EPC: Exploring the mobile eco-system to promote SEPA
06 July 2010
The EPC consults on its "White Paper on mobile Payments" which aims to foster a common understanding between payment service providers and bank customers.
The EPC White Paper on Mobile Payments offers an informative read to any party interested in mobile payments, and aims to foster a common understanding between payment service providers and bank customers by using non-technical language. The document predominantly focuses on mobile contactless card payments, where the mobile device needs to be in close proximity to a point-of-sale terminal, while also addressing some aspects of mobile remote payments, where two parties are able to send and receive funds irrespective of where they are located.
Given the proliferation of mobile phones and related service levels throughout the European Union (EU), the EPC recognises that the mobile channel is an ideal launch pad for SEPA payment instruments. Many consumers are already using mobile phones for services beyond the traditional voice calls and short messaging services due to the introduction of packaged offers, including internet access provided by the mobile network operators. As a result, consumer expectations with regard to mobile phone functionality have increased dramatically, with many users eager to embrace new service solutions based on this delivery platform, such as payments. The availability of practical SEPA mobile payments, either account or card-based, would provide a realistic alternative to cash and cheques.
At the same time, merchants demand that new technology translates into cost savings, increased business volume and reduced exposure to security threats such as cash thefts or illicit payments, as well as enhanced marketing opportunities and brand recognition. Mobile phone initiated payments, in particular those using the contactless approach, are very well positioned to generate these benefits for merchants and other stakeholders who are directly providing services to consumers.
Gerard Hartsink, Chairman of the EPC, comments: “The EPC, working together with other stakeholders such as, for example, GSMA, the organisation representing the interests of the worldwide mobile communications industry, is in the process of establishing the necessary standards and business rules with regard to the initiation and receipt of SEPA payments by mobile. The aim is to develop proposals that support collaboration and standardisation and which form the basis for interoperability. Our intention is to establish a service framework sufficient to reach potentially all payers and payees in the European Economic Area and to create a trusted and secure environment for the multiple stakeholders active in the field.”
Dag-Inge Flatraaker, Chairman of the EPC M-Channel Working Group, adds: “The EPC White Paper on Mobile Payments responds to changing customer requirements in the payments market and demonstrates how mobile payments can increase efficiency, effectiveness and convenience. This paper creates awareness on how to best combine the benefits of state-of-the art SEPA payment instruments for credit transfers, direct debits and card payments handled through one of the most popular and versatile devices introduced in the past two decades – the mobile phone.”
Next steps
This first release of the EPC White Paper on mobile payments has been published for banking consultation and comments are invited by 15 February 2010. The first edition of this white paper following evaluation of the feedback received during the public consultation is expected to be published by April 2010. A second edition is scheduled for release in the fourth quarter of 2010 and will include a more detailed analysis, in particular regarding mobile remote payments. In addition, the EPC will provide further implementation guidance on mobile payments in forthcoming documents for both proximity and remote payments covering business, technical, security and legal aspects.
© European Payments Council
