1. Portal Payment Possibilities 1(21) Department of Teleinformatics KTH – Celltribe Business Solutions AB Portal Payment Possibilities for a start-up company Master of Science thesis 2000-12-13 Fredrik JanssonMarcus Larsson

2. Portal Payment Possibilities 2(21) Department of Teleinformatics KTH – Celltribe Business Solutions AB 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: o A mobile portal targeted directly at end-users using SMS. o Business consulting and implementation for corporate clients. Celltribe data Celltribe Celltribe Business Solutions Celltribe Mobile Services

3. Portal Payment Possibilities 3(21) Department of Teleinformatics KTH – Celltribe Business Solutions AB 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 o Reasonable security. o Possible for Celltribe to implement now. o User friendly. o Mobile. Demands

4. Portal Payment Possibilities 4(21) Department of Teleinformatics KTH – Celltribe Business Solutions AB 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.

5. Portal Payment Possibilities 5(21) Department of Teleinformatics KTH – Celltribe Business Solutions AB Mobile commerce enabling applications Today information tomorrow everything. o Instant mesaging and mobile chat. o Personal information management. o Shopping and reservations. o Entertainment and gambling. o E-mail. o Banking and postal services. o Vending machines. o Personal cards.

6. Portal Payment Possibilities 6(21) Department of Teleinformatics KTH – Celltribe Business Solutions AB 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. o Loyalty points (Ipoints, CellPoints, Beenz, yadaCash). o Electronic cash (eCash, CyberCoin, Millicent). o Existing currency.

7. Portal Payment Possibilities 7(21) Department of Teleinformatics KTH – Celltribe Business Solutions AB Paying on your phone bill. Direct Internet payment. Invoice. Credit card. Check. Micro payment. Cash card. Paying on your phone bill. Direct Internet payment. Credit card. Available payment methods

8. Portal Payment Possibilities 8(21) Department of Teleinformatics KTH – Celltribe Business Solutions AB Paying on your phone bill Sonera Mobile Pay (Vending machines). o One amount per number. Telia PayIT (eCharge). o Requires the user to have a modem. o The user has to be connected to Telia’s PSTN net. o Not expandable to the mobile market. 900 numbers. o Not suitable for this kind of service.

9. Portal Payment Possibilities 9(21) Department of Teleinformatics KTH – Celltribe Business Solutions AB 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).

10. Portal Payment Possibilities 10(21) Department of Teleinformatics KTH – Celltribe Business Solutions AB 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).

11. Portal Payment Possibilities 11(21) Department of Teleinformatics KTH – Celltribe Business Solutions AB Recomendation Direct Internet payment. o Establish contracts with each bank.(Double fee if third party is used). o Easy to implement. o High security, high user confidence. o Best for the swedish web-portal. Credit card. o Global paymnet method. o Only the credit card number is needed. o Fits Celltribe’s profile the best. o NetGiro should be used to test the demand from the market.

12. Portal Payment Possibilities 12(21) Department of Teleinformatics KTH – Celltribe Business Solutions AB Credit card implementation Merchant server NEO JSP pages JAVA beans NEO CeloCom crypto program NEO Switch ÖstGöta Enskilda Bank Card redempterer Card redemption agreement Celltribe user NetGiro SET hotel 128 bits SSL certificate

13. Portal Payment Possibilities 13(21) Department of Teleinformatics KTH – Celltribe Business Solutions AB 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.

14. Portal Payment Possibilities 14(21) Department of Teleinformatics KTH – Celltribe Business Solutions AB 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.

15. Portal Payment Possibilities 15(21) Department of Teleinformatics KTH – Celltribe Business Solutions AB 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.

16. Portal Payment Possibilities 16(21) Department of Teleinformatics KTH – Celltribe Business Solutions AB 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.

17. Portal Payment Possibilities 17(21) Department of Teleinformatics KTH – Celltribe Business Solutions AB Conclusion SMS! Fitting Celltribe. No investments. Merchant server NEO JAVA NEO Switch ÖstGöta Enskilda Bank Card redempterer Card redemption agreement NetGiro SET hotel Celltribe user CeloCom crypto program NEO GSM Modem SMS-C (Minick) : SMS from user : SMS from Celltribe

18. Portal Payment Possibilities 18(21) Department of Teleinformatics KTH – Celltribe Business Solutions AB SMS implementation Incoming SMS Server Outgoing SMS Server Manager Server RMI NEO GSM Modem SMS-C (Minick) COM port AT commands

19. Portal Payment Possibilities 19(21) Department of Teleinformatics KTH – Celltribe Business Solutions AB 1.User sends a fill request. 2.Merchant replies with a confirmation message containing a one-time code. 3.User confirms the purchase by replying with the one-time code and a PIN code. 4.Merchant confirms the purchase. 1.User sends a fill request. 2.Merchant replies with a confirmation message containing a one-time code. 3.User confirms the purchase by replying with the one-time code and a PIN code. 4.Merchant confirms the purchase. SMS Implementation 1.User sends a fill request. 2.Merchant replies with a confirmation message containing a one-time code. 3.User confirms the purchase by replying with the one-time code and a PIN code. 4.Merchant confirms the purchase. 1.User sends a fill request. 2.Merchant replies with a confirmation message containing a one-time code. 3.User confirms the purchase by replying with the one-time code and a PIN code. 4.Merchant confirms the purchase. 1.User sends a fill request. 2.Merchant replies with a confirmation message containing a one-time code. 3.User confirms the purchase by replying with the one-time code and a PIN code. 4.Merchant confirms the purchase.

20. Portal Payment Possibilities 20(21) Department of Teleinformatics KTH – Celltribe Business Solutions AB 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).

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