Foreword _____________________________________________________________________________________________________ i

Table of Contents ___________________________________________________________________________________________iii

List of Abbreviations________________________________________________________________________________________ v

Executive Summary_________________________________________________________________________________________ 1

1. Introduction ______________________________________________________________________________________________ 8

1.1 Retail Payment Systems in the OIC Member States _______________________________________________ 8

1.2 Objective of the Report ______________________________________________________________________________ 9

1.3 Scope and Description ______________________________________________________________________________10

1.4 Structure and Organisation of the Report_________________________________________________________10

2. Background ______________________________________________________________________________________________11

2.1 Defining Retail Payment Systems__________________________________________________________________12

2.2 Actors and Key Players in Retail Payment Systems ______________________________________________13

2.3 Classification of Retail Payment Systems _________________________________________________________15

2.4 Characteristics of Retail Payment Systems _______________________________________________________17

2.5 Economic Context of OIC Member Countries _____________________________________________________19

3. Overview_________________________________________________________________________________________________21

3.1 Retail Payment Landscape _________________________________________________________________________21

3.2 Actors and Industry Characteristics _______________________________________________________________23

3.3 Lock-Ins and Network Effects, Innovation and E-money ________________________________________24

3.4 Retail Payment Industry and Network Effects____________________________________________________25

3.5 Drivers and Impediments of Retail Payments ____________________________________________________26

3.6 Supply-Side vs. Demand-Side ______________________________________________________________________27

3.7 Standards and Coordination _______________________________________________________________________28

3.8 Regulations __________________________________________________________________________________________29

3.9 Risk and Liquidity___________________________________________________________________________________30

3.10 Three Exemplary Retail Payment Systems ______________________________________________________35

4. Case Studies______________________________________________________________________________________________37

4.1 Egypt _________________________________________________________________________________________________44

4.2 Indonesia ____________________________________________________________________________________________51

4.3 Ivory Coast (Cote d’Ivoire) _________________________________________________________________________58

4.4 Morocco______________________________________________________________________________________________64

4.5 Nigeria _______________________________________________________________________________________________69

4.6 Pakistan______________________________________________________________________________________________75

4.7 Turkey _______________________________________________________________________________________________81

4.8 United Arab Emirates_______________________________________________________________________________87