Electronic payment systems 20 763 lecture 13 mobile payments virtual money
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Electronic Payment Systems 20-763 Lecture 13 Mobile Payments, Virtual Money Mobile Payment Players Content Provider/ Merchant Financial Institution Network Operator User Mobile Payment Issues Content Provider/ Merchant Financial Institution Network Operator User Security

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Electronic payment systems 20 763 lecture 13 mobile payments virtual money l.jpg

Electronic Payment Systems20-763 Lecture 13Mobile Payments,Virtual Money


Mobile payment players l.jpg
Mobile Payment Players

Content

Provider/

Merchant

Financial

Institution

Network

Operator

User


Mobile payment issues l.jpg
Mobile Payment Issues

Content

Provider/

Merchant

Financial

Institution

Network

Operator

User

  • Security

  • Privacy

  • Ease of Use

  • Devices

  • Open Standards

  • Inter-operability

  • Roaming

  • Authentication

  • Integrity

  • Non-repudiation

  • Fraud reduction

  • Getting Paid

  • User adoption

  • Low Cost

Issues

SOURCE: ARVANI GROUP


Current business models l.jpg
Current Business Models

  • Card based (Visa, MC)

  • Carrier based (DoCoMo)

  • Third party (PayBox)

SOURCE: ARVANI GROUP


Mobile card systems l.jpg

MOTOROLA P7389

TRIBAND WAP PHONE

WITH SMARTCARD READER

Mobile Card Systems


Mobile emv chip debit credit l.jpg

Merchant

Clearing &

Settlement

OPTION 1:

Multi-app:

SIM + EMV

(CEC)

Mobile EMV Chip Debit/Credit

Voice or IP Browsing & Offer Request

Issuing

Bank

Wallet forwards

address details

WAP, i-Mode

Acquiring

Bank

Merchant Offer

Acquiring Payment Engine

Gateway

Wallet

Server

Purchase Request

ShipmentConfirmation

SET or SSL/TLS

Authorisation Request / Response

M/CHIP transaction with

ARQC and ARPC / ARC

data classed as “Card

Present” Transaction

Option 2: Dual slot phone with full size EMV

SOURCE: MAOSCO



Mobile phone future l.jpg
Mobile Phone Future

Millions

More handsets than PCs connected to the Internet by the end of 2003 !

Projected

cellular

subscribers

Projected Web

handsets

Projected PCs connected to the Internet

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005



Paybox l.jpg

Consumer has goods in shoppingbasket and selects “paybox - pay with mobile phone“ on website

1

2

paybox connectstransaction partnersand rings consumer on mobile phone

4

...entering the paybox-PIN on the mobile phone

Consumer authorises the payment to the Internet shop by...

3

5

Clearing& settlement is done via electronic direct debit

Paybox

paybox

SOURCE: PAYBOX NORDIC AB


Paybox combines networks l.jpg
Paybox Combines Networks

Payment

Space

Banking Network

Authorization Space

GSM Network

PAYMENT MADE THROUGH

BANKING NETWORK

AUTHENTICATION AND AUTHORIZATION MADEOVER GSM NETWORK

Transaction

Space

Internet

  • works with any mobile phone

  • any network provider

  • supports WAP via GPRS or UMTS

  • high taxicab penetration

  • 6% of all B2C in Germany

TRANSACTION TRIGGEREDOVER THE INTERNET

SOURCE: PAYBOX NORDIC AB


Paybox payment procedure l.jpg

3. Call customers mobile phone

2. Send phone # + amount

4. Confirm recipient + amount (PIN)

5. Confirm payment

1. Send phone number

6. Ship goods

paybox: Payment Procedure

paybox

Customer

Vendor

SOURCE: ANDREAS KUNZ


Paybox features l.jpg
Paybox Features

  • Payment authentication by mobile phone, relies on SIM identification and GSM encryption

  • Started in May 2000 in Germany, now also operational in Austria, Spain and Sweden with more to come (e.g. Britain)

  • 50% owned by Deutsche Bank

  • Amounts: starting at about 1€

  • Transfer to other mobile phone (1-2% or 25 cent fees) or bank account possible

  • Offline shopping possible


Paybox cross border mobile payments l.jpg
Paybox Cross-Border Mobile Payments

Merchant

Consumer

Provision of Goods and Services

Purchase

Call on GSM network

PIN authorization

TransactionRequest and

Confirmation

Paybox:

Transaction Instruction Engine

via EDI

Deutsche Bank´s Network

Money Transaction

Consumer

Account

at ANY bank

in ANY country

Merchant

Account

at ANY bank

in ANY country

Clearing System

Direct Debit

Crediting

SOURCE: PAYBOX


Asiapay paydollar l.jpg
AsiaPay PayDollar

  • PayDollar Mobipay

    • supports iPaq or Palm

  • Bank cards

  • PayDollar Direct (peer-to-peer email)

  • PayDollar PPS – real-time online debit payments

    • DEMO

SOURCE: PAYDOLLAR


Slide16 l.jpg

Product .....:

REF. 1234

8

2

1

4

7

5

6

3

8

REF:

01021234

1500 ptas

Store X

PIN:

- - - - -

REF:

01021234

1500 ptas

Store X

PIN:

12345

Delivery

REF 1234

Store x

OK

REF:

01021234

Alternative:

+ PIN

4. Data validation

1. User chooses Mobipay payment

method on merchant site

5. PIN request

2. Merchant sends unique Mobipay

reference asociated with amount

6. PIN response

7. Authorisation

3. User sends reference (+ PIN)

8. Confirmation

4

Mobipay

Vending

Machine

OR

Internet

Merchant

Mobipay

System

with Access

Node router

Processor

+Issuer/

Acquirer

WEB

WEB

+

GSM

))))   

OPERATOR NETWORK

If PIN

not

entered

directly

User


Slide17 l.jpg

International Mobipay

Principle: Use existing international payment infrastructure

Current international

card infrastructure

7

Mobipay

International

Acquiring

Bank

Issuing

Bank

4

5

3

2

6

Local

Mobipay

Local

Mobipay

1

MERCHANT

0

4

CLIENT FROM

COUNTRY B

Country A

GSM

Roaming

Country B

SOURCE: MOBIPAY


T mobile micropayment service l.jpg

3. Return signed purchase order

2. Sign

purchase order

4. Check signature

1. Send purchase order

2. Upload

application

and credentials

1. Register

a) Send collected purchase

orders

regularly

b) Check purchase orders

1. Provide Customer‘s keys and certificate

c) Clearing

and settlement

Customer registration

2. Certification request

Application and credential upload

3. Create key pair

and certificate

Clearing and

settlement

T-Mobile Micropayment Service

Customer:

mobiledevices

Merchant:Point of Sale

MobileGateway

Mobile commerce platform

Financial

Institution

Content

Billing

Application

Repository

Micropayment

Public Key

Infrastructure

Advertising

Location Based Services

SOURCE: T-SYSTEMS


Digital wallets l.jpg
Digital Wallets

  • Files or devices containing payment information, possibly representations of money

  • Used for seamless payments, without significant user intervention

SOURCE: LAUDON & TRAVER



How microsoft passport works l.jpg
How Microsoft Passport Works

SOURCE: LAUDON & TRAVER


Major ideas l.jpg
Major Ideas

  • Mobile payment is expanding rapidly

  • Wallets yield great conveneince

  • Blind digital signatures are possible

  • eCash is a minor development


Slide23 l.jpg

Q

A

&


Mcommerce replacement for cash card l.jpg

Data

Telco network

Internet

Financial

Institutes /

Telco billing

External Business Systems

mCommerce: Replacement for Cash & Card

Vending,

Access,

Ticketing,

etc.

Users

Call

Center

WWW

Mobile Payment Platform

SOURCE: SONERA


A mobile payment scheme l.jpg
A Mobile Payment Scheme

4. Request PO (API)

0. Routing

Mobile

Mobile

5. Certified PO

8. Deposit

Gateway

PSP

Merchant

s

2. Offer

(WML)

1. Offer (WML/HTML, PFL)

PSP

6. Certified PO

7. Deposit

0

3. Payment

Authorization

Mobile buyer

Merchant

SOURCE: NEWGENPAY.COM


Mobile aggregators l.jpg
Mobile Aggregators

WIRELESS BANKING: EDS

SEE ALSO YODELEE2GO

SOURCE: VERTICAL ONE


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