Issue 4 - October 2009
SEPA for Mobile
The linking PinEPC and GSMA kick off public consultation on Trusted Service Manager requirements
30.10.09 BY Dag-Inge Flatraaker
The EPC and GSMA, the global trade association representing the mobile network operator (MNO) community, released the paper "TSM Service Management Requirements and Specifications" in the Single Euro Payments Area for public consultation. This document describes the different roles and processes involved in the provision and lifecycle management of banks' mobile contactless payment (MCP) applications integrated into a mobile phone. Dag-Inge Flatraaker outlines the impact on the evolution of mobile contactless payments.***
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Building a common architecture for mobile contactless payments
The public consultation open to all interested market participants marks an important breakthrough in cross-industry cooperation between payment services providers and mobile network operators aimed at empowering over 500 million European consumers to make SEPA payments using their mobile phone. This cooperation is the most ambitious project designed to-date to build a common architecture for mobile contactless payments.
It is expected that the requirements developed by EPC and GSMA will have a major impact enabling the mobile as a channel for payments in SEPA. This initiative paves the way for more efficient commercial launches of mobile contactless payments (MCP) and contributes to interoperability and freedom of choice for the different stakeholders".
The role of the Trusted Service Manager (TSM)
In June 2008, the EPC and GSMA joined forces to support the further development of mobile payment services leveraging both the existing SEPA infrastructure and the infrastructure set up by mobile network operators. EPC and GSMA focus on defining requirements and specifications regarding the role of a Trusted Service Manager interfacing with banks and mobile operators. The TSM facilitates the distribution, configuration and activation of the bank's payment application on the UICC within bank customers' NFC handsets (their mobile phone). UICC stands for the Universal Integrated Circuit Card, also known as a SIM card. NFC refers to Near Field Communications - a contactless technology that enables data to be transmitted wirelessly over very short distances. This technology allows, for example, to make a payment using a mobile phone at a card payments terminal provided by a retailer or on the occasion of obtaining goods from a vending machine.
Closing the gap
The definition and specification of the requirements and business models for the Trusted Service Manager services closes an existing gap in the new NFC ecosystem in as much as the TSM serves as the linking pin between the individual players active in the mobile payments market. In addition, the agreement on related specifications allows interested parties to develop and offer services in the role of a TSM. The public consultation to be launched by the EPC and GSMA on these requirements and specifications will eventually lead to shared solutions supporting the establishment of commercial relationships between banks, mobile network operators and trusted service managers thus promoting mobile contactless payments across SEPA.
Dag-Inge Flatraaker is the Chair of the EPC M-Channel Group.
Other articles in this issue
30.10.09 Update EPC Plenary Meetings - Main decisions taken in September 2009 By Gerard Hartsink 30.10.09 Creating smart SEPA Solutions - New EPC Publication: SEPA for IT Providers By Meral Ruesing 30.10.09 Going all the Way - EPC guidelines on customer reporting of SEPA Credit Transfers and SEPA Direct Debits By Eric Veronneau 30.10.09 Ready or not... - SDD roll-out possible in case of delayed national PSD implementation By Ruth Wandhöfer 30.10.09 Refunds and Returns revisited - Questions and answers on the correlation between the PSD and the SDD Schemes By Kevin Brown 30.10.09 The X Factor - Are EU governments still committed to making SEPA a reality? By Gerard Hartsink 30.10.09 Towards a SEPA migration end date? - Commission services publish feedback on public consultation on possible end date(s) for SEPA migration By Véronique Margerit 30.10.09 SEPA Roadmap: how to make SEPA a Success - European Commission Communication on "Completing SEPA: a Roadmap for 2009-2012" By Daniela Umstätter 30.10.09 Yes we can - Part II - Belgium: a case study in successful migration to SEPA By Benoît Lempkowicz and Anne Demelenne 30.10.09 Facing the Facts in October 2009 - The EPC Newsletter tracks the progress of SEPA implementation By Herman Segers 30.10.09 Cashing out - National Central Banks commit to optimise cash handling in SECA: a progress report By Leonor Machado 30.10.09 EPC launches SEPA Direct Debit Schemes - European payments industry confirms commitment to making SEPA a reality By Gerard Hartsink 30.10.09 Better Business with SEPA Direct Debit - Corporate customers confirm benefits of SEPA implementation By Christian Westerhaus 30.10.09 New SEPA Scheme Rulebooks out now - EPC publishes new versions of the SCT and SDD Rulebooks on 1 November 2009 By Herman Segers
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