EPC and Mobile Payments Mobile Wallets Whats at

EPC and Mobile Payments Mobile Wallets – What’s at stake ? Mr. Dag-Inge Flatraaker EPC Chair MCWG & Executive Board Member EPC Mobey. Forum Meeting February 2014 Oslo, Norway www. epc-cep. eu

Content • Introduction • EPC mobile publications • Mobile Wallet Payments – content and what’s at stake ? • M-Wallets – what are the remaining issues to be resolved ? • External liaison and co-operation Pres EPC 03 -14 v 0. 1 www. epc-cep. eu 2

Introduction • Mobile devices having achieved near full market penetration and increasingly rich functionality are an ideal channel for SEPA payments • Creating ease, convenience and trust for end-customer is critical for the further market take-up of mobile payments • Collaboration among all stakeholders in the mobile services ecosystem is key for interoperability and cost-effectiveness • Key challenges for the European payments industry/EPC: - New context for European payments, with increasing regulation of the sector; - Consolidation of a multi-stakeholder environment, shifting from a “self regulation” to an “influencing” approach. Pres EPC 03 -14 v 0. 1 www. epc-cep. eu 3

EPC publications on Mobile Payments • White Paper Mobile Payments (EPC 492 -09) • EPC-GSMA specifications for TSMs (Mobile Contactless Payments Service Management Roles - Requirements and Specifications -EPC 220 -08) • Guidelines for Mobile Contactless Payments (MCP Interoperability Implementation Guidelines - EPC 178 -10) • Mobile remote card payments - EPC contributed through deliverables on uses cases, transaction and security aspects to the work of the Card Stakeholder Group (CSG) (Cards Standardisation Volume - EPC 020 -08) Pres EPC 03 -14 v 0. 1 www. epc-cep. eu 4

White Paper on Mobile Wallet Payments (1) • Mobile wallets may be regarded as a key tool to create ease and trust for end-customers and enable convenient, homogenous and seamless access to multiple mobile services • Offering of additional mobile services (such as ticketing, loyalty, couponing, etc. . . ) next to financial services appears to be important drivers for the value proposition • Facilitator for mobile payments (initiation and authentication processes) • Offering new business opportunities Pres EPC 03 -14 v 0. 1 www. epc-cep. eu 5

White Paper on Mobile Wallet Payments (2) • Updated version after a 3 month public consultation was published on 21 January 2014 • EPC 163 -13 v 1. 0 can be downloaded from EPC website • For consideration and engagement by all stakeholders in the mobile wallet ecosystem Pres EPC 03 -14 v 0. 1 www. epc-cep. eu 6

White Paper on Mobile Wallet Payments (3) • The White Paper provides a descriptive overview on • Mobile wallet payments ecosystem • Different mobile wallet models for mobile payments • Technical aspects and lifecycle management of mobile wallets • Mobile wallet payment use case illustrations Pres EPC 03 -14 v 0. 1 www. epc-cep. eu 7

White Paper on Mobile Wallet Payments (4) New version with respect to: - - Updated description of the use cases through the daily life of a mobile wallet holder updated description of the different stakeholders in the mobile wallet ecosystem and mobile wallet models Enhanced focus on security aspects of mobile wallet infrastructures with their components and the secure environment to host the mobile payment application and / or data. A new annex providing a short description of the SEPA payment instruments based on comments and inputs received through the consultation Pres EPC 03 -14 v 0. 1 www. epc-cep. eu 8

White Paper on Mobile Wallet Payments (5) To enable a cost-effective approach for all stakeholders involved in the mobile wallet payments ecosystem, a number of key challenges remain to be addressed in the future. Remaining challenges : • Harmonisation of user interfaces to enable a consistent user experience (easy to use, intuitive, etc); • Co-existence of payment with other mobile services in a mobile wallet. ; • Co-existence of multiple mobile wallets on or accessed through a single mobile device; • Linkage of mobile wallets in the payer's space with merchant wallets; Pres EPC 03 -14 v 0. 1 www. epc-cep. eu 9

White Paper on Mobile Wallet Payments (6) Remaining challenges (continued): • Harmonisation of user interfaces to enable interoperability of mobile wallet interfaces; • Execution of proximity payments with remote mobile wallets; • Alignment of mobile wallet security aspects (including authentication) with existing and forthcoming requirements for m-payments (e. g. , the Secu. Re Pay recommendations); • Coordination amongst various industry initiatives on mobile wallets Pres EPC 03 -14 v 0. 1 www. epc-cep. eu 10

External Liaison and Coordination The MCWG continues its liaison with - Mobey. Forum (collaboration on mobile wallets) - ISO TC 68 SC 7 WG 10 (EPC work on mobile payments has been contributed for the development of a new standard on Mobile Financial Services -IS 12812) - Global. Platform - EMVCo - GSMA The MCWG is also monitoring and contributing to the discussions held within the European Multi. Stakeholder Platform for ICT Standardization (organised by DG Enterprise and Industry) that affect mobile payments Pres EPC 03 -14 v 0. 1 www. epc-cep. eu 11

Thank you for your attention For further information, please consult: www. epc-cep. eu Subscribe to the EPC Newsletter on www. epc-cep. eu Further questions, please address to: mp. consultation@epc-cep. eu