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 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 and GSMA will have a major impact enabling the mobile as a channel for payments in . 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 and GSMA joined forces to support the further development of mobile payment services leveraging both the existing infrastructure and the infrastructure set up by mobile network operators. 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 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 .
Dag-Inge Flatraaker is the Chair of the M-Channel Group.
If you would like to comment on this article, please identify yourself with your first and last name. Your name will appear next to your comment. Email addresses will not be published. Please note that by accessing or contributing to the discussion you agree to abide by the EPC website conditions of use.