CBI is focused on creating new models of payment involving mobile phones and boost the security of existing ones, Financial Tribune reported.
Micro payment has emerged as one of the most problematic areas in the Iranian payment system, because almost all of it is processed online, which entails significant costs, according to the bank.
In light of the high penetration ratio of mobile phones as a widely available tool, the central bank aims to introduce payment based on tokenization in the next fiscal year that begins on March 21.
Tokenization, when applied to data security, is the process of substituting a sensitive data element with a non-sensitive equivalent, referred to as a token, that has no extrinsic or exploitable meaning or value.
The Iranian central bank will make a concerted move towards adopting the Europay, MasterCard and Visa technology, and making bank cards smarter, but according to the bank, two major hurdles impede that goal.
The first is that the banking system does not yet have the comprehensive infrastructure to support these payments and secondly the public and other beneficiaries must favor them, they reported.
The central bank will also announce its regulatory stance on two additional modes of financial technology firms, a move that will steer the countrys payment system towards further diversification.
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