Payments Council Mobile Payments Scheme Mobey Forum 24

Payments Council Mobile Payments Scheme Mobey Forum, 24 May 2012 Richard Martin, Head of Innovation

The Payments Council ¢ Our focus is on integrity, inclusion and innovation ¢ Ensure that payments are shaped by customers’ needs and we provide open access to all banks ¢ Maintain the UK’s reputation for providing customers with world class payments

National Payments Plan ¢ First published in May 2008 ¢ 3 -year update cycle ¢ Updated in 2011 to extend and refocus our work up to 2014 ¢ Draws on a consultation, our market research and engagement undertaken on the future of cheques ¢ Fits into the Payments Council broader strategy and activity plan

2011 National Payments Plan The central aim of the 2011 National Payments Plan is to ensure that the UK’s citizens, businesses and other organisations have access to a broad range of modern and efficient payment methods that meet their needs, and to ensure that they are confident using them

2011 National Payments Plan INNOVATION INCLUSION Research and develop new services Improve access and inclusion Enhance existing services Make payments clearer Facilitate innovation Understand needs INTEGRITY Keep payments robust and secure

Mobile and the NPP Mobile payments project is a commitment in the National Payments Plan § Foster innovation § Encourage open access § Develop common standards

The Mobile Payments Scheme ¢ Fast, reliable payments to and from accounts at any participating payment provider (banks, building societies and other payment providers) ¢ Send a payment using the recipient’s mobile phone number instead of their account details ¢ Initial focus is on Person-to-person (e. g. paying a friend for supper) and Person-to-business (small businesses, tradesmen, charities, clubs etc. )

Role of collaboration ¢ To create the best environment for innovation ¢ To enable payment providers’ customers to easily send payments between themselves ¢ To generate confidence through a common set of rules and requirements so that all parties know what to expect Competing Services Context layer (common user experience/ expectations) Interoperability layer (Common Infrastructure and messaging) Definition layer (Scheme & standards)

Proposition in essence Proxy database Payment received Mobile payment Amount: £ 100. 35 From: 0798 654 231 Ref. lunch Pay: 07123 45678 Amount: £ 100. 35 Ref: lunch OK Payment will be credited to your Account OK Cancel Collaborative space

What we are building ¢ A database to hold mobile phone numbers and account details - Payment providers can populate it with their customer information. Other participating providers can then query it to correctly address payments ¢ Changes to our core payment systems to support the needs of mpayments ¢ A Scheme that will set out common standards and requirements to ensure a consistent customer experience and that ensures security and reliability, and that ensures: ¢ An open structure for payment providers to participate

Timeline ¢ The launch configuration is agreed ¢ Proposition and the core technical / functional specifications agreed ¢ Target fit-to-go-live for the central platform Q 4 2012 ¢ Individual payment providers can then develop their own services and rollout to customers ¢ Scheme company takes over responsibility for future development and on-boarding new participants ¢ Future development roadmap releases 2013 onwards

Platform for evolution ¢ At launch - “Push” payments – initiated by the payer - Sent as either Faster Payment or LINK transfer ¢ A flexible future - Other payment models (e. g. Beneficiary-initiated payments using a pre-filled invoice or a “request to pay”) - Other payment services - Other proxies - Support for multiple simultaneous accounts -…