NACHA: The Electronic Payments Association has formed a Mobile Banking Work Group under the leadership of its Internet Council to develop an Automated Clearing House payment platform strategy for mobile banking.

Participants will include industry representatives who will be recruited from NACHA's councils.

"There are a lot of opportunities for mobile banking, especially the credit card side of business," said Fred Lang, president of the Upper Midwest ACH Association and chairman of NACHA's Internet Council.

"Online banking has been a real surprise for us in the way it has exploded, and we believe mobile will follow," he said. "There are a few challenges, such as the carriers getting on board, knowledge and education and the security side of business."

Leadership within the Mobile Banking Work Group will focus on four primary objectives in the initial phase of this project.

First is assessing the NACHA operating rules for the accommodation of mobile banking and payments. Second is identifying authorization and authentication considerations.

Next is identifying unique security characteristics and requirements. Finally, the group will assess systemic opportunities and barriers in the ACH Network.

NACHA represents more than 11,000 member financial institutions, a network of regional payments associations and 585 organizations through its industry councils.

The nonprofit also manages the development, administration and governance of the ACH Network, which is a secure payments system that facilitates commerce electronically.

NACHA serves its members by enforcing the operating rules, managing the ACH Network, promoting the value of electronic payments and offering tools and resources to facilitate electronic payments.

The organization's Mobile Banking Vendor Showcase will be held Feb. 21-22 in conjunction with the Internet Council meeting in New Orleans.

"In mobile banking there will be the early adopters, then it will plateau and in a few years it will really take off," Mr. Lang said.