Recap: the mandate and composition of the
The European Payments Council (), (which is not part of the European Union (EU) institutional framework), has frequently pointed out that the Single Euro Payments Area () is an EU integration initiative pursued by the EU institutions. These are the European Commission, the European Parliament, the Council of the EU representing EU governments and the European Central Bank (ECB). The European Commission and the ECB, respectively, have established several dedicated bodies to facilitate the dialogue on the process with market participants representing various stakeholder groups. (To obtain an overview of the institutional landscape, i.e. the actors involved in the process at the European level and their interaction, visit the infographic ‘ at a Glance’.)
On 19 December 2013 the ECB announced the launch of the Euro Retail Payments Board (), which helps foster “the development of an integrated, innovative and competitive market for retail payments in euro in the EU”. The ’s work consists mainly of identifying strategic issues and work priorities (including business practices, requirements and standards) and ensuring they are addressed. Seven representatives from the demand side (e.g. consumers, retailers and corporations) and seven from the supply side (banks and payment and e-money institutions) sit on the Board. They are joined by five representatives from the euro area national central banks (NCBs) and one representative from the non-euro area EU NCBs (all on a rotating basis). The is chaired by the ECB. The European Commission is invited to join as an observer. The is a member of the .
New working group on person-to-person mobile payments
At the 1 December 2014 meeting, the members agreed to set up a working group focusing on person-to-person mobile payments with the mandate to analyse the high-level requirements for the development of pan-European solutions.
The mandate for this working group outlines that a mobile device can be used in many ways to make a payment. One includes the use of the mobile to initiate and receive a payment from consumer to consumer. Person-to-person mobile payment solutions have developed in various countries inside and outside the euro area. Many of these solutions have the potential to be used in person-to-merchant payment situations as well. Currently there seem to be no initiatives in place to provide solutions in euro at a pan-European level. The purpose of the working group would be to develop the case for pan-European person-to-person mobile payments solutions in euro, (with the potential to further evolve into consumer to merchant solutions as well), and what the high-level requirements for these would be. This would include analysing national solutions and identifying any barriers that may prevent the development of pan-European solutions.
Membership is open to all volunteering members of the and it would ideally include at least representatives of payment service providers, consumers, and e-commerce. One representative of the Secretariat and a limited number of representatives of euro area NCBs joined the working group as active participants. The working group could also involve relevant third parties (for example, mobile payment solution providers) as active participants in order to make use of specific expertise if needed. A representative of the EU Commission participates as an observer. The working group on person-to-person mobile payments is co-chaired by the and BEUC, the European Consumer Organisation. It is expected to report back to the by the end of June 2015. (The draft mandate of this working group is set out in Annex 2 included in the ‘Update of the Work Plan of the Euro Retail Payments Board’.)
New working group on mobile and card-based contactless proximity payments
At the 1 December 2014 meeting, the members also agreed to set up a working group to address issues related to the muted take up of mobile and card-based contactless proximity payments. The mandate for this working group states that several innovative payment solutions rely on contactless technologies to initiate payments or transfer payment related data in proximity payment situations. They usually provide a more convenient user experience at the point of sale and a substantially faster check-out. Even though these types of payments are still at an early stage of development, there is already a trend towards setting standards that differ across schemes, devices and countries. The purpose of the working group would be to analyse existing solutions and standards (both national and international) and assess to what extent there are differences in standards and technical implementation preventing interoperability at pan-European level.
Membership in the working group is open to all volunteering members of the . The group will ideally include at least representatives of payment service providers, consumers, retailers and corporates. One representative of the Secretariat and a limited number of representatives of euro area NCBs joined the working group as active participants. The working group could also involve relevant third parties (e.g. mobile network operators, payment processors) as active participants. A representative of the EU Commission participates as an observer. The working group on mobile and card-based contactless proximity payments in euro is co-chaired by the and Eurocommerce / European Retail Round Table (ERRT). It is expected to report back to the by the end of November 2015. (The draft mandate of this working group is set out in Annex 3 included in the ‘Update of the Work Plan of the Euro Retail Payments Board’.)
The working group on person-to-person mobile payments and the working group on mobile and card-based contactless proximity payments are expected to:
- elaborate on a vision (the ‘what’ it wants to achieve) for euro person-to-person mobile payments; and mobile and card based contactless proximity payments in euro, respectively;
- define the essential conditions for the realisation of the vision;
- distinguish between essential conditions that need to be addressed in the competitive and in the cooperative space;
- and identify concrete actions to be taken for the essential conditions in the cooperative space to materialise.
publishes the second and updated edition of the overview of mobile payments initiatives in and beyond
Mobile phones have achieved full market penetration and rich service levels, making them an ideal channel for payment instruments. At the same time, the mobile payments ecosystem continues to grow and mature rapidly. For stakeholders in the payments industry, it is important to have a good insight into the latest trends within mobile payments and market developments. Therefore, the provided an overview on new initiatives on mobile payments in and beyond, in the paper ‘ Overview of Mobile Payments Initiatives’ first published in June 2014.
On 12 December 2014 the published the second and updated edition of the document.
It describes various existing and new initiatives on mobile payments and aims to create awareness on the latest developments, based on the following sources:
- Contributions by members on community initiatives.
- Initiatives reported in various newsfeeds.
It contains sections highlighting underlying payment instruments, mobile wallet initiatives, and developments on mobile points of sale (mPOS), all of which have newly appeared on the market over the past year.
The first edition of the report included initiatives launched between November 2013 and May 2014 within and outside. The second edition features, in addition, initiatives launched between June and October 2014.
The collection of the initiatives is done on a best-effort basis and is not exhaustive. The inclusion of any initiative into the document does not imply that in any form endorses, supports, or recommends such initiative.
Dag-Inge Flatraaker is the Chair of the M-Channel Working Group.
European Central Bank Website: Governance (includes detailed information on the Euro Retail Payments Board () and related documentation)
European Central Bank Website: Update of the work plan of the Euro Retail Payments Board (the draft mandate of the working group on person-to-person mobile payments is set out in Annex 2; the draft mandate of the working group on mobile and card-based contactless proximity payments is set out in Annex 3)
EPC Website: SEPA at a Glance – the Infographic (this infographic provides an overview of the actors involved in the process at the European level and their interaction)
Related article in this issue:
Next Steps Agreed by the ERPB with Regard to SCT and SDD Post-migration Issues, pan-European Electronic Mandate Solutions and Instant Payments. The ERPB, chaired by the European Central Bank, is a multi-stakeholder body that helps “fostering the development of an integrated, innovative and competitive market for retail payments in euro in the EU”
Related articles in previous issues:
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