ISO/TS 12812-3:2017

TECHNICAL ISO/TS
SPECIFICATION 12812-3
First edition
2017-03
Core banking — Mobile financial
services —
Part 3:
Financial application lifecycle
management
Opérations bancaires de base — Services financiers mobiles —
Partie 3: Gestion du cycle de vie des applications financières
Reference number
©
ISO 2017
© ISO 2017, Published in Switzerland
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ii © ISO 2017 – All rights reserved

Contents Page
Foreword .iv
Introduction .v
1 Scope . 1
2 Normative references . 1
3 Terms and definitions . 1
4 Abbreviated terms . 2
5 Basic principles for application lifecycle management . 2
5.1 General . 2
5.2 Portability of MFSs . 2
5.3 Entities involved in the application lifecycle management . 3
5.4 Security and privacy . 3
5.5 Risk assessment . 3
5.6 Support of multiple applications and multiple MFSPs . 3
5.7 User Interface and branding. 3
5.8 Customer relationship management . 3
5.9 Common APIs . 4
5.10 Terms of service . 4
6 Location of the application . 4
6.1 General . 4
6.2 Different types of secure environments . 4
6.3 Scenarios for mobile proximate payments . 4
6.4 Scenarios for mobile remote payments . 5
6.4.1 General. 5
6.4.2 Payment credentials . 5
6.4.3 Application . 5
6.5 Scenarios for mobile banking . 5
7 Service management roles . 5
7.1 General . 5
7.2 MFSP domain roles . 6
7.3 SE provider domain roles . 7
8 Application lifecycle: functions and processes . 7
8.1 General . 7
8.2 Functions . 7
8.3 Processes . 8
9 Scenarios for service models . 9
9.1 General . 9
9.2 Scenario 1: UICC . 9
9.3 Scenario 2: Embedded secure element . 9
9.4 Scenario 3: Secure micro SD card .10
9.4.1 General.10
9.4.2 Secure micro SD card provided by the MFSP .10
9.4.3 Secure micro SD card provided by a third party .10
9.4.4 Secure micro SD card for contactless payment .10
9.5 Scenario 4: Trusted execution environment .10
9.6 Scenario 5: Mobile application located in the mobile device host .11
9.7 Scenario 6: Mobile application on a secured server .11
Bibliography .12
Foreword
ISO (the International Organization for Standardization) is a worldwide federation of national standards
bodies (ISO member bodies). The work of preparing International Standards is normally carried out
through ISO technical committees. Each member body interested in a subject for which a technical
committee has been established has the right to be represented on that committee. International
organizations, governmental and non-governmental, in liaison with ISO, also take part in the work.
ISO collaborates closely with the International Electrotechnical Commission (IEC) on all matters of
electrotechnical standardization.
The procedures used to develop this document and those intended for its further maintenance are
described in the ISO/IEC Directives, Part 1. In particular the different approval criteria needed for the
different types of ISO documents should be noted. This document was drafted in accordance with the
editorial rules of the ISO/IEC Directives, Part 2 (see www .iso .org/ directives).
Attention is drawn to the possibility that some of the elements of this document may be the subject of
patent rights. ISO shall not be held responsible for identifying any or all such patent rights. Details of
any patent rights identified during the development of the document will be in the Introduction and/or
on the ISO list of patent declarations received (see www .iso .org/ patents).
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constitute an endorsement.
For an explanation on the voluntary nature of standards, the meaning of ISO specific terms and
expressions related to conformity assessment, as well as information about ISO’s adherence to the
World Trade Organization (WTO) principles in the Technical Barriers to Trade (TBT) see the following
URL: w w w . i s o .org/ iso/ foreword .html.
This document was prepared by Technical Committee ISO/TC 68, Financial Services, Subcommittee
SC 7, Core Banking.
A list of all the parts in the ISO 12812 series can be found on the ISO website.
iv © ISO 2017 – All rights reserved

Introduction
The use of mobile devices to conduct financial services (i.e. payments and banking) is occurring
following the steady rise of the number of customers using the Internet for these services. As an
evolving market, mobile financial services are being developed and implemented on various bases
throughout the different regions of the world and also among the various providers of such services.
In these conditions, the purpose of the ISO 12812 series is to facilitate and promote interoperability,
security and quality of mobile financial services while making sure that stakeholders in the services
can benefit from the evolution, and service providers remain as commercially free and competitive as
possible to design their own implementations in pursuing their own business strategies. This document
addresses the interoperability only at the technical layer by considering the impact of new components
and/or interfaces induced by the introduction of a mobile device in financial services. The intentions of
the ISO 12812 series are:
a) to advance interoperability of mobile financial services globally by defining requirements based
on a common terminology and basic principles for the design and operation of mobile financial
services;
b) to define technical components and their interfaces, as well as roles that may be performed by
different actors in addition to mobile financial service providers (e.g. mobile network operators,
trusted service managers). These components and their interfaces, as well as roles, are defined
according to identified use cases. Future use cases may be considered during the maintenance of
the ISO 12812 series;
c) to identify existing standards on which mobile financial services should be based, as well as
possible gaps.
Standardization effort in this area is beneficial for a sound development of the mobile financial services
market because it will:
— facilitate and promote interoperability between the different components or functions building
mobile financial services;
— build a safe environment so that consumers and merchants can trust the service and allow the
mobile financial service providers to manage their risks;
— promote consumer protection mechanisms including fair contract terms, rules on transparency of
charges, clarification of liability, complaints mechanisms and dispute resolution;
— enable the consumer to choose from different providers of devices or mobile financial services
including the possibility to contract with several mobile financial service providers for services on
the same device;
— enable the consumer to transfer a mobile financial service from one device to another one
(portability);
— promote a consistent consumer experience among various mobile financial services and mobile
financial service providers with easy-to-use interfaces.
To achieve these objectives, each part of the ISO 12812 series will specify the necessary technical
mechanisms and, when relevant, refer to existing relevant standards as appropriate.
The ISO 12812 series provides a framework flexible enough to accommodate new mobile device
technologies, as well as to allow various business models. At the same time, it enables compliance with
applicable regulations including data privacy, protection of personally-identifiable data, consumer
protection, anti-money laundering and prevention of financial crime.
It is not the intention of the ISO 12812 series to duplicate or to seek to replace any existing standard
in the area of mobile financial services (e.g. communication protocols, mobile devices). It is also not
the intention of the ISO 12812 series to drive technology to any specific application or to restrict
the development of future technologies or solutions. Messages and data elements to be exchanged at
the interfaces between the different components or actors of the system are already specified (e.g.
ISO 20022, ISO 8583 (all parts)].
The ISO 12812 series recognizes the need for unbanked or under-banked consumers to access mobile
financial services. It also recognizes that these services may be provided by diverse types of institutions
in accordance with the applicable regulation(s).
vi © ISO 2017 – All rights reserved

TECHNICAL SPECIFICATION ISO/TS 12812-3:2017(E)
Core banking — Mobile financial services —
Part 3:
Financial application lifecycle management
1 Scope
This document specifies the interoperable lifecycle management of applications used in mobile financial
services. As defined in ISO 12812-1, an application is a set of software modules and/or data needed to
provide functionality for a mobile financial service.
This document deals with different types of applications which is the term used to cover authentication,
banking and payment applications, as well as credentials.
Clause 5 describes the basic principles required, or to be considered, for the application lifecycle
management.
Because several implementations are possible with impacts on the lifecycle, this document describes
the different architectures for the location of the application and the impacts of the different scenarios
regarding the issuance of the secure element when present (see Clause 6), the different roles for the
management of the application lifecycle and the domains of responsibilities (see Clause 7). It also
specifies functions and processes in the application lifecycle management (see Clause 8) and describes
scenarios of service models and roles of actors (see Clause 9).
2 Normative references
The following documents are referred to in the text in such a way that some or all of their content
constitutes requirements of this document. For dated references, only the edition cited applies. For
undated references, the latest edition of the referenced document (including any amendments) applies.
ISO 12812–1, Core banking — Mobile financial services — Part 1: General framework
ISO/TS 12812–2, Core banking — Mobile financial services — Part 2: Security and data protection for
mobile financial services
ISO/TS 12812–4, Core banking — Mobile financial services — Part 4: Mobile payments-to-person
ISO/TS 12812–5, Core banking — Mobile financial services — Part 1: Mobile payments to business
3 Terms and definitions
For the purposes of this document, the terms and definitions given in ISO 12812-1 and ISO/TS 12812-2
and the following apply.
ISO and IEC maintain terminological databases for use in standardization at the following addresses:
— IEC Electropedia: available at http:// www .electropedia .org/
— ISO Online browsing platform: available at http:// www .iso .org/ obp
3.1
service management roles
set of roles that enable the lifecycle management of the application
4 Abbreviated terms
API Application Program Interface
IBAN International Bank Account Number
MFS Mobile Financial Service
MFSP Mobile Financial Service Provider
MNO Mobile Network Operator
MSISDN Mobile Station International Subscriber Directory Number (the mobile phone number)
NFC Near Field Communication
OTA Over The Air
PAN Primary Account Number
SD Card Secure Digital Card
SE Secure Element
SLA Service Level Agreement
SMS Short Message Service
STK SIM Tool Kit
TEE Trusted Execution Environment
TSM Trusted Service Manager
UICC Universal Integrated Circuit Card
USSD Unstructured Supplementary Services Data
5 Basic principles for application lifecycle management
5.1 General
In order to facilitate a consistent customer experience and to enable interoperability, this clause
establishes requirements that apply to and principles that should be considered by the different entities
involved in the application lifecycle management.
5.2 Portability of MFSs
The customer shall be able to change the mobile device (provided that the mobile device is compliant
with the MFS and enabled to support the application user interface). This requirement implies that
an MFSP shall document its compatibility requirements for a mobile device and permit a customer to
change the mobile device. This requirement also means that a customer shall be able to download a
new application user interface.
When the application is hosted by the UICC, the customer shall be able to switch from one MNO to
another while keeping the possibility to use the same application (provided that the relevant
arrangements between actors have been set up). This requirement implies that an MFSP shall permit
the customer to select any MNO that support the required functionalities for the MFS.
2 © ISO 2017 – All rights reserved

The principle of portability applies also to the other types of secure environments, when the application
is hosted by these secure environments.
Additional requirements regarding portability are provided in ISO/TS 12812-4 and ISO/TS 12812-5.
5.3 Entities involved in the application lifecycle management
The entities involved in the application lifecycle management shall comply
...