Finding the right business model for financial institutions, mobile network operators and others to come together to support near field communication and mobile payments is a challenge. The Smart Card alliance is offering its answers in a white paper entitled, “Security of Proximity Mobile Payments.”
The white paper focuses on a “collaboration model,” where financial institutions, network operators, trusted third parties and other stakeholders in the mobile payments ecosystem cooperate in the management and deployment of mobile applications.
The white paper introduces the players, their roles, and their responsibilities in assuring the security of sensitive data. It explains how the payment application, consumer credentials, and consumer account information (such as a credit card number) are securely delivered to, loaded on, and stored in a mobile device. It also identifies risks present during the lifecycle of the payment information stored on the mobile device and suggests appropriate countermeasures.
“There is no question that consumers love mobile technology and view it as a necessity in their daily lives, so it makes sense for the next step to be paying with cell phones,” said Randy Vanderhoof, executive director of the Smart Card Alliance. “This white paper explains how industry stakeholders can take advantage of this love of mobile technology and introduce secure proximity mobile payments by collaborating and leveraging proven technology and a merchant infrastructure that is already in place.”
Participants involved in the development of this report included: Booz Allen Hamilton, Collis America, Cubic, Discover Financial Services, Giesecke & Devrient (G&D), IBM Global Business Services, IfD Consulting, Infineon Technologies, Keypoint Consulting, MasterCard Worldwide, VeriFone, Visa, and ViVOtech.
The white paper can be downloaded here.