Mobile Payments 101. How do they work?. Richard A. Gibbs June 1, 2011 Karen Ross Andrew Lorentz. Agenda. What is a mobile payment? Mobile payment technology Near field communications Value proposition and challenges Critical issues. What is a mobile payment?. Mobile payment
How do they work?
Richard A. Gibbs June 1, 2011
Source: Essentials for Successful NFC Mobile Ecosystem, NFC Forum (Oct. 2008)
Financial Institutions (FI)/Banks
Mobile Network Operators (MNO)
Trusted Service Managers (TSM)
Payment Card Associations
Secure Element Manufacturers
Technology Providers (NFC Chipset, POS Terminals)
Third Party Application Providers
Standard BodiesNFC stakeholders
“You have banks competing with carriers competing with Apple and Google, and it’s pretty much a goat rodeo until someone sorts it out.” Drew Sievers, chief executive of mFoundry (developer of mobile payment software for merchants and banks)
Develops, maintains, and drives adoption of its programming language and APIs, which provide an open and interoperable infrastructure for applications and secure communications within devices.
Engages in technical, commercial, and public policy initiatives to ensure that mobile services are interoperable worldwide.
Drives adoption of its technical standards, which provide an open and interoperable infrastructure for transactions performed using smart cards, systems, and devices.
Develops specifications for NFC devices that are based on ISO/IEC standard 18092 for contactless interfaces, ensuring interoperability among devices and services.
Establishes international standards, including standards applicable to financial transactions and contact and contactless smart cards.
Develops mobile service-enabler specifications to promote interoperability.
Maintains, evolves, and promotes standards for payment account security.
Simple Mode—A MNO-centric model where only the MNO performs SE lifecycle management functions but TSM can monitor and verify loading of applications
One MNO – One TSM
Delegated Mode—TSM is authorized to load applications and perform application lifecycle management functions
Authorized Mode—Several entities are authorized to load applications and perform application lifecycle management functions
Multiple MNOs – Multiple TSMs