Banking industry sets out principles for secure, wide-scale adoption of mobile payment products, services
By Canadian Vending
By Canadian Vending
The Canadian banking industry has published a white paper highlighting the need to maintain the highest level of payment security, promote competition and support innovation for the benefit of Canadian consumers and retailers.
The Payments Security White Paper is based on the following principles:
- Security – Maintain the level of security that consumers and retailers have come to expect from payment service providers in Canada, equivalent to that provided by EMV chip and PIN. Identify and protect consumers and retailers against technological and operational risks;
- Openness – Create and support an open mobile payments environment that allows consumers to pay for goods and services using any mobile wallet on any mobile device, leveraging the contactless payment terminals that many retailers already have;
- Innovation – Support innovation in mobile payments by creating an environment that promotes consumer choice and is conducive to the development, evaluation and introduction of new products and services.
These principles are intended to encourage the introduction and adoption of new and innovative mobile payments products and services in Canada, without compromising the integrity of the Canadian payments infrastructure, the Canadian Bankers Association said in a news release.
The white paper was developed by the following banks: BMO Bank of Montreal, CIBC, National Bank of Canada, RBC Royal Bank, Scotiabank and TD Bank Group.
“The introduction of new mobile products presents both opportunities and challenges to the security of the payments system in Canada,” said Terry Campbell, president, Canadian Bankers Association, in the release. “This market is changing so rapidly, it is necessary to examine how key players can protect consumers and retailers from exposure to fraud and other risks in the mobile payments market, while also encouraging an innovative, competitive environment.”
The Payments Security White Paper provides an overview of developments in the payments system and, in particular, recent developments in mobile payments. It reviews topics such as the importance of customer identification and verification methods and management of dynamic data to prevent account takeover and transaction level fraud in this dynamic environment. It raises some of the potential security concerns and questions that could arise in an open marketplace and lists possible ways to address them.