How to Implement
Guidance
Adopt “cost recovery plus investment” as the financial model.
The governance body of the Scheme should formally select this model and direct its application to all choices with financial implications. Fees are calculated to recover costs but should also include a small margin to ensure future investment needs are funded.
Establish a long-term financial horizon for Return on Investment.
A not-for-loss basis model views the Scheme operations like a utility where upfront investment costs are shared by the Scheme and DFSPs, and paid for over a multi-year time horizon, often defined as ten years.
Manage Scheme budgets wisely.
Scheme management should regularly review all costs to provide instant payment services, at least once per year, and determine if fees should be increased or decreased. Costs should include the expected cost of planned investment in hardware or new services. Fees to DFSPs should be calculated on the basis of maintaining sustainable operations and recovering the costs of doing business, while also balancing the varying needs of different DFSPs.
Operate the Scheme as a not-for-profit entity.
Adopt a business model for the Scheme focused on sustainability of activities, not on profit generation. Any budget surplus should be invested back into Scheme improvements or result in fee decreases.
Why It Matters
This allows use of the platform to be ultra low-cost for the participating DFSPs, which, in turn, reduces operational expenses, keeps transaction costs low, and allows DFSPs to offer affordable or zero-cost transactions to end users.
Seeing More Clearly
Select a lens to learn the “why” this practice.
Women’s Inclusion
Women benefit from a not for loss Scheme business model that enables the Scheme to maintain low fees to DFSPs, encouraging all types of providers to join the Scheme and benefiting women who tend to rely on non-bank providers.
Related Resources
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