An innovative model of service delivery to improve standardisation and market integration: Extension framework for ISO 20022 card payments

Abstract

This paper presents an innovative model delivering value-added services (VAS) on a multi-application card using both payment and VAS during the same payment transaction. The idea was born in the framework of the TITAN research project, with the aim of achieving a multi-application and multi-channel platform. Starting from EPAS protocol’s perspective to standardise electronic payments, the aim is to include VAS data management in the current financial messages. In order to improve the process of card payment transactions through the delivery of new VAS, cooperation between EPASOrg and TITAN’s team was established. This cooperation facilitated the examination and submission to ISO 20022 of data components related to the provision of VAS meeting the requirements of those new contactless applications developed during project activities. The latter result led a Change Request to ISO in order to allow the extension to VAS on standard ISO 20022 related to card payment. The innovative model proposed is validated through an example with reference to a transport service delivery, highlighting the full benefits of innovative and integrated payment services. The conclusion summarises the next steps and underlines possible implications for future business and technological developments.