Mobile Payment Systems

Mobile Payment Systems
Instructor: Jerry Gao Ph.D. San Jose State University URL: Oct., 2002

Topic: Mobile Payment Systems
Presentation Outline - What is mobile payment? - Requirements and features of mobile payment systems - Challenges of mobile payment systems - Different mobile payment process - Mobile payment schemes - Classification of mobile payment solutions and systems - Major players and products Jerry Gao Ph.D. 10/2002 All Rights Reserved

Topic: Mobile Payment Systems What is Mobile Payment Systems?
“We define mobile payment, or m-payment, as any transaction with a monetary value that is conducted via a mobile telecommunications network (Durlacher)”. Mobile payment usually uses a point-of-sale payment method through a mobile device, such as a cellular telephone, a smart phone, or a personal digital assistant (PDA). In general speaking, mobile payment is any consumer or business driven transaction to pay for goods, services or digital content using a combination of: mobile devices, mobile delivery networks and the Internet. Jerry Gao Ph.D. 10/2002

Required Features of Mobile Payment Systems
Topic: Mobile Payment Systems Required Features of Mobile Payment Systems Simple & Convenient Easy for mobile users to make payments through mobile devices Fast and efficient Fast user response and quick payment processing Security - Protecting buyers, sellers, and all involved parties - Secured transactions Universal acceptance - Allow consumers to shop and pay anyone, anywhere, anyhow using mobile payment solutions and underlying wireless networking Jerry Gao Ph.D. 10/2002

Topic: Mobile Payment Systems Challenges in Mobile Payment
Business challenges: Need good business models for mobile payment business and services Payment cost: Is the consumer expected to upgrade his or her existing handset before using the payment method? How much must content provider pay to integrate a particular payment method into its existing m-commerce applications? Are content providers ready to pay for the fees requested from the payment service provider? What is the cost of building a successful payment service? “technical” costs, and “marketing and sales” costs? Jerry Gao Ph.D. 10/2002

Challenges in Mobile Payment
Topic: Online Payment Protocols and Systems Challenges in Mobile Payment Business challenges: Customer apathy: According to Forrester’s research, European consumers are uncomfortable with the idea of mobile payment i.e. “The fear of an unknown medium” and they are not even willing to try paying with their mobile device. Great areas of promise is to bridge the gap between the touch and feel physical world and the convenient and cost-competitive on-line world.” Technical Challenges Accessibility Convenience: To what extent can the payment method be used to pay for any type of content, from any location in the world, using any device? Some payment methods might require consumers to upgrade their existing handsets, or be pre-registered with a company. Speed: Time spent using the payment method ,important when customers have to pay for the access. Ease of use: easy to learn and use. Jerry Gao Ph.D. 10/2002

Challenges in Mobile Payment
Topic: Online Payment Protocols and Systems Challenges in Mobile Payment Technical Challenges Need standardization in mobile payment protocols, schemes, services...: Some current efforts on standardization: - MeT (Mobile Electronic Transactions): An initiative by Nokia, Motorola and Ericsson seeks to establish a framework for secure m-commerce. Confidentiality and integrity will be addressed by Wireless Transaction Layer Security (WTLS), while Wireless Identity Module (WIM) will ensure client and server authentication. WIM will also facilitate the use of digital signatures, which will help ensure non-repudiation. - E-Commerce Expert Group (ECOMEG): ECOMEG is a working group within the WAP Forum Identifies, describes, and recommends changes to the WAP specification to enable m-commerce and specifically mobile payment, mobile banking/trading, mobile advertising, B2B, and travel and entertainment services. Jerry Gao Ph.D. 10/2002

Topic: Mobile Payment Systems Mobile Payment Processes
Process Actors and Roles: Identified key roles to be managed are: Consumer Content provider TTP PSP Buys content or services from the content provider An individual or some organization that sells electronic or physical content (products or services) to consumers. A company used to perform the authentication and authorization of transaction parties and the settlement Central entity responsible for the payment process. It may also act as a clearing house to share revenues between all parties involved. Jerry Gao Ph.D. 10/2002

Topic: Mobile Payment Systems Mobile Payment Processes
Three Stages: 1.Registration Transaction 3.Clearing and settlement Consumer Content Provider (CP) Trusted Third Party (e.g. telco, bank, credit card company, ISP) Payment Service Provider (e.g. telco, bank, credit card company, startup) 5. Delivery of content 1. Purchase indication 7. Payment 6.Billing 0.Registration 2.Purchase request 4. Purchase authorization 3.Authentication/ Authorization 8.Revenue sharing 9.Revenue sharing Jerry Gao Ph.D. 10/2002

Mobile Payment Transaction Sequence Using PIN
Topic: Mobile Payment Systems Mobile Payment Transaction Sequence Using PIN Mobile Payment System Purchase Request Give Merchant your Mobile Number Mobile Payment User Merchant System Credit Amount to Merchant Merchant Send Mobile Number and Amount System Call Mobile Phone, Speaks Amount & Request PIN User Enter and Send PIN using Mobile Phone System Debit Amount from User Account Jerry Gao Ph.D. 10/2002

Mobile Telephone Systems - PIN and Password
Topic: Mobile Payment Systems Mobile Telephone Systems - PIN and Password Personal Identification Number (PIN) Method for Authorization and Non-repudiation Strength: Easy to implement. Easy to use for users. Prevent thief from using the payment system without the PIN. Weakness: PIN can be easily stolen or broken if it is short. User can forget PIN. Jerry Gao Ph.D. 10/2002

Mobile Payment Transaction Sequence Using Caller ID
Topic: Mobile Payment Systems Mobile Payment Transaction Sequence Using Caller ID Mobile Payment System User dial toll free number and enter PIN System Verifies Caller ID with PIN and send four digit authorization code Mobile Payment User Merchant System Credit Amount to Merchant User enters authorization code into Payment System Controller System Debit Amount from User Account Jerry Gao Ph.D. 10/2002

Topic: Mobile Payment Systems Mobile Telephone Systems – Call ID
Caller allows a receiver of a telephone call to see the number of the caller Authenticate caller during transaction Strength: Available on all Modern Mobile Telephone System. Easy to implement and use. Weakness: Caller can block Caller ID and prevent Mobile Payment System from doing the transaction. Customer has to change their mobile number in the payment system if they change their mobile number. Jerry Gao Ph.D. 10/2002

Mobile Payment Transaction Sequence Using Callback
Topic: Mobile Payment Systems Mobile Payment Transaction Sequence Using Callback Mobile Payment System User give Merchant Mobile Phone number to Merchant Merchant enter Mobile Phone and amount Mobile Payment User Merchant User enter PIN if approve the amount System calls Mobile Phone, state amount and request PIN System Debit Amount from User Account System Credit Amount to Merchant Jerry Gao Ph.D. 10/2002

Topic: Mobile Payment Systems Mobile Telephone Systems – Callback
In conjunction with PIN, it is a way for Mobile Payment System authenticates the user and authorizes the transaction Strength: Easy to implement. Weakness: Phone can be busy or off. Jerry Gao Ph.D. 10/2002

Topic: Mobile Payment Systems Mobile Payment Methods
1. Pre-paid (debit-card based payment) 2. Post-paid or Pay-later (credit-card based payment) 3. Pay-now (mobile e-wallet payment) Transaction payment methods: 1-Pay Per View (PPV): the consumer pays once for each view, or increment, of the desired content. 2-Pay Per Unit (PPU): the consumer pays once for each unit successfully completed with the content provider. 3-Recurrent Subscription: the consumer pays a recurring periodic amount to access the content on an unlimited basis during the period. Jerry Gao Ph.D. 10/2002

What Do You Pay For? Potential mobile payments falls into several distinct categories: 1. Pay for viewing mobile content 2. Pay for mobile portal services and content directories 3. Pay for buy-and-sell transactions For hard goods and services, such as TV, CD-ROM For digital products, such as e-books, music, .. 4. Pay for transaction brokerage services and transaction settlements 5. Pay for mobile connection services 6. Pay for mobile application services 7. Pay for mobile entertainment services, games, ticketing,.. Jerry Gao Ph.D. 10/2002

Security Requirements for Mobile Payment Systems
Topic: Mobile Payment Systems Security Requirements for Mobile Payment Systems Technical Challenges High Security Requirements in terms of: - Confidentiality: Protection against passive monitoring of payment details(e.g. a consumers personal particulars, password) - Authentication: Ensuring that the consumer and content provider are who they really claim to be. - Integrity: To what extent can the payment method protect payment details from being modified from the time they are sent to the time they are received. - Authorization: Ensure that only authorized consumers are allowed to purchase content. - Non-repudiation: Guarantee that a consumer cannot falsely claim that they did not participate in the transaction. Jerry Gao Ph.D. 10/2002

Some Important Enablers for Secured Mobile Payment Systems
Topic: Mobile Payment Systems Some Important Enablers for Secured Mobile Payment Systems - Encryption:Used to ensure confidentiality using encryption and decryption keys. - Digital Signatures: used to ensure the authenticity of transaction parties, and the integrity and non-repudiation of transmissions. - Digital Certificates: allows the distribution of the public keys in a secure manner that.A CA issues digital certificates. Contains four main components: a public key, information linking this public key to its owner, information about the certificate issuer, and the issuer’s digital signature. - Public Key Infrastructure(PKI):is a set of standards that control the lifecycle of digital certificates. A PKI can help address the non-repudiation and authorization aspects of security. - Secure Electronic Transaction (SET):a protocol by MasterCard and Visa to support bank card payments. SET is implemented using a PKI. Jerry Gao Ph.D. 10/2002

Current Security Solutions for Mobile Payment Systems
Topic: Mobile Payment Systems Current Security Solutions for Mobile Payment Systems The existing solutions are: Confidentiality, Authentication, Integrity, Non-repudiation, and Authorization for mobile payment. Authenticate registered user based on IS-41 secret key technology Protect against fraudulent operations like cloning, eavesdropping, and subscription fraud Provides Voice and Data Encryption on the network. Provides Integrity and Confidentiality on transaction information, pin, and user account information Strength: Encryption of the system is secure and established on all major Mobile Phone System Providers. Encryption system is built into the system and is invisible to users. Weakness: System is beyond Mobile Payment System control. Cloning can occur Jerry Gao Ph.D. 10/2002

Current Security Solutions for Mobile Payment Systems
Topic: Mobile Payment Systems Current Security Solutions for Mobile Payment Systems The existing solutions are: Mobile Security Protocols used are Mobile Telephone Systems Encryption, PIN or Password, Caller-ID, Callback, SMS,WAP-WTLS. Wireless Transport Layer Security is a Security layer protocol in the WAP architecture Mobile Payment System uses WTLS for data integrity and protection when users access their account using the phone WAP browser Strength: Based on Transport Level Security. Protocol exist and ready to implement and use. Weakness: WAP GAP is a weakness in protecting vital users data. Requires users with WAP mobile phone. Jerry Gao Ph.D. 10/2002

Current Restrictions in Mobile Payment Systems
Topic: Mobile Payment Systems Current Restrictions in Mobile Payment Systems The bearer service in wireless networks is rather limited when compared to fixed networks. That is: Less bandwidth Longer latencies and More errors Cheap mobile devices produced for the mass market have several restrictions, such as, Limited screen and small input keyboard and display Very limited processing power, and memory space. Jerry Gao Ph.D. 10/2002

Topic: Mobile Payment Systems Classification of Mobile Payment Systems
Account-Based Mobile Payment Mobile Phone-Based Payment Mobile POS Payment icePay M-Pay (by Ultra) PhonePaid CyberM Mobile POS (by CyberCash) Paybox BEETLE/Mobile POS (by Wincor Nixdorf) Oasis IST/mPay Mobile Wallet Micro-Payment SET-based Mobile Wallet Card-Based Millicent Trintech’s PayWare 3D SET 3D SECURE SNAZ’s Mobile Wallet PayWord Encorus’s PaymentWorks Mobile MicroMint Smart Card Payment Jerry Gao Ph.D. 10/2002

Topic: Mobile Payment Systems Credit-Card Payment –SET
Current problems in SET payment systems: - SET has not been widely adopted because it was inconvenient to both the cardholders and the merchants. -> for example, to use SET security, the merchant has to issue each cardholder a software digital certificate, which is installed on his transaction terminal. - SET limits the cardholder’s ability to transact to only the SET_enabled terminal, so the cardholder would still not be able to use SET at his colleagues’s PC or at public terminals like kiosks or cyber cafes. - On the merchant’s end, SET used a hefty set of algorithms that cost a lot of computing power to process. This increased the cost of hardware needed for merchants to be SET-certified and it dissuaded many smaller merchants from using SET. Jerry Gao Ph.D. 10/2002

Topic: Mobile Payment Systems Credit-Card Payment – SET
Jerry Gao Ph.D. 10/2002

Topic: Mobile Payment Systems Credit-Card Mobile Payment – 3D SET
What is 3D SET? - A new initiative for secure mobile credit card-based payment, called “3D mo-del”. - It has three domain model. - It uses SET protocol for the Interoperability Domain. - It uses 3D-SET secure protocol for payer authentication. - It covers different areas of a Visa transaction flow: - The merchant and their bank – Acquirer Domain - The cardholder and their bank – Issuer Domain - The cardholder’s bank and the merchant’s bank – Interoperability Domain Objectives: - Reduce the effort of performing a SET payment on behalf of the cardholder. - Allow the cardholder to use their certificate from any mobile device access. Current Status: - 3D SET has gained ground in Europe and South America, but not yet in the US. Jerry Gao Ph.D. 10/2002

Payment authentication: - Cardholder verification – genuine cardholder is involved in a genuine transaction. - Card verification – a genuine card is being used by the person authorized to use it. - Merchant authentication – the website is run by a genuine Visa merchant. - The transaction is not compromised – details cannot be intercepted or abused. How does it work? The 3D SET model provides: - A flexible framework allows banks and payment acquirers to use their own methods to authenticate cardholders and merchants in a transaction. - Original SET protocol is used in the Interoperability Domain, so that each party uses the secure and complex interoperability protocol to communicate with the others. - A SET Wallet resides on a central bank server and provides the SET transactional capability. - The bank’s cardholders who have SET certificates also have accounts within the central wallet. The issuing bank can decide how to authenticate its own cardholders because it owns the wallet. Jerry Gao Ph.D. 10/2002

Advantages: Ø Standard by Visa and MasterCard. Ø Uses existing credit card backend processing systems Ø Uses signatures -> It removes the need for specified software on the cardholders PC and allows the cardholder to use many different payment channels from PC to mobile phones. Disadvantages: Ø Chicken, egg and farmer problem: requires adoption and software by merchant, buyer, and both their banks Ø Complex, expensive certification processes Ø Fat wallets, complex spec > Small market share, unclear future. Jerry Gao Ph.D. 10/2002

Smart Card Payment What is smart card? A smart card is a microchip which is equipped with - payment card: bank and/or credit card - SIM card for a mobile phone - electronic ID card - a combination of the above cards - A smart card is an embedded microcircuit, which contains memory and a microprocessor together with an operating system for memory control. - The smart card is a secure storage location for secret information. It is similar to the size of a credit card or a smaller SIM card. - Smart card features: (a) Personal (b) Portable (C) A Security Token - Applications: electronic identification, signature, encryption, payment and data storage. Smart Card Standards - ISO EMV GSM OCF Jerry Gao Ph.D. 10/2002

Smart Card Payment Smart Card Classification: - Component classification: (a) Memory cards (b) Chip cards - Interface classification: (a) Contact cards (b) Contactless cards (C) Hybrid cards - OS classification: (a) JavaCard (b) Multos cards Smart card components: CPU processor Carrier ROM PROM EPROM RAM I/O Interfaces Jerry Gao Ph.D. 10/2002

Topic: Mobile Payment Systems Smart Card Payment Systems -SIM
The SIM card is a smart card that is present in the vast majority of mobile phones worldwide. - It plays a very important role in the wireless service chain. - It can be used to customize mobile phones regardless of the standards. (GSM, PCS,..) - It offers: - new menus, prerecord numbers - sending short messages for query - and secure transactions Smart cards are issued by the financial services industry to reduce the exponential increase in fraud, and create new channels. Advantages: - Reduce fraud significantly, i.e., in 75% drop on fraud after smart card adoption. - Large storage space than traditional magnetic stripe. - Easily add many mobile applications - Additional level of security Jerry Gao Ph.D. 10/2002

Topic: Mobile Payment Systems Smart Card Payment Systems -SIM
Issues in SIM cards: - Security risks: - SIM cards can be cracked and copied. - The attack can be invasive or non-invasive. - Business issues: How to get enough card users and merchants to make money? Merchants are as vital as the customers for the smart card payment systems. - Interoperability: - Too many SIM cards coming to the market - Legal problems: - A pending law suit could damage reputation. Jerry Gao Ph.D. 10/2002

Topic: Mobile Payment Systems M-Wallet Payment Systems
What is M-wallets? - M-wallets are the most popular type of mobile payment option for transactions. - A Mobile Wallet module (m-Wallet) provides a convenient single-click, commerce payment mechanism. - They allow a user to store billing and shipping information that the user can recall with one-click while shopping from a mobile device. - They enables users to store all the information required to fill out commerce-related forms from any application. - A M-wallet is an encrypted entity at the server side that contains payment instrument, identification, and address information for registered users. New technologies are being integrated into m-wallet software, which enables cell phone users to make transactions using speech-recognition and voice-authentication technologies (Deitel & Deitel, 2002). Jerry Gao Ph.D. 10/2002

Topic: Mobile Payment Systems Classification of M-Wallets
Three types of m-wallets: - Client wallet -> stored on a user’ device. Example, SIM Application Toolkit card - Hosted wallet -> stored on a server machine. Example, Encorus PaymentWorks, SNAZ Mobile Wallet - Third-party wallet -> stored on a third-party’s machine. Europe: server based mobile e-wallets using Secure Electronic Transaction (SET) technology are already being used, providing secure transaction capability and providing merchants a payment guarantee for mobile transactions. Jerry Gao Ph.D. 10/2002

Topic: Mobile Payment Systems M-Wallets – Client Wallets
Advantages: - May be perceived as more secure by the user since the wallet is stored locally. - SIM Application Toolkits can communicate with the remote server using USSD. SIM Cards that use USSD are substantially faster than WAP equivalents. Disadvantages: - A personal wallet is closely tied to the device. It cannot be used to purchase items through different languages (WML, HTML, and CHTML) or other devices. - Since the wallet is stored and implemented in hardware, it is very difficult and expensive to update. If new functionality is added to the wallet, a new SIM Card has to be sent to every user. - SIM Card applications are proprietary which makes it difficult for them to support new payment technologies such as 3D Secure. - SIM Card solutions are closed in that they are either tied to a single bank or network operator. This means a merchant’s available market is limited . - Since a wallet is stored locally, the wallet and potentially the user’s sensitive financial information is compromised if the device is lost or stolen. Also, getting a new SIM Card wallet to replace the lost SIM may take some time. Jerry Gao Ph.D. 10/2002

Topic: Mobile Payment Systems M-Wallets – Hosted Wallets
Advantages: - If the user’s device is lost or stolen the wallet can still be used. - Since the entire wallet information is hosted remotely, it is possible to add new functionality to the wallet without having to update every user’s device. - The service provider has full control over the wallet, making it is possible for them to quickly add support for new devices. - Since the service provider hosts the wallet they have full control over the functionality and branding. - Self-hosted wallets can be more easily integrated with service providers’ other services and web portals. - It is easier to add support for extra payment instruments (credit cards, debit cards, micropayments, etc.). Jerry Gao Ph.D. 10/2002

Topic: Mobile Payment Systems M-Wallets – Hosted Wallets
Advantages: - The service provider has control over which payment providers are used. -> This allows them to use a provider that gives them the best deal on transaction charges. -> It also allows them to easily integrate with merchant payment providers. - Since wallets are hosted within the service providers’ domain it is possible to leverage CRM data to automatically create and populate wallets. - As use of the wallet increases, the operator has the ability to increase the level of hardware running the wallet service to match demand. Disadvantages: - A hosted wallet takes time to integrate with the service providers’ infrastructure (billing system, WAP gateway, etc.). - Since the wallet is hosted within the service provider’s network, they have the responsibility of maintaining the hardware. Jerry Gao Ph.D. 10/2002

Topic: Mobile Payment Systems Third-Party Hosted M-Wallets
Advantages: - The wallet server is managed by the third party. This means that the service provider’s IT department does not need to manage the hardware associated with the wallet. Disadvantages: - Because the wallet is developed and maintained by a third party, the service provider cannot decide what payment instruments are supported. Also, the third party solution may only support a limited set of devices. - Since the wallet is hosted remotely, the service provider may have no control over the branding of the wallet. - The third party generally maintains relationships with a limited number of payment providers. This makes it difficult to add support for extra payment providers that may be required by individual merchants. - The service provider has no control over the hardware infrastructure provided by the third party to host the wallet. It is possible that, at times, the third party solution does not have the processing power to supply the level of service required. Jerry Gao Ph.D. 10/2002

Topic: Mobile Payment Systems M-Wallet Transaction Architecture
MasterCard Global Mobile Commerce Working Group proposed “Remote Wallet Server Archiecture”. - The architecture covers payment scenarios with three variants such as TCP/IP initiated, SMS initiated and WAP initiated. The 3 variants differ in the initiation phase. In each variant, we can distinguish three phases (see Figure below). 1) initiation phase -the merchant server sends a payment initiation message to a cardholder device. 2) interaction phase between the cardholder device and SET wallet server In this phase, the cardholder, device(s) forward the merchant’s initiation message such that the wallet server either receives or is able to retrieve the SET Wake-up message. The cardholder approves the transaction and the wallet server authenticates the cardholder. 3) the SET transaction phase. In this phase the SET wallet server and the merchant SET server conduct a SET transaction. The initiation phase and cardholder device is the wallet-server interaction phase. The SET transaction phase is completely governed by the SET specification. Jerry Gao Ph.D. 10/2002

Topic: Mobile Payment Systems Mobile Wallet Server Architecture

Topic: Mobile Payment Systems Major Players in M-Wallets
Vendor Business Type URL Trintech Global provider of secure payment infrastructure solutions. SNAZ M-commerce Solution provider Encorus innovator in identifying and developing emerging payment technologies Nokia world leader in mobile communications Qpass Leading WearLogic, Inc. Mobile technology platform company Jerry Gao Ph.D. 10/2002

Topic: Mobile Payment Systems Summary about M-Wallets
Hosted mobile wallets solve so many of the problems in mCommerce For network operators and financial institutions, hosted mobile wallets overcome the security and usability issues that inhibit the adoption of next generation networks and services. - For merchants’ added revenue in is provided to be a challenging new delivery channel. - For device manufacturers, hosted mobile wallets speed the adoption of new hardware by delivering a rich user experience on new and improved devices. - Finally, for consumers the hosted mobile wallet unlocks the true potential of the mobile Internet and next generation networks and devices, giving the mobile user secure, easy-to-use payment options, allowing them to easily set preferences and enabling secure identification. Jerry Gao Ph.D. 10/2002

Topic: Mobile Payment Systems Major Players in Mobile Payment Systems
PhonePaid Paybox Oasis Technology Limited Cellerate M-Pay IcePAY Jerry Gao Ph.D. 10/2002

Topic: Mobile Payment Systems Major Player – PhonePaid
PhonePaid’s Profile: Young company, based in UK. It is the revolutionary new service ,which enables you to pay for things and transfer money by using your mobile phone, simply, safely, instantly. Major Features: Send money Receive money Attractive payments options Mobile purchase Jerry Gao Ph.D. 10/2002

Topic: Mobile Payment Systems Major Player – PhonePaid
How it works: Call the transactions number ( ) from user registered mobile and enter the mobile pin. Follow the voice prompts and enter the Merchant ID and Product Code. Voice prompts will repeat the merchant's name, description of the product and the price and will ask user to confirm. Once accepted, the transaction is completed. Both user and the merchant will receive an SMS and receipt notifying of the purchase. Jerry Gao Ph.D. 10/2002

Major Player – Paybox Paybox’s Profile: It is the world's first mass-marketable payment method for mobile telephones and was launched successfully in Germany in May, 2000. All transactions are securely conducted over the existing GSM mobile phone network. It is compatible with any bank account, any GSM mobile phone, across any mobile network. Major Features: shopping online. send money. services: taxi, transfer money….. Jerry Gao Ph.D. 10/2002

Major Player – Paybox How it works: --- Works like a debit card. Each payment is debited from user bank account only after users have authorized the transaction by entering his/her paybox PIN on the mobile phone. Jerry Gao Ph.D. 10/2002

Major Player – Paybox Paybox’s Intelligent Architecture: Jerry Gao Ph.D. 10/2002

Topic: Mobile Payment Systems Major Player – Oasis IST/mPay
Oasia IST/mPay’s Profile: Based in Canada,Oasis IST/mPay is one product of Oasis Technology. IST/mPay is a secure mobile payment solution that uses mobile phone account information (with PIN or password) instead of credit card information to authenticate consumer-driven payment transactions Major Features: ???? Jerry Gao Ph.D. 10/2002

Topic: Mobile Payment Systems Major Player – Oasis IST/mPay
Oasis IST/mPay’s Functional Architecture: Jerry Gao Ph.D. 10/2002

Major Player – icePay icePay’s Profile: Based in Japan, IcePAY is being developed to be used in combination with its existing "au" mobile phone service. Users receive a small icePAY module which they click on their mobile phone whenever they want to do mobile shopping The module contains two buttons: Button “A” connect with icePAY portal site Button “B” for actual payment Major Features: For payment, user has to click his/her module to the mobile of the merchant. Press button “B” to enter the amount User enter password and confirm the transaction Result shown on the phone display Jerry Gao Ph.D. 10/2002

Major Player – icePay icePay’s System Architecture: Jerry Gao Ph.D. 10/2002

Major Player – icePay Major Products and Service Features: Buy Video games auction articles Buy Japanese noodles, health food Buy "character goods" (meaning on-line content like foto's of popular baseball players) Delivery service or taxi Jerry Gao Ph.D. 10/2002

Major Player – Profile: Founded by Information System Impact, Greece a smart application module that can be used by web sites as an alternative for payment purposes and information exchange just with the use of a mobile phone. It provides a very easy and simple way to bill the users of a web site so that they access protected content on an “on-demand” basis, especially in cases where a credit card would not be used. Using a simple SMS messages, user can request “access code” to unlock the site Jerry Gao Ph.D. 10/2002

Major Player – Architecture: Jerry Gao Ph.D. 10/2002

Major Player – Major Products and Service Features: has been successfully deployed at the site of XRYSI EYKAIRIA. It is the most popular and largest selling classifieds newspaper in Greece. Customer can browse all Ad To contact the person publish the Ad, Customer need to obtain Access Code using mobile phone Once approved, Access Code is send via SMS message Jerry Gao Ph.D. 10/2002

Major Player – M-Pay M-Pay’s Profile: Implemented by Ultra in Slovenia It is based on Ultra's patented mobile payment terminal. Customer can purchase products on vending machines or in retail stores with their mobile phones. The system is designed to leverage the infrastructure and expertise of two kinds of entities: mobile operators (such as GSM network operators) and financial institutions (banks, credit card issuers) Major Features: Based on the idea that customer’ s phone should be used as means of communication between the machine and the payment processing center The design drastically decreases the cost of installation It utilizes the concept of voice transmission Jerry Gao Ph.D. 10/2002

Major Player – M-Pay M-Pay’s Architecture: Jerry Gao Ph.D. 10/2002

Major Player – M-Pay M-Pay Applications: Vending Terminals, such as Vending machines, cigarette machines, parking meters, ticket machines, newspaper machines, photo booths, public internet terminals, fruit machines, video, gaming and other amusement machines. Advantage:  Not only eliminate the need for coins or banknote acceptors, but also enable complete inventory management, thus significantly lowering the costs of operation. Jerry Gao Ph.D. 10/2002

Major Player – M-Pay M-Pay Vending Terminal: Jerry Gao Ph.D. 10/2002

Major Player – M-Pay How Does M-Pay Vending Terminal Work? Jerry Gao Ph.D. 10/2002

Major Player – M-Pay M-Pay Applications: (M-Pay Mobile POS) M-Pay POS terminals, such as, taxis, buses, trains, door-to-door sales, home deliveries, temporary retail outlet without connectivity and power supply It is designed to use retail outlets and mobile points of sale. Major Features: Easy to use Hand-held compact design No maintenance required End-to-end encryption Portable battery-operated No installation required No need to access to data network Jerry Gao Ph.D. 10/2002

Security Solutions for M-Payment Systems
Topic: Mobile Payment Systems Security Solutions for M-Payment Systems MSE, PIN, SMS, PIN MSE, PIN, SMS, WAP-WTLS Oasis IST/mPay MSE, PIN, Password, Caller-ID IcePay MSE, PIN M-Pay Cellerate MSE, PIN, Callback paybox MobileSystemsEncryption, PIN, Password, SMS Phonepaid Security Methods Payment Systems Jerry Gao Ph.D. 10/2002 Jerry Gao Ph.D. 10/2002

Mobile Payment Systems

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