Mobile wallets and the payment ecosystem: creating customer convenience through the use of mobile wallets for payments
Similar to the physical world, a mobile wallet typically contains, for example, identification information on the wallet holder, on payment instruments accessible to the wallet holder and optionally personal information items belonging to the holder (e.g. pictures, documents, etc.). This may include information related to electronic identifications, digital signatures and certificates, log-in information and billing and delivery addresses as well as payment instrument related information such as Credit Transfer and Direct Debit services and payment cards (prepaid/purse, debit, credit). Adding other mobile services (such as ticketing, loyalty, couponing, etc) would boost customer convenience and, consequently, trigger increased use of mobile payment (m-payment) options included with the device. Today, mobile wallets are in the early stages of development. No one in the payment ecosystem knows exactly how the mobile wallet marketplace will evolve in the coming years. To enable a cost-effective approach for all stakeholders involved in the mobile wallet payments ecosystem a number of key challenges need to be addressed:
- The co-existence of multiple mobile wallets on or accessed through a single mobile device.
- Co-existence of payment with other mobile services in a mobile wallet.
- Harmonisation of user interfaces to enable a consistent consumer experience.
- Interoperability of mobile wallet interfaces.
- Linkage of mobile wallets in the payer's space with merchant wallets.
- Proximity payments with remote mobile wallets.
- Alignment of mobile wallet security aspects (including authentication) with existing and forthcoming requirements for m-payments.1
The European Payments Council ( ) encourages an open dialogue and collaboration of all relevant stakeholders so that these issues are addressed adequately while contributing to the success of m-payment services through mobile wallets.
launches mobile wallet payments white paper
The , working together with all stakeholders active in the m-payments ecosystem, is willing to contribute to the development of a reliable and secure ecosystem for the initiation and receipt of Single Euro Payments Area ( ) payments by mobile phone. The intention is to help establish an ecosystem which could enable all payers and payees to make and receive m-payments across , and create a secure environment for the multiple stakeholders active in the field.
Considering that adoption of the mobile wallet is likely to trigger increased use of m-payments, the offers a new white paper on mobile wallet payments (see ‘related links’ below), which was released on 2 July 2013 for stakeholder review. This document outlines, among other things, how trust in, and availability of a wide range of easy to use services offered with mobile wallets may be regarded as a facilitator for m-payments. The document first describes a number of use cases of mobile wallets for financial services as an introduction to the subject. Next it is explained how mobile wallets may be regarded as a facilitator for m-payments and the mobile wallet ecosystem is analysed. This white paper further describes various mobile wallet models which may be identified in the market today. It also contains a high level overview of some technical and life cycle management aspects and provides a list of the main industry and standardisation bodies involved. The document addresses the usage of a mobile wallet for the access and initiation of both mobile contactless and mobile remote payments.
This white paper endeavours to:
- Inform stakeholders about the ’s commitment to m-payments in and the potential of the mobile channel to build on payment instruments2.
- Describe the new convenient, homogenous and seamless services access and new business opportunities enabled by the usage of a mobile wallet to perform m-payment transactions.
- Provide examples of the usage of a mobile wallet for m-payments.
- Outline the mobile wallet ecosystem and the different existing models for mobile wallets.
The white paper has been written in a non-technical style to inform payment service providers, their customers and all the stakeholders involved in the payments value chain about the 's views on the usage of mobile wallets as an enabler for m-payments in .
invites all interested parties to provide feedback on the mobile wallet payments white paper by 30 September 2013
The welcomes all interested stakeholders’ input on the information presented in this white paper. In order to ensure broad stakeholder involvement in the ’s descriptive work on the usage of mobile wallets for payments, the mobile wallet payments white paper is therefore available for stakeholder review during a three-month period. All interested parties are encouraged to download and complete the dedicated feedback questionnaire (see ‘related links’ below). The document offers the opportunity to provide input on the overall white paper as well as on each section and make recommendations for improvements. Respondents are invited to email the completed feedback questionnaire to firstname.lastname@example.org by 30 September 2013.
An updated version of the mobile wallet payments white paper will be issued based on the feedback received.
Dag-Inge Flatraaker is the Chair of the M-Channel Working Group.
Related articles in previous issues:
1 See for example the SecuRe Pay "Recommendation for the security of internet payments" published by the European Central Bank in January 2013.
2 Note that the concepts described in the white paper may also be applied to non areas.
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