TeNeT Group IIT-M February 09

Recommendations onInteroperability Standards

byMPFI Technology Committee

27th February 2009

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TeNeT Group IIT-M

Scenarios

A. Transaction with Pre-Registered Party• Customer enters full details of Beneficiary

one-time into mobile payment application:Name, Mobile no., Bank, Account no.

• For payment:• Customer selects Beneficiary record• Enters: Amount, PIN

• Payment is processed and Beneficiarynotified

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TeNeT Group IIT-M

Scenario

B. Transaction with New Party• Beneficiary enters:

Collect Rs. 75 from 98400-16781

• Customer gets request:Pay Rs. 75 to 94440-08330 Timothy Gonsalves?

• Customer confirms with PIN• Beneficiary is notified

TeNeT Group IIT-MFebruary 09

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Entities

February 09

TSP

TSPTSP

MPPC BankC

Settl

emen

t

MPPB1

BankB

MPPB2

Customer

Beneficiary

Ref. interfaces

Customer, Beneficiary: registers mobile number withBank(s). Selects one bank account as default

MPP (Mobile Payment Provider): Bank may provide itsown MPP, or use services of 3rd party MPPs

TSP: telecom service providerSettlement: NEFT/RTGS/NFS or future evolution

Mobile app: not standard

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Option 1: Bank-Centric Pull Process

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February 09

Beneficiary'sBank/MPP Customer

Beneficiary Customer'sBank/MPP

1. Pay RsX,C's Ph#

2. Broadcast C'sPh#

3.C's Bank replies

with default a/c#

4.Sends transferrequest

5.Verifies theTx information

9.Transfer toBeneficiary's

Bank

8.Beneficiary

Notified

6. Confirms

7. Confirms

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Option 1: Bank-Centric Push Process

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February 09

1.Pay Rs X, B's Ph#2.Broadcast B's Ph#

3.B's Bank replies withdefault a/c# and B's name

4.B's name is sentto avoid error

5.Confirms6.Send payment

Request

7.Inform abt

payment

8.Accepts

9.Transfer toB's Bank

10.Notified

Beneficiary'sBank/MPP

CustomerBeneficiary Customer'sBank/MPP

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Option 2: TSP-Assisted Pull Process

TeNeT Group IIT-M February 09

Beneficiary Beneficiary'sBank/MPP

Customer'sBank/MPP

1. Pay RsX, C'sPh#

4.Sends transferrequest

8.Transfer to

Beneficiary's Bank

7.BeneficiaryNotified

6. Confirms

Beneficiary'sTSP

Customer'sTSP

2.Get C's name, bank

3. C's name, bank

5.Informs C ofthe transaction

Customer

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Option 2: TSP-Assisted Push Process

TeNeT Group IIT-M February 09

Beneficiary Beneficiary'sBank/MPP

Customer'sBank/MPP

Beneficiary'sTSP

Customer'sTSP

Customer

6.Sends payment request

10.Transfers to Beneficiary's Bank

7.Inform abtthe payment

5. Confirms

2.Get B's name, bank

3. B's name, bank

4.Inform C ofB's name

8. Accepts

9. Notified

1. Pay RsX, B's

Ph#

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Messages

February 09TeNeT Group IIT-M

• Message formats standardised between:– MPP to MPP– MPP to Bank– Bank to Bank– MPP to TSP

• Based on ISO 8583• Every message to carry reference number• Message routing based on <BankId, MPPid>• Messages transmitted reliably (using acks)

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Mandatory Data Elements

Customer Initiated Transaction

• Beneficiary Phone No.• Amount

MPP to provide

• Unique Sequence Number• Date and Time of Transaction• Translation of Mnemonics

Beneficiary Initiated Transaction

• Customer Phone No.• Amount

February 09TeNeT Group IIT-M

TeNeT Group IIT-M

Message Format: MPP to MPP

• Main data elements required in the request are– Beneficiary Mobile/proxy number– Beneficiary name– Transaction Type– Amount– Transaction Identifier– Originating MPP ID– Sender Mobile/Proxy number– Sender Name

February 09TeNeT Group IIT-M

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• Response can have additional data elements– Authorization code– Response code– Beneficiary Name

…Message Format: MPP to MPP

February 09TeNeT Group IIT-M

TeNeT Group IIT-M

Message Format: MPP to Bank

• Main data elements required in the request are– customer Mobile/proxy number/Account number/Card

Number (based on payment instrument used)– Transaction Type– Amount– Transaction Identifier– Originating MPP ID– Sender Name/Account Number– Beneficiary Name/Account Number

February 09TeNeT Group IIT-M

TeNeT Group IIT-M

Message Formats

The message formats support several transaction types:• Merchant payments (sales)• P2P money transfers• Mobile Banking transactions

– Balance enquiry, Mini StatementsMessage formats support several payment instruments:• Bank accounts• Credit cards• Debit cards• Prepaid cards

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Sample Message format

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Summary

February 09TeNeT Group IIT-M

• Users must register default bank+a/c– Choice with multiple banks+a/c supported

• Mapping of mobile no. to name+bank:– Either Bank-centric or TSP-assisted– Initially: broadcast query– Future: central RBI-database or TRAI-database

• Pull and Push supported• Settlement:

– Initially: using NEFT/RTGS/NFS/… (cost? capacity?)– Future: may evolve into RBI transaction settlement

agency depending on cost/capacity constraints• Message formats based on ISO 8583

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Next Steps

February 09TeNeT Group IIT-M

• Approval of the proposal• Fine-tuning and freezing of standards• Implementation and deployment• Conformance and Security Testing:

– DIT has approved funding for Mobile PaymentCertification Lab at IIT-Madras