Re: Mobile phone based ATM & payments solution

On 05/01/2014 03:05 AM, Anders Rundgren wrote:
> Regarding KYC I remain fix in my belief that this has no room in a 
> payment standard.

I agree that the KYC process has no room in a payment standard, as you
point out below, the mechanisms vary. However, I don't think anyone has
proposed we standardize the process. The only thing we're proposing to
standardize is the storage format and how you read/write that information:

https://web-payments.org/specs/source/identity-credentials/

> Banks do not generally share customer info between each other and 
> certainly not with merchants. Not to mention that the amount of KYC 
> and how you obtain it varies widely. Paypal's scheme using a 
> credit-card transaction + email round-trip is an example of a smart 
> but still highly specific KYC method.

Agreed. However, this is about giving the customer the ability to store
credentials in a form that they control. These credentials could then be
used to do KYC clearing /if the financial institution desires that sort
of thing/. If they don't, then they continue to do KYC clearing as they
do today (which is costly).

The benefit to financial organizations is that they can cut KYC clearing
and re-verification costs significantly by re-using each others data
without having to setup relationships among all of the banks. So, the
process would go like so:

1. Show up to a bank's site.
2. They request your identity credential information, you send them
digitally signed documents from your government.
3. They're done, and it didn't cost them a penny.

The mechanism above is purposefully simplistic (we do know how the
details would work, but wanted to just get the general idea down). Does
this make more sense? We're not standardizing the process, just the data
format and protocol. The banks can put whatever KYC information in there
that works for them.

-- manu

-- 
Manu Sporny (skype: msporny, twitter: manusporny, G+: +Manu Sporny)
Founder/CEO - Digital Bazaar, Inc.
blog: The Marathonic Dawn of Web Payments
http://manu.sporny.org/2014/dawn-of-web-payments/

Received on Sunday, 4 May 2014 00:51:15 UTC