May 14 , 2012
Financial industry announces mobile payment technology guidelines
TORONTO, May 14, 2012-- The banking industry and credit union system have announced an industry-wide initiative that will pave the way for the development of mobile payment options for Canadians.
The voluntary guidelines, called the Mobile Reference Model, provide a framework for how mobile payment capabilities can work with existing payment systems, ensure fair competition among market participants, and outline how market participants can work with existing, secure contactless payment technology already in place today. They were created as an outcome of the federal government’s Task Force for the Payments System Review in 2011.
The guidelines were developed cooperatively by major Canadian banks and credit union groups to support innovation in the marketplace. Specifically the guidelines will benefit the market in a number of key areas:
Enabling Innovation: The guidelines provide a common framework for how mobile payments capabilities can work with existing payments systems such as contactless readers, which are already widely installed across Canada. A common foundation for mobile payments allows all market participants to benefit from the work done so far and to focus on delivering unique competitive offers to consumers.
Providing Clarity and Efficiency: A common framework allows for efficiency in the market in developing new mobile payments solutions for Canadians, as individual service providers will benefit from the foundation provided in these guidelines and can focus their investment on adding value for consumers.
Delivering Continued Security: The guidelines are designed to work with existing, secure contactless payment technology already in place today. This benefits merchants and consumers by building on an existing system, and leveraging the same high security standards used by today’s chip-enabled credit and debit cards.