Today we are publishing the second section of the GSMA handbook on mobile money system, and then converting it back out again); in many instances, agents register new customers too. Agents usually earn commissions for performing these services.They also often provide front-line customer service—such as teaching new users how to initiate transactions on their phone. Typically, agents will conduct other kinds of business in addition to mobile money. The kinds of individuals or businesses that can serve as agents will sometimes be limited by regulation, but small-scale traders, microfinance institutions, chain stores, and bank branches serve as agents in some markets. Some industry participants prefer the terms merchant or retailer to describe this person or business to avoid certain legal connotations of the term agent as it is used in other industries.'>agent networks, entitled “How to Incentivise a Network of Mobile Money Agents”. In this section, we seek to answer a broad question: how can mobile network operators design a set of incentives that encourage agents to become active and productive participants in mobile money distribution?

As with the ‘Introduction‘ and ‘How to Build a Network of Mobile Money Agents’ sections we published last week, this instalment is structured as a series of questions and answers. In this section, we answer questions like ‘What is the process for establishing an agent commission model?’, ‘What are the transactions for which agents should be paid?’ and ‘How do commissions get paid out?’

The areas covered in this document are designed both to guide mobile operators as they put agent incentives in place, and to offer ideas to operators who are considering changing agent incentives. Again, we look forward to any feedback from the community.