Q&A with IFSF: More standards, fewer payment headaches
IFSF leaders Ian Brown and Mirko Spagnolatti speak to MobilityPlaza about the biggest payments challenges in the mobility industry, and how standards can help solve them.
The payments landscape in mobility is evolving rapidly, driven by the rise of digital methods, API-based technologies, and the increasing importance of EV charging. To better understand how the International Forecourt Standards Forum (IFSF) is responding to these shifts, MobilityPlaza spoke with Ian Brown, IFSF EFT and Payments Chair, and Mirko Spagnolatti, IFSF Director and Fortech S.r.l. Business Development Director. In this conversation, they share their views on the adoption of new standards, the pace of industry change, and the challenges and opportunities that lie ahead for retailers, suppliers, and consumers alike.
MobilityPlaza. IFSF has been providing payment standards for over 20 years. Can you give us a brief overview of the journey so far?
Ian Brown. The first two standards we developed, the POS to FEP Interface Standard and the Host-to-Host Interface Standard, were designed to support all card-based payments at a petrol station and to allow merchants and vendors to integrate equipment from multiple vendors with minimal effort. These standards were based on ISO8583, which we extended to support the extra data required for fuel cards and outdoor payments.
We then developed a set of security guidelines, again based on established industry standards, to ensure members could handle payments in a secure and interoperable manner. Today, these standards are widely used across Europe, Asia, and South America, proving to be effective tools to reduce both implementation and operational costs.
MP. Why are standards so important for the mobility industry?
Mirko Spagnolatti. Adoption brings quicker time to market, scalability to multiple markets and brands, and ongoing support for evolving requirements. Retailers and suppliers particularly benefit from minimized switch costs and reduced vendor lock-in, which helps optimize the Total Cost of Ownership (TCO).
MP. Forecourts have become multi-energy service hubs. What are the main points of focus for IFSF today?
IB. The industry does not stand still. We have focused on four main areas: adoption of API-based technologies, the growth of electric vehicles (EVs), the need for stronger payment security, and the emergence of new digital payment methods such as mobile.
On the API front, for example, we have developed what we call our Closed Loop Payment API, designed for merchants and issuers who want to create direct API-based interfaces between their systems. It comes in two variants: the Issuer Initiated API authorises the payment in advance when the card issuer’s customer notifies them they are at a station. The merchant allows the customer to fill up and is reimbursed by the issuer. The other version is Merchant Initiated API, which supports the traditional model where the customer presents their payment instrument at the site and the merchant initiates the transaction.
MP. How is mobile impacting the way payments and services are delivered?
MS. The increased adoption of mobile is transforming retail activities, including petrol and energy. The industry is shifting from a “services to vehicles” approach to “services to consumers.” The Point of Interaction (POI), whether physical at a counter, OPT, kiosk, or digital through apps, is now a critical element to drive customer loyalty and differentiation.
Building an omnichannel customer experience requires robust, scalable, and interoperable systems, and IFSF provides the strong foundation for that.
MP. Security is always a top priority. What is IFSF doing in this area?
IB. We’ve made a comprehensive update to our security standards. This includes adding AES, aligning with the latest versions of referenced industry standards, strengthening guidance on secure methods for new implementations, and deprecating those no longer secure enough. We’ve also provided guidance on securing messages over the public internet.
Additionally, we’ve introduced a Two Factor Authentication API, which offers a simple method for merchants and issuers to request authentication before a purchase is authorised. It is based on a simplified version of EMVCo’s 3D secure method.
MS. Security is not only about protection—it’s also about compliance. Requirements are constantly evolving to address new fraud and attacks. For the petrol and energy industry, however, continuous upgrades risk creating forecourt obsolescence. That’s why modular, interoperable systems are crucial, enabling selective upgrades. IFSF plays a central role by defining modularity and interoperability requirements.
MP. The rise of e-mobility presents both opportunities and challenges for service stations. What needs to be done to improve that integration process?
IB. We drafted an EV white paper outlining how IFSF payment standards can be used alongside OCPI and OCPP standards to support EV charging payments. This approach enables merchants to accept EV charging payments through their existing infrastructure with minimal technical changes. We also added support for incremental authorisations in our POS–FEP and Host–Host standards to meet scheme card requirements for EV charging.
MS. The possibility of merging EV into existing infrastructures is key for the industry. The long-term view is “EV under the canopy,” rather than today’s fragmented stand-alone EV experience. This will be a central topic at the IFSF annual conference in Athens, November 4–6.
MP. In your view, are stakeholders implementing these standards quickly enough?
IB. Our traditional standards, the ISO8583 and XML-based standards, are widely adopted. When it comes to our newer API-based standards, adoption has been slower. That said, we are now starting to see a real uptick in usage, which is very encouraging.
MS. In the early days, adoption was largely driven by major oil companies. More recently, smaller regional and national retailers—often with different business and systems backgrounds—have been leading the way in a more fragmented market. This partly explains the pace of API-based adoption Ian mentioned.
Even in this more complex environment, IFSF’s Technical Associates, our supplier community, have maintained their strong commitment. In fact, many new suppliers have joined IFSF in recent years. Adoption of new standards is a core priority for us. That’s why we’ve invested in improving how we communicate benefits and opportunities to members.
MP. You mentioned security, EV payments, API-based tech, and digital payments as today’s main drivers. If you look ahead, what do you expect to be the biggest challenges in 10 years?
IB. I wish I knew the answer! I think the challenges will be the ever-increasing fragmentation of the payment landscape combined with the broadening set of services our merchants offer. This puts a big strain on the standards. We are doing two key things to address this challenge: we have a Data Dictionary that ensures there are common data definitions your developers can use to maximise interoperability. And we also have a clearly defined roadmap developed in partnership with our members.
MS. I believe the “EV under the canopy” concept illustrates the need to converge to a seamless and very familiar user experience for all drivers in the B2C but also in the B2B space, regardless of the energy vector they need for their vehicles. On the payment side, account-based wallets like Wero are quickly getting traction. Together with Digital Euro, these solutions will allow for independent European digital payment solutions extending the capabilities of current payment systems and providing better conditions for the merchants. Finally, the implementation of a far deeper and richer customer experience will be a key topic.
Interview by Oscar Smith Diamante
