Mobile P2P Interoperability
Last updated: 31 August 2018
In modern society, the mobile phone has become an important multi-purpose initiation device for financial services transactions, changing consumer behaviour across multiple channels and with the potential to displace many different existing products and services. In different payment contexts, Mobile P2P emerges as an attractive realtime funds transfer mechanism, where innovations in customer authentication and realtime payments come together and are offering compelling instant payment functionality (i.e. immediate confirmation and availability of funds) and visibility to end-users. The arrival of multiple Mobile P2P services generally contributes to strong market competition with associated increased service levels and attractive pricing but different approaches, positioning, standards and attribute values might prevent universal and large-scale adoption. Closed-loop, non-interoperable solutions could limit the future interlinking of networks and applications across Europe and result in new European fragmentation, not taking advantage of the harmonisation and integration already achieved within the SEPA area.
In a Joint Initiative of principle Mobile P2P scheme services in Europe, the Berlin Group and Mobile P2P infrastructure providers, a technical and functional architecture has been explored that enables interlinking of regional Mobile P2P scheme services based on existing bank (IBAN) and card (PAN) account references. The identified architecture offers a layered approach with efficient reachability and routing flexibility in a repository layer (confirming the mapping of a registered alias to a bank or card account) and with three supported models in the clearing and settlement layer, of which one solution is already anticipating the future ‘instant SCT’. There is no immediate evidence of sufficient demand for cross-border mobile payments (a dedicated Working Group of the Euro Retail Payments Board expected only a positive business case when including a C2B payment context). In designing the architecture, this business uncertainty prompted the need to avoid costly centralised solutions, expensive dedicated collaterals/prefunding arrangements and high operational costs.
The architecture has been further detailed in harmonised standards of open interfaces, data formats and message protocols (ref. Technical Specifications below).
Public market consultation for the Mobile P2P Interoperability Framework took place from 03-02-2017 to 31-03-2017.
NextGenMobileP2P Framework Version 1.01 can be downloaded here.