Mobile Payment Forum of India Technology sub-committee

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Mobile Payment Forum of IndiaTechnology
sub-committee

• Presentation
• on mobile payments

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Agenda

• Technology architecture
• Transaction flows
• Intra Bank transfer
• Inter Bank transfer
• Connectivity and Security
• Standards and requirements
• Mobile Mobile Banking Application
• Mobile phone application
• Cost components

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Technology architectureTransaction flow
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Intra bank transfer
Mobile Networks
Internet
Bank
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Intra bank transfer - Transaction flow

• Bank connects to Mobile networks via Mobile
  Banking Application / Service (MBAS)
• Sender and Receiver perform a registration at
  Bank
• MBAS stores card number, or account no and Bank
  ID
• Sender specifies a recipient Mobile number /
  account number and initiates a transfer request
• MBAS performs checks and forwards the request to
  the Bank
• Bank validates the From / To accounts, performs a
  fund transfer responds to the sender and the
  receiver via MBAS

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Intra bank transfer

• Service offerings
• For Banks customers only
• Bank can offer unique services
• Transaction processing and settlement
• Intra-bank transactions can be settled by the
  bank itself

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Inter bank mobile payment transfer
ISO 8583
Bank 1
Mobile Networks
Bank 1
Internet
Transaction Switch
Bank 2
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Inter bank transfer Transaction flow

• MBAS connects to the mobile networks, and
  connects to a Transaction Switch, which in turn
  connects to Banks
• Same Sender / Receiver Registration process
• Sender (of Bank 1) specifies a recipient Mobile /
  account number of other bank (Bank 2) and
  initiates a transfer request
• Bank 1 validates the From account, performs a
  debit and returns status to Switch
• Switch sends the credit leg to Bank 2
• Bank 2 validates the credit account, and responds
  to Switch
• If invalid To account, sends a failure message
  to Switch
• Bank 1 reverses the debit, sends out a failure
  message to Sender

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Inter bank mobile payments

• Service offerings
• Transfer of funds across banks account
• Purchase / payments
• Transaction processing and settlement
• Intra bank transaction settlement by each bank
• Inter bank settlement reports by Switch for
  settlement by Settlement Bank / or settlement
  Agency

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Connectivity and Security Standards, requirements
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Mobile MBAS

• SMS / GPRS connectivity
• HSM based authorization and key management
• PKI infrastructure and DUKPT between MBAS and the
  mobile
• Audit logs for at least 1 year at MBAS

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Mobile phone application

• Customer registration with bank required for
  availing Mobile Banking services bank issues
  MPIN on secure stationery
• Application initiation by password / PIN issued
  by MBAS provider
• Bank can consider imposing limits on transaction
  amount customer wise or for the channel
• Forced password change on first usage for
  application / transaction
• Biometric authentication - nascent stage, early

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Mobile phone application (contd)

• SMS / USSD / CDMA / GPRS based technology are
  acceptable
• Menu based applications using open standards on
  J2ME recommended
• Application download via OTA, IR or Internet
• Application invocation PIN at the time of
  downloading the application

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Cost components

• Service offerings by Mobile operator
• SMS / GPRS / USSD
• Mobile Banking application on handset
• Provided by application provider
• Mobile Banking Application Server / Service
• EFT Switching / SFMS Messaging costs
• NFT / FSS / SFMS
• Transaction processing costs at Banks
• Settlement costs
• CCIL / RTGS

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MPFI Technology sub-committee

• Thank you