After much hype in the late 90's, mobile payments again stand out as one of the most interesting options for enabling a new breed of non-voice mobile services. This is especially true in Europe, owing to a regulatory breakthrough that is liberalizing the payments sector and encouraging new players – namely, telecom operators – to enter this new area.
The objective of this document is to unveil key aspects of the new payment methods that are changing our lives: the mobile payment. Leveraging the most updated data mined by Observatory NFC & Mobile Payment and taking a closer look at the Cashlog case, as an example of payment solution system for both merchants and customers that allows to sell or buy digital goods of low unit value (0,99€ - 15€) by using the mobile phone .
Mobile Payment is a composite payment model which encompasses different paradigms, all characterized by the use of the Mobile phone as their primary means of interaction.
There is a shift from paying “up close” in which the phone "emulates" a payment card (Mobile Proximity Payment), and the payment of services from a distance (remote) via SMS or Applications (Mobile Remote Payment), to managing in a broad sense, the entire process of purchase and payment remotely (mobile commerce) and the transfer of money between users or between users and financial institutions (Mobile Money Transfer). The common feature of these paradigms is the use of the phone and its distinctive features to innovate the payment methods: the huge population penetration (more than 5 billion devices worldwide), mobility, extreme portability and interactivity. However, the differences between the different paradigms are such that, beyond some common premises, the analysis of this present situation, the potentials and developments need to be addressed separately.
Focalizing to the expectation versus reality the research of Observatory NFC & Mobile Payment evaluate the different types of mobile payment.
The document discusses how mobile network operators can earn revenue from mobile financial services. It provides examples of existing mobile money ecosystems, international remittance services, mobile payments for online purchases and gambling. The document argues that mobile payments can facilitate e-commerce in developing markets where credit card usage is low. It also suggests that mobile banking can reduce costs for financial institutions. Overall, the document advocates for collaboration between mobile operators, financial institutions, and merchants to establish ubiquitous mobile wallet platforms and payment standards.
Setting up a Mobile Money ecosystem: the M-Commerce Hub, 2010Giorgio Andreoli
This document summarizes a presentation on setting up mobile money ecosystems and commerce hubs. It discusses the big picture of mobile money and payments, emerging trends of telco-driven national schemas, Accenture's AMOS platform for transaction security management and mobile processing, and how AMOS can help banks implement a mobile commerce hub in a turn-key, managed services approach. The presentation covers topics such as the GSMA and EPC standards for mobile payments, case studies of existing mobile money implementations, and the roles and players involved in a mobile money value chain.
This document discusses Safaricom, a leading telecommunications operator in Kenya, and its pioneering of M-Pesa, the first commercial mobile money transfer service globally. It provides background on mobile payment services and how M-Pesa allows users to deposit, send, and withdraw money from their mobile phones. The document also covers market trends, with the number of mobile payment users growing from 160 million in 2011 to a projected 450 million in 2017, and transaction values increasing from $106 billion to an estimated $725 billion in that same period. It addresses opportunities and constraints for mobile money providers in both developed and developing markets.
CGAP Landscape Study on International Remittances through Mobile 2012CGAP
Since the 2010 study, there has been growth in live international remittance deployments using mobile channels, though over half of planned deployments from 2010 have still not launched. Usage of existing services appears very low compared to overall mobile wallet customers. Successfully deploying international remittances through mobile money faces significant challenges, including operational difficulties, a lack of sender/recipient education and trust, and regulations. Establishing a strong domestic mobile money ecosystem first is key before launching international services. While some new models are emerging, traditional providers like Western Union still maintain large advantages through their existing networks and brand recognition. Operators remain optimistic about the long-term potential for mobile remittances.
M banking workshop-presentation_jan28-2014_engVincent Wokmou
This document discusses mobile financial services and mobile banking. It provides an overview of electronic banking and mobile banking, explaining concepts like e-money, e-banking, m-money, and m-banking. It outlines the key players in mobile banking like banks, mobile network operators, agents/retail networks, payment service providers, and regulators. It also examines the mobile banking ecosystem and various product offerings like P2P transfers, bill payments, cash-in/cash-out, retail payments, and more. The document discusses factors for successful mobile banking like infrastructure, regulations, interoperability, partnerships, and value propositions. It also looks at business models, implementation costs and revenues, market evolution, and the
Five business case insights on Mobile Money 2011CGAP
1. Mobile money contribution may be small compared to current MNO total revenue but could be important for future revenue growth. Mobile money is expected to reach 10% of total MNO revenue within 10 years and be cash flow positive within 3 years for many operators.
2. Mobile money success is highly dependent on the size of the MNO's existing voice customer base. Having a large pre-existing customer base is important for driving adoption of mobile money services and reaching critical mass.
3. Modeling shows that even if not the first mover, the revenue potential is greatest for the largest MNO in a given market due to their larger existing customer base driving higher adoption of mobile money services.
1) The Financial Services Innovation Centre works with companies on mobile banking, cutting costs of cash handling, and addressing regulations from the EU SEPA law.
2) Mobile banking is making an impact and allows people access to savings without a traditional bank account, though regulations present challenges.
3) The proliferation of mobile phones provides an accessible device for delivering financial services to the unbanked population in developing areas.
The objective of this document is to unveil key aspects of the new payment methods that are changing our lives: the mobile payment. Leveraging the most updated data mined by Observatory NFC & Mobile Payment and taking a closer look at the Cashlog case, as an example of payment solution system for both merchants and customers that allows to sell or buy digital goods of low unit value (0,99€ - 15€) by using the mobile phone .
Mobile Payment is a composite payment model which encompasses different paradigms, all characterized by the use of the Mobile phone as their primary means of interaction.
There is a shift from paying “up close” in which the phone "emulates" a payment card (Mobile Proximity Payment), and the payment of services from a distance (remote) via SMS or Applications (Mobile Remote Payment), to managing in a broad sense, the entire process of purchase and payment remotely (mobile commerce) and the transfer of money between users or between users and financial institutions (Mobile Money Transfer). The common feature of these paradigms is the use of the phone and its distinctive features to innovate the payment methods: the huge population penetration (more than 5 billion devices worldwide), mobility, extreme portability and interactivity. However, the differences between the different paradigms are such that, beyond some common premises, the analysis of this present situation, the potentials and developments need to be addressed separately.
Focalizing to the expectation versus reality the research of Observatory NFC & Mobile Payment evaluate the different types of mobile payment.
The document discusses how mobile network operators can earn revenue from mobile financial services. It provides examples of existing mobile money ecosystems, international remittance services, mobile payments for online purchases and gambling. The document argues that mobile payments can facilitate e-commerce in developing markets where credit card usage is low. It also suggests that mobile banking can reduce costs for financial institutions. Overall, the document advocates for collaboration between mobile operators, financial institutions, and merchants to establish ubiquitous mobile wallet platforms and payment standards.
Setting up a Mobile Money ecosystem: the M-Commerce Hub, 2010Giorgio Andreoli
This document summarizes a presentation on setting up mobile money ecosystems and commerce hubs. It discusses the big picture of mobile money and payments, emerging trends of telco-driven national schemas, Accenture's AMOS platform for transaction security management and mobile processing, and how AMOS can help banks implement a mobile commerce hub in a turn-key, managed services approach. The presentation covers topics such as the GSMA and EPC standards for mobile payments, case studies of existing mobile money implementations, and the roles and players involved in a mobile money value chain.
This document discusses Safaricom, a leading telecommunications operator in Kenya, and its pioneering of M-Pesa, the first commercial mobile money transfer service globally. It provides background on mobile payment services and how M-Pesa allows users to deposit, send, and withdraw money from their mobile phones. The document also covers market trends, with the number of mobile payment users growing from 160 million in 2011 to a projected 450 million in 2017, and transaction values increasing from $106 billion to an estimated $725 billion in that same period. It addresses opportunities and constraints for mobile money providers in both developed and developing markets.
CGAP Landscape Study on International Remittances through Mobile 2012CGAP
Since the 2010 study, there has been growth in live international remittance deployments using mobile channels, though over half of planned deployments from 2010 have still not launched. Usage of existing services appears very low compared to overall mobile wallet customers. Successfully deploying international remittances through mobile money faces significant challenges, including operational difficulties, a lack of sender/recipient education and trust, and regulations. Establishing a strong domestic mobile money ecosystem first is key before launching international services. While some new models are emerging, traditional providers like Western Union still maintain large advantages through their existing networks and brand recognition. Operators remain optimistic about the long-term potential for mobile remittances.
M banking workshop-presentation_jan28-2014_engVincent Wokmou
This document discusses mobile financial services and mobile banking. It provides an overview of electronic banking and mobile banking, explaining concepts like e-money, e-banking, m-money, and m-banking. It outlines the key players in mobile banking like banks, mobile network operators, agents/retail networks, payment service providers, and regulators. It also examines the mobile banking ecosystem and various product offerings like P2P transfers, bill payments, cash-in/cash-out, retail payments, and more. The document discusses factors for successful mobile banking like infrastructure, regulations, interoperability, partnerships, and value propositions. It also looks at business models, implementation costs and revenues, market evolution, and the
Five business case insights on Mobile Money 2011CGAP
1. Mobile money contribution may be small compared to current MNO total revenue but could be important for future revenue growth. Mobile money is expected to reach 10% of total MNO revenue within 10 years and be cash flow positive within 3 years for many operators.
2. Mobile money success is highly dependent on the size of the MNO's existing voice customer base. Having a large pre-existing customer base is important for driving adoption of mobile money services and reaching critical mass.
3. Modeling shows that even if not the first mover, the revenue potential is greatest for the largest MNO in a given market due to their larger existing customer base driving higher adoption of mobile money services.
1) The Financial Services Innovation Centre works with companies on mobile banking, cutting costs of cash handling, and addressing regulations from the EU SEPA law.
2) Mobile banking is making an impact and allows people access to savings without a traditional bank account, though regulations present challenges.
3) The proliferation of mobile phones provides an accessible device for delivering financial services to the unbanked population in developing areas.
Mr. Ali Rashid al Mohannadi's presentation at QITCOM 2011QITCOM
The document discusses the evolution of mobile banking and payment technologies. It describes how mobile banking has expanded from SMS-based services to smartphone applications. Mobile payment technologies like NFC are also discussed, along with challenges in developing sustainable business models. Multiple players are seeking to take a leading role in the mobile wallet ecosystem, including telecom operators, handset manufacturers, and banks. The future of mobile payment remains uncertain, as it needs to prove significantly more convenient than existing payment methods to gain widespread adoption.
International Remittance And Mobile BankingArief Gunawan
The document discusses international remittance and mobile banking. It outlines general principles for international remittance services including transparency, consumer protection, payment system infrastructure improvements, a sound legal framework, competitive market conditions, and appropriate governance. It also discusses mobile banking trends, mobile payments, challenges, and the benefits of increased access to financial services via mobile technology.
The document discusses DG Infotech's mobile banking and remittance services. It provides secure and scalable remittance services using mobile interfaces that allow sending money from any mobile device. Funds can be sent internationally through a process that deducts money directly from the sender's bank account and deposits it instantly into the recipient's account without any cash handling. This allows low-cost and reliable money transfers with status notifications to both sender and recipient.
The mobile money user base is expected to grow significantly in the coming years, reaching over 1 billion users and handling over $1 trillion in transactions annually. This growth presents substantial revenue opportunities for mobile network operators and banks. As mobile phone penetration increases in emerging markets like India, mobile financial services will likely bypass traditional banking channels and be delivered directly to customers via their phones, leveraging the lower costs of mobile networks compared to other channels. For this potential to be fully realized, services must be intuitive and incentivize consumers to adopt new financial technologies on their mobile devices.
This document discusses mobile banking services in Pakistan. It provides an overview of SMS and USSD-based banking services available to customers. These services allow customers to get account alerts and statements, pay bills, transfer funds between accounts and to other customers. The document also discusses the objectives of offering mobile banking, challenges, and the need for an integrated model that allows customers to access services across channels consistently. It highlights the growth of smartphones in Pakistan and potential for increased financial inclusion through mobile financial services.
Mobile Payment Solution For Sk Bup Tersmartinlee609
This document proposes a mobile payment solution for China Unicom using SK Telecom's Moneta mobile payment platform. It analyzes the mobile payment market in China and identifies transportation cards and micro-payments as viable first applications. A 3-phase market strategy is outlined to launch the service with China Unicom, first targeting transportation cards then expanding to micro-payments and establishing a commercial alliance for comprehensive mobile financial services. Phase 1 involves a trial with a Beijing transportation company while Phase 2 adds cooperation with convenience stores.
The emergence of MVNO in the Middle East & North Africa has been slow in comparison to Western Europe and other global markets. However, recent regulatory developments in key markets are creating new openings. Significant opportunity now exists for mobile operators and other businesses to gain first mover advantage while the MVNO market is nascent.
This Viewpoint gives an overview of MVNO progress to date and explores growth opportunities in the Middle East and North Africa.
The document discusses the mobile money landscape in Benin. It notes that mobile money has significantly increased financial inclusion in Benin, where mobile penetration is around 87% but banking penetration is only around 10%. Mobile money facilitates around 8 billion CFA francs in deposits and 7 billion CFA francs in withdrawals daily. The goal is to increase use of digital financial services like mobile money to 12% of Benin's adult population by 2019. Currently, mobile network operators generally require partnerships with banks to provide mobile money services, but some operators are seeking direct licenses to become electronic money issuers and distribute payment means independently.
The document provides an overview of mobile commerce (m-commerce). It defines m-commerce as conducting commerce using mobile devices such as mobile phones or PDAs. The document then discusses the m-commerce framework and various applications of m-commerce like mobile financial applications, mobile advertising, and product location/shopping. It also describes different models of mobile payment and security issues in m-commerce, highlighting the need to protect information, integrity, and identification. Finally, the document briefly discusses some limitations of m-commerce.
Mobile payment - what mobiles can do for youBenjamin Joffe
Mobile phones can enable financial services and payments for those without access to traditional banking. Rural entrepreneurs in developing countries can use phones as a replacement for assets like cows. In the Philippines, G-Cash allows payments through mobile airtime that can be used to shop, take out microloans, and make payments to retailers. For mobile finance to grow, issues of trust, standards, privacy and regulations must be addressed at both the physical and digital levels. The future hopes that mobile devices can serve as banking and payment infrastructure to empower and develop communities.
The Future of Mobile Roaming Helping mobile operators remain competitive in t...Value Partners
The document discusses the future of mobile roaming as disruptions are occurring in the roaming market. Historically, roaming charges have been very profitable for mobile operators, but high prices have discouraged customers from using their phones when traveling abroad. As a result, it is estimated that 70-80% of roamers do not use data services while traveling (silent roaming), representing a large untapped market opportunity for operators. Regulatory interventions have also weakened operators' control over pricing. The removal of roaming fees in Europe by 2015 will further impact operators who stand to lose around €1.65 billion annually from lost roaming revenue. Operators need to introduce new services and packages to take advantage of increased data usage from
This document discusses the differences between mobile NFC payments using a SIM Secure Element (SIM SE) versus using Host Card Emulation (HCE). It notes that while HCE simplifies aspects like application provisioning by removing the need for mobile network operator involvement, it requires a new approach to security. Both approaches have advantages and disadvantages depending on the local market, and combining the two approaches may optimize solutions for different markets. Issuers will need to consider factors like the maturity of the local NFC ecosystem when determining the best approach.
1) Mobile payments are emerging as a new way for consumers to pay for goods and services using their mobile phones.
2) There are two main types of mobile payments - remote payments that don't require being near a POS terminal, and proximity payments that do.
3) While mobile payments are widely used in some countries like Japan and the Philippines, there are still barriers to their broader adoption in the US, such as differences in laws and lack of need beyond existing payment methods.
Future of Web 2.0 - talk, 22 September 2009Dan Armstrong
This document discusses the future of mobile banking and payments. It provides examples of Rabobank's mobile innovations in the Netherlands including their mobile banking service (Mobielbankieren) and NFC mobile payments trials. It also discusses the potential for customers to have more control over their financial data and services through their mobile devices rather than being restricted to individual bank or retailer apps and cards. The document concludes with a case study of National Microfinance Bank's mobile banking services in Tanzania which allow customers to access balances, transfers and prepaid services simply by dialing a number on their mobile phone.
This document contains a presentation given by David Morrow of Vodafone to the i3Forum on fraud issues related to next generation networks. The presentation discusses how next generation networks will separate the bearer network from services, creating challenges for fraud management. Specifically, it notes that next generation networks will involve more complex technologies, dynamic identities, and different billing models than current networks. This will create new opportunities for fraudsters but also require new approaches to fraud detection across both the bearer and services layers.
Connected as it never was. The launch of China's MVNOs Value Partners
This document provides an overview of China's launch of mobile virtual network operators (MVNOs). Some key points:
- In May 2013, China's Ministry of Industry and Information Technology officially launched a pilot program allowing private companies to operate as MVNOs in China.
- By June 2014, 24 companies had received approval to operate as MVNOs, partnering with China's three major mobile network operators - China Mobile, China Unicom, and China Telecom.
- MVNOs in China currently operate under a reseller business model, but the pilot program aims to allow them to differentiate through branding, products, and customer service.
Deloitte's Technology, Media, Telecom Center of Excellence (TCOE) was established in China to leverage Deloitte's experience in the TMT sector and provide thought leadership to companies in the China TMT industry. The document discusses the global MVNO market and analyzes strategies used by successful MVNOs, including leveraging existing resources like brands, distribution channels, or content. Key elements for MVNO success include having an advantage like these resources, clearly differentiating services, and targeting specific customer segments with tailored offerings rather than direct price competition with telecom operators.
The document describes Monolex Telecom's MVNE/MVNO enablement services and software suite. It provides an overview of their turnkey ASP MVNO hosted solution, convergent billing and rating services, and modules including a supplier queue processor, billing and rating engine, customer member services, admin portals, and a fulfillment management system. The suite is designed to provide MVNOs with a low cost, quick speed to market and flexibility through private label portals and integration with multiple carriers.
1) The document discusses trends in the telecommunications industry including the transition to 4G networks, growth of mobile transactions, and regulatory issues surrounding new technologies and services.
2) Key areas that will require regulatory focus are mobile banking, payments, and the use of technologies like near field communication (NFC) for transactions.
3) Regulators will need to determine the appropriate level of regulation for new services involving mobile operators and financial institutions to encourage innovation while ensuring consumer protection and compliance.
A need for peer to-peer strong local authentication protocol (p2 pslap) in mo...IJNSA Journal
Mobile phones are considered to be the most common devices in history of humankind. They have involved
in financial transaction such as mobile banking and mobile payment, which include sensitive information.
Public key cryptography is the proven solution that can provide secure transaction at every point of
interaction in mobile banking value chain. This paper proposes a need for peer-to-peer Strong Local
Authentication Protocol (p2pSLAP) for Mobile Banking Transaction that implements a peer-to-peer
architecture to provide local authentication mechanism between the customer and the agent. It employs
public key infrastructure (PKI).
A NEED FOR PEER-TO-PEER STRONG LOCAL AUTHENTICATION PROTOCOL (P2PSLAP) IN MOB...IJNSA Journal
Mobile phones are considered to be the most common devices in history of humankind. They have involved in financial transaction such as mobile banking and mobile payment, which include sensitive information. Public key cryptography is the proven solution that can provide secure transaction at every point of interaction in mobile banking value chain. This paper proposes a need for peer-to-peer Strong Local Authentication Protocol (p2pSLAP) for Mobile Banking Transaction that implements a peer-to-peer architecture to provide local authentication mechanism between the customer and the agent. It employs public key infrastructure (PKI).
Mr. Ali Rashid al Mohannadi's presentation at QITCOM 2011QITCOM
The document discusses the evolution of mobile banking and payment technologies. It describes how mobile banking has expanded from SMS-based services to smartphone applications. Mobile payment technologies like NFC are also discussed, along with challenges in developing sustainable business models. Multiple players are seeking to take a leading role in the mobile wallet ecosystem, including telecom operators, handset manufacturers, and banks. The future of mobile payment remains uncertain, as it needs to prove significantly more convenient than existing payment methods to gain widespread adoption.
International Remittance And Mobile BankingArief Gunawan
The document discusses international remittance and mobile banking. It outlines general principles for international remittance services including transparency, consumer protection, payment system infrastructure improvements, a sound legal framework, competitive market conditions, and appropriate governance. It also discusses mobile banking trends, mobile payments, challenges, and the benefits of increased access to financial services via mobile technology.
The document discusses DG Infotech's mobile banking and remittance services. It provides secure and scalable remittance services using mobile interfaces that allow sending money from any mobile device. Funds can be sent internationally through a process that deducts money directly from the sender's bank account and deposits it instantly into the recipient's account without any cash handling. This allows low-cost and reliable money transfers with status notifications to both sender and recipient.
The mobile money user base is expected to grow significantly in the coming years, reaching over 1 billion users and handling over $1 trillion in transactions annually. This growth presents substantial revenue opportunities for mobile network operators and banks. As mobile phone penetration increases in emerging markets like India, mobile financial services will likely bypass traditional banking channels and be delivered directly to customers via their phones, leveraging the lower costs of mobile networks compared to other channels. For this potential to be fully realized, services must be intuitive and incentivize consumers to adopt new financial technologies on their mobile devices.
This document discusses mobile banking services in Pakistan. It provides an overview of SMS and USSD-based banking services available to customers. These services allow customers to get account alerts and statements, pay bills, transfer funds between accounts and to other customers. The document also discusses the objectives of offering mobile banking, challenges, and the need for an integrated model that allows customers to access services across channels consistently. It highlights the growth of smartphones in Pakistan and potential for increased financial inclusion through mobile financial services.
Mobile Payment Solution For Sk Bup Tersmartinlee609
This document proposes a mobile payment solution for China Unicom using SK Telecom's Moneta mobile payment platform. It analyzes the mobile payment market in China and identifies transportation cards and micro-payments as viable first applications. A 3-phase market strategy is outlined to launch the service with China Unicom, first targeting transportation cards then expanding to micro-payments and establishing a commercial alliance for comprehensive mobile financial services. Phase 1 involves a trial with a Beijing transportation company while Phase 2 adds cooperation with convenience stores.
The emergence of MVNO in the Middle East & North Africa has been slow in comparison to Western Europe and other global markets. However, recent regulatory developments in key markets are creating new openings. Significant opportunity now exists for mobile operators and other businesses to gain first mover advantage while the MVNO market is nascent.
This Viewpoint gives an overview of MVNO progress to date and explores growth opportunities in the Middle East and North Africa.
The document discusses the mobile money landscape in Benin. It notes that mobile money has significantly increased financial inclusion in Benin, where mobile penetration is around 87% but banking penetration is only around 10%. Mobile money facilitates around 8 billion CFA francs in deposits and 7 billion CFA francs in withdrawals daily. The goal is to increase use of digital financial services like mobile money to 12% of Benin's adult population by 2019. Currently, mobile network operators generally require partnerships with banks to provide mobile money services, but some operators are seeking direct licenses to become electronic money issuers and distribute payment means independently.
The document provides an overview of mobile commerce (m-commerce). It defines m-commerce as conducting commerce using mobile devices such as mobile phones or PDAs. The document then discusses the m-commerce framework and various applications of m-commerce like mobile financial applications, mobile advertising, and product location/shopping. It also describes different models of mobile payment and security issues in m-commerce, highlighting the need to protect information, integrity, and identification. Finally, the document briefly discusses some limitations of m-commerce.
Mobile payment - what mobiles can do for youBenjamin Joffe
Mobile phones can enable financial services and payments for those without access to traditional banking. Rural entrepreneurs in developing countries can use phones as a replacement for assets like cows. In the Philippines, G-Cash allows payments through mobile airtime that can be used to shop, take out microloans, and make payments to retailers. For mobile finance to grow, issues of trust, standards, privacy and regulations must be addressed at both the physical and digital levels. The future hopes that mobile devices can serve as banking and payment infrastructure to empower and develop communities.
The Future of Mobile Roaming Helping mobile operators remain competitive in t...Value Partners
The document discusses the future of mobile roaming as disruptions are occurring in the roaming market. Historically, roaming charges have been very profitable for mobile operators, but high prices have discouraged customers from using their phones when traveling abroad. As a result, it is estimated that 70-80% of roamers do not use data services while traveling (silent roaming), representing a large untapped market opportunity for operators. Regulatory interventions have also weakened operators' control over pricing. The removal of roaming fees in Europe by 2015 will further impact operators who stand to lose around €1.65 billion annually from lost roaming revenue. Operators need to introduce new services and packages to take advantage of increased data usage from
This document discusses the differences between mobile NFC payments using a SIM Secure Element (SIM SE) versus using Host Card Emulation (HCE). It notes that while HCE simplifies aspects like application provisioning by removing the need for mobile network operator involvement, it requires a new approach to security. Both approaches have advantages and disadvantages depending on the local market, and combining the two approaches may optimize solutions for different markets. Issuers will need to consider factors like the maturity of the local NFC ecosystem when determining the best approach.
1) Mobile payments are emerging as a new way for consumers to pay for goods and services using their mobile phones.
2) There are two main types of mobile payments - remote payments that don't require being near a POS terminal, and proximity payments that do.
3) While mobile payments are widely used in some countries like Japan and the Philippines, there are still barriers to their broader adoption in the US, such as differences in laws and lack of need beyond existing payment methods.
Future of Web 2.0 - talk, 22 September 2009Dan Armstrong
This document discusses the future of mobile banking and payments. It provides examples of Rabobank's mobile innovations in the Netherlands including their mobile banking service (Mobielbankieren) and NFC mobile payments trials. It also discusses the potential for customers to have more control over their financial data and services through their mobile devices rather than being restricted to individual bank or retailer apps and cards. The document concludes with a case study of National Microfinance Bank's mobile banking services in Tanzania which allow customers to access balances, transfers and prepaid services simply by dialing a number on their mobile phone.
This document contains a presentation given by David Morrow of Vodafone to the i3Forum on fraud issues related to next generation networks. The presentation discusses how next generation networks will separate the bearer network from services, creating challenges for fraud management. Specifically, it notes that next generation networks will involve more complex technologies, dynamic identities, and different billing models than current networks. This will create new opportunities for fraudsters but also require new approaches to fraud detection across both the bearer and services layers.
Connected as it never was. The launch of China's MVNOs Value Partners
This document provides an overview of China's launch of mobile virtual network operators (MVNOs). Some key points:
- In May 2013, China's Ministry of Industry and Information Technology officially launched a pilot program allowing private companies to operate as MVNOs in China.
- By June 2014, 24 companies had received approval to operate as MVNOs, partnering with China's three major mobile network operators - China Mobile, China Unicom, and China Telecom.
- MVNOs in China currently operate under a reseller business model, but the pilot program aims to allow them to differentiate through branding, products, and customer service.
Deloitte's Technology, Media, Telecom Center of Excellence (TCOE) was established in China to leverage Deloitte's experience in the TMT sector and provide thought leadership to companies in the China TMT industry. The document discusses the global MVNO market and analyzes strategies used by successful MVNOs, including leveraging existing resources like brands, distribution channels, or content. Key elements for MVNO success include having an advantage like these resources, clearly differentiating services, and targeting specific customer segments with tailored offerings rather than direct price competition with telecom operators.
The document describes Monolex Telecom's MVNE/MVNO enablement services and software suite. It provides an overview of their turnkey ASP MVNO hosted solution, convergent billing and rating services, and modules including a supplier queue processor, billing and rating engine, customer member services, admin portals, and a fulfillment management system. The suite is designed to provide MVNOs with a low cost, quick speed to market and flexibility through private label portals and integration with multiple carriers.
1) The document discusses trends in the telecommunications industry including the transition to 4G networks, growth of mobile transactions, and regulatory issues surrounding new technologies and services.
2) Key areas that will require regulatory focus are mobile banking, payments, and the use of technologies like near field communication (NFC) for transactions.
3) Regulators will need to determine the appropriate level of regulation for new services involving mobile operators and financial institutions to encourage innovation while ensuring consumer protection and compliance.
A need for peer to-peer strong local authentication protocol (p2 pslap) in mo...IJNSA Journal
Mobile phones are considered to be the most common devices in history of humankind. They have involved
in financial transaction such as mobile banking and mobile payment, which include sensitive information.
Public key cryptography is the proven solution that can provide secure transaction at every point of
interaction in mobile banking value chain. This paper proposes a need for peer-to-peer Strong Local
Authentication Protocol (p2pSLAP) for Mobile Banking Transaction that implements a peer-to-peer
architecture to provide local authentication mechanism between the customer and the agent. It employs
public key infrastructure (PKI).
A NEED FOR PEER-TO-PEER STRONG LOCAL AUTHENTICATION PROTOCOL (P2PSLAP) IN MOB...IJNSA Journal
Mobile phones are considered to be the most common devices in history of humankind. They have involved in financial transaction such as mobile banking and mobile payment, which include sensitive information. Public key cryptography is the proven solution that can provide secure transaction at every point of interaction in mobile banking value chain. This paper proposes a need for peer-to-peer Strong Local Authentication Protocol (p2pSLAP) for Mobile Banking Transaction that implements a peer-to-peer architecture to provide local authentication mechanism between the customer and the agent. It employs public key infrastructure (PKI).
Mobile money, a development tool for benin powerpointAJAVON Samuel
The document discusses the development of mobile money services in Benin. It notes that mobile money significantly increases financial inclusion in Benin as mobile phone penetration is around 87% compared to only 10% of the population having access to banks. Mobile money facilitates around 8 billion CFA francs in deposits and 7 billion CFA francs in withdrawals daily. The goal is to increase use of digital financial services like mobile money to 12% of Benin's adult population by 2019.
Mobile money, a development tool for benin powerpointAJAVON Samuel
The document discusses the growth of mobile money services in Benin. It notes that mobile money has significantly increased financial inclusion in Benin, where only 10% of the population has access to banks but mobile penetration is around 87%. Mobile money averages deposits of 8 billion CFA francs and withdrawals of 7 billion CFA francs per day, stimulating the local economy. The goal is to increase use of digital financial services like mobile money to 12% of Benin's adult population by 2019. However, the regulatory framework currently requires partnerships between mobile operators and banks that hinders market development, though some mobile operators are starting to seek independent licenses.
- Mobile payments are a top priority for banks due to growing mobile phone adoption and use of mobile phones for payments.
- There is significant competition from non-banks like mobile operators, e-commerce companies, and payment providers investing in mobile payments.
- Banks can use mobile payments to strengthen customer relationships by focusing on three strategic opportunities: mobile banking, mobile commerce, and mobile money transfers, particularly developing an international money transfer service collaboratively.
A new era for Mobile Financial Services in french speaking africaLandry DJIMPE
This document, focusing on french-speaking Africa, shows an overview of regulatory updates on mobile financial services that resulted from a shift in customers' demands from mere P2P to more added-value services like loans, savings, insurance, wealth management, etc. This also brought up a shift in the business model of mobile money service providers, redefining the role of different stakeholders in the value chain : banks, mobile network operators, fintech, MFIs, etc.
26 legal issues in mobile money transactionsOjijo P
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from multi-dimensions that would be useful for adopting mobile payments.
Mobile Money Business Track: understanding the Model and MarketArief Gunawan
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This course will describe by placing mobile operators at the heart of remittances, Mobile Money Transfer has the potential to catalyze the whole mobile financial services market, incorporating mobile payments, mobile banking and mobile transfers.
Mobile Money Business Track: understanding the Model and Market (1 day)
=================================================
Accessing Pay Buy Mobile Model
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The mobile banking and payment revolution1 b37fc319 e15f-46c8-b2f9-c0d4c8327285Sumit Roy
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This document provides an overview of mobile payment systems and services. It discusses the growth of mobile phone usage globally and in India. Mobile payments are defined as payments made using a mobile device that can initiate, authorize and confirm financial exchanges for goods and services. The document then examines the characteristics, technologies, solutions, architecture and security issues related to mobile payment systems.
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mobile payment is emerging as a key area to revolutionise the everyday financial life of both consumers
and merchants. The past few years have witnessed an increase in the adoption of digital payments and
online billing methods that leverage on wireless technologies and the Internet. However, the success or
failure of mobile payments in businesses is a hot topic today due to the multi-faceted factors such as, type
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Mobile Payments Reloaded - Ericsson Business Review #3 2008
1. 54 • EBR #3 2008
services new regulation opens doors
Mobile payments – reloaded
After much hype in the late s, mobile payments again stand out as one of the most interesting
options for enabling a new breed of non-voice mobile services. This is especially true in Europe,
owing to a regulatory breakthrough that is liberalizing the payments sector and encouraging new
players – namely, telecom operators – to enter this new area.
▶ MOBILE PAYMENTS have been hyped since
the late s, but only Japan and a few
other countries have successfully launched
this service. Many attempts by operators,
especially in Europe, have failed because of
regulatory barriers; lack of interoperability
with banks and other operators; service
complexity and bad user experience, in
turn generating weak interest from consu-
mers.
In the last two years, however, m-pay-
ments have become a hot topic again, as
gsma initiatives show. To understand why
mobile payments are again resurfacing, let
us review the status of worldwide deploy-
ment, and then focus on new options
available to operators.
There is no accepted definition of mobile
payments across the telcom or banking
industry, or even among analysts. In the
following, the term “mobile payments” or
“m-payments” will mean a basic service
involving an electronic money transaction
between two peers (human or machine),
enabled through mobile phones. Another
way to describe the service is “peer-to-peer
(PP) payments.” Based on this definition,
it is possible to imagine an m-payment
transaction as a basic service that enables
more complex value-added services such
as m-commerce, m-banking, or mobile
remittance. The obvious analogy is with
sms, which as a basic service allows text
messaging but can also enable premium
services such as ringtones.
The idea of mobile payment dates back
to the early days of global mobile commu-
nications, when it became clear that a
mobile handset – being a personal yet net-
worked device – could be the ideal way to
authenticate end users and generate mone-
tary transactions. This is exactly what hap-
pens in real-time, prepaid charging sys-
tems. But regulatory constraints have
almost everywhere left a rigid separation
between “(prepaid) phone credit” and elec-
tronic money.
Table shows relevant m-payments
cases worldwide. Felica Mobile in Japan is
probably the best-known case. Two
important reasons for its success – not
easy to replicate elsewhere – are the pre-
sence of a pre-existing, pervasive contact-
less infrastructure (Felica readers/writers,
used by contactless cards, for example, at
railway gates), and the possibility for ope-
rators to define handset specifications.
Felica apart, many m-payment cases can
be defined as first-generation m-payments,
based on legacy service request and
authentication methods such as interactive
voice response (ivr) callback or sms.
PayPal has been an innovator in the pay-
ments area during the last decade, choos-
ing to be as operator-independent as pos-
sible in order to facilitate a global
approach.
Europe has seen several other attempts
to launch mobile payment services. Most
of them failed because of immature regula-
tion and high protective barriers, the clo-
sed approach pursued by some operators,
[TABLE 1]
M-payment cases worldwide
SVENSKA GRAFIKBYRÅN
Service
Name
Country Year of
Launch
Type Invoved
MNO(s)
Key supported
use cases
Service request
method
Results
Felicia
mobile
Japan 2004 proximity NTT Docomo,
KDDI, Softbank
Contactless payments,
transport ticketing, m-
commerce, acces, etc.
physical interaction
(proximity)
50% enabled
handsets (end 07)
M-Pesa Kenia
Sourrce: Ericsson based on Ovum, Juniper, Pyramid
feb-07 remote Safaricom
(Vodafone)
DMT, IMT SMS, IVR 14% penetration (Q1 -08),
generating ar. 50% of non-
voice ARPU end -08
G-Cash Philippines 2004 remote Globe DMT, IMT SMS, IVR 1.5Mil subs
PayPal
Mobile
US, UK,
(EU)
2006 remote MNO-
independent
Client-merchant, transports,
parking, vending machines
IVR call-back
(initiated via SMS,
IVR or POS), WAP
57.3 Mil adaptive Paypal
accounts, end -07
Paybox Austria 2003 remote Mobilkom, ONE, (T-mobile
and tele. ring from end-08)
client-merchant,
m-commerce, charity
IVR call-back ,
IVR or POS)
4 Mil subscriberbs (end-08)
1 Mil active users (end -07)
MobilPay Spain 2002 remote Telefonica,
Vodafone, Orange
m-commerce,
client-merchant
SMS, IVR N/A
PayForit UK 2006 remote Vodafone, Orange,
O2, T-Mobile, H3G
m-commerce: mobile and web
check-out for micro-
payments (<10£)
WAP N/A
Poste
Mobile
Italy nov-07 remote PosteMobile (MVNO) PA payments
(taxes bulletines),
DMT m-banking etc.
SIM based 200k subscribers (mid-08)
C_inlaga_ebr.indd 54C_inlaga_ebr.indd 54 08-10-23 13.33.1108-10-23 13.33.11
2. EBR #3 2008 • 55
new regulation opens doors services
and being too cumbersome to use.
SimPay’s attempt to build an ecosystem
resulted in a major failure that caused the
consortium to collapse in , spreading
skepticism about the whole area.
However, something survived from these
early attempts:
The PayBox model in Austria (recently▶
being promoted also in Germany) is
showing good results, as a consequence
of clear vision, ability to execute, and a
cooperative operator-approach led by
Mobilkom Austria.
PosteMobile in Italy is an interesting,▶
early example of second-generation
remote payments, coupling payments
with a mobile digital signature
infrastructure able to support new,
advanced mobile services.
PROXIMITY AND REMOTE PAYMENTS
M-payments can be broadly categorized
into two classes: proximity payments and
remote payments.
Proximity payments require the payer
and payee to be a short distance apart. The
most common and promising form is con-
tactless payment, in which the mobile
handset communicates with a reader/wri-
ter (for example, a Point of Sale, pos) or
with another handset with similar capabili-
ties, through a short-range radio interface,
usually at a distance under .m. Felica in
Japan is the most prominent example of
contactless payment service.
In the area of contactless applications
(including payments, but also other servi-
ces such as access control, identification,
and ticketing), mobile-nfc (near-field
communication) is the forthcoming stan-
dard being promoted by the global trade
association (gsma), plus standardization
bodies, bank associations, card companies,
and handset makers.
Remote payments are a mobile service
through which monetary transactions are
performed remotely, typically via interac-
tive voice response or sms. Because
remote payments do not require a new
infrastructure (unlike contactless pay-
ments) and enable payment transactions
regardless of distance, this service is gro-
wing in developing countries as the best or
only way of performing domestic or even
international money transfer, in areas
where there is little – if any – bank
infrastructure.
The two most interesting remote-pay-
ment success stories so far are G-Cash,
commercialized in the Philippines by ope-
rator Globe, and M-Pesa in Kenya (pro-
moted by Safaricom), with the service
[FIGURE 1]
Remote payments partnership models
Poste
Scenario 1
Operator »
E-money institute
Scenario 2
Operator driven
partnership
Scenario 3
3rd party
driven
Scenario 4
Bank-driven
partnership
Scenario 5
Bank »
MVNO
TELCO CENTRIC BANK CENTRICTELCO CENTRIC BANK CENTRIC
becoming increasingly popular in other
developing countries.
NEW PARTNERING OPPORTUNITIES
One of the key issues with m-payments has
always been the hybrid nature of “mobile”
and “payments” service. That is, m-pay-
ments are a family of financial services that
in principle could be provided by a mobile
operator, a bank/financial institution, or a
combination of them in partnership.
Figure summarizes the possible part-
nership models between mobile network
operators and banks.
Scenario is at one extreme: An opera-
tor acquires a financial license (in Europe,
a license such as E-Money Institute [emi]
would be required) in order to provide
m-payment services on its own. Scena-
rio is at the other extreme: A bank acqui-
res an operator license, or most likely
becomes a Mobile Virtual Network Opera-
tor (mvno), in order to autonomously pro-
vide the service.
The scenarios in between include differ-
ent degrees of partnership between one
operator or more, one bank or more, and
eventually (Scenario ) a third party such
as a service broker, decoupling operators
from banks and effectively allowing for
multi-operator, multi-bank interaction.
The third scenario allows maximum
interoperability between players,¹ while
being the most complex in terms of trans-
action handling, service provisioning, acti-
vation, assurance, and – above all – secu-
rity management, because three parties are
involved in each process.
BARRIERS LIFTED
Unfavorable regulation has always been a
barrier for operators wanting to enter the
payments market. In many countries, pay-
ments have been considered a financial
service with a level of risk requiring heavy-
handed prudential regulations – basically,
a business that only banks and established
financial institutions are allowed to con-
duct. This approach limited operators wil-
ling to enter the business, and in many
countries the only monetary transactions
that can be handled by mobile operators
are those related to prepaid top-up, and
the sale of digital content such as ringtones
or music.
The situation continues to change,
however. Since the late s the European
Commission and the European Central
Bank (ecb) have envisioned the need to
progressively deregulate and open the pay-
ments market. Two important reasons for
this change are the “war on cash” concept;
the political will to sharply decrease cash
transactions in favor of electronic transac-
tions and the will to encourage competi-
tion in a payments market dominated by
banks and financial institutions.
The first sign of deregulation has been
eu regulation on electronic money, (eu
directive //ce ), which now allows
nonbank entities called E-Money Institutes
(emi) to be licensed as e-money issuers,
able to perform a wide range of financial
operations for their customers.
The second step – and a bold one –
toward the sector’s liberalization has been
the adoption of the Payment Services
Directive (psd), at the end of (eu
directive //ce). The psd constitutes
the legal infrastructure for the Single Euro
Payments Area (sepa) process, and defines
a new legal entity that will be allowed to
offer payment services: the Payments Insti-
tute, or pi. New players will not be
requested to set up ad hoc legal entities as
. A possible alternative to a Trusted Third Party (TTP), in order to gua-
ranteeinteroperability,wouldbetoleveragepeeringagreementssuchas
roaming agreements. However, while in the telco world the peering
model works due to limited number of potential peers, realizing an
interoperable ecosystem encompassing both operators and banks based
on peering agreements would be difficult, owing.
C_inlaga_ebr.indd 55C_inlaga_ebr.indd 55 08-10-23 13.33.1108-10-23 13.33.11
3. 56 • EBR #3 2008
services new regulation opens doors
pis but will be allowed to become licensed
pis themselves.
The psd is being implemented by natio-
nal authorities across the Eurozone, and
will become effective by November ,
.
The entry barriers to becoming a pi are
expected to be relatively low. Conversely,
once the new regulation is in place, pis will
be allowed a rich range of operations, such
as:
Performing direct debit and money▶
transfers.
Retaining and operateing payments▶
accounts.
Issuing debit cards, when associated▶
with the payment account.
Provide credit and implementing revolv-▶
ing reimbursement schemes (limited to
months when operational at eu level
and strictly related to payments).
Operateing a payment system (e.g. a▶
financial clearinghouse).
In order to operate in an effective way, it
is likely that Payment Institutes will access
relevant banking infrastructures, such as
inter-bank networks and circuits.
Based on the previous considerations, it
is possible to identify key requirements for
success, and sketch a proposal for next-
generation mobile payments such as sim-
based PP payments.
KEY REQUIREMENTS FOR OPERATORS SUCCESS
Interoperability is clearly a precondition
for market development. As shown in
Figure , models based on a trusted third
party seem to be the best solution in order
to guarantee interoperability between all
players in the value chain. Consumers
would be able to use their mobile to pay
for services or to transfer money, regard-
less of which operator they subscribe to
and which bank holds their checking
account.
Interoperability is not only between ope-
rators and banks. A mobile payments eco-
system should be open to external service
providers so they may easily develop new
vertical applications – of course being
compliant with a standard and common
set of rules for user identification, authen-
tication, and transaction authorization.
One must consumers a clear reason why
they should pay using their mobile, instead
of using cash or debit or credit cards. For
example, a key reason why Felica has been
successful in Japan has been the conve-
nience when paying for public transport.
As well, a simple and effective user expe-
rience is mandatory for success in every
mobile service. A payment transaction
should request only basic information,
such as destination, amount, and a security
pin number. Making payment transactions
should be as similar as possible to sending
an sms.
Because mobile transactions are a target
for frauds and malicious applications, the
proposed payments platform should offer
high security protection for transactions,
including the capability of ensuring
authentication, confidentiality, integrity,
and nonrepudiation of transactions. As an
example, standard Wireless Public Key
Infrastructure (wpki) technology can be
used.
From a merchant perspective, transac-
tion fees should be comparable to the cost
of other electronic transactions performed
with traditional methods such as payment
cards. Fees for micropayments are expec-
ted to decrease from the current .–
percent to –. percent. Mobile operators
can be expected to have an advantage of
scale over traditional players in their real-
time charging systems.
A MOBILE PAYMENTS ECOSYSTEM
The first strategic choice to be made is
which service concept to focus on. While
most of the attention in the past has been
on proximity payments and nfc techno-
logy, most analysts now agree that nfc
technology will require at least five years
to become widely available. Setting up a
mobile nfc ecosystem will require the
replacement of mobile handsets, sim
cards, and pos infrastructure. This implies
a long deployment cycle.
Payment services currently available are
usually based on “legacy” technologies
such as sms or ivr. Web browsers or Java
clients have been proposed as convenient
ways to create payment services. Software
clients may present some advantages, but
we propose instead to use a sim-based
approach because it is handset-indepen-
dent, more secure (two-factor authentica-
tion) by supporting strong authentication
methods and mobile digital signaturs. It
also paves the way to mobile nfc evolu-
tion.
For operators, a sim-based approach
would solidly anchor m-payments evolu-
tion within the telecom industry space.
▶ M-payments and mobile digital signa-
ture in one platform. Integrating a basic
payment transaction capability with ver-
tical applications such as parking, trans-
portation, or m-government may
acquire strong authentication methods,
or even a legally binding digital signature
infrastructure. Thus, having one logical
platform that supports both payments
and mobile digital signature seems the
right combination.
Interoperability through a Payments▶
Broker. Interoperability and openness
are crucial for long-term market deve-
lopment. In order to achieve them easily
and effectively, it is suggested to select a
broker-centric approach (see Scenario
in Figure ). In this scenario, a Payments
Broker acting as Trusted Third Party
(ttp) ensures open connectivity and
interoperability among all involved par-
ties.
Payments Broker as Payments Institu-▶
tion for quick time-to-market. This is
probably the key choice of business
model, and the most critical one. Defi-
ning the Payments Broker as a pi would
allow the Payments Broker to quickly
offer a broad range of services without
having to implement complex agree-
ments between operators and banks; for
example, on the revenue-sharing level
for each transaction. This choice would
simplify the value chain and improve
time to market. Furthermore, being able
to capture the largest part of the whole
transaction fee for mobile payments
would improve the overall business case
for the Payments Broker.
THE NEXT-GENERATION SERVICE PLATFORM
These requirements and choices lay the
groundwork for a Next-Generation Service
Platform (ngsp), the technical infrastruc-
ture on which a Payments Broker should
rely, in order to launch and operate sim-
based PP payments.
The key feature to be provided by an
ngsp is the ability to support money trans-
actions between two peer entities, ensur-
ing mutual authentication as well as inte-
grity, confidentiality, and nonrepudiation
of transactions. The ability to support
these transactions in real time, and to pro-
vide timely notifications of transaction sta-
tus to all involved parties, is another
important feature.
The ngsp should be the central hub in a
multi-operator, multi-bank environment,
allowing interoperability and supporting
innovative services. This infrastructure
should combine payments transaction pro-
cessing and mobile digital signature capa-
bilities into one interoperable framework.
The ngsp should include four technical
capabilities into one integrated, logical
platform:
dynamic▶ sim management
mobile digital signature support (e.g.,▶
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4. EBR #3 2008 • 57
new regulation opens doors services
through a wpki technology infrastruc-
ture)
transaction processing▶
financial clearinghouse.▶
In addition, the ngsp would act as a
single integration and reporting point for
operators, banks, service providers, certifi-
cation authorities (if needed), and relevant
security and surveillance entities. It is
worth considering that being based on
open-standards technologies makes the
ngsp open to both fixed (internet) and
mobile peers.
The ngsp can assume a central role
within a mobile secure-transactions eco-
system, where m-payments are only one of
the services being provided. By combining
the abilities to process transactions in real-
time and support mobile digital signatures,
the ngsp could enable several new servi-
ces, such as PP payments, m-parking,
transportation and ticketing, m-govern-
ment, and m-commerce. It would also faci-
litate mobile gambling, a promising service
that in many countries is hard or impos-
sible to launch because of strict regulations
regarding user identification, age verifica-
tion, and traceability of money transac-
tions.
Contactless payments can also be sup-
ported on an ngsp platform, because some
of the capabilities requested (key
exchange/key management, dynamic sim
management, identity management, inte-
gration with relevant banks’ internet servi-
ces and infrastructure) make an ngsp the
natural candidate to host – or integrate
with – a “trusted service manager” (tsm)
function in a mobile nfc ecosystem.
For all these reasons, mobile payments
are becoming a hot topic once again.
Operators can start focusing on remote
payments and defining a strategy to ensure
long-term success. A credible strategy
must first address how to ensure that end
users will keep using their mobiles to pay
for something, and then pave the way to
full interoperability at ecosystem level,
which is critical for long-term market
growth. The ngsp concept may be consi-
dered a target model, and should be taken
into account even for short-term tactical
initiatives driven by a single operator. ●
AUTHOR
▶ Giorgio Andreoli is Direc-
tor, Strategic Marketing for
Ericsson South-East Europe
(SEE). He has 15 years of ex-
perience in ICT and the inter-
net, having worked in a variety of roles both in tele-
communications and other industries, including
finance and banking. Since 2007 he has been re-
sponsible for a strategic program on mobile pay-
ments at the SEE level. Giorgio holds an MSc in Infor-
mation Technology from Cefriel, Polytechnic
University of Milan. (giorgio.andreoli@ericsson.com)
[Figure 2]
Next Generation Service Platform
Banks
Inter-banknetwork
&circuits
= Payments
institution
m-government
topup
gambling
m-commerce
moneytransfer
transportation
parking
Merchants
& acuirers
Card
schemes
NGSP
Mobile
operators
Certification
Authorities
Payments Broker
PI
PI
PI
▶ SEPA is a self-regulation effort un-
dertaken by European banks to har-
monize all electronic payment transac-
tions and related procedures across an
area encompassing EU 27 countries
(Austria, Belgium, Bulgaria, Cyprus, the
Czech Republic, Denmark, Estonia, Fin-
land, France, Germany, Greece, Hunga-
ry, Ireland, Italy, Latvia, Lithuania, Lux-
embourg, Malta, the Netherlands,
Poland, Portugal, Romania, Slovakia,
Slovenia, Spain, Sweden, and the Unit-
ed Kingdom), EEA countries (Norway,
Iceland, Lichtenstein), and Switzerland.
As an effect of this regulation, be-
tween 2009 and 2012 all differences in
costs, value days, procedures, and so
forth between national and interna-
tional (cross-border) banking transac-
tions will disappear within SEPA.
The Single Euro Payments Area:
SEPA
▶ PayPal, an eBay company and non-
bank entity, is one of the most interest-
ing cases of service innovation in the
payments industry in the last 20 years.
PayPal was first to introduce P2P pay-
ments. In PayPal’s service concept,
each payer creates his or her own wal-
let with multiple payments tools (debit
cards, credit cards, bank accounts),
then uses PayPal to transfer money to
a peer entity, usually as the result of a
commercial transaction on eBay.
The real innovation is on the recipi-
ent (payee) side, where the receiver
can easily receive the money in a Pay-
Pal account without having to use ex-
pensive and slow methods for interna-
tional money transfer provided by
banks, such as wiring money.
Widely successful at the global level,
with approximately 160 million per-
sonal accounts worldwide, PayPal has
since 2006 been trying to replicate this
success on mobile, both by enabling
mobile access to PayPal accounts (Pay-
Pal Mobile) and by introducing mobile-
specific payment services.
The PayPal case
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