1. Research Seminar on Telecommunications Business II Mobile Payments by Markus Kalliola

2. Mobile Payments Index: Introduction Technologies Payment methods
Future Vision
Conclusions

3. Mobile Payments Introduction mobile payment = transaction
first commercial implementation 1997
rapid grow towards present day, but no breakthroughs
open standards under development
remote or local payment

4. Mobile Payments Technologies Phone call
1997 Sonera implemented vending machine
remote service
Advantages
easy to use
reliable
Disadvantages
require an unique number for each service
operator has to do the billing
example
paybox

5. Mobile Payments Technologies SMS short message service remote service
Advantages
easy to use
cheap
Disadvantages
delay
security
Example application
Helsinki City Transport

6. Mobile Payments Technologies Browsing technology
interact with Internet- and intranet-based services
WAP, Wireless Application Protocol
Routing
HTTP

7. Mobile Payments Technologies Browsing technology WAP
WAP 1.0 was optimized for the early WAP-phones
Security problem in gateway
WAP 2.0 and TCP/IP

8. Mobile Payments Technologies Browsing technology WAP Advantages
Implementation near to the Internet model
Modern phones support WAP
Disadvantages
Bad reputation
Not familiar to the users
Business model expensive
Forms are hard to design
Third party included
Huge among of ”bugs”
Different versions and implementations
Example
Vodafone mpay

9. Mobile Payments Technologies Browsing Technology Java™ MIDP
Mobile Information Device Profile
Developed as a Java Community Process
Some technical aspects
Applications extend MIDlet class
MIDlets offer portability
Uses constant databases
Mapping through abstract command
OTA, Over-The-Air, support
HTTP and HTTPS support
Push technology
End-to-End Security with PKI

10. Mobile Payments Technologies Browsing Technology Java™ MIDP Advantages
Good technical qualities
Broad knowledge among developers
Lower network and server load
Internet enabled, java
Cheap to download
Disadvantages
Third party included
Good for services and games not for payments
Competition
Example
Valimo solution

11. Mobile Payments Technologies Bluetooth Danish King Harold Bluetooth
Created by phone manufacturers
Technical aspects
Low bandwidth connection
Unlicensed at 2.4GHz ISM band
1Mb/sec
Link module and radio module
Advantages
Disadvantages
Example
CASPAY

12. Mobile Payments Technologies Infrared, IrDA
1993 Infra-red Data Association
Technical aspects
Hardware and Software
Advantages
smallest, cheapest, fastest
Disadvantages
not designed for payments
Example
NTT DoCoMo 3G IrFM

13. Mobile Payments Technologies Payments with PDA
IEEE, wireless LAN
Not very interesting for Mobile environment
Solutions exist only for Business to Consumer

14. Mobile Payments Technologies Mobile wallets A tool in mobile phone
Offers a secure storage for personal information
Makes buying easier and faster
Needs a communication channel

15. Mobile Payments Technologies Single SIM with PKI Dual chip Dual slot
Advantages
Disadvantages

16. Mobile Payments Technologies RFID, Radio Frequency Identification
Future or past?
Technical aspects
Advantages
Disadvantages
Pilots exist

17. Mobile Payments Payment methods Prepaid Phone bill Debit card
SIM, Smartcard
Virtual accounts
Phone bill
Debit card
Credit card

18. Mobile Payments Future Vision by Mobey Forum
Mobile payment should use existing clearing and authentication solutions
Three way to implement
The development trend
Revolutionary?

19. Mobile Payments Conclusions
A lot of nice technologies – why don’t they make breakthroughs
Market demands for future
Banks or other clearing houses
Retail or other end-sale parties
Operators
Users