Portal Payment Possibilities for a start-up company

1. Portal Payment Possibilitiesfor a start-up company Master of Science thesis 2000-12-13 Department of Teleinformatics KTH – Celltribe Business Solutions AB

2. Celltribe Celltribe Business Solutions Celltribe Mobile Services Celltribe data • Founded in September 1999. • Head office in Stockholm. • Pan-European company. • 90 employees. • Vision: “Everything that can be mobile will be”. • Two main business areas: • A mobile portal targeted directly at end-users using SMS. • Business consulting and implementation for corporate clients. Department of Teleinformatics KTH – Celltribe Business Solutions AB

3. Problems with start up companies • Fast changing in priorities. • No experience with thesis works. PKI based end-to-end security with micro payments. Automatically reload refill cards. Portal Payment Possibilities • Demands Department of Teleinformatics KTH – Celltribe Business Solutions AB

4. Market for mobile commerce • New channel that can complement the existing ones. • New techniques such as WAP, GPRS, and UMTS. • Scandinavia today has a mobile penetration of more than 50%. • Less than 5% of all transmitted data uses mobile devices. By 2005 it is predicted to be 25%. • By 2004 1 billion cellular subscribers. Department of Teleinformatics KTH – Celltribe Business Solutions AB

5. Mobile commerce enabling applications • Today information tomorrow everything. • Instant mesaging and mobile chat. • Personal information management. • Shopping and reservations. • Entertainment and gambling. • E-mail. • Banking andpostal services. • Vending machines. • Personal cards. Department of Teleinformatics KTH – Celltribe Business Solutions AB

6. Celltribe’s income from services • Include advertisement in the sent SMSs. • Increase traffic in the GSM operator’s network. • Charge the customer for the service. • Loyalty points (Ipoints, CellPoints, Beenz, yadaCash). • Electronic cash (eCash, CyberCoin, Millicent). • Existing currency. Department of Teleinformatics KTH – Celltribe Business Solutions AB

7. Available payment methods • Paying on your phone bill. • Direct Internet payment. • Credit card. • Paying on your phone bill. • Direct Internet payment. • Invoice. • Credit card. • Check. • Micro payment. • Cash card. Department of Teleinformatics KTH – Celltribe Business Solutions AB

8. Paying on your phone bill • Sonera Mobile Pay (Vending machines). • One amount per number. • Telia PayIT (eCharge). • Requires the user to have a modem. • The user has to be connected to Telia’s PSTN net. • Not expandable to the mobile market. • 900 numbers. • Not suitable for this kind of service. Department of Teleinformatics KTH – Celltribe Business Solutions AB

9. Direct Internet payment • Special solution for each large bank in Sweden (Certificates, digipass, smartcard, one time codes). • Unique Scandinavian solution. • Not expandable to the mobile market. • High security. • High user confidence. • Can establish contracts direct with each bank or use a third party (NetGiro, DebiTech, Telia SäkerHandel). Department of Teleinformatics KTH – Celltribe Business Solutions AB

10. Credit card • The main payment method on the Internet. • Global payment method. • Expandable to the mobile market. • Scandinavians sceptical to give out credit card information. • Secure Electronic Transactions (SET). • Merchant Initiated Authorisation (MIA). • Swedish banks demand the company to use a SET engine. Can use third party (NetGiro, DebiTech, Telia SäkerHandel). Department of Teleinformatics KTH – Celltribe Business Solutions AB

11. Recomendation • Direct Internet payment. • Establish contracts with each bank.(Double fee if third party is used). • Easy to implement. • High security, high user confidence. • Best for the swedish web-portal. • Credit card. • Global paymnet method. • Only the credit card number is needed. • Fits Celltribe’s profile the best. • NetGiro should be used to test the demand from the market. Department of Teleinformatics KTH – Celltribe Business Solutions AB

12. Credit card implementation Celltribe Merchant server NEO JSP pages JAVA beans NEO Celltribe user HTTPS 128 bits SSL certificate CeloCom crypto program NEO Switch Card redemption agreement VPN tunnel ÖstGöta Enskilda Bank Card redempterer NetGiro SET hotel SET tunnel Department of Teleinformatics KTH – Celltribe Business Solutions AB

13. Expanding the solution to the mobile market Interesting technologies. • WAP. • Computer Telephony Integration (CTI). • Dedicated numbers. • Sim Application Toolkit (SAT). • SMS. • WAP. • Computer Telephony Integration (CTI). • SMS. Department of Teleinformatics KTH – Celltribe Business Solutions AB

14. WAP Positive: • The leading standard for providing advanced telephony services for digital mobile phones and other wireless devices. • Strong back-up (Ericsson, Nokia…). Negative: • Known security problems. (The Gateway and weak WTLS layer). • Low penetration of WAP devices. • Frequent warnings in media about WAP. Department of Teleinformatics KTH – Celltribe Business Solutions AB

15. CTI Positive: • Immediate response, no waiting time for the user. • No cost after initial hardware purchases. • High user confidence. Negative: • Unsecure. • Not fitting Celltribe’s profile. Department of Teleinformatics KTH – Celltribe Business Solutions AB

16. SMS Positive: • Widespread and popular technology. • Available on every mobile phone. • Fitting Celltribe’s profile the best. Negative: • Time consuming, long waiting times for the user. • Poor user interface. Department of Teleinformatics KTH – Celltribe Business Solutions AB

17. Celltribe GSM Merchant server NEO SMS-C (Minick) Internet Card redemption agreement VPN tunnel SET tunnel JAVA NEO GSM Modem Celltribe user CeloCom crypto program NEO Switch NetGiro SET hotel : SMS from user : SMS from Celltribe ÖstGöta Enskilda Bank Card redempterer Conclusion SMS! • Fitting Celltribe. • No investments. Department of Teleinformatics KTH – Celltribe Business Solutions AB

18. NEO COM port Incoming SMS Server GSM AT commands RMI RMI Outgoing SMS Server SMS-C (Minick) Internet GSM Modem Manager Server SMS implementation Department of Teleinformatics KTH – Celltribe Business Solutions AB

19. SMS Implementation • User sends a fill request. • Merchant replies with a confirmation message containing a one-time code. • User confirms the purchase by replying with the one-time code and a PIN code. • Merchant confirms the purchase. • User sends a fill request. • Merchant replies with a confirmation message containing a one-time code. • User confirms the purchase by replying with the one-time code and a PIN code. • Merchant confirms the purchase. • User sends a fill request. • Merchant replies with a confirmation message containing a one-time code. • User confirms the purchase by replying with the one-time code and a PIN code. • Merchant confirms the purchase. • User sends a fill request. • Merchant replies with a confirmation message containing a one-time code. • User confirms the purchase by replying with the one-time code and a PIN code. • Merchant confirms the purchase. • User sends a fill request. • Merchant replies with a confirmation message containing a one-time code. • User confirms the purchase by replying with the one-time code and a PIN code. • Merchant confirms the purchase. Department of Teleinformatics KTH – Celltribe Business Solutions AB

20. Future Work • Wireless Identity Module (WIM). • Exchange system. Differnt types of points (IKEA, Statoil, Ica, Beenz, Flooz…) should be able to exchange into each others. • Micropayment systems (Jalda). Department of Teleinformatics KTH – Celltribe Business Solutions AB

21. Portal Payment Possibilitiesfor a start-up company THE END Department of Teleinformatics KTH – Celltribe Business Solutions AB