Implementer guidelines for mobile remote payments

Mobey Forum, the global leader in defining a sustainable and prosperous mobile financial services ecosystem, has released the market’s first comprehensive white paper specifying implementer guidelines for mobile remote payments. The white paper will be of particular interest to senior decision-makers at financial institutions, and informs readers on how mobile remote payment technology can effectively be delivered to end-users by leveraging existing systems and establishing an open infrastructure.

This Mobey Forum white paper focuses on mobile remote payments which enable two parties to send and receive payments or exchange funds using the mobile channel, irrespective of where they are located.

The aim of the document is to provide practical guidelines for implementation, leveraging both existing infrastructures and standard payment instruments such as credit transfers, card payments and transfers between stored value accounts.

The important role of the mobile phone number, and not any other specific code or identifier, to identify the payer and payee in a mobile remote payment transaction is highlighted within this paper. Using the mobile phone number will provide user convenience, ensure privacy and the security of payment information, and facilitate interoperability across stakeholders.

For mobile remote payments to achieve critical mass in the shortest possible timeframe and to minimise infrastructure investments, it is essential to leverage existing payment infrastructures as far as possible. The paper identifies guidelines for developing a payment “ecosystem”, stressing the need for market interoperability.

This paper discusses three potential ecosystem models based on varying levels of interoperability. These are summarised below:

  • Common Infrastructure Model (CIM) suggests a central or distributed database which links the mobile phone number with existing payment instruments such as bank accounts, payment cards, or stored value accounts. The mobile phone number is then used as the “mobile identifier” – or MID – to identify the transacting parties.
  • Intermediate Operability Model includes the CIM model above, and additional capabilities to facilitate mobile remote payments across systems that are currently not interoperable.
  • Direct Interoperability Model does not require common infrastructure but indicates that the payment transaction format is modified and adapted to facilitate mobile remote payments.

    In addition to outlining these models, this paper recognises the requirements for implementing the models, and provides generic process flow diagrams for implementing secure and interoperable mobile remote payments. The core processes and common requirements for a successful mobile payment ecosystem are also presented.

    The white paper considers minimum requirements for mass market adoption, and a more complex environment for developed markets.

    You can download the white paper here at the Mobey Forum website

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