Mobile payment.and.myanmar.jul2014


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Mobile bill payment, Mobile banking, SMS ticketing, China, India mobile phone transaction ... and MYANMAR

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Mobile payment.and.myanmar.jul2014

  1. 1. မိုဘိုင္းဖုန္း၃သန္းေက်ာ္ ျမန္မာျပည္မွာရွိေနပါျပီ မိုဘိုင္း sms or call နဲ႕(ရိုးရိုဖုန္း) - ေငြလႊဲျခင္း၊ ေပးစရာ Bill, - ခရီးသြားလက္မွတ္၊ ေက်ာင္းစရိတ္မ်ား - စာအုပ္၊ ပစၥည္းဝယ္ျခင္း - ေပးေခ်စရာအားလံုးကို ေပးႏိုင္ျခင္း စမတ္ဖုန္း (Antroids App) သံုးျပီးေပးေခ်နည္း… Mobile Payment, Ticketing, SMS Banking အေၾကာင္းမ်ားျဖစ္ပါတယ္။ July 2014
  2. 2. Mobile Entrepreneur, Payment, Ticket, Banking, SMS, App မာတိကာ ၁။ Mobile Phone Payment (Pg 1) ေငြေပးနည္းလမ္းမ်ား၊ SMS , Direct.Mobile, Web, QR code, Cloud ၂။ Mobile Ticketing (Pg 13) ကား၊ ရထား၊ ေလယဥ္ ခရီးသြားလက္မွတ္၊ အခမ္းအနား၊ ရုပ္ရွင္၊ ပြဲသဘင္လက္မွတ္ လက္မွတ္ပို႕ေပးျခင္းနည္းလမ္းမ်ား ၃။ SMS Banking (Pg 18) မက္ေဆ့ခ်္သံုးျပီး ေငြေပးျခင္း ၊ Push-Pull servier ၄။ Mobile Phone Banking (Pg 23) မိုဘိုင္းဖုန္းျဖင့္ ဘဏ္သြားစရာမလိုေသာနည္း Mobile-applications App ၅။ Mobile Banking in the World (Pg 29) ေတာင္ကိုးရီးယား၊ တရုပ္၊ ေဟာင္ေကာင္၊ စင္ကာပူ၊ အိႏၷိယ (၄၀% သံုး) ၆။ Introduction to China booming mobile money market (Pg 33 ) ၇။ China Trillions dollar mobile payment industry (Pg 37) - Under attack (အစိုးရက ေငြလႊဲပမာဏ ကန္႕သတ္မည္၊ ၂၀၁၄) - တရုပ္ျပည္ မိုဘိုင္းဖုန္း ~US$ 1.5 trillions (1500 billion) ၈။ Mobile Payment in India (Pg 30) ၉။ SMS Mobile Ticketing in India - Central RailwayMovement of Truth The End… Mingalar Online Date: July-2014
  3. 3. 7/11/2014 Mobile payment - Wikipedia, the free encyclopedia 1/11 Mobile payment From Wikipedia, the free encyclopedia (Redirected from Mobile payments) Mobile payment, also referred to as mobile money, mobile money transfer, and mobile wallet generally refer to payment services operated under financial regulation and performed from or via a mobile device. Instead of paying with cash, cheque, or credit cards, a consumer can use a mobile phone to pay for a wide range of services and digital or hard goods. Although the concept of using non-coin-based currency systems has a long history,[1] it is only recently that the technology to support such systems has become widely available. Mobile payment is being adopted all over the world in different ways.[2][3] In 2008, the combined market for all types of mobile payments was projected to reach more than $600B globally by 2013,[4] which would be double the figure as of February, 2011.[5] The mobile payment market for goods and services, excluding contactless Near Field Communication or NFC transactions and money transfers, is expected to exceed $300B globally by 2013.[6] In developing countries mobile payment solutions have been deployed as a means of extending financial services to the community known as the "unbanked" or "underbanked," which is estimated to be as much as 50% of the world's adult population, according to Financial Access' 2009 Report "Half the World is Unbanked".[7] These payment networks are often used for micropayments.[8] The use of mobile payments in developing countries has attracted public and private funding by organizations such as the Bill and Melinda Gates Foundation, USAID and MercyCorps. Contents 1 Models 2 SMS/USSD-based transactional payments 3 Direct mobile billing 4 Mobile web payments (WAP) 4.1 Direct operator billing 4.2 Credit card 4.3 Online wallets 5 QR Code Payments 6 Contactless Near Field Communication 7 Cloud-based mobile payments 8 Audio signal-based payments 9 Direct carrier/bank co-operation
  4. 4. 7/11/2014 Mobile payment - Wikipedia, the free encyclopedia 2/11 9 Direct carrier/bank co-operation 10 Mobile payment service provider model 11 See also 12 Notes Models There are four primary models for mobile payments: Premium SMS based transactional payments Direct Mobile Billing Mobile web payments (WAP) Contactless NFC (Near Field Communication) Additionally there is a new emerging model from Haiti: direct carrier/bank co-operation. Financial institutions and credit card companies[9] as well as Internet companies such as Google[10] and a number of mobile communication companies, such as mobile network operators and major telecommunications infrastructure such as w-HA from Orange and handset multinationals such as Ericsson[11][12] and BlackBerry have implemented mobile payment solutions. SMS/USSD-based transactional payments Premium SMS / Premium MMS In the predominant model for SMS payments, the consumer sends a payment request via an SMS text message or an USSD to a short code and a premium charge is applied to their phone bill or their online wallet. The merchant involved is informed of the payment success and can then release the paid for goods. Since a trusted physical delivery address has typically not been given these goods are most frequently digital with the merchant replying using a Multimedia Messaging Service to deliver the purchased music, ringtones, wallpapers etc. A Multimedia Messaging Service can also deliver barcodes which can then be scanned for confirmation of payment by a merchant. This is used as an electronic ticket for access to cinemas and events or to collect hard goods. Transactional payments by SMS have been popular in Asia and Europe and are now accompanied by other mobile payment methods, such as mobile web payments (WAP), mobile payment client (Java ME, Android...) and Direct Mobile Billing.
  5. 5. 7/11/2014 Mobile payment - Wikipedia, the free encyclopedia 3/11 Inhibiting factors of Premium SMS include: 1. Poor reliability - transactional premium SMS payments can easily fail as messages get lost. 2. Slow speed - sending messages can be slow and it can take hours for a merchant to get receipt of payment. Consumers do not want to be kept waiting more than a few seconds. 3. Security - The SMS/USSD encryption ends in the radio interface, then the message is a plaintext. 4. High cost - There are many high costs associated with this method of payment. The cost of setting up short codes and paying for the delivery of media via a Multimedia Messaging Service and the resulting customer support costs to account for the number of messages that get lost or are delayed. 5. Low payout rates - operators also see high costs in running and supporting transactional payments which results in payout rates to the merchant being as low as 30%. Usually around 50% 6. Low follow-on sales - once the payment message has been sent and the goods received there is little else the consumer can do. It is difficult for them to remember where something was purchased or how to buy it again. This also makes it difficult to tell a friend. Some mobile payment services accept "premium SMS payments." Here is the typical end user payment process: 1. User sends SMS with keyword and unique number to a premium short code. 2. User receives a PIN (User billed via the short code on receipt of the PIN) 3. User uses PIN to access content or services. Remote Payment by SMS and Credit Card Tokenization Even as the volume of Premium SMS transactions have flattened, many cloud-based payment systems continue to use SMS for presentment, authorization, and authentication,[13] while the payment itself is processed through existing payment networks such as credit and debit card networks. These solutions combine the ubiquity of the SMS channel,[14] with the security and reliability of existing payment infrastructure. Since SMS lacks end-to-end encryption, such solutions employ a higher-level security strategies known as 'tokenization' and 'target removal' [15] whereby payment occurs without transmitting any sensitive account details, username, password, or PIN. To date, point-of-sales mobile payment solutions have not relied on SMS-based authentication as a payment mechanism, but remote payments such as bill payments,[16] seat upgrades on flights,[17] and membership or subscription renewals are commonplace. In comparison to premium short code programs which often exist in isolation, relationship
  6. 6. 7/11/2014 Mobile payment - Wikipedia, the free encyclopedia 4/11 In comparison to premium short code programs which often exist in isolation, relationship marketing and payment systems are often integrated with CRM, ERP, marketing-automation platforms, and reservation systems. Many of the problems inherent with premium SMS have been addressed by solution providers. Remembering keywords is not required since sessions are initiated by the enterprise to establish a transaction specific context. Reply messages are linked to the proper session and authenticated either synchronously through a very short expiry period (every reply is assumed to be to the last message sent) or by tracking session according to varying reply addresses and/or reply options (Dynamic Dialogue Matrix). Direct mobile billing The consumer uses the mobile billing option during checkout at an e-commerce site—such as an online gaming site—to make a payment. After two-factor authentication involving a PIN and One- Time-Password (often abbreviated as OTP), the consumer's mobile account is charged for the purchase. It is a true alternative payment method that does not require the use of credit/debit cards or pre-registration at an online payment solution such as PayPal, thus bypassing banks and credit card companies altogether. This type of mobile payment method, which is extremely prevalent and popular in Asia, provides the following benefits: 1. Security - Two-factor authentication and a risk management engine prevents fraud. 2. Convenience - No pre-registration and no new mobile software is required. 3. Easy - It's just another option during the checkout process. 4. Fast - Most transactions are completed in less than 10 seconds. 5. Proven - 70% of all digital content purchased online in some parts of Asia uses the Direct Mobile Billing method[18] Mobile web payments (WAP) The consumer uses web pages displayed or additional applications downloaded and installed on the mobile phone to make a payment. It uses WAP (Wireless Application Protocol) as underlying technology and thus inherits all the advantages and disadvantages of WAP. Benefits include: 1. Follow-on sales where the mobile web payment can lead back to a store or to other goods the consumer may like. These pages have a URL and can be bookmarked making it easy to re-visit or share. 2. High customer satisfaction from quick and predictable payments 3. Ease of use from a familiar set of online payment pages However, unless the mobile account is directly charged through a mobile network operator, the use of a credit/debit card or pre-registration at online payment solution such as PayPal is still required just as in a desktop environment. Mobile web payment methods are now being mandated by a
  7. 7. 7/11/2014 Mobile payment - Wikipedia, the free encyclopedia 5/11 Mobile payment system in Norway. Mobile web payment methods are now being mandated by a number of mobile network operators. Direct operator billing Direct operator billing, also known as mobile content billing, WAP billing, and carrier billing, requires integration with the operator. It provides certain benefits: 1. the operators already have a billing relationship with the consumers, the payment will be added to their bill. 2. Provides instantaneous payment 3. Protect payment details and consumer identity 4. Better conversion rates 5. Reduced customer support costs for merchants One drawback: the payout rate will be much lower than with other payment providers. Examples from a popular provider: 92% with Paypal 85 to 86% with Credit Card 45 to 91.7% with operator billing in the US, UK and some smaller European countries, but usually around 60%[19] More recently, Direct operator billing is being deployed in an in-app environment, where mobile application developers are taking advantage of the one-click payment option that Direct operator billing provides for monetising mobile applications. This is a logical alternative to credit card and Premium SMS billing. In 2012, Ericsson and Western Union partnered to expand the direct operator billing market, making it possible for mobile operators to include Western Union Mobile Money Transfers as part of their mobile financial service offerings.[20] Given the international reach of both companies, the partnership is meant to accelerate the interconnection between the m-commerce market and the existing financial world.[21] Credit card A simple mobile web payment system can also include a credit card payment flow allowing a consumer to enter their card details to make purchases. This process is familiar but any entry of details on a mobile phone is known to reduce the success rate (conversion) of payments. In addition, if the payment vendor can automatically and securely identify customers then card details can be recalled for future purchases turning credit card payments into simple single click- to-buy giving higher conversion rates for additional purchases.
  8. 8. 7/11/2014 Mobile payment - Wikipedia, the free encyclopedia 6/11 Online wallets Online companies like PayPal, Amazon Payments, and Google Wallet also have mobile options.[22] Generally, this is the process: First payment: User registers, inputs their phone number, and the provider sends them an SMS with a PIN User enters the received PIN, authenticating the number User inputs their credit card info or another payment method if necessary (not necessary if the account has already been added) and validates payment Subsequent payments: The user re enters their PIN to authenticate and validates payment Requesting a PIN is known to lower the success rate (conversion) for payments. These systems can be integrated with directly or can be combined with operator and credit card payments through a unified mobile web payment platform. QR Code Payments QR Codes 2D barcode are square bar codes. QR codes are an easy way to inject info into a mobile phone. This makes it easy to create communication such as visit a website or copy useful text. QR codes have been around since they were invented in 1994. Originally used to track products in warehouses, QR codes were designed to replace traditional (1D bar codes). Traditional bar codes just represent numbers, which can be looked up in a database and translated into something meaningful. QR, or “Quick Response” bar codes were designed to contain the meaningful info right in the bar code. They’ve been a successful marketing tool in Asia and Europe. In Germany a startup called GO4Q introduced mobile shopping / window shopping based on QR codes in October 2012. The system evolved and mobile payment was added by december 2012. GO4Q is using standard card payment procedures and thus not regionally limited. It requires a single registration. On business and consumer side, usage is possible with any smart device (IOS / Android). Mastercard, in 2012, also rolled another mobile payment app, QkR, which is being deployed in Australia and for a test run at Yankee Stadium. Users can scan a QR code through the app and buy food or other items through the app and have it delivered to them. Since November 2012, QR code payments were deployed on a larger scale in the Czech Republic as an open format for a payment information exchange - a Short Payment Descriptor - was introduced and blessed by the Czech Banking Association as the official local solution for the QR payments.[23] Due to technical limitations, the format is applicable only within the European Union.
  9. 9. 7/11/2014 Mobile payment - Wikipedia, the free encyclopedia 7/11 Contactless Near Field Communication Near Field Communication (NFC) is used mostly in paying for purchases made in physical stores or transportation services. A consumer using a special mobile phone equipped with a smartcard waves his/her phone near a reader module. Most transactions do not require authentication, but some require authentication using PIN, before transaction is completed. The payment could be deducted from a pre-paid account or charged to a mobile or bank account directly. Mobile payment method via NFC faces significant challenges for wide and fast adoption, due to lack of supporting infrastructure, complex ecosystem of stakeholders, and standards.[24] Some phone manufacturers and banks, however, are enthusiastic. Ericsson and Aconite are examples of businesses that make it possible for banks to create consumer mobile payment applications that take advantage of NFC technology.[25] NFC vendors in Japan are closely related to mass-transit networks, like the Mobile Suica used on the JR East rail network. Osaifu-Keitai system, used for Mobile Suica and many others including Edy and nanaco, has become the de facto standard method for mobile payments in Japan. Its core technology, Mobile FeliCa IC, is partially owned by Sony, NTT DoCoMo and JR East. Mobile FeliCa utilize Sony's FeliCa technology, which itself is the de facto standard for contactless smart cards in the country. Other NFC vendors mostly in Europe use contactless payment over mobile phones to pay for on- and off-street parking in specially demarcated areas. Parking wardens may enforce the parkings by license plate, transponder tags or barcode stickers. First conceptualized in the 1990s, the technology has seen commercial use in this century in both Scandinavia and Estonia. End users benefit from the convenience of being able to pay for parking from the comfort of their car with their mobile phone, and parking operators are not obliged to invest in either existing or new street-based parking infrastructures. Parking wardens maintain order in these systems by license plate, transponder tags or barcode stickers or they read a digital display in the same way as they read a pay and display receipt. Other vendors use a combination of both NFC and a barcode on the mobile device for mobile payment, for example, Cimbal or DigiMo,[26] making this technique attractive at the point of sale because many mobile devices in the market do not yet support NFC. Cloud-based mobile payments Google, PayPal, GlobalPay and GoPago use a cloud-based approach to in-store mobile payment. The cloud based approach places the mobile payment provider in the middle of the transaction, which involves two separate steps. First, a cloud-linked payment method is selected and payment is authorized via NFC or an alternative method. During this step, the payment provider automatically covers the cost of the purchase with issuer linked funds. Second, in a separate transaction, the payment provider charges the purchaser's selected, cloud-linked account in a card-not-present environment to recoup its losses on the first transaction.[27][28][29]
  10. 10. 7/11/2014 Mobile payment - Wikipedia, the free encyclopedia 8/11 Audio signal-based payments The audio channel of the mobile phone is another wireless interface that is used to make payments. Several companies have created technology to use the acoustic features of cell phones to support mobile payments and other applications that are not chip-based. The technologies Near sound data transfer (NSDT), Data Over Voice and NFC 2.0 produce audio signatures that the microphone of the cell phone can pick up to enable electronic transactions.[30] Direct carrier/bank co-operation In the T-Cash[31] model the mobile phone and the phone carrier is the front end interface to the consumers. The consumer can purchase goods, transfer money to a peer, cash-out, and cash- in.[32] A 'mini wallet' account can be opened as simply as entering *700# on the mobile phone,[33] presumably by depositing money at a participating local merchant and the mobile phone number. Presumably other transactions are similarly accomplished by entering special codes and the phone number of the other party on the consumer's mobile phone. Mobile payment service provider model There are four potential mobile payment models: 1. Operator-Centric Model: The mobile operator acts independently to deploy mobile payment service. The operator could provide an independent mobile wallet from the user mobile account(airtime). A large deployment of the Operator-Centric Model is severely challenged by the lack of connection to existing payment networks. Mobile network operator should handle the interfacing with the banking network to provide advanced mobile payment service in banked and under banked environment. Pilots using this model have been launched in emerging countries but they did not cover most of the mobile payment service use cases. Payments were limited to remittance and airtime top up. 2. Bank-Centric Model: A bank deploys mobile payment applications or devices to customers and ensures merchants have the required point-of-sale (POS) acceptance capability. Mobile network operator are used as a simple carrier, they bring their experience to provide Quality of service (QOS) assurance. 3. Collaboration Model: This model involves collaboration among banks, mobile operators and a trusted third party. 4. Peer-to-Peer Model: The mobile payment service provider acts independently from financial institutions and mobile network operators to provide mobile payment. For example the MHITS SMS payment service uses a peer-to-peer model.
  11. 11. 7/11/2014 Mobile payment - Wikipedia, the free encyclopedia 9/11 See also Electronic money Financial cryptography Mobile Payment Using USSD Mobile ticketing SEMOPS SMS banking PayMate Wallet Universal card Notes 1. ^ "Pre-1900 Utopian Visions of the 'Cashless Society'" ( MPRA. 2012. 2. ^ GSMA Mobile Money Deployment Tracker ( from 3. ^ "Japanese Drive Mobile Payment Market" ( ). 2010-11-02. Retrieved 2011-09-19. 4. ^ "Total Mobile Payments to Grow Nearly Ten Fold by 2013" ( Juniper Research. 5. ^ "Research shows mobile phone payment double by 2013" ( shows-mobile-phone-payment-double-by-2013/). 2011-07-24. Retrieved 2011-09-19. 6. ^ "Mobile Payment Transaction Values for Digital and Physical Goods to Exceed $300bn Globally Within 5 Years" ( Juniper Research. 7. ^ "Half the World is Unbanked" ( 2009. 8. ^ Micro-payment systems and their application to mobile networks, InfoDev report, Jan 2006 accessed at [1] ( 9. ^ "Stamatis Karnouskos, IEEE Communications Surveys & Tutorials, Vol. 6, No. 4, pp. 44–66, 2004." ( (PDF). 10. ^ "Mobile payment apps – a fresh perspective on online finances" ( payment-apps-a-fresh-perspective-on-online-finances/). February 2014. 11. ^ "Ericsson launches mobile phone banking services" ( Retrieved 2012-12-16. 12. ^ "Ericsson Money Services brings connected mobile money to Europe" ( Retrieved 2012-12-16.
  12. 12. 7/11/2014 Mobile payment - Wikipedia, the free encyclopedia 10/11 ( Retrieved 2012-12-16. 13. ^ payments.htm 14. ^ sms-web-most-popular-transaction-methods/ 15. ^ 16. ^ te/232301336 17. ^ 18. ^ Feig, Nancy (2007-06-25). "Mobile Payments: Look to Korea" ( Retrieved 2011-09-19. 19. ^ "Payout rates from one of the major billing aggregator, Bango" ( Retrieved 2011-09-19. 20. ^ "Ericsson, Western Union partner to push mobile financial services" ( financial-services). Mobile Payments Today. February 28, 2012. Retrieved 2013-01-25. 21. ^ "Ericsson Teams with Western Union" ( Light Reading. February 27, 2012. Retrieved 2013-01-25. 22. ^ "A smart, virtual wallet for in-store and online shopping – Google Wallet" ( Retrieved 2012-12-16. 23. ^ "Standard No. 26: Format for exchanging the payment information for Czech domestic payments using the QR codes" ( kody). Czech Banking Association. November 2012. 24. ^ "VDC: NFC Adoption Will Be Slower Than Expected" ( RFID Journal. 2008-03-03. Retrieved 2011-09-19. 25. ^ "Ericsson and Aconite collaborate on mobile contactless payments" ( contactless-payments). Mobile Payments Today. Retrieved 2013-01-25. 26. ^ "Digimo Group NFC Dual two phase commit" ( barcode-payments/). 2010-10-15. Retrieved 2011-09-19. 27. ^ Terrence O'Brien (August 1, 2012). "Google Wallet moves to the cloud, opens up to all credit and debit cards" ( and-deb/). Engadget. Retrieved 2012-11-05. 28. ^ "Google has a Card up it's Sleeve" ( November 5, 2012. Retrieved 2012-11-05. 29. ^ Kim, Ryan. "GoPago's line-skipping mobile payment system launches in San Francisco" ( francisco/). Gigaom. Retrieved 2012-11-09. 30. ^ "Audio Signal Mobile Payments and Loyalty" ( December 2011. Retrieved 2012-07-09.
  13. 13. 7/11/2014 Mobile payment - Wikipedia, the free encyclopedia 11/11 Retrieved from "" Categories: Mobile payments E-commerce Payment systems Mobile telecommunications This page was last modified on 5 May 2014 at 09:13. Text is available under the Creative Commons Attribution-ShareAlike License; additional terms may apply. By using this site, you agree to the Terms of Use and Privacy Policy. Wikipedia® is a registered trademark of the Wikimedia Foundation, Inc., a non-profit organization. 31. ^ T-Cash ( from Voilà 32. ^ "Testing out mobile money in Haiti" ( MercyCorps. 2010-11-30. Retrieved 2011-09-19. 33. ^
  14. 14. 7/11/2014 Mobile ticketing - Wikipedia, the free encyclopedia 1/5 Mobile ticketing From Wikipedia, the free encyclopedia 1. Mobile ticketing is the process whereby customers can order, pay for, obtain and validate tickets from any location and at any time using mobile phones or other mobile handsets. Mobile tickets reduce the production and distribution costs connected with traditional paper-based ticketing channels and increase customer convenience by providing new and simple ways to purchase tickets. Mobile ticketing is a prime example of horizontal telecommunication convergence. 2. Mobile ticketing is a method by which law enforcement agencies use in-car computers to create traffic citations in the field, then print a hard copy for the offender. The advantages of mobile ticketing include reduced paperwork time, reduced chance of tickets being made void by human error and immediate accessibility of citation information by other departments.[1] ( 2008/0004771817&EDATE=) Contents 1 Applications 2 Advantage 3 Disadvantages 4 Usage 4.1 Mobile purchase 4.1.1 SMS purchase 4.1.2 Online purchase 4.2 Delivery 4.3 Scanning 4.4 Redemption 5 See also 6 References Applications Airline check-in Airline ticketing Cinema ticketing
  15. 15. 7/11/2014 Mobile ticketing - Wikipedia, the free encyclopedia 2/5 Railway & Bus ticketing Concert/Event ticketing Consumer voucher distribution Mass transit Trade shows bus ticket Advantage Improved consumer convenience Increased revenue by increasing accessibility of tickets Reduced infrastructure costs (scanners retail at 30 times the cost of 1d scanners) Reduced ticket printing/mailing cost Ability to enforce no resale conditions and engage in price discrimination Disadvantages Can be forged. Many company phones block payment SMS messages. Foreign subscription phones do not work in connection with payment SMS messages. Many people do not own a phone, so for this and the above reasons other payment methods must be available. If the phone battery runs out, the mobile ticket is made unusable. Usage Mobile purchase Over the past 10 years, e-commerce has exploded, with many consumers becoming increasingly comfortable with purchasing online. The next logical step for consumers who are looking for even more convenient methods of doing business is mobile purchase. This trend will be accelerated by the increased functionality of today's mobile devices. The International Air Transport Association (IATA) 2007 announced a global standard that paves the way for global mobile phone check-in using two-dimensional (2D) bar codes. The industry has set a deadline of the end of 2010 to implement 100% bar coded boarding passes (BCBP). Upon full implementation, BCBP is said to be able to save the industry over US $500 million annually.[1]
  16. 16. 7/11/2014 Mobile ticketing - Wikipedia, the free encyclopedia 3/5 Mobile Tickets can be purchased in a variety of ways including online, via text messaging or over the phone from a voice call, WAP page, or a secure mobile application. For repeated purchases such as daily train tickets, mobile applications or text messaging are good options. The drawbacks to text message purchasing is that either the vendor loses 40% of their revenue to the mobile operator, or any credit card purchase has to be achieved through a web page as the SMS has no security suitable for credit card entry, and very few ticket choices can be easily remembered and entered by SMS. SMS purchase SMS purchase is usually achieved by sending an SMS message containing a short code (e.g. GV for a single adult ticket in Gothenburg, Sweden) to a service number. A return message is sent containing the mobile ticket. Different ticket types can be ordered with a different code (e.g. GU for a youth ticket or GN as a night tariff ticket in Gothenburg). The use of different ordering codes enables creating a variety of ticket types, either time- or distance based pricing and different zone systems. The price of the ticket can be added to the users mobile phone bill or debited from their pre-paid service using premium SMS billing. The main business limitation is that when premium SMS is used for billing, around 40% of the transaction value is retained by the mobile operator and sms aggregator, which is not viable when the ticket has a conventional profit margin. The revenue share model need to be re-negoatiated separately with teleoperators to suit for mobile ticketing, which excludes foreign visitors from using the system. Other methods for billing include having a mobile wallet that allows the phone user to charge their credit card, but the limitation is the low usage volume of payment solutions of this kind so far. Online purchase Online purchase is still an option for mobile tickets, allowing the user to set up an account and choosing payment options etc. Delivery Delivery of tickets to mobile phones can be done in a variety of ways: Text messaging (SMS) - visual inspection or OCR Text messaging with WAP Push - visual inspection or OCR Picture messaging (SMS, EMS, WAP Push and MMS) - usually uses a barcode Dedicated Mobile application - which can store and render barcodes delivered via SMS, GPRS, Bluetooth, IRDA or RFID. Barcodes rendered on the device by a dedicated application have the advantage of being full screen without clutter, meaning faster and more successful scanning. A dedicated mobile application can also help the user to organise and sort their tickets better than when an SMS or MMS inbox is full of similar tickets, which is especially
  17. 17. 7/11/2014 Mobile ticketing - Wikipedia, the free encyclopedia 4/5 useful for transport tickets. Device RFID - This is the method proposed under the Near Field Communication (NFC) specification but not yet in general use, except of Japanese Osaifu-Keitai. Southend United Football Club is currently the only team in the UK to have a mobile ticketing facility offered to fans. Very few phones outside Japan have RFID/NFC tags and so this method of delivery is largely unsupported. Picture messaging is supported by almost all phones and is generally the delivery method of choice. It usually requires the sender to know the phone model in advance so that the picture is rendered at the correct resolution. Text-only messaging is supported by all mobile phones and is the simplest method of delivery. Scanning Visually validated mobile tickets do not require a scan device. Most forms of mobile tickets require some form of device to read the ticket from the user's device. Picture-based messages require a laser scanner (for 1-dimensional/linear barcodes) or camera based imager (for 2-dimensional barcodes) to photograph the message and decode it into a ticket ID. Text-based codes use OCR software for mTicket. Near Field Communication devices scan using an RFID reader. Each of the above methods has its specific benefits and drawbacks. Optically reading the display of a cell phone is heavily influenced by the quality of the display (resolution, size of pixels, reflections). RFID is only supported by a very few phones yet. Redemption Visually validated mobile tickets are validated without connection to a back office system. Other forms of mobile ticket systems contact a server that is able to verify the ticket and record that it has been used. New systems that make use of encryption of the data inside the barcode enable off-line scanning and validation, which is especially important if users are purchasing tickets immediately prior to use, and the portable venue or on-vehicle scanning devices cannot always have a connection to the live ticket database. (Many transport ticketing systems, such as the London Oyster card travel system and the M-PhaTic system of the Swedish state railways SJ are designed so that scanners can operate as disconnected islands when connectivity to central systems is lost.) See also Mobile payment Mobile Suica Electronic ticket
  18. 18. 7/11/2014 Mobile ticketing - Wikipedia, the free encyclopedia 5/5 References 1. ^ Retrieved from "" Categories: E-commerce Mobile technology Travel technology Radio-frequency identification Tickets This page was last modified on 11 May 2014 at 00:05. Text is available under the Creative Commons Attribution-ShareAlike License; additional terms may apply. By using this site, you agree to the Terms of Use and Privacy Policy. Wikipedia® is a registered trademark of the Wikimedia Foundation, Inc., a non-profit organization.
  19. 19. 7/11/2014 SMS banking - Wikipedia, the free encyclopedia 1/5 Screenshot of a typical SMS Banking message on a mobile screen SMS banking From Wikipedia, the free encyclopedia SMS banking is a type of mobile banking, a technology-enabled service offering from banks to its customers, permitting them to operate selected banking services over their mobile phones using SMS messaging. Contents 1 Push and pull messages 2 Typical push and pull services offered under SMS banking 3 Concerns and skepticism about SMS banking 4 Quality of service in SMS banking 5 The convenience factor 6 Compensating controls for lack of encryption 7 Technologies employed for SMS banking 8 See also 9 References Push and pull messages SMS banking services are operated using both push and pull messages. Push messages are those that the bank chooses to send out to a customer's mobile phone, without the customer initiating a request for the information. Typically push messages could be either Mobile marketing messages or messages alerting an event which happens in the customer's bank account, such as a large withdrawal of funds from the ATM or a large payment using the customer's credit card, etc. (see section below on Typical Push and Pull messages). Another type of push message is One-time password (OTPs). OTPs are the latest tool used by financial and banking service providers in the fight against cyber fraud. Instead of relying on traditional memorized passwords, OTPs are requested by consumers each time they want to perform transactions using the online or mobile banking interface. When the request is received the password is sent to the consumer’s phone via SMS. The password is expired once it has been used or once its scheduled life-cycle has expired. Pull messages are those that are initiated by the customer, using a mobile phone, for obtaining
  20. 20. 7/11/2014 SMS banking - Wikipedia, the free encyclopedia 2/5 Pull messages are those that are initiated by the customer, using a mobile phone, for obtaining information or performing a transaction in the bank account. Examples of pull messages for information include an account balance enquiry, or requests for current information like currency exchange rates and deposit interest rates, as published and updated by the bank. The bank’s customer is empowered with the capability to select the list of activities (or alerts) that he/she needs to be informed. This functionality to choose activities can be done either by integrating to the internet banking channel or through the bank’s customer service call centre. Typical push and pull services offered under SMS banking Depending on the selected extent of SMS banking transactions offered by the bank, a customer can be authorized to carry out either non-financial transactions, or both and financial and non- financial transactions. SMS banking solutions offer customers a range of functionality, classified by push and pull services as outlined below. Typical push services would include: Periodic account balance reporting (say at the end of month); Reporting of salary and other credits to the bank account; Successful or un-successful execution of a standing order; Successful payment of a cheque issued on the account; Insufficient funds; Large value withdrawals on an account; Large value withdrawals on the ATM or EFTPOS on a debit card; Large value payment on a credit card or out of country activity on a credit card. One-time password and authentication Typical pull services would include: Account balance enquiry; Mini statement request; Electronic bill payment; Transfers between customer's own accounts, like moving money from a savings account to a current account to fund a cheque; Stop payment instruction on a cheque; Requesting for an ATM card or credit card to be suspended; De-activating a credit or debit card when it is lost or the PIN is known to be compromised; Foreign currency exchange rates enquiry; Fixed deposit interest rates enquiry.[1]
  21. 21. 7/11/2014 SMS banking - Wikipedia, the free encyclopedia 3/5 Concerns and skepticism about SMS banking There is a very real possibility for fraud when SMS banking is involved, as SMS uses insecure encryption and is easily spoofable (see the SMS page for details). Supporters of SMS banking claim that while SMS banking is not as secure as other conventional banking channels, like the ATM and internet banking, the SMS banking channel is not intended to be used for very high-risk transactions.[2] Quality of service in SMS banking Because of the concerns made explicit above, it is extremely important that SMS gateway providers can provide a decent quality of service for banks and financial institutions in regards to SMS services. Therefore, the provision of Service Level Agreement(SLA) is a requirement for this industry; it is necessary to give the bank customer delivery guarantees of all messages, as well as measurements on the speed of delivery, throughput, etc. SLAs give the service parameters in which a messaging solution is guaranteed to perform. The convenience factor The convenience of executing simple transactions and sending out information or alerting a customer on the mobile phone is often the overriding factor that dominates over the skeptics who tend to be overly bitten by security concerns. As a personalized end-user communication instrument, today mobile phones are perhaps the easiest channel on which customers can be reached on the spot, as they carry the mobile phone all the time no matter where they are. Besides, the operation of SMS banking functionality over phone key instructions makes its use very simple. This is quite different from internet banking which can offer broader functionality, but has the limitation of use only when the customer has access to a computer and the Internet. Also, urgent warning messages, such as SMS alerts, are received by the customer instantaneously; unlike other channels such as the post, email, Internet, telephone banking, etc. on which a bank's notifications to the customer involves the risk of delayed delivery and response. The SMS banking channel also acts as the bank’s means of alerting its customers, especially in an emergency situation; e.g. when there is an ATM fraud happening in the region, the bank can push a mass alert (although not subscribed by all customers) or automatically alert on an individual basis when a predefined ‘abnormal’ transaction happens on a customer’s account using the ATM or credit card. This capability mitigates the risk of fraud going unnoticed for a long time and increases customer confidence in the bank’s information systems.[3] Compensating controls for lack of encryption The lack of encryption on SMS messages is an area of concern that is often discussed. This
  22. 22. 7/11/2014 SMS banking - Wikipedia, the free encyclopedia 4/5 The lack of encryption on SMS messages is an area of concern that is often discussed. This concern sometimes arises within the group of the bank’s technology personnel, due to their familiarity and past experience with encryption on the ATM and other payment channels. The lack of encryption is inherent to the SMS banking channel and several banks that use it have overcome their fears by introducing compensating controls and limiting the scope of the SMS banking application to where it offers an advantage over other channels. Suppliers of SMS banking software solutions have found reliable means by which the security concerns can be addressed. Typically the methods employed are by pre-registration and using security tokens where the transaction risk is perceived to be high. Sometimes ATM type PINs are also employed, but the usage of PINs in SMS banking makes the customer's task more cumbersome. Technologies employed for SMS banking Most SMS banking solutions are add-on products and work with the bank’s existing host systems deployed in its computer and communications environment. As most banks have multiple backend hosts, the more advanced SMS banking systems are built to be able to work in a multi- host banking environment; and to have open interfaces which allow for messaging between existing banking host systems using industry or de facto standards. Well developed and mature SMS banking software solutions normally provide a robust control environment and a flexible and scalable operating environment. These solutions are able to connect seamlessly to multiple SMSC operators in the country of operation. Depending on the volume of messages that are require to be pushed, means to connect to the SMSC could be different, such as using simple modems or connecting over leased line using low level communication protocols (like SMPP, UCP etc.) Advanced SMS banking solutions also cater to providing failover mechanisms and least-cost routing options. Most online banking platforms are owned and developed by the banks using them. There is only one open source online banking platform supporting mobile banking and sms payments called Cyclos, which is developed to stimulate and empower local banks in development countries. See also Mobile banking SMS messaging Internet banking Short Message Service Centre One-time password Cyclos Barclays Pingit
  23. 23. 7/11/2014 SMS banking - Wikipedia, the free encyclopedia 5/5 References 1. ^ Peevers, G., Douglas, G., & Jack, M. A. (2008). A usability comparison of three alternative message formats for an SMS banking service. International Journal of Human-Computer Studies 66(2). 2. ^ Key Pousttchi, Martin Schurig, "Assessment of Today's Mobile Banking Applications from the View of Customer Requirements", hicss, vol. 7, pp.70184a, Proceedings of the 37th Annual Hawaii International Conference on System Sciences (HICSS'04) - Track 7, 2004, p. 5-6. 3. ^ Barnes, S.J. and Corbitt, B. (2003) Mobile banking: Concept and Potential. International Journal of Mobile Communications. Vol. 1 (3). Retrieved from "" Categories: Banking technology E-commerce GSM standard Mobile technology Payment systems Text messaging This page was last modified on 17 May 2014 at 06:43. Text is available under the Creative Commons Attribution-ShareAlike License; additional terms may apply. By using this site, you agree to the Terms of Use and Privacy Policy. Wikipedia® is a registered trademark of the Wikimedia Foundation, Inc., a non-profit organization.
  24. 24. 7/11/2014 Mobile banking - Wikipedia, the free encyclopedia 1/11 Mobile banking From Wikipedia, the free encyclopedia Mobile banking is a system that allows customers of a financial institution to conduct a number of financial transactions through a mobile device such as a mobile phone or tablet. Mobile banking differs from mobile payments, which involve the use of a mobile device to pay for goods or services either at the point of sale or remotely,[1] analogously to the use of a debit or credit card to effect an EFTPOS payment. The earliest mobile banking services were offered over SMS, a service known as SMS banking. With the introduction of smart phones with WAP support enabling the use of the mobile web in 1999, the first European banks started to offer mobile banking on this platform to their customers.[2] Mobile banking has until recently (2010) most often been performed via SMS or the mobile web. Apple's initial success with iPhone and the rapid growth of phones based on Google's Android (operating system) have led to increasing use of special client programs, called apps, downloaded to the mobile device. With that said, advancements in web technologies such as HTML5, CSS3 and JavaScript have seen more banks launching mobile web based services to complement native applications. A recent study (May 2012) by Mapa Research suggests that over a third of banks[3] have mobile device detection upon visiting the banks' main website. A number of things can happen on mobile detection such as redirecting to an app store, redirection to a mobile banking specific website or providing a menu of mobile banking options for the user to choose from. Contents 1 A mobile banking conceptual model 2 Mobile banking services 2.1 Account information 2.2 Transaction 2.3 Investments 2.4 Support 2.5 Content services 2.6 Future functionalities in mobile banking 3 Challenges for a mobile banking solution 3.1 Handset operability 3.2 Security 3.3 Scalability and reliability 3.4 Application distribution
  25. 25. 7/11/2014 Mobile banking - Wikipedia, the free encyclopedia 2/11 3.4 Application distribution 3.5 Personalization 4 Mobile banking in the world 5 See also 6 Notes 7 References A mobile banking conceptual model In one academic model, mobile banking is defined as: Mobile Banking refers to provision and availment of banking- and financial services with the help of mobile telecommunication devices.The scope of offered services may include facilities to conduct bank and stock market transactions, to administer accounts and to access customised information." According to this model mobile banking can be said to consist of three inter-related concepts: Mobile accounting Mobile brokerage Mobile financial information services Most services in the categories designated accounting and brokerage are transaction-based. The non-transaction-based services of an informational nature are however essential for conducting transactions - for instance, balance inquiries might be needed before committing a money remittance. The accounting and brokerage services are therefore offered invariably in combination with information services. Information services, on the other hand, may be offered as an independent module. Mobile banking may also be used to help in business situations as well as financial Mobile banking services Typical mobile banking services may include: Account information 1. Mini-statements and checking of account history 2. Alerts on account activity or passing of set thresholds 3. Monitoring of term deposits
  26. 26. 7/11/2014 Mobile banking - Wikipedia, the free encyclopedia 3/11 4. Access to loan statements 5. Access to card statements 6. Mutual funds / equity statements 7. Insurance policy management Transaction 1. Funds transfers between the customer's linked accounts 2. Paying third parties, including bill payments and third party fund transfers(see, e.g., FAST) 3. Check Remote Deposit Investments 1. Portfolio management services 2. Real-time stock quotes 3. Personalized alerts and notifications on security prices Support 1. Status of requests for credit, including mortgage approval, and insurance coverage 2. Check (cheque) book and card requests 3. Exchange of data messages and email, including complaint submission and tracking 4. ATM Location Content services 1. General information such as weather updates, news 2. Loyalty-related offers 3. Location-based services A report by the US Federal Reserve (March 2012) found that 21 percent of mobile phone owners had used mobile banking in the past 12 months.[4] Based on a survey conducted by Forrester, mobile banking will be attractive mainly to the younger, more "tech-savvy" customer segment. A third of mobile phone users say that they may consider performing some kind of financial transaction through their mobile phone. But most of the users are interested in performing basic transactions such as querying for account balance and making bill payment. Future functionalities in mobile banking
  27. 27. 7/11/2014 Mobile banking - Wikipedia, the free encyclopedia 4/11 Based on the 'International Review of Business Research Papers' from World business Institute, Australia, following are the key functional trends possible in world of Mobile Banking. With the advent of technology and increasing use of smartphone and tablet based devices, the use of Mobile Banking functionality would enable customer connect across entire customer life cycle much comprehensively than before. With this scenario, current mobile banking objectives of say building relationships, reducing cost, achieving new revenue stream will transform to enable new objectives targeting higher level goals such as building brand of the banking organization. Emerging technology and functionalities would enable to create new ways of lead generation, prospecting as well as developing deep customer relationship and mobile banking world would achieve superior customer experience with bi-directional communications. Among digital channels, mobile banking is a clear IT investment priority in 2013 as retail banks attempt to capitalise on the features unique to mobile, such as location-based services.[5] Illustration of objective based functionality enrichment In Mobile Banking Communication enrichment: - Video Interaction with agents, advisors. Pervasive Transactions capabilities: - Comprehensive “Mobile wallet” Customer Education: - “Test drive” for demos of banking services Connect with new customer segment: - Connect with Gen Y – Gen Z using games and social network ambushed to surrogate bank’s offerings Content monetization: - Micro level revenue themes such as music, e-book download Vertical positioning: - Positioning offerings over mobile banking specific industries Horizontal positioning: - Positioning offerings over mobile banking across all the industries Personalization of corporate banking services: - Personalization experience for multiple roles and hierarchies in corporate banking as against the vanilla based segment based enhancements in the current context. Build Brand: - Built the bank’s brand while enhancing the “Mobile real estate”. Challenges for a mobile banking solution Key challenges in developing a sophisticated mobile banking application are : Handset operability There are a large number of different mobile phone devices and it is a big challenge for banks to offer mobile banking solution on any type of device. Some of these devices support Java ME and others support SIM Application Toolkit, a WAP browser, or only SMS. Initial interoperability issues however have been localized, with countries like India using portals like R-World to enable the limitations of low end java based phones, while focus on areas such as South Africa have defaulted to the USSD as a basis of communication achievable with any phone.
  28. 28. 7/11/2014 Mobile banking - Wikipedia, the free encyclopedia 5/11 The desire for interoperability is largely dependent on the banks themselves, where installed applications(Java based or native) provide better security, are easier to use and allow development of more complex capabilities similar to those of internet banking while SMS can provide the basics but becomes difficult to operate with more complex transactions. There is a myth that there is a challenge of interoperability between mobile banking applications due to perceived lack of common technology standards for mobile banking. In practice it is too early in the service lifecycle for interoperability to be addressed within an individual country, as very few countries have more than one mobile banking service provider. In practice, banking interfaces are well defined and money movements between banks follow the IS0-8583 standard. As mobile banking matures, money movements between service providers will naturally adopt the same standards as in the banking world. On January 2009, Mobile Marketing Association (MMA) Banking Sub-Committee, chaired by CellTrust and VeriSign Inc., published the Mobile Banking Overview for financial institutions in which it discussed the advantages and disadvantages of Mobile Channel Platforms such as Short Message Services (SMS), Mobile Web, Mobile Client Applications, SMS with Mobile Web and Secure SMS.[6] Security Security of financial transactions, being executed from some remote location and transmission of financial information over the air, are the most complicated challenges that need to be addressed jointly by mobile application developers, wireless network service providers and the banks' IT departments. The following aspects need to be addressed to offer a secure infrastructure for financial transaction over wireless network : 1. Physical part of the hand-held device. If the bank is offering smart-card based security, the physical security of the device is more important. 2. Security of any thick-client application running on the device. In case the device is stolen, the hacker should require at least an ID/Password to access the application. 3. Authentication of the device with service provider before initiating a transaction. This would ensure that unauthorized devices are not connected to perform financial transactions. 4. User ID / Password authentication of bank’s customer. 5. Encryption of the data being transmitted over the air. 6. Encryption of the data that will be stored in device for later / off-line analysis by the customer. One-time password (OTPs) are the latest tool used by financial and banking service providers in the fight against cyber fraud.[7] Instead of relying on traditional memorized passwords, OTPs are requested by consumers each time they want to perform transactions using the online or mobile
  29. 29. 7/11/2014 Mobile banking - Wikipedia, the free encyclopedia 6/11 banking interface. When the request is received the password is sent to the consumer’s phone via SMS. The password is expired once it has been used or once its scheduled life-cycle has expired. Because of the concerns made explicit above, it is extremely important that SMS gateway providers can provide a decent quality of service for banks and financial institutions in regards to SMS services. Therefore, the provision of service level agreements (SLAs) is a requirement for this industry; it is necessary to give the bank customer delivery guarantees of all messages, as well as measurements on the speed of delivery, throughput, etc. SLAs give the service parameters in which a messaging solution is guaranteed to perform. Scalability and reliability Another challenge for the CIOs and CTOs of the banks is to scale-up the mobile banking infrastructure to handle exponential growth of the customer base. With mobile banking, the customer may be sitting in any part of the world (true anytime, anywhere banking) and hence banks need to ensure that the systems are up and running in a true 24 x 7 fashion. As customers will find mobile banking more and more useful, their expectations from the solution will increase. Banks unable to meet the performance and reliability expectations may lose customer confidence. There are systems such as Mobile Transaction Platform which allow quick and secure mobile enabling of various banking services. Recently in India there has been a phenomenal growth in the use of Mobile Banking applications, with leading banks adopting Mobile Transaction Platform and the Central Bank publishing guidelines for mobile banking operations. Application distribution Due to the nature of the connectivity between bank and its customers, it would be impractical to expect customers to regularly visit banks or connect to a web site for regular upgrade of their mobile banking application. It will be expected that the mobile application itself check the upgrades and updates and download necessary patches (so called "Over The Air" updates). However, there could be many issues to implement this approach such as upgrade / synchronization of other dependent components. Personalization It would be expected from the mobile application to support personalization such as : 1. Preferred Language 2. Date / Time format 3. Amount format 4. Default transactions 5. Standard Beneficiary list 6. Alerts
  30. 30. 7/11/2014 Mobile banking - Wikipedia, the free encyclopedia 7/11 Mobile banking in the world This is a list of countries by mobile banking usage as measured by the percentage of people who had mobile banking transactions in the previous three months. The data is sourced from Bain, Research Now and Bain along with GMI NPS surveys in 2012.[8][9] Rank Country/Territory Usage in 2012[10] 1 South Korea 47% 2 China 42% 3 Hong Kong 41% 4 Singapore 38% 5 India 37% 6 Spain 34% 7 United States 32% 8 Mexico 30% 9 Australia 27% 10 France 26% 10 United Kingdom 26% 12 Thailand 24% 13 Canada 22% 14 Germany 14% Mobile banking is used in many parts of the world with little or no infrastructure, especially remote and rural areas. This aspect of mobile commerce is also popular in countries where most of their population is unbanked. In most of these places, banks can only be found in big cities, and customers have to travel hundreds of miles to the nearest bank. In Iran, banks such as Parsian, Tejarat, Pasargad Bank, Mellat, Saderat, Sepah, Edbi, and Bankmelli offer the service. Banco Industrial provides the service in Guatemala. Citizens of Mexico can access mobile banking with Omnilife, Bancomer and MPower Venture. Kenya's Safaricom (part of the Vodafone Group) has the M-Pesa Service, which is mainly used to transfer limited amounts of money, but increasingly used to pay utility bills as well. In 2009, Zain launched their
  31. 31. 7/11/2014 Mobile banking - Wikipedia, the free encyclopedia 8/11 own mobile money transfer business, known as ZAP, in Kenya and other African countries. In Somalia, the many telecom companies provide mobile banking, the most prominent being Hormuud Telecom and its ZAAD service. Telenor Pakistan has also launched a mobile banking solution, in coordination with Taameer Bank, under the label Easy Paisa, which was begun in Q4 2009. Eko India Financial Services, the business correspondent of State Bank of India (SBI) and ICICI Bank, provides bank accounts, deposit, withdrawal and remittance services, micro-insurance, and micro-finance facilities to its customers (nearly 80% of whom are migrants or the unbanked section of the population) through mobile banking.[11] In a year of 2010, mobile banking users soared over 100 percent in Kenya, China, Brazil and USA with 200 percent, 150 percent, 110 percent and 100 percent respectively.[12] Dutch Bangla Bank launched the very first mobile banking service in Bangladesh on 31 March 2011. This service is launched with ‘Agent’ and ‘Network’ support from mobile operators, Banglalink and Citycell. Sybase 365, a subsidiary of Sybase, Inc. has provided software solution with their local partner Neurosoft Technologies Ltd. There are around 160 million people in Bangladesh, of which, only 13 per cent have bank accounts. With this solution, Dutch-Bangla Bank can now reach out to the rural and unbanked population, of which, 45 per cent are mobile phone users. Under the service, any mobile handset with subscription to any of the six existing mobile operators of Bangladesh would be able to utilize the service. Under the mobile banking services, bank-nominated ‘Agents’ perform banking activities on behalf of the banks, like opening mobile banking account, providing cash services (receipts and payments) and dealing with small credits. Cash withdrawal from a mobile account can also be done from an ATM validating each transaction by ‘mobile phone & PIN’ instead of ‘card & PIN’. Other services that are being delivered through mobile banking system are person-to-person (e.g. fund transfer), person-to- business (e.g. merchant payment, utility bill payment), business-to-person (e.g. salary/commission disbursement), government-to-person (disbursement of government allowance) transactions. In May 2012, Laxmi Bank Limited launched the very first mobile banking in Nepal with its product Mobile Khata. Mobile Khata runs on a third-party platform called Hello Paisa that is interoperable with all the telecoms in Nepal viz. Nepal Telecom, NCell, Smart Tel and UTL, and is also interoperable with various banks in the country. The initial joining members to the platform after Laxmi Bank Limited were Siddartha Bank, Bank of Kathmandu, Commerz and Trust Bank Nepal and International Leasing and Finance Company. Currently, the users of Hello Paisa can Buy movie tickets, shop online, buy mobile recharge, pay bills (for services such as ADSL, DTH service, landline phone, postpaid mobile), make merchant payments, transfer money etc. On June 2013, one of the leading money transfer service provider in Nepal, "Prabhu Money Transfer", joined Hello Paisa to offer its Financial Services through Hello Paisa network. Prabhu Money Transfer will add 3500 agents across the nation to the Hello Paisa network. Hello Paisa platform is interoperable between multiple banks and multiple telecoms, and is the first of its kind in the world of Mobile Banking so far. The platform was nominated as one of the top three innovators of the year 2012 by SIDA in IAP program. Barclays offers a service called Barclays Pingit, which allows transfer of money from the United
  32. 32. 7/11/2014 Mobile banking - Wikipedia, the free encyclopedia 9/11 Barclays offers a service called Barclays Pingit, which allows transfer of money from the United Kingdom to many parts of the world with a mobile phone. In April 2014, the UK Payments Council launched the Paym mobile payment system, allowing mobile payments between customers of several banks and building societies using the recipient's mobile phone number.[13] See also List of countries by mobile banking usage Mobile content Mobile Marketing Mobile payments SMS Banking Notes 1. ^ KPMG “Monetizing Mobile” July 2011 ( 2. ^ "The World's first WAP Bank is Norwegian" ( fra-norge). 1999-09-24. Retrieved 2010-10-18. 3. ^ "A third of banks have mobile detection" ( handle-mobile-detection). Mapa Research. 2012-05-16. Retrieved 2012-05-16. 4. ^ Federal Reserve Board, "Consumers and Mobile Financial Services," March 2012 ( 5. ^ [1] ( strategies-2/) 6. ^ 7. ^ [2] (, Mobile payments 8. ^ "Countries With the Most 4G Mobile Users: Top 10 Nations - Bloomberg" ( users.html#slide1). Retrieved 2014-04-29. 9. ^ "Mapping out the world’s LTE coverage (It’s in fewer places than you think) — Tech News and Analysis" ( think/). Retrieved 2014-04-29. 10. ^ india/ 11. ^ Friedman, Thomas (November 2, 2010). "Do Believe the Hype" ( New York Times. 12. ^ Mobile Banking Surges As Emerging Markets Embrace Mobile Finance (http://www.cellular-
  33. 33. 7/11/2014 Mobile banking - Wikipedia, the free encyclopedia 10/11 13. ^ "Paym overview" ( Payments Council. Retrieved 21 April 2014. References Vaidya (2011): “Emerging Trends on Functional Utilization of Mobile Banking in Developed Markets in Next 3-4 Years” ( Tiwari, Rajnish and Buse, Stephan(2007): The Mobile Commerce Prospects: A Strategic Analysis of Opportunities in the Banking Sector (http://hup.sub.uni-, Hamburg University Press (E-Book as PDF to be downloaded) Tiwari, Rajnish; Buse, Stephan and Herstatt, Cornelius (2007): Mobile Services in Banking Sector: The Role of Innovative Business Solutions in Generating Competitive Advantage (, in: Proceedings of the International Research Conference on Quality, Innovation and Knowledge Management, New Delhi, pp. 886–894. Tiwari, Rajnish; Buse, Stephan and Herstatt, Cornelius (2006): Customer on the Move: Strategic Implications of Mobile Banking for Banks and Financial Enterprises, in: CEC/EEE 2006, Proceedings of The 8th IEEE International Conference on E-Commerce Technology and The 3rd IEEE International Conference on Enterprise Computing, E-Commerce, and E- Services (CEC/EEE'06), San Francisco, pp. 522–529. Tiwari, Rajnish; Buse, Stephan and Herstatt, Cornelius (2006): Mobile Banking as Business Strategy: Impact of Mobile Technologies on Customer Behaviour and its Implications for Banks, in: Technology Management for the Global Future - Proceedings of PICMET '06. Owens, John and Anna Bantug-Herrera (2006): Catching the Technology Wave: Mobile Phone Banking and Text-A-Payment in the Philippines ( Ovum Analyst Research, European Retail Banking Investment Strategies (2013): [3] ( investment-strategies-2/) The Himalayan Times: headline=Dollar+at+historic+high&NewsID=381744 Retrieved from "" Categories: E-commerce Mobile content Banking technology Banking terms
  34. 34. 7/11/2014 Introduction to China’s booming mobile moneymarket – Q&A with Charmaine Oak, Shift Thought | mobiThinking 1/5 Sw itch to our mobile site Search... GoHome With a vast number of Chinese already using digital wallets to pay for goods online, it’s was only a matter of time before mobile money took off. Now that standards are in place, and licenses issued to 250+ online/mobile payment providers, coupled with the availability of cheaper smartphones and mobile Web, the time has now come. This year 300 million people in China will pay for goods and services using their mobile phones, according to estimates from analysts Shift Thought. This introduction to the Chinese mobile money business is brought to you by Charmaine Oak, practice lead digital money for analyst/consultancy Shift Thought, who recently published Digital Money in China 2013 ( . What is Mobile Money Mobile money is any service where the mobile phone is used to access financial services. The broadest definition of mobile money, favored by the industry association GSMA ( , encompasses the entire set of mobile financial services, including mobile banking ( , mobile money transfer ( , mobile wallets ( and mobile payments ( . Shift Thought ( usually restricts the definition of mobile money ( to financial services that provide a stored value account, where the customer relationship is not with a bank. These accounts may typically be identified by a mobile number. However for the purposes of this interview we will use the broader definition to cover the range of services likely to be of interest to readers. How big is mobile money in China? Estimates for the size of the mobile payments market in China vary considerably. In one of the largest estimates yet, a July 2013 report from the Internet Society of China (ISC) ( forecasts that Chinese mobile payment service providers will process transactions worth more than 9 trillion yuan (US $1.5 trillion) in 2015. Compare this to Gartner ( ’s prediction that mobile payments for the entire world will be worth $721 billion by 2017. Shift Thought’s estimates side with the more conservative, with a forecast that China mobile payments will be worth $34 billion in 2013. What is the potential? Of the 32 categories of digital money services, monitored by Shift Thought, many present tremendous opportunities in China, as this market of 1.35 billion people rapidly embraces new technology and e-commerce. Both online payment and online banking have enjoyed a huge uptake. Now both services are increasingly being used on the move, resulting in a large number of mobile banking and mobile payment users. Shift Thought expects that there will be 300 million mobile payment users in China contributing $34 billion to the market. Mobile money transfer is another high growth area in China. Money transfer has been a highly desirable market, both within the country and internationally. A huge number of Chinese people move away from home to work, creating great demand to transfer back to their families. A good indication of the level of Chinese working away from home is Chinese New Year, when workers return home to celebrate, in one of the largest travel events worldwide. Charmaine Oak, practice lead, digital money for analyst/consultancy Shift Thought Shift Thought Digital Money in China 2013 Home (/) / Mobile marketing experts (/mobile-marketing-experts) / Interview transcripts (/mobile-marketing-experts/interview-transcripts) / Introduction to China’s booming mobile money market – Q&A with Charmaine Oak, Shift Thought Introduction to China’s booming mobile money market – Q&A with Charmaine Oak, Shift Thought With a vast number of Chinese already using digital wallets to pay for goods online, it’s was only a matter of time before mobile money took off. Now that standards are in place, and licenses issued to 250+ online/mobile payment providers, coupled with the availability of cheaper smartphones and mobile Web, the time has now come. This year 300 million people in China will pay for goods and services using their mobile phones, according to estimates from analysts Shift Thought. dotMobi mobiThinking mobiForge DeviceAtlas goMobi
  35. 35. 7/11/2014 Introduction to China’s booming mobile moneymarket – Q&A with Charmaine Oak, Shift Thought | mobiThinking 2/5 There is a tremendous potential for both contactless and remote mobile payment in China. There has been considerable investment in the rollout of contactless cards and contactless payment terminals, as well as other payments infrastructure, including sophisticated ATMs. There is also a drive to promote financial inclusion in rural areas by offering mobile money services to those without access to bank accounts and other financial services. What is driving the market? Availability of cheap smartphones and affordable mobile Internet services has greatly increased the traction in this market. Two recent events in particular have driven a renewed interest in the market. Firstly, the release of licenses to third-party payment service providers, and secondly, the announcement of mobile payment standards. Online payment providers grew rapidly in the absence of regulation, reaching a point where they presented a threat to traditional financial service providers. New regulations have forced all third- party payment providers (both online and mobile) to obtain licenses. The first tranche of licenses was issued in 2011; since then 250 licenses have been granted. The latest licenses even included foreign companies ( , but, so far, mobile payment licenses have been restricted to Chinese companies. Meanwhile mobile payment standards( 12/06/content_16029360.htm) are being finalized, and this should address the current problem of highly fragmented markets caused by multiple standards. What is holding it up? What are the barriers in terms of fraud, regulation etc? Since 2004 many local players have entered this space, and global players have attempted to break into the Chinese market. Large foreign banks and mobile operators made do with small shares in large Chinese companies, hoping that this foothold will grow into something larger. All elements of mobile money, even mobile payments and mobile banking, progressed at a snail’s pace as the authorities experimented with multiple standards before determining which to back. Locally owned companies enjoy multiple advantages as compared to multi- nationals. Regulations come from many directions, and not unlike the US, this is a country where you need to carefully look at the requirements at province and even municipality level. To what extent have Chinese people adopted mobile payment? What do they pay for – is there any data on this? So far the mobile payment and mobile banking markets have been highly fragmented across the different provinces of China. However consumer adoption has recently taken off due to the coming together of a number of factors that encouraged uptake. People started by using mobile payments for topping up prepaid phones, but this has now evolved into the use of a broad spectrum of local and remote payments, including purchasing tickets and virtual content. To what extent are they using mobile wallets (as opposed to credit cards etc.) to fulfil these payments? Why are they likely to adopt wallets? The use of mobile wallets is being driven by the popularity of digital wallets for online e-commerce. Over 2013 the trend is for large online payment providers to offer mobile wallets( to their existing digital wallet ( customers. China is an interesting case study – this could prove to be the first time that new mobile services arise of the back of an extensive digital wallet/online payments market. There is a customer base of hundreds of millions of digital wallets users, who are likely to use the same via mobile, as smartphones become cheaper and high-speed mobile Internet more affordable/available. Who are the major players in this market? In China, the big hitters hail from across multiple industries. The way this market has evolved is unique, as is the sheer variety of heavy-weight players bearing down on the alternative payments scene. Despite being some of the world’s largest businesses, many Chinese banks, including the “Big 4” – Industrial and Commercial Bank of China, China Construction Bank, the Agricultural Bank of China and the Bank of China – have found themselves at a disadvantage in the mobile payment space, as they are forced to compete with equally large mobile operators – China Mobile, China Unicom, China Telecom – as they and an array of other providers are granted licences to carry out payment services. The relatively young and highly nimble payment operators such as Alipay ( , from online giant Alibaba, and Tenpay ( , from social media giant Tencent, have grown beyond recognition, on the back of an SME market eager to do business on the Internet. Now they are using widely available, cheap smartphones and mobile Internet technology to offer their digital wallets as mobile wallets to a captive consumer base of merchants and consumers shopping on the go.
  36. 36. 7/11/2014 Introduction to China’s booming mobile moneymarket – Q&A with Charmaine Oak, Shift Thought | mobiThinking 3/5 What are the opportunities for businesses, such as transport providers, retailers? Alipay ( claims to have 550 million registered digital wallet holders, which is considerably more than PayPal ( ’s 128 million active registered accounts. Now Alipay has entered the mobile payments world with the launch of the Alipay Wallet mobile app ( for Android in January 2013, offering attractive incentives for its digital wallet holders to transact using their mobile devices. A number of NFC projects are taking off around China. As in other countries, these are largely driven by their use for transport and ticketing. Shift Thought estimates that more than 400 Chinese cities have started city card programs, with more than 200 million contactless cards issued and 600,000 contactless terminals installed. Meanwhile, mobile commerce is also growing strongly as the mobile internet becomes increasingly accessible even in the more rural areas of China. What are the opportunities for operators? All the large mobile operators now have payment provider licenses and are working through their own payment service companies. They are joining forces with payment providers and banks to launch pilots and services, for example China Mobile, China UnionPay, Gemalto and partners ( banks) . Considering the strength of the mobile operators and their reach into all parts of the country, expect them to create a number of interesting new services and new revenue streams over 2013 and beyond. What are the opportunities for financial service providers? Traditionally banks and financial institutions were the only ones who could offer certain financial services. But now they face significant challenges as non-banks receive approval to provide financial services. The nature of these services depends on the terms of each license, but collectively covers a wide spectrum, including mobile payments, mobile remittance, mobile wallets and mobile commerce. Today, an army of 250 would-be payments providers have received third-party payments provider licenses are rapidly seizing key market segments with unique and highly differentiated services that capitalize on the unique captive customer bases of each provider. Why do you believe that companies should think about digital money rather than mobile money? China presents a classic example in support of the Shift Thought Digital Money approach ( . Services started strongly on the Internet and have now gone mobile, in contrast to a number of African countries that grew on the Kenyan M-PESA ( model (i.e. where many people were first introduced to financial services via a mobile device). Regarding the relative importance of digital money services, China currently has the largest number of online shoppers in the world. Shift Thought estimates that gross merchandising volume in 2012 was $1.29 trillion, and that in June 2013 there are 220.65 million users. It is imperative that new entrants understand the existing dynamics and key players across the whole digital ecosystem, or they risk losing out as the mobile money market explodes over 2013 and beyond. International players need to partner with local companies; those without good partnerships may find themselves having to sit out the dance while their competitors take to the floor. Charmaine Oak, is the practice lead digital money for Shift Thought. Oak has worked for and advised diverse companies including Western Union, RBS, Orange FT, LogicaCMG and Wipro. Shift Thought offers consultancy and publishes reports on key mobile money markets worldwide and provides clients with access to detailed information on 1,500 digital money initiatives and 5,000 players worldwide, through a Digital Money Portal. The Digital Money in China 2013 ( report outlines the complexities of the China payment market, regulations and timelines and provides a complete guide on the ecosystem, with details on all current initiatives and players. • Please comment below or email editor (at) • Be the first to know when mobiThinking adds new stats, guides, competitions etc… follow mobiThinking on Twitter: @mobithinking (!/mobithinking) or via the RSS feed ( . Don’t miss:
  37. 37. 7/11/2014 Introduction to China’s booming mobile moneymarket – Q&A with Charmaine Oak, Shift Thought | mobiThinking 4/5 • The rise of mobile Web; mobile for good: trends from Cannes Mobile Lions 2013 ( • Guide to mobile industry awards( • Check out the video case studies: Cannes Mobile Lions 2013 ( • • Google search to punish mobile Web bad practice, including download-our-app interstitial ads( • Mobile payments surpass $235 Billion in 2013; NFC still disappointingly small ( • How greedy is your app – does it drain batteries or gobble data? ( • Websites must be mobile-friendly to comply with FTC’s new digital advertising guidelines( • The big compendium of global mobile stats( marketing-tools/latest-mobile-stats) • Latest update: Mobile apps ( • The insiders' guides to world’s greatest mobile markets ( • Latest country guide: Sweden ( • Mobile/smartphone sales 2012: the big picture ( • Guide to mobile ad networks( • Latest ad network profiles: DMG ( guide/premiumblind) • Twinpine ( guide/premium) • Guide to mobile agencies( • Latest agency profiles: Pontomobi ( guide/pontomobi) • The Hyperfactory ( guide/the-hyperfactory) • • Mobile events 2013 ( • best conferences, great discounts and free tickets • • Most popular content on mobiThinking in 2012 ( © mobiThinking. Feel free to reference, quote or paraphrase parts of mobiThinking articles, clearly stating and linking to mobiThinking as the source, but reprinting or republishing the whole or substantial parts of the piece without permission will not be tolerated. Please see mobiThinking’s legal statement ( . Rating for this article: Post new comment Your name: * Anonymous E-mail: * The content of this field is kept private and w ill not be show n publicly. Homepage: Comment: * Web page addresses and e-mail addresses turn into links automatically. Allowed HTML tags: <a> <em> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd> Lines and paragraphs break automatically. More information about formatting options(/filter/tips) Answer: * To combat spam, please enter the code in the image.
  38. 38. 7/11/2014 China’s trillion dollar mobile payments industryis under attack- Quartz 1/7 China’s trillion dollar mobile payments industry is under attack By Lily Kuo @lilkuo March 24, 201 4 Things aren’t looking great for Chinese firms working in the world of mobile payments. The fast-growing trillion dollar industry—which includes online investment funds, virtual credit cards, and e-commerce–is facing new pressure from Chinese regulators and state-owned banks. This week, China’s central bank said it is considering placing limits on how much cellphone users can spend via their smartphones. The regulator is also considering requiring online money market funds, like Alibaba’s Yu’e Bao, to begin holding minimum reserves on the deposits they collect. Over the past few weeks, China’s top four banks, all of them state- owned, have set limits (paywall) on transfers to mobile financial products. And earlier this month, China halted the use of virtual credit cards and QR codes, used for online shopping. The crackdown is threatening to impinge on one of the country’s most dynamic business sectors. Last year, about 1.67 billion financial transactions were made via mobile phones, for a total turnover of 9.64 trillion yuan ($1.6 trillion). That was a 213% increase in volume and 317% increase in terms of the value of transaction. China's central bank says it wants to shine more light on mobile payment products. Reuters/Jason Lee QUARTZ - Visit us at or follow on Twitter @qz
  39. 39. 7/11/2014 China’s trillion dollar mobile payments industryis under attack- Quartz 2/7 volume and 317% increase in terms of the value of transaction. As we’ve pointed out, the battle for China’s millions of middle-class internet users is shifting. The rise of mobile payment products, ranging from wealth management funds to crowdsourced cancer insurance, has pitted internet giants like Tencent or Baidu and e- commerce firms like Alibaba against each other. But these companies are increasingly competing with state-owned Chinese banks and mobile carriers. The latest bunch of pushback from regulators suggests that the state-owned companies may be getting the upper hand. Chinese regulators say the new scrutiny come out of concern for information security, but at least some internet executives believe it’s politically motivated. “Let the users decide who wins the game, not monopoly and power,” Jack Ma, founder and current chairman of Alibaba said in a comment on Alibaba’s messaging app Laiwang. “Sometimes you’re not defeated by technology; sometimes it’s a document.” The comment subsequently was wiped from the platform without explanation. When asked by Quartz about its removal, Alibaba declined to comment.
  40. 40. 7/11/2014 Mobile Payments in India - Wikipedia, the free encyclopedia 1/10 Mobile Payments in India From Wikipedia, the free encyclopedia Mobile payments is a mode of payment using mobile phones. Instead of using methods like cash, cheque, and credit card, a customer can use a mobile phone to transfer money or to pay for goods and services. A customer can transfer money or pay for goods and services by sending an SMS, using a Java application over GPRS, a WAP service, over IVR or other mobile communication technologies. In India, this service is bank-led.[1] Customers wishing to avail themselves of this service will have to register with banks which provide this service. Currently, this service is being offered by several major banks and is expected to grow further.[2] Mobile Payment Forum of India (MPFI) is the umbrella organisation which is responsible for deploying mobile payments in India.[3] Contents 1 Background 1.1 Growth of mobile phones in India 1.2 Impact of mobile phones on welfare 2 Immediate Payment Service (IMPS) 2.1 Key features 2.2 Transaction flow 2.3 MMID 3 Communication channels 3.1 Application based 3.2 SMS and IVR 3.3 USSD 3.4 Security 4 Use cases 4.1 Pre-paid mobile top-up 4.2 Domestic peer-to-peer remittances 4.3 Bill and merchant payments 4.4 Governance 4.5 New business opportunities 5 Adoption of mobile payments 5.1 Drivers for mobile financial services 5.2 Challenges for mobile financial services in India 6 Financial inclusion
  41. 41. 7/11/2014 Mobile Payments in India - Wikipedia, the free encyclopedia 2/10 Annual growth of mobile subscriber base in India 6 Financial inclusion 6.1 Banking correspondent 7 Differences with mobile banking 8 References 9 External links Background India has a vast non-banking population,[4] most of whom reside in the rural areas. The traditional banking industry can not cater to the needs of India's large rural populace.[5] Setting up a conventional bank branch in a rural area would require considerable amounts of money to be spent on infrastructure and additional personnel. Most of rural Indians are cut off from access to basic financial services, which include deposits and withdrawals from a trusted source. Growth of mobile phones in India However, India is the second-largest telecommunications market and has 929.37 million mobile phone customers. Mobile phones are quite common even in the remote villages. The mobile phone industry is growing at a rate of over 200 million per year. It was expected to touch the one billion mark by 2013. The share of the urban subscribers is 66% and the share of the rural subscribers was 34%. In May 2011, the net monthly addition in terms of the number of subscriptions was 13.35 million. Of those, 7.33 million were from the urban segment and 6.02 million from the rural segment. The subscription growth rate on a monthly basis is 55% for urban segments and 45% for rural segments.[6] Given this context, it is possible to consider the mobile phone as an economically viable instrument to enable inclusive access to financial services. Impact of mobile phones on welfare Mobile telephony has had an impact mainly by allowing for agents in information restricted areas to engage in more optimal arbitrage. The adoption of mobile phones by fishermen and wholesalers resulted in a dramatic reduction in price dispersion, the complete elimination of
  42. 42. 7/11/2014 Mobile Payments in India - Wikipedia, the free encyclopedia 3/10 waste, and a near-perfect adherence to the law of one price. Both consumer and producer welfare increased.[7] Mobile payments can have a positive impact on welfare by easing operational aspects and associated costs of cash-based transactions related to cash handling, storage and transfer, and by providing a strong platform for financial inclusion. Immediate Payment Service (IMPS) On November 22, 2010, NPCI launched Immediate Payment Services (IMPS) to offer an instant, 24-hour×7, interbank electronic fund transfer service through mobile phones. IMPS facilitate customers to use mobile instruments as a channel for accessing their bank accounts and put high interbank fund transfers in a secured manner with immediate confirmation features. With over 900 million mobile subscriber and robust payment infrastructure, IMPS is well positioned to fulfill its objectives of enabling bank customers to use mobile instruments as a preferred channel for accessing their banks accounts, remit funds and also sub-serve the goal of electronification of retail payments. More than 54 banks already offer IMPS services to their customers. The basic aim of IMPS is to also enable micropayments on low-end mobile devices which support only voice and text, in addition to higher-end phones which could support web browsing or Java application capabilities. A person who has subscribed to a mobile payment service should be able to send money to any other person who has subscribed as well. This should be independent of the mobile network and the bank to which either of the persons belong. This is referred to as interoperability and is a key concern for any major technology to be successful. In India, the model for the delivery of IMPS will be bank-linked;[8] which implies that customers wishing to avail themselves of this service should have: Initially, a registered mobile phone account with any network operator in the country, and A bank account Register for the mobile payment service with the bank In contrast, in economies such as Kenya, the mobile network operators lead the development of mobile financial services. Choosing a bank-linked model enables offerings of a variety of value added financial service built on top of the basic mobile payment transaction. The idea of mobile financial solutions will only then permeate to all levels of society: customers, merchants, business houses and the government. The technical standards are set up by MPFI (, and are implemented by the various participating entities after being ratified by the RBI. Key features