Mobile Payments Interoperability and Lack Thereof

Mobile Payments Interoperability and Lack Thereof

Natalie Katje

Marketing Manager at ProgressSoft Corporation

Views 754

Mobile Payments Interoperability and Lack Thereof

13.12.2019 09:15 am

In several nations across the globe, the regulatory expectations and legal frameworks of the mobile payments environment have not yet been sharply defined. Many mobile payment service providers are not abiding by any well-defined regulatory requirements, end-users are lacking confidence in the security of mobile payment transactions and the development of mobile payment services in a number of countries is being halted.

Evidently, the impediment of financial inclusion is no coincidence; in most nations, cash remains to be considered as an ideal and convenient payment method because the conditions for accessing and trusting mobile payments are not yet favorable. Consequently, central banks require full management and control over mobile payments stakeholders to ensure the safety of banked and unbanked citizens.

To this end, and prior to the dominance of mobile payment technologies, ProgressSoft Corporation anticipated the need for an interoperable national mobile switch essential for central banks to manage all stakeholders in the mobile payments cycle. In 2008, ProgressSoft introduced the world to its Mobile Payment Switching and Clearing solution, PS-mpClear, a national mobile payment switch that provides central banks with control

capabilities over the mobile payments ecosystem and promotes financial inclusion through allowing unbanked user participation in the financial system.

PS-mpClear processes interbank and interprocessor mobile payment transactions and supports the processing and switching of mobile financial and non-financial transactions on a straight-through processing basis. It promotes financial inclusion through the provision of payment services for unbanked users, while clearing and settling the payment transactions in central bank money.

As a centralized switching and clearing solution, PS-mpClear eliminates the need for bilateral agreements between mobile payment service providers, granting them an open, interoperable system. With a centralized database for all authorized participants in the system, central banks are able to utilize a real-time solution to oversee the financial stability of mobile payment service providers and assure their monetary soundness.

Launched in 2014 by the Central Bank of Jordan, PS-mpClear has successfully placed the Kingdom of Jordan at the forefront of financial inclusion efforts on a global scale. The solution has fulfilled the Central Bank of Jordan’s switching, clearing and regulatory roles including single financial transaction switching and processing, clearing of transactions between different financial institutions and integration with the central bank’s Real-Time Gross Settlement System (RTGS). Today, the Central Bank of Jordan is monitoring cashflow and overseeing all mobile

payment transactions in the Kingdom, including micropayments. It is now empowered to regulate mobile payments, manage the financial stability of mobile payment service providers and assure their compliance with its regulations.

In 2017, PS-mpClear was launched in the Sultanate of Oman, helping it attain one more milestone for the national payment systems of the Central Bank of Oman; the provision of a secure, instantaneous funds transfer mechanism through the use of mobile devices. Accessibility, convenience and security were attained by the new implementation, and ever since, the wider use of electronic payments has been encouraged in the Sultanate.

Today, as billions of mobile payment transactions approach the trillion mark, an interoperable and well-defined mobile payments infrastructure is no longer supplemental to central bank payment systems, it is absolutely essential for empowering mobile payment services and facilitating financial inclusion efforts.

Latest blogs

n/a n/a

How COVID-19 Is Ushering In a New Era of Cashless Technology

  Image source:   Cashless technology isn't a completely fresh concept. People have been using credit cards for decades, and the market for fintech services has been Read more »

Jean Shin tyntec

Using WhatsApp for 2FA is the Future of Banking

From user authentication and password resets to transaction verification, two-factor authentication (2FA) offers basic but useful protection for consumers. The 2FA process typically sends an SMS sent to the customer with a one-time password (OTP). Read more »

Amir Ghodrati App Annie

The Role of Fintech Apps in Navigating This Period of Financial Insecurity

Economic instability has been ricocheting throughout the stock market in the wake of the global coronavirus pandemic. Its effects have been felt across all industries, with winners and losers’ across different sectors. So, how has fintech Read more »

n/a n/a

How to Choose a VPN for Digital Privacy & Security

In a world where almost everything is connected, and where hackers and other malicious people are roaming the internet, it is always advisable that you take every precaution that you can to enhance your data security and privacy protections. Using a Read more »

Ben Slater Instaclustr

The Case for Adopting Open Source – Own Rather Than Rent the Foundations of Your Business

For some time open source was seen as something that only the biggest companies could use and play with. But with the modern, increasingly fast business environment, the use cases for open source are in everything and the technology is increasingly Read more »

Related Blogs

Lauren Jones Icon Solutions

A sleeping Digital Giant Wakes? 4 Key Trends Accelerating Payments Transformation in the US

The US payments industry is undoubtedly ripe for change. Before the unprecedented shock of COVID-19, digitization and payments transformation initiatives had been organic, piecemeal and predominately the preserve of the largest banks. Now, Read more »

Vince Graziani IDEX Biometrics ASA

The Death of the Wallet: Why We’ll Soon Be Combining Payments, Loyalty Cards and ID

These days, the average consumer has multiple cards weighing down their pockets, from debit and credit cards, loyalty schemes, contactless public transport tickets, IDs, healthcare cards and more. This seems out-dated in an age where we can already Read more »

Warren Platt Venio

App Enabled Voucher Payments Can Resolve Problems in a Post Pandemic World

Venio has launched with a timely and relevant, post COVID-19 solution for getting consumers and merchants back to business in the Philippines. Read more »

Anil Inamdar Instaclustr

Modernising Payment Methods to Maximise Business Growth

A raft of obstacles face financial institutions, all with the potential to slow the growth of their business and block them from adopting digital solutions to produce efficiency gains. Siloed data, poor cybersecurity processes, the need to achieve Read more »

Brad Hyett phos

Apple Acquires Mobeewave - phos comments

The pandemic has resulted in a huge increase in demand for contactless payments and frictionless, simple ways of paying. Software-based Point of Sale (SoftPOS) technology is perfectly suited to meet new customer demands, and frankly, is the future Read more »

Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App
Financial It Youtube channel