To promote the industrialization development process of China Mobile Payment, and create a safe and credible ecological environment for the industry, the People''s Bank of China (PBC) adheres to the principle of "standards first", and gathers industrial forces steadily, pushing forward the construction of China mobile payment standardization. Since October, 2011, PBC has organized commercial banks, bank card organizations, telecom operators, payment organizations, etc. to deeply analyze the requirements of mobile payment standardization, comprehensively arrange the existing mobile payment standards at home and abroad, make an in-depth research in terms of the key technology, system structure, information security and other aspects, and complete the system planning for technical standards for China financial mobile payment. Since April, 2012, based on the standards system planning, PBC has initiated industrial units to conduct a research with the method of "comprehensive standardization", and gathered relevant experts from fields of production, study and research, etc. for seminars to widely and carefully exchange, analyze and deliberate the key issues of standards development, which effectively guarantees the scientificness, perspectiveness and efficiency of standards development. After the links of full investigation, technology research, standards development, experts'' evaluation, and extensive poll, etc., 35 technical standards of 5 categories on China financial mobile have been developed and released in December 2012. This essay will illustrate technical standards for China financial mobile payment from the following aspects.
1. The development foundation of technical standards for China financial mobile payment
1.1 Policy foundation. With the release and implementation of Administrative Measures for the Payment Services Provided by Non-financial Institutions (2010 No. 2 Command of PBC), 223 organizations successively obtained the license for payment business, and over 30 agencies including three telecom operator payment companies obtained the qualification of mobile payment business, which marked the bodies for supervising mobile payment business and market participating bodies (including commercial banks and payment institutions) were identified, also laid a policy foundation for the development of technical standards for China financial mobile payment.
1.2 Technology and business foundation. At present, remarkable achievements on the application popularization of China financial IC card have been made; the improvement of the business acceptance environment has been implemented according to the plan; the quantity of issued cards is increasing steadily; industrial application is gradually expanding, the market acceptance degree keeps enhancing, and the promotion of financial IC card in pilot city shows a good momentum. All of these have laid the ground for the development of technical standards for China financial mobile payment.
1.3 Application and practice foundation Industrial parties such as commercial bank, China UnionPay, telecom operators, etc., actively participates in the exploration and research of the plan for mobile payment technology, product formats and business model, and successively carries out the pilot work of mobile payment service. For instance, China UnionPay and China Mobile co-launched the mobile payment business based on SWP-SIM plan. China Merchants Bank and HTC Cooperation co-launched mobile phone wallet service based on NFC whole terminal program. These projects are the innovative trying for mobile payment products, also the active exploration for the integrating development of financial business, laying a solid application and practice foundation for the development of technical standards for China financial mobile payment.
2. Core concept of technical standards for China financial mobile payment
2.1 The essence of mobile payment is the financial innovation business. Taking the security module of mobile phone and other communication equipment as the store carrier of sensitive data such as user account and identity authentication, etc., the mobile payment realizes funds transformation between different accounts and payment by using the online mobile communication network or offline acceptance terminal like POS and ATM. During the process, the bank account is the basis of mobile payment system, and the non-financial payment account is the supplement. Therefore, technical standards for China financial mobile payment define the mobile payment as the innovative financial business of “interoperability , security and reliability”.
2.2 Inheritance and Innovation are the basic direction. Mobile payment is the successive development in the current financial technical environment, but not the subversive restructure, which belongs to the financial business. For the scale development of mobile payment, it is required to make full use of resources in financial field, such as current financial IC card acceptance environment, clearing system for payment and transfer, and financial safety guarantee system, etc. Therefore, PBC attaches importance to the entire planning of mobile payment standards and construction of financial IC card standards, in order to, at the greatest extent, maintain the cohesion and consistency between technical standards for China financial mobile payment and Specification for China financial Integrated Circuit (IC) Card, enriching and extending the receiving channel and application field of financial IC card based on inheriting the existing application of financial IC card standards, and promoting the harmonious development of the financial IC card and mobile payment.
2.3 Being perspective and open is the basic attitude. At a certain extent, the development of mobile payment industry relies on the technology development of mobile communication network, mobile terminal, secure chip, and electronic authentication, etc. Therefore, technical standards for China financial mobile payment fully introduces the mature and advanced technology at home and aboard, and effectively connects with the mobile payment standardization of ISO, ensuring the perspectiveness and advancement of standards, and playing the role of standards in supporting and advancing mobile payment business in the next period. Meanwhile, as to new immature technologies which fail to meet requirements for interoperability , technical standards for China mobile payment is kept open for additional standards after being tested with sophisticated technologies.
3. Main content of technical standards for China financial mobile payment
Technical standards system of China financial mobile payment as shown in Diagram 1 is divided into 6 layers, including equipment layer, secure technology layer, application foundation layer, interoperability layer, application layer, and safety guarantee layer, covering all the current mature, key and basic contents. Parts of the new technology applications are not included in technical specification without full verification. The standards mainly specify the requirements for terms related to mobile payment, contactless interface, SE, multi-application management, transaction process, message interface, as well as business operation, and include 6 major categories of application foundation class, networking class, equipment class, application class, safety guarantee class and safe technology class. As the standard for safe technology class involves other various standards, so it is divided and put into other categories. Then there are a total of 35 technical specifications belonging to 5 categories.
Diagram 1: Standards System Structure
Standards make clear technical requirements for systematization in terms of the product format, business mode, interoperability , safety guarantee, etc., cover the basic elements, security requirements and implementation plan of every mobile payment link, including the selection and technical course of key technology scheme such as the contactless communication frequency, security carrier form, reliable service management, electronic authentication, and also establish the technology system framework with the target of " interoperability , security and reliability", as shown in diagram 2.
Diagram 2: Technology System Structure
The standards apply to institutions participating in mobile payment business, such as commercial banks, payment institutions, bank card organizations and so on, also apply to manufacturers and third party service providers of chip, card, embedded software, client software terminal, SE application, contactless card reader, mobile phone terminal, etc.
4. The position of technical standards for China mobile payment and its role of industrial development
On the basis of the technology innovation, business expansion, and market exploration of domestic and international industrial parties in the mobile payment field for so many years, the development of technical standards for China financial mobile payment is the refining and sublimation of industrial subjects'' best practices on technology, business, and market. Practice has proved that the mode of development facilitated by interoperability is one of key factors for the rapid development of bank card industry, especially for mobile payment. The technical standards for China financial mobile payment aim to establish a trinity development pattern and technology system of "communication between online and offline, acceptance environment sharing, brand affect sharing", and give play to the networking usage mechanism advantage of "joint rule development, joint business promotion, joint order specification", so as to realize the development of China mobile payment industrialization and intensification.
The release of technical standards for China financial mobile payment fills the blank of mobile payment technical standards in financial field, effectively advances efficient allocation and utilization of social resources for industrial parties. It is also in favor of enhancing the level of China mobile payment security management and risk prevention ability, creating an open, cooperative, and win-win situation for industry chain parties, as well as marking a new milestone for individualization and intensification of China mobile payment. 2013 will be the specification implementation year under the guidance of standards for China mobile payment industry. The financial institutions of the banking industry will give full play of technical standards to integrate resource, provide technical support and specify the management for the development of mobile payment industry, accelerate the infrastructure construction and pilot application work of mobile payment, and facilitate the standardized, ordered and rapid development of China mobile payment industry.
5. Standards keep up with the times, to provide sustainable driving force for industrial development
Technical standards of China financial mobile payment meet the technical and business requirements of domestic mobile payment development for the current and coming period, set specifications for basic links related to mobile payment and health development such as technical framework, security requirement, interface, etc., and at the same time, leave more space for industrial parties to conduct mobile payment business. Proceeding from the sustainable development of industry and enterprise reality, industrial parties could play its initiative to make technology and business innovation under the precondition of being in line with standards. On the one hand, during the implementation of standards, industrial parties need to actively verify connectivity and operability of the standard, conscientiously sum up experiences and shortcomings, put forward constructive suggestions to promote the perfection of standards, and effectively ensure the advancement and validity of technical standards for China financial mobile payment. On the other hand, the working group of standards is required to continuously track key technology development and business innovation of mobile payment, and timely adopt the advanced scientific and technological achievements into the standards system. Meanwhile, according to the domestic and international development trend of mobile payment, combing with domestic actual needs, and reasonably referring to international standards, to constantly enrich the technical standards system of China financial mobile payment, and continuously provide scientific, effective technical support and specification promoting function for the development of mobile payment industry in China and all over the world.
(From China Standardization May/June 2013)