Way forward on remote payments
Today's consumers require convenient and secure payment services that are easily available anytime, for example, through their mobile phone. Mobile financial services must be convenient to use whilst meeting standard security requirements. In light of these facts, the banking industry is developing competitive value models for mobile payments which make everyday banking even easier. Given the proliferation of mobile phones and related service levels throughout the , the mobile channel is also considered an ideal launch pad for payment instruments.
The , working together with mobile operators and other stakeholders, is in the process of establishing the necessary standards and business rules with regard to the initiation and receipt of payments through mobile phones. To this end, the has joined forces with, among others, MobeyForum1, the global cross-industry consortium whose mission is to create the mobile financial services ecosystem and to enable banks to offer mobile financial services. Specifically, this cooperation seeks to ensure the definition of compelling mobile payment use cases based on industry input and to improve the interoperability between mobile payment solutions in the market.
In a next step, the and MobeyForum aim to develop remote mobile payments use(r) cases and service descriptions with a view to:
- leveraging both organisations' resources and competence
- fostering cross-industry coordination and consensus
- delivering content contributions to further inform the different stakeholder communities about the potential of the mobile channel for remote payments and related services as well as business opportunities.
Way forward on open secure element alternatives
In addition, the is addressing the usage of multiple types of secure element (SE), a tamper-resistant hardware module located within a mobile device, which is required to securely facilitate mobile financial services, such as contactless payments using near field communication (NFC)2 a subject likewise explored by MobeyForum which recently published the white paper "Alternatives for Banks to Offer Secure Mobile Payments". This white paper provides an analysis of the mobile financial ecosystem, its stakeholders, and the value chain positions that can be achieved by banks though different business models. The paper focuses on the role of the secure element. It highlights the features, application and impact of different secure element technologies including stickers, secure micro SD (Secure Digital) cards3, universal integrated circuit cards (UICC)4, embedded secure elements and trusted mobile bases. Taking into consideration the important insights provided in the MobeyForum white paper, the will move forward on deliverables related to secure elements as agreed in the Roadmap for Mobile Payments. The aim is to assist financial institutions in deciding the role they will adopt in the mobile financial services value chain and to provide them with the information necessary to select a deployment model that aligns with their current business requirements and technical architecture.
Dag-Inge Flatraaker is the Chair of the M-Channel Working Group. Ron van Wezel is the Chair of MobeyForum.
The MobeyForum White Paper "Alternatives for Banks to Offer Secure Mobile Payments" is available for download free of charge at www.mobeyforum.org.
Related articles in previous issues:
2 NFC refers to a contact-less technology that enables data to be transmitted wirelessly over very short distances, for example between a mobile phone and a card payments terminal at the check-out of a retailer.
3 In the context of the MobeyForum white paper, secure micro SD (Secure Digital) cards refer to memory card products that hold an embedded chip which can be used as a secure element (SE). These SD products may or may not hold a Near Field Communication (NFC) antenna in addition.
4 UICC stands for the Universal Integrated Circuit Card, also known as a SIM card.
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