ISO 12812-1:2017
(Main)Core banking — Mobile financial services — Part 1: General framework
Core banking — Mobile financial services — Part 1: General framework
ISO 12812-1:2017 defines the general framework of mobile financial services (payment and banking services involving a mobile device), with a focus on: a) a set of definitions commonly agreed by the international financial industry; b) the opportunities offered by mobile devices for the development of such services; c) the promotion of an environment that reduces or minimizes obstacles for mobile financial service providers who wish to provide a sustainable and reliable service to a wide range of customers (persons and businesses), while ensuring that customers' interests are protected; d) the different types of mobile financial services accessed through a mobile device including mobile proximate payments, mobile remote payments and mobile banking, which are detailed in other parts of ISO 12812; e) the mobile financial services supporting technologies; f) the stakeholders involved in the mobile payment ecosystems. ISO 12812-1:2017 includes the following informative annexes: - an overview of other standardization initiatives in mobile financial services (Annex A); - a description of possible mobile payment business models (Annex B); - a description of typical payment instruments which may be used (Annex C).
Opérations bancaires de base — Services financiers mobiles — Partie 1: Cadre général
General Information
Standards Content (Sample)
INTERNATIONAL ISO
STANDARD 12812-1
First edition
2017-03
Core banking — Mobile financial
services —
Part 1:
General framework
Opérations bancaires de base — Services financiers mobiles —
Partie 1: Cadre général
Reference number
ISO 12812-1:2017(E)
©
ISO 2017
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ISO 12812-1:2017(E)
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ISO 12812-1:2017(E)
Contents Page
Foreword .v
Introduction .vi
1 Scope . 1
2 Normative references . 1
3 Terms and definitions . 1
4 Abbreviated terms . 8
5 Concept of interoperability . 9
5.1 General . 9
5.2 Concept of interoperability for payments: the business layer . 9
5.3 Concept of interoperability for payments: the technical layer . 9
5.4 Interoperability objectives. 9
6 Relationships between customers and MFSPs .10
6.1 General .10
6.2 Legal status of the customer .10
6.3 Role played by the customer .10
6.4 Contractual relationship between the customer and the institution .11
6.5 Choice of wording for ISO 12812 (all parts) .11
7 Rationale for ISO 12812 (all parts) .11
7.1 General .11
7.2 Environment description .11
7.2.1 General.11
7.2.2 Increased dematerialization of financial services . .12
7.2.3 Increased use of financial services .12
7.2.4 Increased cross-border payments .12
7.2.5 Remote management of applications . .12
7.2.6 Enhanced proximate functionalities .12
7.2.7 Enhanced multi-application environment . .13
7.3 Standardization challenges .13
7.3.1 General.13
7.3.2 Adaptation of mobile financial services to a fast evolving technology .13
7.3.3 Complexity of ecosystems .13
7.3.4 Complexity of regulatory systems .13
7.3.5 Consumer expectation for accessing all services using the same device .13
7.3.6 Risk management in the mobile environment .14
7.3.7 Certification programs .14
7.3.8 Role of the mobile device .14
8 Mobile payments .14
8.1 General payment functions .14
8.1.1 General.14
8.1.2 Payment service issuance .14
8.1.3 Payment service activation .14
8.1.4 Payment service selection by the payer .15
8.1.5 Application selection by the POI or the payment gateway .15
8.1.6 Application data retrieval .15
8.1.7 Customer identification .15
8.1.8 Payer authentication .15
8.1.9 Application authentication .15
8.1.10 Payer authorization/confirmation .15
8.1.11 Transaction data authentication .15
8.1.12 MFSP authorization .15
8.1.13 Completion of the transaction .16
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ISO 12812-1:2017(E)
8.1.14 Clearing and settlement .16
8.1.15 End of service .16
8.2 Mobile proximate payment .16
8.2.1 General.16
8.2.2 Mobile contactless payment .16
8.2.3 Mobile proximate payment based on bar code .17
8.3 Mobile remote payment .17
8.3.1 General.17
8.3.2 Payment to businesses . .17
8.3.3 Payment to persons .18
9 Mobile banking .19
9.1 General .19
9.2 General mobile banking functions .19
9.2.1 General.19
9.2.2 Enrolment .19
9.2.3 Customer profile management .20
9.2.4 Banking service issuance .20
9.2.5 Customer identification .20
9.2.6 Customer authentication .20
9.2.7 Customer authorization/confirmation .20
9.2.8 Transaction data authentication .20
9.2.9 Financial institution authorization .20
9.2.10 Completion of the banking operation .20
9.2.11 End of service .20
9.3 Channels for mobile banking .20
9.3.1 General.20
9.3.2 Mobile Internet browser .21
9.3.3 Mobile application .21
9.3.4 Short Messaging Service (SMS) .21
10 Mobile financial services supporting technologies .21
10.1 Mobile device .21
10.2 Mobile communication .22
10.3 Mobile device local interface.22
10.4 Applications .22
10.5 Mobile wallet .22
10.6 Secure element .23
10.7 User interface .24
10.8 Trusted execution environment .24
10.9 Secured server .24
10.10 Service management .25
11 Stakeholders involved in the mobile payment ecosystems .25
12 Implementations of ISO 12812 (all parts) .26
Annex A (informative) Organizations involved in mobile standardization and guidance .27
Annex B (informative) Mobile payment ecosystems and related business models for MFSPs .28
Annex C (informative) Payment instruments .30
Bibliography .33
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ISO 12812-1:2017(E)
Foreword
ISO (the International Organization for Standardization) is a worldwide federation of national standards
bodies (ISO member bodies). The work of preparing International Standards is normally carried out
through ISO technical committees. Each member body interested in a subject for which a technical
committee has been established has the right to be represented on that committee. International
organizations, governmental and non-governmental, in liaison with ISO, also take part in the work.
ISO collaborates closely with the International Electrotechnical Commission (IEC) on all matters of
electrotechnical standardization.
The procedures used to develop this document and those intended for its further maintenance are
described in the ISO/IEC Directives, Part 1. In particular the different approval criteria needed for the
different types of ISO documents should be noted. This document was drafted in accordance with the
editorial rules of the ISO/IEC Directives, Part 2 (see www .iso .org/ directives).
Attention is drawn to the possibility that some of the elements of this document may be the subject of
patent rights. ISO shall not be held responsible for identifying any or all such patent rights. Details of
any patent rights identified during the development of the document will be in the Introduction and/or
on the ISO list of patent declarations received (see www .iso .org/ patents).
Any trade name used in this document is information given for the convenience of users and does not
constitute an endorsement.
For an explanation on the voluntary nature of standards, the meaning of ISO specific terms and
expressions related to conformity assessment, as well as information about ISO’s adherence to the
World Trade Organization (WTO) principles in the Technical Barriers to Trade (TBT) see the following
URL: w w w . i s o .org/ iso/ foreword .html.
This document was prepared by Technical Committee ISO/TC 68, Financial services, Subcommittee SC 7,
Core banking.
A list of all the parts in the ISO 12812 series can be found on the ISO website.
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ISO 12812-1:2017(E)
Introduction
The use of mobile devices to conduct financial services (i.e. payments and banking) is occurring
following the steady rise in the number of customers using the Internet for these services. As an
evolving market, mobile financial services are being developed and implemented on various bases
throughout the different regions of the world and also among the various providers of such services. In
these conditions, the purpose of the ISO 12812 (all parts) is to facilitate and promote interoperability,
security and quality of mobile financial services. At the same time, it is important that stakeholders in the
services can benefit from the evolution and service providers remain commercially free and competitive
in order to pursue their own business strategies. ISO 12812 (all parts) addresses the interoperability
only at the technical layer by considering the impact of new components and/or interfaces induced by
the introduction of a mobile device in financial services. The intentions of ISO 12812 (all parts) are as
follows.
a) To advance interoperability of mobile financial services globally by defining requirements based
on a common terminology and basic principles for the design and operation of mobile financial
services.
b) To define technical components and their interfaces, as well as roles that may be performed by
different actors in addition to mobile financial service providers (e.g. mobile network operators,
trusted service managers). These components and their interfaces, as well as roles, are defined
according to identified use cases. Future use cases may be considered during the maintenance of
ISO 12812 (all parts).
c) To identify existing standards on which mobile financial services should be based, as well as
possible gaps.
Standardization in this area is beneficial for the sound development of the mobile financial services
market because it will:
— facilitate and promote interoperability between the different components or functions building
mobile financial services;
— build a safe environment so that consumers and merchants can trust the service and allow the
mobile financial service providers to manage their risks;
— promote consumer protection mechanisms including fair contract terms, rules on transparency of
charges, clarification of liability, complaints mechanisms and dispute resolution;
— enable the consumer to choose from different providers of devices or mobile financial services
including the possibility to contract with several mobile financial service providers for services on
the same device;
— enable the consumer to transfer a mobile financial service from one device to another one
(portability);
— promote a consistent consumer experience among various mobile financial services and mobile
financial service providers with easy-to-use interfaces.
To achieve these objectives, each part of ISO 12812 (all parts) will specify the necessary technical
mechanisms and, when relevant, refer to existing standards as appropriate.
ISO 12812 (all parts) provides a framework flexible enough to accommodate new mobile device
technologies, as well as to allow various business models. At the same time, it enables compliance with
applicable regulations including data privacy, protection of personally-identifiable data, consumer
protection, anti-money laundering and prevention of financial crime.
It is not the intention of ISO 12812 (all parts) to duplicate or to seek to replace any existing standard
in the area of mobile financial services (e.g. communication protocols, mobile devices). It is also not
the intention to drive technology to any specific application or to restrict the development of future
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ISO 12812-1:2017(E)
technologies or solutions. Messages and data elements to be exchanged at the interfaces between
the different components or actors of the system may be those already specified [e.g. ISO 20022,
ISO 8583 (all parts)].
ISO 12812 (all parts) recognizes the need for unbanked or under-banked consumers to access mobile
financial services. It also recognizes that these services may be provided by diverse types of institutions
in accordance with the applicable regulation(s).
The ISO 12812 series consists of the following parts:
— Part 1: General framework — The introduction of the standard with descriptions of some
fundamental bases on which the other parts are built;
— Part 2: Security and data protection for mobile financial services — Definition of a general
framework for the secure execution of mobile financial services;
— Part 3: Financial application lifecycle management — The lifecycle of the application including
roles and infrastructure for secure provisioning;
— Part 4: Mobile payments to persons — Use cases and requirements for interoperability;
— Part 5: Mobile payments to businesses — Use cases and requirements for interoperability.
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INTERNATIONAL STANDARD ISO 12812-1:2017(E)
Core banking — Mobile financial services —
Part 1:
General framework
1 Scope
This document defines the general framework of mobile financial services (payment and banking
services involving a mobile device), with a focus on:
a) a set of definitions commonly agreed by the international financial industry;
b) the opportunities offered by mobile devices for the development of such services;
c) the promotion of an environment that reduces or minimizes obstacles for mobile financial service
providers who wish to provide a sustainable and reliable service to a wide range of customers
(persons and businesses), while ensuring that customers’ interests are protected;
d) the different types of mobile financial services accessed through a mobile device including mobile
proximate payments, mobile remote payments and mobile banking, which are detailed in other
parts of ISO 12812;
e) the mobile financial services supporting technologies;
f) the stakeholders involved in the mobile payment ecosystems.
This document includes the following informative annexes:
— an overview of other standardization initiatives in mobile financial services (Annex A);
— a description of possible mobile payment business models (Annex B);
— a description of typical payment instruments which may be used (Annex C).
2 Normative references
There are no normative references in this document.
3 Terms and definitions
For the purposes of this document, the following terms and definitions apply.
ISO and IEC maintain terminological databases for use in standardization at the following addresses:
— IEC Electropedia: available at http:// www .electropedia .org/
— ISO Online browsing platform: available at http:// www .iso .org/ obp
3.1
acquirer
institution (3.17) that has contracted with the merchant (3.19)/payee (3.38) in order to process the
payment transaction (3.40) data and transmit onwards in the payment system (3.45)
Note 1 to entry: This role might or might not be performed by the merchant/payee institution.
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ISO 12812-1:2017(E)
3.2
alias
pseudonym for the payer (3.39) and/or the payee (3.38) uniquely linked to the name and account
associated to the payment instrument (3.43)
EXAMPLE Mobile phone number.
3.3
application
set of program modules (application software) and/or data (application data) needed to provide
functionality for a mobile financial service (3.25)
EXAMPLE Payment application, authentication application, user interface application, mobile wallet (3.35).
3.4
authentication
provision of assurance that a claimed characteristic of an entity is correct
Note 1 to entry: The provision of assurance may be given by verifying the identity of an individual, device or
process.
[SOURCE: ISO/IEC 27000:2016, 2.7, modified —Note 1 to entry has been added.]
3.5
authentication credential
data provided by the mobile financial service provider (MFSP) (3.27) to the customer (3.12) in order to
allow the authentication of the customer
EXAMPLE PIN, mobile code.
3.6
bar code
optical machine-readable representation of data
Note 1 to entry: Bar codes include QR codes (ISO/IEC 18004), Data Matrix (ISO/IEC 16022) and MaxiCode
(ISO/IEC 16023).
3.7
cardholder verification method
CVM
particular case of user verification method (UVM) (3.63) when the payment instrument (3.43) is a card
3.8
consumer
person using a mobile device (3.24) to purchase goods or services and who is acting for purposes other
than trade, business or profession
3.9
contactless
radio frequency technology operating at very short ranges so that the user has to perform a voluntary
gesture in order that a communication is initiated between two devices by approaching them
Note 1 to entry: Contactless is not to be confused with wireless which is a more general term.
Note 2 to entry: Contactless technology is specified in ISO/IEC 14443.
3.10
credential
data provided to the customer (3.12) for identification/authentication purposes
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ISO 12812-1:2017(E)
3.11
credit transfer
payment initiated by the payer (3.39) which results in transferring an amount of money from a payer’s
account to a
...
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