Increasing competition will be a positive force in the market, but it will also present new regulatory challenges. Two such challenges that are in the scenario are:
- Competition between banks and MNO
- Balancing competition and interoperability
Technology leaders are concerned about government interventions which may force them to give up their competitive advantage. Regulatory approach that will balance the interest of customers with those of technology players needs to be evolved at this stage.
A report by Mobile Money for the Unbanked (MMU), suggests some valuable recommendations:
- Regulators should study the effect implementing interoperability at an early stage of market development in terms of cost and benefits
- Market should be monitored on a continuous basis to assess the need of further intervention.
- In the absence of interoperability regulations, monopolies and competition should be assessed periodically.
- If implemented, regulators should ensure that interoperability remains feasible at low cost to benefit users and provide appropriate incentive to service providers.