Leading financial institutions in Canada have published a set of guidelines for how NFC-based  payments via mobile phone at the point of sale can be offered in the country.  The guidelines cover how information is exchanged between the participants in a transaction including financial institutions, credit card firms, mobile operators and merchants.

While voluntary the financial institutions behind the guidelines say they are “committed to these principles in the mobile market”. The proposals are backed by eight of the country’s top banks and a leading credit union.

Interoperability between the country’s mobile operators and MVNOs and payment providers is “a key objective” for the guidelines, says the proposal.  

Areas covered by the guidelines include the roles and responsibilities of various players as well as the interaction models needed for the emergence of a consumer and merchant-friendly NFC-based payment system, it says.

The Canadian NFC Mobile Payments Reference Model covers both hardware and software but has a focus on the latter area. Topics covered include wallet features & functionality; enablement & lifecycle management; transactions; loyalty & rewards; data & security.

The banks behind the initiative are Bank of Montreal, National Bank, Canadian Imperial Bank of Commerce, Credit Union Central of Canada, Desjardins Financial Group, Royal Bank of Canada, Bank of Nova Scotia and Toronto Dominion Bank. They have been coordinated by the Canadian Bankers Association. See a summary of the model here