This paper suggests that the mobile phone number, and not any other specific code or identifier, should be used to identify the payer and payee in a mobile remote payment transaction. 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 infrastructure as far as possible. The paper identifies guidelines for developing a payment “ecosystem” stressing the need for interoperability across different payment systems and stakeholders across the globe.
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.
This paper discusses these models, identifies the requirements for implementing the models, and provides generic process flow diagrams for implementing secure and interoperable mobile remote payments. (click the picture to make it larger)