Mobile Payment Forum of India Technology Subcommittee Presentation on Interoperability Mumbai 18 Nov 2008

Agenda Interoperability – definition Interoperability – definition Required and Desired features Required and Desired features What interoperability should address What interoperability should address Technology Subcommittee progress Technology Subcommittee progress Generalized Mobile Payment Transaction flow Generalized Mobile Payment Transaction flow Routing requirements Routing requirements Options considered Options considered Documentation available Documentation available

Interoperability A common framework of processes and methods that enable movement of funds across accounts held by two customers participating in mobile payment systems using their mobile phones A common framework of processes and methods that enable movement of funds across accounts held by two customers participating in mobile payment systems using their mobile phones

Required features Bank intermediated fund transfers Bank intermediated fund transfers Network (MOS) agnostic Network (MOS) agnostic Mobile application agnostic Mobile application agnostic Phone agnostic Phone agnostic

Desired features Customer level Customer level Simple User Interface Simple User Interface Delivery confirmation Delivery confirmation Bank level Bank level Leverage existing payment systems in place Leverage existing payment systems in place Secure, auditable transactions Secure, auditable transactions Proven settlement processes, dispute redressal mechanism Proven settlement processes, dispute redressal mechanism

Framework to address Multiple players in mobile payments Mobile Service Operators Mobile Service Operators Mobile Payment Application providers Mobile Payment Application providers Banks Banks Inter bank fund transfer methods Inter bank fund transfer methods

Progress Presentation on approaches – 16 Feb 08 Presentation on approaches – 16 Feb 08 RBI Draft Guidelines issued Apr 08 RBI Draft Guidelines issued Apr 08 Draft message formats May 08 Draft message formats May 08 Internal meet of Tech sub committee Sep 08 Internal meet of Tech sub committee Sep 08 EC con call Oct 08 on interoperability EC con call Oct 08 on interoperability Tech committees website for doc archival, discussion forums Oct 08 Tech committees website for doc archival, discussion forums Oct 08 Inter operability doc posted and reviewed by tech committee Inter operability doc posted and reviewed by tech committee Provided to EC on 31 oct Provided to EC on 31 oct Feedback on docs received upto 6 Nov 08 Feedback on docs received upto 6 Nov 08

Mobile Network s Bank Mobile Payment Application / Service SMSC / USSD Gateway GPRS Gateway Mobile Network s Mobile Payment Application / Service SMSC / USSD Gateway GPRS Gateway Bank Switch and settlement agency Transaction flow

Inter bank fund movement Using existing Switch and Settlement process / agency Using existing Switch and Settlement process / agency Bank ~ Switch Interface using ISO 8583 message formats Bank ~ Switch Interface using ISO 8583 message formats Already in operation for ATM sharing Already in operation for ATM sharing Modified for Mobile Payments requirements Modified for Mobile Payments requirements Reporting and settlement processes in place Reporting and settlement processes in place

Inter Bank Routing Card number / IIN (BIN) based Card number / IIN (BIN) based First few digits of card number determine destination bank (Issuer) First few digits of card number determine destination bank (Issuer) Mobile payment transaction Mobile payment transaction Should have routing information Should have routing information

Options Sender provides Sender provides 1.Recipient card number Knowledge of receivers card number Knowledge of receivers card number Tedious, error prone Tedious, error prone 2.IIN (BIN) number Sending Bank sets up pseudo card number Sending Bank sets up pseudo card number Switch routes to beneficiary bank based on IIN Switch routes to beneficiary bank based on IIN Beneficiary bank looks up account number based on mobile number registered Beneficiary bank looks up account number based on mobile number registered IIN set up based on short bank names IIN set up based on short bank names

Options (contd) 3.Only recipient mobile number IIN look up based on a repository of mobile numbers / banks IIN look up based on a repository of mobile numbers / banks National level repository required to be setup National level repository required to be setup Investments, maintenance Investments, maintenance Possibly Long gestation Possibly Long gestation Obtain IIN by Peer-to-peer communication of Mobile Payment Application providers Obtain IIN by Peer-to-peer communication of Mobile Payment Application providers Cooperative arrangements between MPAs Cooperative arrangements between MPAs Large number of players can result in multiple queries to MPAs Large number of players can result in multiple queries to MPAs Obtain target IIN by Hierarchical look up Obtain target IIN by Hierarchical look up Mobile network operators provide destination MPA info Mobile network operators provide destination MPA info MPA is queried to get the IIN of the recipient IIN MPA is queried to get the IIN of the recipient IIN Mobile number portability issues – multiple searches Mobile number portability issues – multiple searches

Conclusion Viable options seem to be Viable options seem to be Bank IIN as part of transaction data using simple bank codes / acronyms Bank IIN as part of transaction data using simple bank codes / acronyms National registry (DB) of registered mobile users National registry (DB) of registered mobile users

Viable options Workable options seem to be Workable options seem to be Bank IIN as part of transaction data using simple bank codes / acronyms Bank IIN as part of transaction data using simple bank codes / acronyms National registry (DB) of registered mobile users National registry (DB) of registered mobile users

Documents Document on Interoperability ver 3.1 Document on Interoperability ver 3.1 Annexures Annexures Message specifications Message specifications Detailed ISO 8583 message specs Detailed ISO 8583 message specs Messaging standardization Messaging standardization Tran flow, Settlement reports Tran flow, Settlement reports

Technology Subcommittee Presentation on Interoperability Mumbai 18 Nov 2008 Thank you!