As carrier billing continues to evolve, payment aggregators find themselves navigating a complex web of compliance requirements, mobile network operator (MNO) codes, and the sometimes challenging behaviour of some content service providers (CSPs) and merchants. While carrier billing offers great opportunities for growth, the responsibility for ensuring compliance rests heavily on aggregators, especially when CSPs, intentionally or not, engage in non-compliant practices. This not only risks penalties for the aggregator but also threatens the stability of the entire market. 

Challenges with Non-Compliant Services and Flows 

One of the key challenges payment aggregators face, is ensuring that services and advertising flows leveraging their payment platform, comply with regulations in each market they operate in. Non-compliant flows and services put both the aggregator and MNOs in a precarious position. For MNOs, it can mean increased regulatory scrutiny, financial penalties, or worse, a reputational hit. For aggregators, it often means having to answer for issues that originated with the merchant. 

Non-compliant behaviour doesn’t just result in short-term headaches. If left unchecked, it can cause long-term damage to the entire carrier billing ecosystem. Regulatory bodies may lose faith in the ability of the value chain to self-regulate, leading to stricter rules or even a complete market shutdown. In regions where carrier billing is a significant driver of digital growth, this could have severe economic consequences for all involved. 

Educating and Supporting CSPs 

Some CSPs may not fully appreciate the risks they pose to the aggregator or the broader market when they engage in non-compliant practices. This can be particularly true when a CSP enters a new market with a robust regulatory landscape, such as the UK, from a market with less stringent requirements.  

Education is the first line of defence. Not just to ensure CSPs understand the regulatory framework in each market and on each mobile network – mandatory requirements, permitted flows, non-compliant behaviours, and services that are not allowed – but also to promote a sustainable carrier billing ecosystem that offers stable conditions to grow mVAS market share. 

Aggregators can also offer access to compliance monitoring platforms like MCP SCANNER and encourage their CSPs to use these systems to self-regulate. By doing so, CSPs can ensure that their advertising flows are compliant before they even reach the aggregator’s platform, reducing the risk of non-compliant behaviour slipping through the cracks. These tools are particularly valuable when CSPs are working with third parties, such as media partners, to deliver their services. 

Partnering with Compliance Experts to Support CSPs 

To truly empower their CSPs and merchants, payment aggregators can benefit from collaborating with compliance experts like MCP Insight. By partnering with a specialised provider, aggregators can reduce their own compliance burden and help their CSPs navigate complex regulatory landscapes with confidence. 

At MCP Insight, we understand the intricacies of the mVAS and DCB global ecosystem and the challenges both aggregators and CSPs face. We also have a deep understanding of the broader regulatory drivers influencing the industry, both from regulators and MNOs. This includes insights into common types of consumer complaints, specific behaviours that are raising red flags, and emerging concerns that regulators are focusing on. Additionally, we stay ahead of what’s coming down the regulatory pipeline, ensuring that our clients are well-prepared for future changes and able to adapt before new regulations take effect. 

We can work closely with aggregators to develop tailored training materials that educate CSPs on best practices for maintaining compliance, avoiding fraudulent activity, and understanding the regulatory environment. Whether it’s through detailed guides, webinars, or 1-2-1 training sessions we can provide the tools to ensure your merchants have the knowledge to operate compliantly. 

Managing Risk with DDRC 

Unfortunately, there will always be some rogue players or individuals who try to push the boundaries of compliance, risking not only their own business but also the stability of the entire ecosystem. This is where Due Diligence and Risk Control (DDRC) services and risk management platforms, like MCP NET, play a crucial role. 

Aggregators and MNOs can access specialist DDRC and risk management solutions for onboarding, monitoring, and managing CSPs: using these services to gain visibility over a company’s background, its directors, and its reputation in the market, enabling them to assess and manage risk more effectively. DDRC solutions can also facilitate the clear communication of codes of conduct and compliance expectations, ensuring that CSPs understand the rules from the outset. 

Once services are onboarded, compliance partners will test services and flows before they go live, identifying potential issues early and ensuring that services adhere to regulations. As services go live, they will continue to monitor advertising and payment flows, helping aggregators stay on top of live services and identify any emerging issues before they escalate. 

In the event that a non-compliant issue arises, risk management solutions like MCP NET provide the tools to handle escalations effectively, or they can be managed on your behalf, resolving problems quickly and helping to maintain trust with both mobile network operators and regulators. By leveraging DDRC and risk management solutions, aggregators can safeguard the integrity of their platform while supporting the sustainable growth of compliant CSPs and merchants. 

Building Sustainable DCB Growth 

Ultimately, the goal for payment aggregators is to support their CSPs in growing their businesses through compliant, sustainable carrier billing. By helping them create flows that adhere to regulatory standards and protecting them from fraudulent activity, aggregators ensure that both they and their CSPs can build long-term, successful partnerships.  

Sustainable growth is about more than just immediate profits – it’s about creating a stable environment where all parties, from CSPs to MNOs, can thrive without fear of market shutdowns or regulatory crackdowns. 

To learn more about how MCP can support your compliance and risk management efforts, feel free to reach out for more information.