1. Why was this White Paper created?

Due to strong convergence on the market there seems to be a need to share the Secure Element storage and processing capacity amongst the key stakeholders of this industry. Therefore Mobey Forum board of directors decided to set up a cross industry task force to perform an in-depth study on the conditions of sharing a Secure Element (SE) such as the SIM /UICC amongst the banks and mobile operators.

2. Background and key learnings?

Internet banking has revolutionized the way in which traditional banks conduct business - intuitive, automated and always accessible. Parallel to the flow in net related services, banks are experiencing double digit growth in the more traditional debit and credit card businesses. As these business lines are closely related in the back office it is logical to offer these products and systems on a single platform for the benefit of the customer, ever more frequently the solution is seen as mobile. With an even greater ability to scale geographies than the internet, affording the privacy, security and portability of the debit or credit card, mobile banking can be seen as the ‘bank in your pocket’.

There has been a lot of interest in the mobile payments during last decade. Several trials have been initiated by either banks, mobile operators or independent players - however most of them have been unsuccessful. We believe that in order to leverage the potential of mobile payments, collaboration between industries is essential. Also, the technology disruption of integrated smart cards in the mobile phone requires joint efforts between the key players.

3. What’s the main purpose of this Document?

Mobey Forum wanted to create a best practice proposal of the different business models available for the different stake holders. Main focus in the analysis has been the enrolment of services to a shared secure element UICC.

4. Who is supporting the White Paper?

In principle Mobey Forum and its members, however we collaborated with other important organizations such as Global Platform. Input and comments are gathered from a number of external parties including payment schemes, MNOs, system integrators, hardware manufactures and SW houses.

5. Why was this white paper created?

Mobey Forum has done a series of white papers. (Mobile Financial Services Business Ecosystem Scenarios & Consequences ©2006 and Mobey Forum Security Element Technical Analysis ©2005 being the latest ones). This white paper is continuing our earlier work, focusing on the specific details in sharing the SE such as UICC and evaluating the business case in different collaborative business models.

6. What are Mobey Forum’s future expectations?

Mobey Forum wishes to facilitate a productive cross industry discussion and to endorse and encourage the development of mobile financial services. Our aim was to illustrate three possible alternatives for collaborative business models and evaluate their market potential.

7. Are you planning updates of the white paper?

Based on the feedback we receive Mobey Forum will conduct follow-up of the work as seen necessary.

8. What was the process of making the white paper?

In mobile financial services the business models need to link banks, operators and merchants while supporting the independence these institutions require in order to profitably run their businesses. The business model also needs support the customer effectively, allowing flexibility to choose the services desired and the opportunity to change service providers as the customer sees fit. In order to address these complex issues, Mobey Forum hosted a cross-industry task force with the goal of moving towards generally accepted framework of business standards.

To begin with the common business requirements from banks, MNO’s and merchant’s were written down. Then the conceptual models for sharing of the secure element were made, and finally, technical enrolment options and revenue streams were analysed and specified.

9. Who were the main contributors?

Members of the task force, the entire Mobey Forum and its members and other important organizations such as Global Platform and EMVco. Input and comments were gathered from a number of external parties including the payment schemes, MNOs, system integrators, hardware manufactures and SW houses.

10. Are banks and mobile operators all going to set up joint ventures (As the current industry example from Norway shows?)

One will certainly see several operational models evolving in different geographical areas. However at the end of the day markets will decide on the most viable business models in a particular market area.

11. Are there going to be trials testing the models explained in this document?

Mobey Forum is encouraging it’s members to conduct trials to test the models in practice and we are aware that a few of our members are already doing so.

12. What are the standards needed, how is this going to be standardized?

Two essential standards has already been made: Single Wired Protocol and Host Control Interface, and the extension of that (NCI) which is under preparation by NFC Forum. Whenever we see an emerging need for a specific standard, Mobey Forum will make a request to the relevant standardization body to take action in preparing the required standards. (Maybe the area of having one unified process for enrolment for all handset – SE – operator combinations from bank’s point of view might require a standard at some point of time.)

13. What is the Mobey Forum’s role in the standardization industry?

By being a member in Mobey Forum, companies will be at the forefront of development of mobile financial services. They can contribute to, and influence industry recommendations while also taking an active role in planning and creating of new trials and implementations. Mobey Forum is not creating technical standards but is creating business model recommendations for the industry as well as for the relevant standardization bodies, thus we can certainly influence the key focus areas of MFS.

14. (What is the Mobey Forum’s role in this?) Is Mobey going to provide consultation for the banks entering into this space?

Mobey Forum is a global non profit organization driven by the finance industry. Our mission is to facilitate banks in offering mobile financial services by creating sustainable business models through cross–industry collaboration.

15. What are MasterCard and Visa thinking about this?

They certainly recognize mobile financial services as an opportunity to offer better services to the end users (in cooperation with the issuing banks).

16. What should I do first as a banker if I want to start entering into this business under the presented business models?

More detailed information will be available at the quarterly organized Mobey Forum member meetings where all the main Key stakeholders, (financial institutions, mobile handset manufacturers, telecom operators, payment processors as well as leading technology vendors) come together openly discussing the viable business opportunities.

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