal. The first dependency is that the Federal Reserve Bank will authorize MMC to open and maintain Federal Reserve accounts. These accounts will be instrumental to supporting settlement as designed.
Alternatively, MoMo may become a chartered DI (depository institution). It will be the Federal Reserve’s decision whether to support this option. In a third option, the MoMo entity would be established by new federal legislation to enable the MoMo system.
Without accounts at the Federal Reserve, the potential risks may make the solution unviable.
The solution’s success also relies on building out a large agent network (450,000 locations in five years). This network will be required to support unbanked or underbanked end-users. There are concerns about the capability of these agents to authorize end-users when they enroll and as they deposit and withdraw funds to and from the MoMo system. Training this large network, as well as monitoring and managing their performance, may be challenging."