Mobile commerce: more than just words

For the average Russian consumer, the words "mobile commerce" are empty words. A little more sophisticated will hardly remember individual publications about the bright future of paying for parking and buying a can of Pepsi-Cola using a phone. In fact, this is a very important direction in the development of mobile services, and the topic goes far beyond the scope of individual projects.

The round table "Mobile payments and mobile commerce: prospects for development in Russia and in the world" was held on February 27. Mobile commerce as a direction is singled out as a separate project, which for several years has been the coordinator of the Infocommunication Union. The specificity of mobile commerce is not only in the comparative novelty of this direction. More importantly, for the full functioning of such systems, it is necessary to ensure the interaction of several parties. And also to develop uniform technical standards and create a regulatory framework that regulates this type of activity.

The concept of "mobile commerce" is defined by Leonid Paramonov, head of the innovation department of the DICT of the Ministry of Information and Communications of Russia. DICT stands for "Department of State Policy in the Field of Infocommunication Technologies".

The use of mobile networks to pay for goods and services in the world is called mobile commerce, which includes two main areas:

  1. Mobile banking, which is the management of a bank account using a mobile phone as a means of identifying the owner of a bank account. When making payment transactions, the funds in the bank account are used. At the same time, the range of services available to the user is quite wide - standard banking operations with an account, payment for services on an ongoing basis (housing and communal services, communications, television), one-time payments for goods and services. The simplest type of mobile banking service is to notify the user via SMS about current operations with his bank account (account or loan status, withdrawal of funds from the account, operations on time deposits, etc.).
  2. Mobile payments are payments made using a mobile phone using the payer's funds deposited on an electronic prepaid banking product ("mobile wallet"). In this case, the payer first transfers funds to the so-called "mobile wallet" from his personal account with the mobile operator by performing operations (conclusive actions) on his mobile phone. Mobile payments are available to those mobile subscribers who do not have their own bank account or do not want to use it when using mobile commerce services. As a rule, such payments are made for one-time purchases for small amounts, that is, micropayments, as well as for paying for services on an ongoing basis (utility, communications, television).

Mobile content is a type of mobile payment, but this type of mobile commerce is separated into a separate area due to its importance and widespread use. The purchase of content implies the use of a mobile terminal not only as a remote means of identifying the payer, but also as a device for receiving the ordered service.

As you can see, cash transactions when using mobile terminals are divided into remote and performed directly at the point of sale, and are also classified into micropayments and macropayments. Micropayments are considered to be payments for public transport, fast food, parking, movie tickets, etc.; in terms of macro payments, we are talking about the purchase of "large" goods and services, payments at gas stations, restaurants, purchases in stores, payment for air tickets, etc.

The benefits of mobile commerce for the consumer (ie us) are obvious. This is the simplicity and convenience of payments combined with mobility, high speed of payment processing. Even more important is the natural availability of such a "mobile wallet" due to the widespread use of mobile communications. In Europe, mobile commerce is developing primarily as a convenient tool for making micropayments, but in Russia the potential of such services is higher. In our country, a significant part of the population does not have access to remote banking services, while more than 80% of residents use mobile communications. In addition, unlike in Europe, credit cards have not become any significant means of paying for purchases, they are used by less than 10% of the Russian population. There are more nominal owners of "plastic", but many use cards exclusively for withdrawing salaries at the nearest ATM.

In turn, the state is also very interested in the development of mobile commerce. It is no coincidence that “Increasing the share of non-cash payments” and “Reducing the volume of gray business” are in the first places in the list of advantages. The volume of cash in the Russian Federation now accounts for 40% of the total money turnover, of which 60-70% of cash is in the hands of the population. The movement of cash is difficult to control, according to Visa International experts, the costs of predominantly cash circulation can reach several percent of GDP.

As for operators and sellers of goods/services, in the literal sense of the word, “walking distance” of services and the ease of non-cash payment stimulate consumption. It is psychologically easier to give a credit card to the seller or to attach a mobile phone to the sensor of a cash terminal than to get it out of your wallet and count out your hard-earned money.

As rightly noted in the presentation, in Russia, mobile commerce is only making its first steps. According to McKinsey & Company, in 2006 the size of the Russian mobile content market was $700 million, while mobile banking and payment were only $20 million each. And even these statistics do not reflect the real imbalance, since the category of "mobile banking" includes such a generally accepted service as SMS notifications about changes in account status.

Mobile Payments Project of the Infocommunication Union

Ivan Kuznetsov, Vice President of JSCB Tauride, talks about the Mobile Payments Project.

There are many participants involved in the process of providing mobile commerce services: telecom operators, banks, equipment manufacturers, service providers and, of course, sellers and buyers. However, a key success factor is the achievement of a synergistic effect from the interaction of telecom operators and banks .

Effective support for this interaction can be provided by the Universal Payment Platform (UPP). Based on world practice in the field of mobile commerce, the requirements of Russian legislation and the peculiarities of the Russian mobile communications market, the Infocommunication Union has developed the Concept of a Universal Payment Platform for Paying for Goods and Services Using Mobile Communications Networks (abbreviated as UPP).

The introduction of SCP is planned to begin with the deployment of an experimental zone in Moscow, St. Petersburg and Sochi. The pilot zone scheme implements a simplified mobile commerce model. Within the framework of the pilot zone, the main provisions of the Concept and the proposed technical solutions are experimentally tested, business models and solutions for retail trade are being worked out, and the possibilities of using new technologies (for example, NFC) are being tested.

At the initial stage, the following types of mobile payments were selected for practical testing within the PMS pilot zone:

  1. Communication services and the Internet
  2. Consumer goods and services
  3. Mobile insurance service
  4. International transfers
  5. Purchasing e-tickets
  6. Electronic lotteries
  7. Parking fees

Another important area of ​​application of the Universal Payment Platform is the payment of state and municipal services, including duties, fines, licenses, permits, etc.

In 2007, when performing one of the development work within the framework of the Federal Target Program "Electronic Russia 2002-2010." a prototype of the applied information system of the federal information center was created in the interests of providing mobile electronic payments when paying for public services. The prototype solution involves processing incoming mobile payments, generating electronic payment receipts and providing information exchange with the federal information center, which distributes information about payments made between departments. A fragment of the Universal Payment Platform is used in this work as a typical mobile payment platform.

Today, the experimental zone will consist of three fragments:

  • Fragment 1 is formed by Svyaz-Bank OJSC, Megafon OJSC, Moscow Cellular Communications OJSC, it is planned to be launched in July 2008.
  • Fragment 2 has already been formed and includes OJSC JSCB Tavrichesky, CJSC Delta-Telecom, OJSC VimpelCom.
  • Fragment 3 will be deployed by Intellect Telecom OJSC and Mobile TeleSystems OJSC.

Periodal operation of Fragment 2 began in November 2007. Payment for some communication services, for example, payments for the Internet, is possible not only in Moscow and St. Petersburg, but also in many regions of our country. The statistical data processed within the Experimental Zone fully confirms many of the theoretical provisions set forth in the Concept of the Universal Payment Platform. For example, according to the concept, SCP should provide:

  • wide coverage of the population and accessibility of services, including for people with disabilities and residents of hard-to-reach areas (social aspect);
  • The spread of banking services in regions with an underdeveloped banking sector.

Practice shows that this service is in high demand in the regions of Siberia, where the infrastructure of non-cash payments is poorly developed, and the access of the population to banking services is limited, and cellular services have become quite widespread.

Cash solutions for the Universal Payment Platform

Anton Tarasov, Head of the Department for the Development of Remote and Postal Banking Services, JSCB Svyaz-Bank, speaks.

JSC JSCB "Svyaz-Bank" has completed the development of a cash solution for mobile payments. The development resulted in a cash terminal that allows making mobile payments at any point of sale in a convenient and accessible way for the client. On July 20, 2007, testing of operations between the SET: Retail software, installed on the POS terminal, and Megarau software, which performs the role of processing when making payments, was completed. Testing showed the operability and technical readiness of the interaction between the specified software.

When transferring information, the client uses USSD technology, chosen by Svyaz-Bank as the fastest means of transferring information. When developing a cash solution, JSCB Svyaz-Bank identified three main principles on which it will be based:

  • Universal integration with point of sale systems
  • High speed of payment
  • Consumer property convenience

In the 2nd quarter of 2008 JSCB Svyaz-Bank launches into trial operation a cash solution for accepting payments for mobile payments. The pilot project will be launched in St. Petersburg on the basis of a pharmacy retail chain.

In the third quarter of 2008, a pilot project will be launched in Sochi, during which it is planned to test the use of a mobile cash solution and NFC technology as a way to transfer data between a client and processing. For the implementation of the project, an agreement will be concluded with a Sochi hotel, according to which hotel guests will be given the opportunity to pay for the services provided by the hotel using a mobile phone, without having a wallet and bank cards.

Introduction of new settlement and payment services

Pavel Roitberg, Director of the Department for the Development of Products and Services of Mobile TeleSystems OJSC.

Mobile commerce is a broad field that includes money transactions made using mobile phones. These transactions may include intangible purchases (apps and information) delivered digitally to a mobile device, and physical purchases purchased via a mobile phone but delivered separately.

Today, a significant part of mobile commerce consists of the purchase of digital content used on mobile phones. People want to enhance their mobile devices with new ringtones, screen savers, downloadable games and other applications. The use of mobile devices to purchase digital content and pay for digital services facilitates the introduction of a payment mechanism for physical goods.

MTS considers simplicity, ease of use and security to be the key conditions for the introduction of mobile commerce. Complex and time-consuming applications and services scare away customers.

From the point of view of payment instruments, MTS is developing two directions for the development of mobile commerce. These are bank card accounts and personal accounts of subscribers with the Operator.

At present, a mobile banking service has been implemented for MTS subscribers, which allows them to manage their bank account from the mobile phone screen 24/7 at home and in roaming. This service made it possible to combine two of the world's most widespread standards in a mobile phone: GSM and payment with a bank card. The provision of this service does not require any changes in the legislation: banks are engaged in transactions, the operator provides the technological part. Another important advantage of this service is security, which meets all the requirements for banking transactions by payment systems. The service is convenient and easy to use, does not require memorization of specific commands. However, operating experience has shown that the implementation and promotion of the service cannot depend on both the Operator and the Bank. This means that the service has no owner. The operator does not promote the service, since it cannot position it only on its own behalf and, accordingly, cannot control the geography of the service distribution, plan the volume of issuing SIM cards with a banking application.Banks, in turn, have no experience in promoting additional services to the mass market, and this is not their main activity. In addition, the Operator is not interested in the service provided by one single bank, since subscribers can be clients of any bank. Two more very serious obstacles for the product in question to become mass-produced: the need to replace the SIM card - an operation that can be done only when visiting a service office, and the dependence of the service activation procedure on the bank, which means that even having the necessary SIM on hand -card, the subscriber will not be able to independently access the service. Therefore, in addition to the above requirements, MTS considers the necessary conditions for the development of payment services: the universality of payment instruments that can be used in these services, the ability to promote these services only on behalf of the Operator and the ability to activate services remotely without visiting any service offices, whether it be the Bank or the Operator. Additionally, the procedure for handling claims should be simple and convenient for the subscriber. And for the Operator, this procedure should not lead to financial risks.

Using the subscriber's personal accounts as a payment instrument greatly simplifies the activation procedure - no special SIM cards and card accounts are needed. An ideal payment service should provide the opportunity to choose the use of payment documents - a bank account or a personal account with the Operator. Such versatility will ensure wide penetration, which is the main indicator of the success of the service provided. Therefore, we believe that the technological, legal and financial foundations of payment services should not depend on payment instruments, and we suggest moving in this direction.

Mobile payment system based on the Universal Payment Platform concept

Denis Zyryanov, Head of Mobile Commerce, VimpelCom Marketing Directorate and Andrey Shishlo, General Director, Mobile Payment Systems LLC

A mobile payment platform is a vital need for many market institutions. The successful implementation of this project contributes to the solution of important government tasks, the development of the banking and telecommunications sectors. It is important that services based on the mobile platform are in demand by the market itself, that is, by end users. A striking example confirming this assessment is the presence on the market of many successful, but, unfortunately, surrogate payment services based on Premium SMS, as well as surrogate financial instruments on the Internet. This means that there is a new niche in the market for creating added value.

The versatility of a mobile payment platform is very important, as common rules will minimize the institutional costs of market participants to support multiple infrastructures. It will also greatly facilitate control and simplify scenarios for the provision of payment services for platform customers, who will be able to use the services in a uniform way, regardless of the mobile operator and financial institution used.

On the other hand, the Universal Payment Platform (PCP) should not restrict key market participants operating in the retail market from implementing their own branded product solutions based on the SCP. This will allow more efficient use of marketing resources and reduce the time to market for various SCP-based solutions.

Using the conceptual postulates of SCP, OJSC VimpelCom, together with JSCB Tavrichesky, launched a number of pilot commercial products based on the Beeline mobile communication network. All products use the concept of micropayments, and the subscriber's advance account with Beeline is used as a source of funds. In particular, the services "Mobi.Money" and "Mobile payment. Internet" provide subscribers with the opportunity to pay for Internet access services, utility bills, as well as a number of other services using the convergence of WEB and GSM interfaces.

Service “Mobile payment. Kino" allows you to remotely select and pay for tickets in the network of cinemas "KARO FILM". Mobile payment service. Insurance" provides subscribers with the opportunity to order and pay monthly insurance premiums for two types of insurance: insurance of mobile phones against accidental damage or robbery, as well as insurance against the risk of partial or complete loss of the subscriber's ability to work.

The list of services will be expanded through the joint efforts of the Mobi.Money processing company, VimpelCom OJSC and other market players.

All products are based on the scheme of public issue of prepaid cards of JSCB "Tavrichesky". Settlements are carried out by the Bank on the basis of relevant direct agreements with service providers. Transaction processing and on-line interaction with service providers are carried out by VimpelCom and Mobi.Money systems using special secure protocols.

We received a positive response from the market. The partners plan to expand the list of services offered, as well as develop products for macro payments based on subscribers' bank accounts.

Mobile commerce: more than just words

For an average Russian consumer, the words "mobile commerce" are empty words. A little more sophisticated will hardly remember individual publications about the bright future of paying for parking and buying a can of Pepsi-Cola using a phone. In fact, this is a very important direction in the development of mobile services, and the topic goes far beyond the scope of individual projects.

The round table "Mobile payments and mobile commerce: prospects for development in Russia and in the world" was held on February 27. Mobile commerce as a direction is singled out as a separate project, which for several years has been the coordinator of the Infocommunication Union. The specificity of mobile commerce is not only in the comparative novelty of this direction. More importantly, for the full functioning of such systems, it is necessary to ensure the interaction of several parties. And also to develop uniform technical standards and create a regulatory framework that regulates this type of activity.

The concept of "mobile commerce" is defined by Leonid Paramonov, head of the innovation department of the DICT of the Ministry of Information and Communications of Russia. DICT stands for "Department of State Policy in the Field of Infocommunication Technologies".

The use of mobile networks to pay for goods and services in the world is called mobile commerce, which includes two main areas:

  1. Mobile banking, which is the management of a bank account using a mobile phone as a means of identifying the owner of a bank account. When making payment transactions, the funds in the bank account are used. At the same time, the range of services available to the user is quite wide - standard banking operations with an account, payment for services on an ongoing basis (housing and communal services, communications, television), one-time payments for goods and services. The simplest type of mobile banking service is to notify the user via SMS about current operations with his bank account (account or loan status, withdrawal of funds from the account, operations on time deposits, etc.).
  2. Mobile payments are payments made using a mobile phone using the payer's funds deposited on an electronic prepaid banking product ("mobile wallet"). In this case, the payer first transfers funds to the so-called "mobile wallet" from his personal account with the mobile operator by performing operations (conclusive actions) on his mobile phone. Mobile payments are available to those mobile subscribers who do not have their own bank account or do not want to use it when using mobile commerce services. As a rule, such payments are made for one-time purchases for small amounts, that is, micropayments, as well as for paying for services on an ongoing basis (utility, communications, television).

Mobile content is a type of mobile payment, but this type of mobile commerce is separated into a separate area due to its importance and widespread use. The purchase of content implies the use of a mobile terminal not only as a remote means of identifying the payer, but also as a device for receiving the ordered service.

As you can see, cash transactions when using mobile terminals are divided into remote and performed directly at the point of sale, and are also classified into micropayments and macropayments. Micropayments are considered to be payments for public transport, fast food, parking, movie tickets, etc.; in terms of macro payments, we are talking about the purchase of "large" goods and services, payments at gas stations, restaurants, purchases in stores, payment for air tickets, etc.

The benefits of mobile commerce for the consumer (ie us) are obvious. This is the simplicity and convenience of payments combined with mobility, high speed of payment processing. Even more important is the natural availability of such a "mobile wallet" due to the widespread use of mobile communications. In Europe, mobile commerce is developing primarily as a convenient tool for making micropayments, but in Russia the potential of such services is higher. In our country, a significant part of the population does not have access to remote banking services, while more than 80% of residents use mobile communications. In addition, unlike in Europe, credit cards have not become any significant means of paying for purchases, they are used by less than 10% of the Russian population. There are more nominal owners of "plastic", but many use cards exclusively for withdrawing salaries at the nearest ATM.

In turn, the state is also very interested in the development of mobile commerce. It is no coincidence that “Increasing the share of non-cash payments” and “Reducing the volume of gray business” are in the first places in the list of advantages. The volume of cash in the Russian Federation now accounts for 40% of the total money turnover, of which 60-70% of cash is in the hands of the population. The movement of cash is difficult to control, according to Visa International experts, the costs of predominantly cash circulation can reach several percent of GDP.

As for operators and sellers of goods/services, in the literal sense of the word, “walking distance” of services and the ease of non-cash payment stimulate consumption. It is psychologically easier to give a credit card to the seller or to attach a mobile phone to the sensor of a cash terminal than to get it out of your wallet and count out your hard-earned money.

As rightly noted in the presentation, in Russia, mobile commerce is only making its first steps. According to McKinsey & Company, in 2006 the size of the Russian mobile content market was $700 million, while mobile banking and payment were only $20 million each. And even these statistics do not reflect the real imbalance, since the category of "mobile banking" includes such a generally accepted service as SMS notifications about changes in account status.

Mobile Payments Project of the Infocommunication Union

Ivan Kuznetsov, Vice President of JSCB Tauride, talks about the Mobile Payments Project.

There are many participants involved in the process of providing mobile commerce services: telecom operators, banks, equipment manufacturers, service providers and, of course, sellers and buyers. However, a key success factor is the achievement of a synergistic effect from the interaction of telecom operators and banks .

Effective support for this interaction can be provided by the Universal Payment Platform (UPP). Based on world practice in the field of mobile commerce, the requirements of Russian legislation and the peculiarities of the Russian mobile communications market, the Infocommunication Union has developed the Concept of a Universal Payment Platform for Paying for Goods and Services Using Mobile Communications Networks (abbreviated as UPP).

The introduction of SCP is planned to begin with the deployment of an experimental zone in Moscow, St. Petersburg and Sochi. The pilot zone scheme implements a simplified mobile commerce model. Within the framework of the pilot zone, the main provisions of the Concept and the proposed technical solutions are experimentally tested, business models and solutions for retail trade are being worked out, and the possibilities of using new technologies (for example, NFC) are being tested.

At the initial stage, the following types of mobile payments were selected for practical testing within the PMS pilot zone:

  1. Communication services and the Internet
  2. Consumer goods and services
  3. Mobile insurance service
  4. International transfers
  5. Purchasing e-tickets
  6. Electronic lotteries
  7. Parking fees

Another important area of ​​application of the Universal Payment Platform is the payment of state and municipal services, including duties, fines, licenses, permits, etc.

In 2007, when performing one of the development work within the framework of the Federal Target Program "Electronic Russia 2002-2010." a prototype of the applied information system of the federal information center was created in the interests of providing mobile electronic payments when paying for public services. The prototype solution involves processing incoming mobile payments, generating electronic payment receipts and providing information exchange with the federal information center, which distributes information about payments made between departments. A fragment of the Universal Payment Platform is used in this work as a typical mobile payment platform.

Today, the experimental zone will consist of three fragments:

  • Fragment 1 is formed by Svyaz-Bank OJSC, Megafon OJSC, Moscow Cellular Communications OJSC, it is planned to be launched in July 2008.
  • Fragment 2 has already been formed and includes OJSC JSCB Tavrichesky, CJSC Delta-Telecom, OJSC VimpelCom.
  • Fragment 3 will be deployed by Intellect Telecom OJSC and Mobile TeleSystems OJSC.

Periodal operation of Fragment 2 began in November 2007. Payment for some communication services, for example, payments for the Internet, is possible not only in Moscow and St. Petersburg, but also in many regions of our country. The statistical data processed within the Experimental Zone fully confirms many of the theoretical provisions set forth in the Concept of the Universal Payment Platform. For example, according to the concept, SCP should provide:

  • wide coverage of the population and accessibility of services, including for people with disabilities and residents of hard-to-reach areas (social aspect);
  • The spread of banking services in regions with an underdeveloped banking sector.

Practice shows that this service is in high demand in the regions of Siberia, where the infrastructure of non-cash payments is poorly developed, and the access of the population to banking services is limited, and cellular services have become quite widespread.

Cash solutions for the Universal Payment Platform

Anton Tarasov, Head of the Department for the Development of Remote and Postal Banking Services, JSCB Svyaz-Bank, speaks.

JSC JSCB "Svyaz-Bank" has completed the development of a cash solution for mobile payments. The development resulted in a cash terminal that allows making mobile payments at any point of sale in a convenient and accessible way for the client. On July 20, 2007, testing of operations between the SET: Retail software, installed on the POS terminal, and Megarau software, which performs the role of processing when making payments, was completed. Testing showed the operability and technical readiness of the interaction between the specified software.

When transferring information, the client uses USSD technology, chosen by Svyaz-Bank as the fastest means of transferring information. When developing a cash solution, JSCB Svyaz-Bank identified three main principles on which it will be based:

  • Universal integration with point of sale systems
  • High speed of payment
  • Consumer property convenience

In the 2nd quarter of 2008 JSCB Svyaz-Bank launches into trial operation a cash solution for accepting payments for mobile payments. The pilot project will be launched in St. Petersburg on the basis of a pharmacy retail chain.

In the third quarter of 2008, a pilot project will be launched in Sochi, during which it is planned to test the use of a mobile cash solution and NFC technology as a way to transfer data between a client and processing. For the implementation of the project, an agreement will be concluded with a Sochi hotel, according to which hotel guests will be given the opportunity to pay for the services provided by the hotel using a mobile phone, without having a wallet and bank cards.

Introduction of new settlement and payment services

Pavel Roitberg, Director of the Department for the Development of Products and Services of Mobile TeleSystems OJSC.

Mobile commerce is a broad field that includes money transactions made using mobile phones. These transactions may include intangible purchases (apps and information) delivered digitally to a mobile device, and physical purchases purchased via a mobile phone but delivered separately.

Today, a significant part of mobile commerce consists of the purchase of digital content used on mobile phones. People want to enhance their mobile devices with new ringtones, screen savers, downloadable games and other applications. The use of mobile devices to purchase digital content and pay for digital services facilitates the introduction of a payment mechanism for physical goods.

MTS considers simplicity, ease of use and security to be the key conditions for the introduction of mobile commerce. Complex and time-consuming applications and services scare away customers.

From the point of view of payment instruments, MTS is developing two directions for the development of mobile commerce. These are bank card accounts and personal accounts of subscribers with the Operator.

At present, a mobile banking service has been implemented for MTS subscribers, which allows them to manage their bank account from the mobile phone screen 24/7 at home and in roaming. This service made it possible to combine two of the world's most widespread standards in a mobile phone: GSM and payment with a bank card. The provision of this service does not require any changes in the legislation: banks are engaged in transactions, the operator provides the technological part. Another important advantage of this service is security, which meets all the requirements for banking transactions by payment systems. The service is convenient and easy to use, does not require memorization of specific commands. However, operating experience has shown that the implementation and promotion of the service cannot depend on both the Operator and the Bank. This means that the service has no owner. The operator does not promote the service, since it cannot position it only on its own behalf and, accordingly, cannot control the geography of the service distribution, plan the volume of issuing SIM cards with a banking application.Banks, in turn, have no experience in promoting additional services to the mass market, and this is not their main activity. In addition, the Operator is not interested in the service provided by one single bank, since subscribers can be clients of any bank. Two more very serious obstacles for the product in question to become mass-produced: the need to replace the SIM card - an operation that can be done only when visiting a service office, and the dependence of the service activation procedure on the bank, which means that even having the necessary SIM on hand -card, the subscriber will not be able to independently access the service. Therefore, in addition to the above requirements, MTS considers the necessary conditions for the development of payment services: the universality of payment instruments that can be used in these services, the ability to promote these services only on behalf of the Operator and the ability to activate services remotely without visiting any service offices, whether it be the Bank or the Operator. Additionally, the procedure for handling claims should be simple and convenient for the subscriber. And for the Operator, this procedure should not lead to financial risks.

Using the subscriber's personal accounts as a payment instrument greatly simplifies the activation procedure - no special SIM cards and card accounts are needed. An ideal payment service should provide the opportunity to choose the use of payment documents - a bank account or a personal account with the Operator. Such versatility will ensure wide penetration, which is the main indicator of the success of the service provided. Therefore, we believe that the technological, legal and financial foundations of payment services should not depend on payment instruments, and we suggest moving in this direction.

Mobile payment system based on the Universal Payment Platform concept

Denis Zyryanov, Head of Mobile Commerce, VimpelCom Marketing Directorate and Andrey Shishlo, General Director, Mobile Payment Systems LLC

A mobile payment platform is a vital need for many market institutions. The successful implementation of this project contributes to the solution of important government tasks, the development of the banking and telecommunications sectors. It is important that services based on the mobile platform are in demand by the market itself, that is, by end users. A striking example confirming this assessment is the presence on the market of many successful, but, unfortunately, surrogate payment services based on Premium SMS, as well as surrogate financial instruments on the Internet. This means that there is a new niche in the market for creating added value.

The versatility of a mobile payment platform is very important, as common rules will minimize the institutional costs of market participants to support multiple infrastructures. It will also greatly facilitate control and simplify scenarios for the provision of payment services for platform customers, who will be able to use the services in a uniform way, regardless of the mobile operator and financial institution used.

On the other hand, the Universal Payment Platform (UCP) should not restrict key market participants operating in the retail market from implementing their own branded product solutions based on the SCP. This will allow more efficient use of marketing resources and reduce the time to market for various SCP-based solutions.

Using the conceptual postulates of SCP, OJSC VimpelCom, together with JSCB Tavrichesky, launched a number of pilot commercial products based on the Beeline mobile communication network. All products use the concept of micropayments, and the subscriber's advance account with Beeline is used as a source of funds. In particular, the services "Mobi.Money" and "Mobile payment. Internet" provide subscribers with the opportunity to pay for Internet access services, utility bills, as well as a number of other services using the convergence of WEB and GSM interfaces.

Service “Mobile payment. Kino" allows you to remotely select and pay for tickets in the network of cinemas "KARO FILM". Mobile payment service. Insurance" provides subscribers with the opportunity to order and pay monthly insurance premiums for two types of insurance: insurance of mobile phones against accidental damage or robbery, as well as insurance against the risk of partial or complete loss of the subscriber's ability to work.

The list of services will be expanded through the joint efforts of the Mobi.Money processing company, VimpelCom OJSC and other market players.

All products are based on the scheme of public issue of prepaid cards of JSCB "Tavrichesky". Settlements are carried out by the Bank on the basis of relevant direct agreements with service providers. Transaction processing and on-line interaction with service providers are carried out by VimpelCom and Mobi.Money systems using special secure protocols.

We received a positive response from the market. The partners plan to expand the list of services offered, as well as develop products for macro payments based on subscribers' bank accounts.

Mobile commerce: more than just words

For an average Russian consumer, the words "mobile commerce" are empty words. A little more sophisticated will hardly remember individual publications about the bright future of paying for parking and buying a can of Pepsi-Cola using a phone. In fact, this is a very important direction in the development of mobile services, and the topic goes far beyond the scope of individual projects.

The round table "Mobile payments and mobile commerce: prospects for development in Russia and in the world" was held on February 27. Mobile commerce as a direction is singled out as a separate project, which for several years has been the coordinator of the Infocommunication Union. The specificity of mobile commerce is not only in the comparative novelty of this direction. More importantly, for the full functioning of such systems, it is necessary to ensure the interaction of several parties. And also to develop uniform technical standards and create a regulatory framework that regulates this type of activity.

The concept of "mobile commerce" is defined by Leonid Paramonov, head of the innovation department of the DICT of the Ministry of Information and Communications of Russia. DICT stands for "Department of State Policy in the Field of Infocommunication Technologies".

The use of mobile networks to pay for goods and services in the world is called mobile commerce, which includes two main areas:

  1. Mobile banking, which is the management of a bank account using a mobile phone as a means of identifying the owner of a bank account. When making payment transactions, the funds in the bank account are used. At the same time, the range of services available to the user is quite wide - standard banking operations with an account, payment for services on an ongoing basis (housing and communal services, communications, television), one-time payments for goods and services. The simplest type of mobile banking service is to notify the user via SMS about current operations with his bank account (account or loan status, withdrawal of funds from the account, operations on time deposits, etc.).
  2. Mobile payments are payments made using a mobile phone using the payer's funds deposited on an electronic prepaid banking product ("mobile wallet"). In this case, the payer first transfers funds to the so-called "mobile wallet" from his personal account with the mobile operator by performing operations (conclusive actions) on his mobile phone. Mobile payments are available to those mobile subscribers who do not have their own bank account or do not want to use it when using mobile commerce services. As a rule, such payments are made for one-time purchases for small amounts, that is, micropayments, as well as for paying for services on an ongoing basis (utility, communications, television).

Mobile content is a type of mobile payment, but this type of mobile commerce is separated into a separate direction due to its importance and widespread use. The acquisition of content implies the use of a mobile terminal not only as a remote means of identifying the payer, but also as a device for receiving the ordered service.

As you can see, cash transactions using mobile terminals are divided into remote and performed directly at the point of sale, and are also classified into micropayments and macropayments. Micropayments are considered to be payments for public transport, fast food, parking, movie tickets, etc.; in terms of macro payments, we are talking about the purchase of "large" goods and services, payments at gas stations, restaurants, purchases in stores, payment for air tickets, etc.

The benefits of mobile commerce for the consumer (ie us) are obvious. This is the simplicity and convenience of payments combined with mobility, high speed of payment processing. Even more important is the natural availability of such a "mobile wallet" due to the widespread use of mobile communications. In Europe, mobile commerce is developing primarily as a convenient tool for making micropayments, but in Russia the potential of such services is higher. In our country, a significant part of the population does not have access to remote banking services, while more than 80% of residents use mobile communications. In addition, unlike in Europe, credit cards have not become any significant means of paying for purchases, they are used by less than 10% of the Russian population. There are more nominal owners of "plastic", but many use cards exclusively for withdrawing salaries at the nearest ATM.

In turn, the state is also very interested in the development of mobile commerce. It is no coincidence that “Increasing the share of non-cash payments” and “Reducing the volume of gray business” are in the first places in the list of advantages. The volume of cash in the Russian Federation now accounts for 40% of the total money turnover, of which 60-70% of cash is in the hands of the population. The movement of cash is difficult to control, according to Visa International experts, the costs of predominantly cash circulation can reach several percent of GDP.

As for operators and sellers of goods/services, in the literal sense of the word, “walking distance” of services and the ease of non-cash payment stimulate consumption. It is psychologically easier to give a credit card to the seller or to attach a mobile phone to the sensor of a cash terminal than to get it out of your wallet and count out your hard-earned money.

As rightly noted in the presentation, in Russia, mobile commerce is only making its first steps. According to McKinsey & Company, in 2006 the size of the Russian mobile content market was $700 million, while mobile banking and payment were only $20 million each. And even these statistics do not reflect the real imbalance, since the category of "mobile banking" includes such a generally accepted service as SMS notifications about changes in account status.

Mobile Payments Project of the Infocommunication Union

Ivan Kuznetsov, Vice President of JSCB Tauride, talks about the Mobile Payments Project.

There are many participants involved in the process of providing mobile commerce services: telecom operators, banks, equipment manufacturers, service providers and, of course, sellers and buyers. However, a key success factor is the achievement of a synergistic effect from the interaction of telecom operators and banks .

Effective support for this interaction can be provided by the Universal Payment Platform (UPP). Based on world practice in the field of mobile commerce, the requirements of Russian legislation and the peculiarities of the Russian mobile communications market, the Infocommunication Union has developed the Concept of a Universal Payment Platform for Paying for Goods and Services Using Mobile Communications Networks (abbreviated as UPP).

The introduction of SCP is planned to begin with the deployment of an experimental zone in Moscow, St. Petersburg and Sochi. The pilot zone scheme implements a simplified mobile commerce model. Within the framework of the pilot zone, the main provisions of the Concept and the proposed technical solutions are experimentally tested, business models and solutions for retail trade are being worked out, and the possibilities of using new technologies (for example, NFC) are being tested.

At the initial stage, the following types of mobile payments were selected for practical testing within the PMS pilot zone:

  1. Communication services and the Internet
  2. Consumer goods and services
  3. Mobile insurance service
  4. International transfers
  5. Purchasing e-tickets
  6. Electronic lotteries
  7. Parking fees

Another important area of ​​application of the Universal Payment Platform is the payment of state and municipal services, including duties, fines, licenses, permits, etc.

In 2007, when performing one of the development work within the framework of the Federal Target Program "Electronic Russia 2002-2010." a prototype of the applied information system of the federal information center was created in the interests of providing mobile electronic payments when paying for public services. The prototype solution involves processing incoming mobile payments, generating electronic payment receipts and providing information exchange with the federal information center, which distributes information about payments made between departments. A fragment of the Universal Payment Platform is used in this work as a typical mobile payment platform.

Today, the experimental zone will consist of three fragments:

  • Fragment 1 is formed by Svyaz-Bank OJSC, Megafon OJSC, Moscow Cellular Communications OJSC, it is planned to be launched in July 2008.
  • Fragment 2 has already been formed and includes OJSC JSCB Tavrichesky, CJSC Delta-Telecom, OJSC VimpelCom.
  • Fragment 3 will be deployed by Intellect Telecom OJSC and Mobile TeleSystems OJSC.

Periodal operation of Fragment 2 began in November 2007. Payment for some communication services, for example, payments for the Internet, is possible not only in Moscow and St. Petersburg, but also in many regions of our country. The statistical data processed within the Experimental Zone fully confirms many of the theoretical provisions set forth in the Concept of the Universal Payment Platform. For example, according to the concept, SCP should provide:

  • wide coverage of the population and accessibility of services, including for people with disabilities and residents of hard-to-reach areas (social aspect);
  • The spread of banking services in regions with an underdeveloped banking sector.

Practice shows that this service is in high demand in the regions of Siberia, where the infrastructure of non-cash payments is poorly developed, and the access of the population to banking services is limited, and cellular services have become quite widespread.

Cash solutions for the Universal Payment Platform

Anton Tarasov, Head of the Department for the Development of Remote and Postal Banking Services, JSCB Svyaz-Bank, speaks.

JSC JSCB "Svyaz-Bank" has completed the development of a cash solution for mobile payments. The development resulted in a cash terminal that allows making mobile payments at any point of sale in a convenient and accessible way for the client. On July 20, 2007, testing of operations between the SET: Retail software, installed on the POS terminal, and Megarau software, which performs the role of processing when making payments, was completed. Testing showed the operability and technical readiness of the interaction between the specified software.

When transferring information, the client uses USSD technology, chosen by Svyaz-Bank as the fastest means of transferring information. When developing a cash solution, JSCB Svyaz-Bank identified three main principles on which it will be based:

  • Universal integration with point of sale systems
  • High speed of payment
  • Consumer property convenience

In the 2nd quarter of 2008 JSCB Svyaz-Bank launches into trial operation a cash solution for accepting payments for mobile payments. The pilot project will be launched in St. Petersburg on the basis of a pharmacy retail chain.

In the third quarter of 2008, a pilot project will be launched in Sochi, during which it is planned to test the use of a mobile cash solution and NFC technology as a way to transfer data between a client and processing. For the implementation of the project, an agreement will be concluded with a Sochi hotel, according to which hotel guests will be given the opportunity to pay for the services provided by the hotel using a mobile phone, without having a wallet and bank cards.

Introduction of new settlement and payment services

Pavel Roitberg, Director of the Department for the Development of Products and Services of Mobile TeleSystems OJSC.

Mobile commerce is a broad field that includes money transactions made using mobile phones. These transactions may include intangible purchases (apps and information) delivered digitally to a mobile device, and physical purchases purchased via a mobile phone but delivered separately.

Today, a significant part of mobile commerce consists of the purchase of digital content used on mobile phones. People want to enhance their mobile devices with new ringtones, screen savers, downloadable games and other applications. The use of mobile devices to purchase digital content and pay for digital services facilitates the introduction of a payment mechanism for physical goods.

MTS considers simplicity, ease of use and security to be the key conditions for the introduction of mobile commerce. Complex and time-consuming applications and services scare away customers.

From the point of view of payment instruments, MTS is developing two directions for the development of mobile commerce. These are bank card accounts and personal accounts of subscribers with the Operator.

At present, a mobile banking service has been implemented for MTS subscribers, which allows them to manage their bank account from the mobile phone screen 24/7 at home and in roaming. This service made it possible to combine two of the world's most widespread standards in a mobile phone: GSM and payment with a bank card. The provision of this service does not require any changes in the legislation: banks are engaged in transactions, the operator provides the technological part. Another important advantage of this service is security, which meets all the requirements for banking transactions by payment systems. The service is convenient and easy to use, does not require memorization of specific commands. However, operating experience has shown that the implementation and promotion of the service cannot depend on both the Operator and the Bank. This means that the service has no owner. The operator does not promote the service, since it cannot position it only on its own behalf and, accordingly, cannot control the geography of the service distribution, plan the volume of issuing SIM cards with a banking application.Banks, in turn, have no experience in promoting additional services to the mass market, and this is not their main activity. In addition, the Operator is not interested in the service provided by one single bank, since subscribers can be clients of any bank. Two more very serious obstacles for the product in question to become mass-produced: the need to replace the SIM card - an operation that can be done only when visiting a service office, and the dependence of the service activation procedure on the bank, which means that even having the necessary SIM on hand -card, the subscriber will not be able to independently access the service. Therefore, in addition to the above requirements, MTS considers the necessary conditions for the development of payment services: the universality of payment instruments that can be used in these services, the ability to promote these services only on behalf of the Operator and the ability to activate services remotely without visiting any service offices, whether it be the Bank or the Operator. Additionally, the procedure for handling claims should be simple and convenient for the subscriber. And for the Operator, this procedure should not lead to financial risks.

Using the subscriber's personal accounts as a payment instrument greatly simplifies the activation procedure - no special SIM cards and card accounts are needed. An ideal payment service should provide the opportunity to choose the use of payment documents - a bank account or a personal account with the Operator. Such versatility will ensure wide penetration, which is the main indicator of the success of the service provided. Therefore, we believe that the technological, legal and financial foundations of payment services should not depend on payment instruments, and we suggest moving in this direction.

Mobile payment system based on the Universal Payment Platform concept

Denis Zyryanov, Head of Mobile Commerce, VimpelCom Marketing Directorate and Andrey Shishlo, General Director, Mobile Payment Systems LLC

A mobile payment platform is a vital need for many market institutions. The successful implementation of this project contributes to the solution of important government tasks, the development of the banking and telecommunications sectors. It is important that services based on the mobile platform are in demand by the market itself, that is, by end users. A striking example confirming this assessment is the presence on the market of many successful, but, unfortunately, surrogate payment services based on Premium SMS, as well as surrogate financial instruments on the Internet. This means that there is a new niche in the market for creating added value.

The versatility of a mobile payment platform is very important, as common rules will minimize the institutional costs of market participants to support multiple infrastructures. It will also greatly facilitate control and simplify scenarios for the provision of payment services for platform customers, who will be able to use the services in a uniform way, regardless of the mobile operator and financial institution used.

On the other hand, the Universal Payment Platform (PCP) should not restrict key market participants operating in the retail market from implementing their own branded product solutions based on the SCP. This will allow more efficient use of marketing resources and reduce the time to market for various SCP-based solutions.

Using the conceptual postulates of SCP, OJSC VimpelCom, together with JSCB Tavrichesky, launched a number of pilot commercial products based on the Beeline mobile communication network. All products use the concept of micropayments, and the subscriber's advance account with Beeline is used as a source of funds. In particular, the services "Mobi.Money" and "Mobile payment. Internet" provide subscribers with the opportunity to pay for Internet access services, utility bills, as well as a number of other services using the convergence of WEB and GSM interfaces.

Service “Mobile payment. Kino" allows you to remotely select and pay for tickets in the network of cinemas "KARO FILM". Mobile payment service. Insurance" provides subscribers with the opportunity to order and pay monthly insurance premiums for two types of insurance: insurance of mobile phones against accidental damage or robbery, as well as insurance against the risk of partial or complete loss of the subscriber's ability to work.

The list of services will be expanded through the joint efforts of the Mobi.Money processing company, VimpelCom OJSC and other market players.

All products are based on the scheme of public issuance of prepaid cards of JSCB "Tavrichesky". Settlements are carried out by the Bank on the basis of relevant direct agreements with service providers. Transaction processing and on-line interaction with service providers are carried out by VimpelCom and Mobi.Money systems using special secure protocols.

We received a positive response from the market. The partners plan to expand the list of services offered, as well as develop products for macro payments based on subscribers' bank accounts.

Mobile commerce: more than just words

For an average Russian consumer, the words "mobile commerce" are empty words. A little more sophisticated will hardly remember individual publications about the bright future of paying for parking and buying a can of Pepsi-Cola using a phone. In fact, this is a very important direction in the development of mobile services, and the topic goes far beyond the scope of individual projects.

The round table "Mobile payments and mobile commerce: prospects for development in Russia and in the world" was held on February 27. Mobile commerce as a direction is singled out as a separate project, which for several years has been the coordinator of the Infocommunication Union. The specificity of mobile commerce is not only in the comparative novelty of this direction. More importantly, for the full functioning of such systems, it is necessary to ensure the interaction of several parties. And also to develop uniform technical standards and create a regulatory framework that regulates this type of activity.

The concept of "mobile commerce" is defined by Leonid Paramonov, head of the innovation department of the DICT of the Ministry of Information and Communications of Russia. DICT stands for "Department of State Policy in the Field of Infocommunication Technologies".

The use of mobile networks to pay for goods and services in the world is called mobile commerce, which includes two main areas:

  1. Mobile banking, which is the management of a bank account using a mobile phone as a means of identifying the owner of a bank account. When making payment transactions, the funds in the bank account are used. At the same time, the range of services available to the user is quite wide - standard banking operations with an account, payment for services on an ongoing basis (housing and communal services, communications, television), one-time payments for goods and services. The simplest type of mobile banking service is to notify the user via SMS about current operations with his bank account (account or loan status, withdrawal of funds from the account, operations on time deposits, etc.).
  2. Mobile payments are payments made using a mobile phone using the payer's funds deposited on an electronic prepaid banking product ("mobile wallet"). In this case, the payer first transfers funds to the so-called "mobile wallet" from his personal account with the mobile operator by performing operations (conclusive actions) on his mobile phone. Mobile payments are available to those mobile subscribers who do not have their own bank account or do not want to use it when using mobile commerce services. As a rule, such payments are made for one-time purchases for small amounts, that is, micropayments, as well as for paying for services on an ongoing basis (utility, communications, television).

Mobile content is a type of mobile payment, but this type of mobile commerce is separated into a separate area due to its importance and widespread use. The purchase of content implies the use of a mobile terminal not only as a remote means of identifying the payer, but also as a device for receiving the ordered service.

As you can see, cash transactions when using mobile terminals are divided into remote and performed directly at the point of sale, and are also classified into micropayments and macropayments. Micropayments are considered to be payments for public transport, fast food, parking, movie tickets, etc.; in terms of macro payments, we are talking about the purchase of "large" goods and services, payments at gas stations, restaurants, purchases in stores, payment for air tickets, etc.

The benefits of mobile commerce for the consumer (ie us) are obvious. This is the simplicity and convenience of payments combined with mobility, high speed of payment processing. Even more important is the natural availability of such a "mobile wallet" due to the widespread use of mobile communications. In Europe, mobile commerce is developing primarily as a convenient tool for making micropayments, but in Russia the potential of such services is higher. In our country, a significant part of the population does not have access to remote banking services, while more than 80% of residents use mobile communications. In addition, unlike in Europe, credit cards have not become any significant means of paying for purchases, they are used by less than 10% of the Russian population. There are more nominal owners of "plastic", but many use cards exclusively for withdrawing salaries at the nearest ATM.

In turn, the state is also very interested in the development of mobile commerce. It is no coincidence that “Increasing the share of non-cash payments” and “Reducing the volume of gray business” are in the first places in the list of advantages. The volume of cash in the Russian Federation now accounts for 40% of the total money turnover, of which 60-70% of cash is in the hands of the population. The movement of cash is difficult to control, according to Visa International experts, the costs of predominantly cash circulation can reach several percent of GDP.

As for operators and sellers of goods/services, in the literal sense of the word, “walking distance” of services and the ease of non-cash payment stimulate consumption. It is psychologically easier to give a credit card to the seller or to attach a mobile phone to the sensor of a cash terminal than to get it out of your wallet and count your hard-earned money.

As rightly noted in the presentation, in Russia, mobile commerce is only making its first steps. According to McKinsey & Company, in 2006 the size of the Russian market for mobile content was $700 million, while mobile banking and payment were only $20 million each. And even these statistics do not reflect the real imbalance, since the category of "mobile banking" includes such a generally accepted service as SMS notifications about changes in account status.

Mobile Payments Project of the Infocommunication Union

Ivan Kuznetsov, Vice President of JSCB Tauride, talks about the Mobile Payments Project.

There are many participants involved in the process of providing mobile commerce services: telecom operators, banks, equipment manufacturers, service providers and, of course, sellers and buyers. However, the key success factor is the achievement of a synergistic effect from the interaction of telecom operators and banks.

There are many participants involved in the process of providing mobile commerce services: telecom operators, banks, equipment manufacturers, service providers and, of course, sellers and buyers. However, a key success factor is the achievement of a synergistic effect from the interaction of telecom operators and banks .

Effective support for this interaction can be provided by the Universal Payment Platform (UPP). Based on world practice in the field of mobile commerce, the requirements of Russian legislation and the peculiarities of the Russian mobile communications market, the Infocommunication Union has developed the Concept of a Universal Payment Platform for Paying for Goods and Services Using Mobile Communications Networks (abbreviated as UPP).

The introduction of SCP is planned to begin with the deployment of an experimental zone in Moscow, St. Petersburg and Sochi. The pilot zone scheme implements a simplified mobile commerce model. Within the framework of the pilot zone, the main provisions of the Concept and the proposed technical solutions are experimentally tested, business models and solutions for retail trade are being worked out, and the possibilities of using new technologies (for example, NFC) are being tested.

At the initial stage, the following types of mobile payments were selected for practical testing within the PMS pilot zone:

  1. Communication services and the Internet
  2. Consumer goods and services
  3. Mobile insurance service
  4. International transfers
  5. Purchasing e-tickets
  6. Electronic lotteries
  7. Parking fees

Another important area of ​​application of the Universal Payment Platform is the payment of state and municipal services, including duties, fines, licenses, permits, etc.

In 2007, when performing one of the development work within the framework of the Federal Target Program "Electronic Russia 2002-2010." a prototype of the applied information system of the federal information center was created in the interests of providing mobile electronic payments when paying for public services. The prototype solution involves processing incoming mobile payments, generating electronic payment receipts and providing information exchange with the federal information center, which distributes information about payments made between departments. A fragment of the Universal Payment Platform is used in this work as a typical mobile payment platform.

Today, the experimental zone will consist of three fragments:

  • Fragment 1 is formed by Svyaz-Bank OJSC, Megafon OJSC, Moscow Cellular Communications OJSC, it is planned to be launched in July 2008.
  • Fragment 2 has already been formed and includes OJSC JSCB Tavrichesky, CJSC Delta-Telecom, OJSC VimpelCom.
  • Fragment 3 will be deployed by Intellect Telecom OJSC and Mobile TeleSystems OJSC.

Periodal operation of Fragment 2 began in November 2007. Payment for some communication services, for example, payments for the Internet, is possible not only in Moscow and St. Petersburg, but also in many regions of our country. The statistical data processed within the Experimental Zone fully confirms many of the theoretical provisions set forth in the Concept of the Universal Payment Platform. For example, according to the concept, SCP should provide:

  • wide coverage of the population and accessibility of services, including for people with disabilities and residents of hard-to-reach areas (social aspect);
  • The spread of banking services in regions with an underdeveloped banking sector.

Practice shows that this service is in high demand in the regions of Siberia, where the infrastructure of non-cash payments is poorly developed, and the access of the population to banking services is limited, and cellular services have become quite widespread.

Cash solutions for the Universal Payment Platform

Anton Tarasov, Head of the Department for the Development of Remote and Postal Banking Services, JSCB Svyaz-Bank, speaks.

JSC JSCB "Svyaz-Bank" has completed the development of a cash solution for mobile payments. The development resulted in a cash terminal that allows making mobile payments at any point of sale in a convenient and accessible way for the client. On July 20, 2007, testing of operations between the SET: Retail software, installed on the POS terminal, and Megarau software, which performs the role of processing when making payments, was completed. Testing showed the operability and technical readiness of the interaction between the specified software.

When transferring information, the client uses USSD technology, chosen by Svyaz-Bank as the fastest means of transferring information. When developing a cash solution, JSCB Svyaz-Bank identified three main principles on which it will be based:

  • Universal integration with point of sale systems
  • High speed of payment
  • Consumer property convenience

In the 2nd quarter of 2008 JSCB Svyaz-Bank launches into trial operation a cash solution for accepting payments for mobile payments. The pilot project will be launched in St. Petersburg on the basis of a pharmacy retail chain.

In the third quarter of 2008, a pilot project will be launched in Sochi, during which it is planned to test the use of a mobile cash solution and NFC technology as a way to transfer data between a client and processing. For the implementation of the project, an agreement will be concluded with a Sochi hotel, according to which hotel guests will be given the opportunity to pay for the services provided by the hotel using a mobile phone, without having a wallet and bank cards.

Introduction of new settlement and payment services

Pavel Roitberg, Director of the Department for the Development of Products and Services of Mobile TeleSystems OJSC.

Mobile commerce is a broad field that includes money transactions made using mobile phones. These transactions may include intangible purchases (apps and information) delivered digitally to a mobile device, and physical purchases purchased via a mobile phone but delivered separately.

Today, a significant part of mobile commerce consists of the purchase of digital content used on mobile phones. People want to enhance their mobile devices with new ringtones, screen savers, downloadable games and other applications. The use of mobile devices to purchase digital content and pay for digital services facilitates the introduction of a payment mechanism for physical goods.

MTS considers simplicity, ease of use and security to be the key conditions for the introduction of mobile commerce. Complex and time-consuming applications and services scare away customers.

From the point of view of payment instruments, MTS is developing two directions for the development of mobile commerce. These are bank card accounts and personal accounts of subscribers with the Operator.

At present, a mobile banking service has been implemented for MTS subscribers, which allows them to manage their bank account from the mobile phone screen 24/7 at home and in roaming. This service made it possible to combine two of the world's most widespread standards in a mobile phone: GSM and payment with a bank card. The provision of this service does not require any changes in the legislation: banks are engaged in transactions, the operator provides the technological part. Another important advantage of this service is security, which meets all the requirements for banking transactions by payment systems. The service is convenient and easy to use, does not require memorization of specific commands.However, operating experience has shown that the implementation and promotion of the service cannot depend on both the Operator and the Bank. This means that the service has no owner. The operator does not promote the service, since it cannot position it only on its own behalf and, accordingly, cannot control the geography of the service distribution, plan the volume of issuing SIM cards with a banking application. Banks, in turn, have no experience in promoting additional services to the mass market, and this is not their main activity. In addition, the Operator is not interested in the service provided by one single bank, since subscribers can be clients of any bank. Two more very serious obstacles for the product in question to become mass-produced: the need to replace the SIM card - an operation that can be done only when visiting a service office, and the dependence of the service activation procedure on the bank, which means that even having the necessary SIM on hand -card, the subscriber will not be able to independently access the service. Therefore, in addition to the above requirements, MTS considers the necessary conditions for the development of payment services: the universality of payment instruments that can be used in these services, the ability to promote these services only on behalf of the Operator and the ability to activate services remotely without visiting any service offices, whether it be the Bank or the Operator. Additionally, the procedure for handling claims should be simple and convenient for the subscriber. And for the Operator, this procedure should not lead to financial risks.

Using the subscriber's personal accounts as a payment instrument greatly simplifies the activation procedure - no special SIM cards and card accounts are needed. An ideal payment service should provide the opportunity to choose the use of payment documents - a bank account or a personal account with the Operator. Such versatility will ensure wide penetration, which is the main indicator of the success of the service provided. Therefore, we believe that the technological, legal and financial foundations of payment services should not depend on payment instruments, and we suggest moving in this direction.

Mobile payment system based on the Universal Payment Platform concept

Denis Zyryanov, Head of Mobile Commerce, VimpelCom Marketing Directorate and Andrey Shishlo, General Director, Mobile Payment Systems LLC

A mobile payment platform is a vital need for many market institutions. The successful implementation of this project contributes to the solution of important government tasks, the development of the banking and telecommunications sectors. It is important that services based on the mobile platform are in demand by the market itself, that is, by end users. A striking example confirming this assessment is the presence on the market of many successful, but, unfortunately, surrogate payment services based on Premium SMS, as well as surrogate financial instruments on the Internet. This means that there is a new niche in the market for creating added value.

The versatility of a mobile payment platform is very important, as common rules will minimize the institutional costs of market participants to support multiple infrastructures. It will also greatly facilitate control and simplify scenarios for the provision of payment services for platform customers, who will be able to use the services in a uniform way, regardless of the mobile operator and financial institution used.

On the other hand, the Universal Payment Platform (PCP) should not restrict key market participants operating in the retail market from implementing their own branded product solutions based on the SCP. This will allow more efficient use of marketing resources and reduce the time to market for various SCP-based solutions.

Using the conceptual postulates of SCP, OJSC VimpelCom, together with JSCB Tavrichesky, launched a number of pilot commercial products based on the Beeline mobile communication network. All products use the concept of micropayments, and the subscriber's advance account with Beeline is used as a source of funds. In particular, the services "Mobi.Money" and "Mobile payment. Internet" provide subscribers with the opportunity to pay for Internet access services, utility bills, as well as a number of other services using the convergence of WEB and GSM interfaces.

Service “Mobile payment. Kino" allows you to remotely select and pay for tickets in the network of cinemas "KARO FILM". Mobile payment service. Insurance" provides subscribers with the opportunity to order and pay monthly insurance premiums for two types of insurance: insurance of mobile phones against accidental damage or robbery, as well as insurance against the risk of partial or complete loss of the subscriber's ability to work.

The list of services will be expanded through the joint efforts of the Mobi.Money processing company, VimpelCom OJSC and other market players.

All products are based on the scheme of public issuance of prepaid cards of JSCB "Tavrichesky". Settlements are carried out by the Bank on the basis of relevant direct agreements with service providers. Transaction processing and on-line interaction with service providers are carried out by VimpelCom and Mobi.Money systems using special secure protocols.

We received a positive response from the market. The partners plan to expand the list of services offered, as well as develop products for macro payments based on subscribers' bank accounts.