Mobile Payment Forum of India

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

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

3. 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”

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

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

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

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

8. Bank SMSC / USSD Gateway SMSC / USSD Gateway Bank GPRS Gateway GPRS Gateway Mobile Payment Application / Service Mobile Payment Application / Service Transaction flow Mobile Networks Switch and settlement agency Mobile Networks

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

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

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

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

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

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

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

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