conceived and created by raja nagendra kumar, mpayee@hotmail.com personalized payment model for...

Conceived and created by Raja Nagendra Kumar, mPayee@hotmail.com

Personalized Payment ModelPersonalized Payment Modelfor mPayeefor mPayee

31st October 2000

Conceived and created by Raja Nagendra Kumar, mPayee@hotmail.com

Self IntroductionSelf Introduction

• Technical Manager in Satyam Infoway,Bangalore, India

• 8 year in the IT industry • C, C++ and Java• 5 years of Internet and

Java• Result of constant watch

and analysis of evolution of commerce models over a period of time

nagkumar@hotmail.com

Conceived and created by Raja Nagendra Kumar, mPayee@hotmail.com

• Commerce Evolution

• Existing Net Commerce Models

• Proposed NagAsthra model for mPayee

• Advantages

• - Customer

• - Bank

• - Cellular Service Provider

• Risks and Recovery

• Road Map

• Conclusion

Conceived and created by Raja Nagendra Kumar, mPayee@hotmail.com

Commerce Evolution - CashCommerce Evolution - Cash

Store Customer

Manufacturer

Cash

• Flexible to have a Proxy Buyer

Conceived and created by Raja Nagendra Kumar, mPayee@hotmail.com

Commerce Evolution - Plastic CardCommerce Evolution - Plastic Card

Bank

Authorization

Goods

Store Customer

Manufacturer

Cash/Credit Card

Conceived and created by Raja Nagendra Kumar, mPayee@hotmail.com

Commerce Evolution - InternetCommerce Evolution - Internet

BankPhysical / Virtual

Internet

Credit cardAuthorization

Goods

Customer

Manufacturer/Store

Conceived and created by Raja Nagendra Kumar, mPayee@hotmail.com

Net Shopping - Popular Model TodayNet Shopping - Popular Model Today

Tools to Shop– Personal Computer

– Reliable Internet Connection

– Web Literacy

Steps to Shop– Surf the web for the best product and price

– Go to the desired e-Shop site

– Add the items to the Shopping Cart

– Provide the Shipping Details

– Provide the Payment Information

– Order placement is fulfilled

Conceived and created by Raja Nagendra Kumar, mPayee@hotmail.com

Net Shopping - Cellular ModelNet Shopping - Cellular Model

Tools to Shop– Subscribe for the Data Services (CSP)

– Cell and Web Literacy

Steps to Shop– Surf the web for the best product and price

– Go to the desired e-Shop site

– Add the items to the Shopping Cart

– Provide the Shipping Details

– Provide the Payment Information

– Order placement is fulfilled

Conceived and created by Raja Nagendra Kumar, mPayee@hotmail.com

Net Shopping - ComparisonNet Shopping - Comparison

How about blending best of both?

On a PC

• Bigger screen size

• Lower data flow cost

• More interactive

• Physical presence

On a Handheld Device

• Greater accessibility

• Ideal for personalization

• Physical presence

Conceived and created by Raja Nagendra Kumar, mPayee@hotmail.com

Statistical InfoStatistical Info

• 63% of web surfers will not purchase over the internet until they are assured more human interaction (Personal Touch)

• 2/3 of all online shopping carts are abandoned before checkout (Time)

• 85% of online households have only 1 phone line so they can’t call and be on your site at the same time (Infrastructure)

• Most selling items on the net are Books, Software, Music, Stationary items

Conceived and created by Raja Nagendra Kumar, mPayee@hotmail.com

NagAsthra Model - OverviewNagAsthra Model - Overview

• Promotes local trade through Order Helpdesk• Uses WAP phone only, - no PC or Internet

connection• Onetime sharing of Credit Card details, only

with the issuing bank• Complementary to the existing Credit Card

payment

Conceived and created by Raja Nagendra Kumar, mPayee@hotmail.com

NagAsthra Model - Overview (cont.)NagAsthra Model - Overview (cont.)

• Addresses Business transaction security not technology based security (eg. servant as proxy buyer)

• SET (Secure Electronic Transaction)

• Transportation layer security has to be assured by SSL & WTSL

Conceived and created by Raja Nagendra Kumar, mPayee@hotmail.com

Commerce Evolution (proposed) - mPayeeCommerce Evolution (proposed) - mPayee

Virtual Card Number

Bank’s Payment Processor CSP Provider mPayee(True Buyer)

Order Help Desk(Proxy Buyer)

Internet

Authorization

GoodsManufacturer/

Store

Conceived and created by Raja Nagendra Kumar, mPayee@hotmail.com

NagAsthra ModelNagAsthra Model

Order Help DeskOrder Help Deske-shope-shop

Bank’s Payment Pre-Processor+GatewayBank’s Payment Pre-Processor+GatewaymPayeemPayee

5

2

3

4

6a6b

1

Conceived and created by Raja Nagendra Kumar, mPayee@hotmail.com

Peek into Payment SystemPeek into Payment System

Payment Pre-Processor

Payment Gateway

Payment System

Conceived and created by Raja Nagendra Kumar, mPayee@hotmail.com

• One would apply for Credit card and get the same issued from the bank along with web activation key (WAK)

• Credit Card Activation– Logon to the Payment Pre-Processor using

the activation key– Virtual Card Number = Permanent Part +

Customizable Part– Permanent Part is assigned by the Bank

Credit Card ActivationCredit Card Activation

Conceived and created by Raja Nagendra Kumar, mPayee@hotmail.com

– Provide the customizable part *– Provide the d-PIN (device PIN) *– Store the True Credit Card Information– Enter the WAP phone number to which he

prefers to receive payment alerts

* can be changed at any point in time

Credit Card Activation (cont.)Credit Card Activation (cont.)

Conceived and created by Raja Nagendra Kumar, mPayee@hotmail.com

Advantages - Net CustomerAdvantages - Net Customer

• Novice can shop (Digital Civilization)• Commerce without surfing as opposed to

single click buy• No need to have a dependent card for the

family• No fear that the e-Shop would charge the user

every month

Conceived and created by Raja Nagendra Kumar, mPayee@hotmail.com

Advantages - Net Customer (cont.)Advantages - Net Customer (cont.)

• Order anything from anywhere taking anyone’s help (just a phone call away) and still have full control on your e-payments.

• Valid period for payments can be enforced• Credit Card can be used as a guarantee e.g

age proof (yahoo.com)

Conceived and created by Raja Nagendra Kumar, mPayee@hotmail.com

Advantages - BankAdvantages - Bank

• Probable increase in customer retention• Drastic reduction in fraud cases due the

existence of d-PIN• As the customers feel more secure more

purchase will be made• More money flow due to increased net

purchases

Conceived and created by Raja Nagendra Kumar, mPayee@hotmail.com

• Increased volume of customers and phone calls due to simplified buying process and assured transaction security

• More money due to more usage of data service

• The CSP can offer considerable discount to the mPayee depending on the volume of payments made

Advantages - Cellular Service ProviderAdvantages - Cellular Service Provider

Conceived and created by Raja Nagendra Kumar, mPayee@hotmail.com

• Changed/Lost/Misplaced cell phone.– Due to non disclosure of d-PIN,

authorizations are prevented

• If Virtual Card Number is widely distributed one may receive many alerts– Modify the custom extension part of Virtual

Card at the Pre-Processor. This would invalidate the Previous Virtual Card

Risks and RecoveryRisks and Recovery

Conceived and created by Raja Nagendra Kumar, mPayee@hotmail.com

• If the user himself is surfing he/she may not be interested in receiving the alerts– User can register for more than one Virtual

Card by providing different Card Extension– He/she can also assign the Risk factors

associated with each Virtual Card Number– Depending the Risk he/she can opt whether

to have alerts or not

Risks and Recovery (cont.)Risks and Recovery (cont.)

Conceived and created by Raja Nagendra Kumar, mPayee@hotmail.com

Road MapRoad Map

• Corporate purchase model (hierarchical payments) can be brought on-line

• Thumb impression can be used instead of d-PIN

• Voice/Video enabled assistance for Payments• Swiping of the Credit Card, if the device has

integrated Card Reader

Conceived and created by Raja Nagendra Kumar, mPayee@hotmail.com

ConclusionConclusion

• Brings in positive change in the mindset of people

• Masses can enjoy the advantages of buying over the net

• Let your Credit Card enjoy the Internet Freedom– and help you to do commerce with out surfing

Conceived and created by Raja Nagendra Kumar, mPayee@hotmail.com

Conclusion (cont.)Conclusion (cont.)

• Removes the practical boundaries that deter the growth of commerce on the net– Lack of awareness and education

(Computer literacy)– Social and Psychological factors (Fear of

paying using Credit Card on the net)

Conceived and created by Raja Nagendra Kumar, mPayee@hotmail.com

Thank youThank you

“Let your Credit Card enjoy Internet Freedom

with NagAsthra”

Conceived and created by Raja Nagendra Kumar, mPayee@hotmail.com

Payment Pre-Processor

Payment Gateway

Payment System

Data

user

Data

transaction

Data

bank

Database DetailsDatabase Details

Conceived and created by Raja Nagendra Kumar, mPayee@hotmail.com

Role of Permanent PartPermanent Part of Public KeyRole of Permanent PartPermanent Part of Public Key

• This is the primary key for – Bank’s Database– User Customizable Database– Transaction Database

Conceived and created by Raja Nagendra Kumar, mPayee@hotmail.com

Role of Customizable PartCustomizable Part of Public KeyRole of Customizable PartCustomizable Part of Public Key

• User can own more than one public key with different customizable part

Conceived and created by Raja Nagendra Kumar, mPayee@hotmail.com

Role of Payment Pre-ProcessorPre-ProcessorRole of Payment Pre-ProcessorPre-Processor

• Provide HTML and WAP interface to add/update user database

• e-Shop– When the request for payment approval is

received, pre-processor would get the user data using the permanent part of public key

– compare if the customizable part of public key matches the one in database

– it will reject the shoppers request if customizable part does not match

– on matching, it sends an alert to mPayee Phone

Conceived and created by Raja Nagendra Kumar, mPayee@hotmail.com

Role of Payment Pre-ProcessorPre-Processor (cont.)Role of Payment Pre-ProcessorPre-Processor (cont.)

• mPayee– on payee entering private payment key, pre-

processor validates the public and private keys– it would throw the order details if private key was

correct– when the user accepts the payment for the order

• it asks the Payment Gateway to validate the Credit Card

• the response from the Gateway is returned to e-Shop

– if the user declines the order, payment failure is notified to e-shop

Conceived and created by Raja Nagendra Kumar, mPayee@hotmail.com

FlexibilityFlexibility

• Customizable Public Payment Key• Sending of alert during payment

Conceived and created by Raja Nagendra Kumar, mPayee@hotmail.com

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