itec0722: mobile business and implementation: mobile payment and security suronapee phoomvuthisarn,...
TRANSCRIPT
![Page 1: ITEC0722: Mobile Business and Implementation: Mobile Payment and Security Suronapee Phoomvuthisarn, Ph.D. suronape@mut.ac.th](https://reader035.vdocument.in/reader035/viewer/2022062800/56649e0c5503460f94af4e44/html5/thumbnails/1.jpg)
ITEC0722: Mobile Business and Implementation: Mobile Payment
and SecuritySuronapee Phoomvuthisarn, Ph.D.
![Page 2: ITEC0722: Mobile Business and Implementation: Mobile Payment and Security Suronapee Phoomvuthisarn, Ph.D. suronape@mut.ac.th](https://reader035.vdocument.in/reader035/viewer/2022062800/56649e0c5503460f94af4e44/html5/thumbnails/2.jpg)
The Growth of Mobile Payment
http://www.paymentscardsandmobile.com/mobile-payment-transactions-record-27-growth-worldwide-past-four-months/
![Page 3: ITEC0722: Mobile Business and Implementation: Mobile Payment and Security Suronapee Phoomvuthisarn, Ph.D. suronape@mut.ac.th](https://reader035.vdocument.in/reader035/viewer/2022062800/56649e0c5503460f94af4e44/html5/thumbnails/3.jpg)
Outline
• Introduction to Mobile Payment– Definition of M-Payment– Evolution of Payment– Drivers– Key Stakeholders
• Types of M-Payment– Monetary Value– Location– Usage
• Security Challenges
![Page 4: ITEC0722: Mobile Business and Implementation: Mobile Payment and Security Suronapee Phoomvuthisarn, Ph.D. suronape@mut.ac.th](https://reader035.vdocument.in/reader035/viewer/2022062800/56649e0c5503460f94af4e44/html5/thumbnails/4.jpg)
Introduction to Mobile Payment
• Definition– “Use of wireless devices (such as mobile phone) to
make a purchase or other payment related transaction.”
• Mobile Payment (M-Payment) are an important enabling service for other m-commerce services (e.g. mobile ticketing, shopping, gambling…) :
![Page 5: ITEC0722: Mobile Business and Implementation: Mobile Payment and Security Suronapee Phoomvuthisarn, Ph.D. suronape@mut.ac.th](https://reader035.vdocument.in/reader035/viewer/2022062800/56649e0c5503460f94af4e44/html5/thumbnails/5.jpg)
Evolution of Payment
Secure mobile payments getting the balance right, Royal Holloway University of London,Richard Martin, Payment System Security Visa Europe 7 September 2013
1in every
650%
of Visa transactions
Consumer spend on Visa cards
25%Visa spend
Ecommerce +200% vs face-to-face
Mobileby 2020
Visa cards in Europecontactless
€1in every
€6.75
![Page 6: ITEC0722: Mobile Business and Implementation: Mobile Payment and Security Suronapee Phoomvuthisarn, Ph.D. suronape@mut.ac.th](https://reader035.vdocument.in/reader035/viewer/2022062800/56649e0c5503460f94af4e44/html5/thumbnails/6.jpg)
Example M-Mobile methods
• Voice and now also 3G Video calls (IVR)• SMS• MMS• Mobile TV• Mobile Internet• Near Field Communications• Peer-to-Peer
![Page 7: ITEC0722: Mobile Business and Implementation: Mobile Payment and Security Suronapee Phoomvuthisarn, Ph.D. suronape@mut.ac.th](https://reader035.vdocument.in/reader035/viewer/2022062800/56649e0c5503460f94af4e44/html5/thumbnails/7.jpg)
Drivers
• Population of mobiles devices over PC• Mobile devices allowing low cost
and easy access payments (ideal POS)• Mobile apps adding functionality• Mobile operators are looking for new revenue
streams
![Page 8: ITEC0722: Mobile Business and Implementation: Mobile Payment and Security Suronapee Phoomvuthisarn, Ph.D. suronape@mut.ac.th](https://reader035.vdocument.in/reader035/viewer/2022062800/56649e0c5503460f94af4e44/html5/thumbnails/8.jpg)
Key Stakeholders• Providers of mobile payment services
– Financial Institution (e.g. Bank)• Internet Bank & ePayment Services
– Mobile Network Operator• Network Infrastucture• Subscribers
• Demand Sides– User/Consumer
• User of the value added services
– Content Provider/Merchant• Getting Paid
• Low Cost
![Page 9: ITEC0722: Mobile Business and Implementation: Mobile Payment and Security Suronapee Phoomvuthisarn, Ph.D. suronape@mut.ac.th](https://reader035.vdocument.in/reader035/viewer/2022062800/56649e0c5503460f94af4e44/html5/thumbnails/9.jpg)
Types of M-Payments
• Monetary Value– Micro payments – less than 5$– Medium Payments – Between 5$ - 25$– Macro payments - above 25$
• Location– Remote Transaction – SMS, GPRS, Applications, QR Code – Proximity Transaction – Bluetooth, RFID, NFC
• Usage– Mobile-to-mobile payments– Mobile devices as credit card processors– Mobile devices used as credit cards
![Page 10: ITEC0722: Mobile Business and Implementation: Mobile Payment and Security Suronapee Phoomvuthisarn, Ph.D. suronape@mut.ac.th](https://reader035.vdocument.in/reader035/viewer/2022062800/56649e0c5503460f94af4e44/html5/thumbnails/10.jpg)
Remote Transaction
• Web form– Send money from a Visa card to any Visa card,
anywhere in the world, using mobile phone number
• Transactional payments by SMS – the consumer sends a payment request via an SMS
text message or a short code and a premium charge is applied to their phone bill or their online wallet.
– The merchant involved is informed of the payment success and can then release the paid for goods
![Page 11: ITEC0722: Mobile Business and Implementation: Mobile Payment and Security Suronapee Phoomvuthisarn, Ph.D. suronape@mut.ac.th](https://reader035.vdocument.in/reader035/viewer/2022062800/56649e0c5503460f94af4e44/html5/thumbnails/11.jpg)
Online Wallet
• The consumer’s electronic wallet—the trusted source of credentials– Files or devices containing payment information,
possibly representations of money– Used for seamless payments, without significant
user intervention
![Page 12: ITEC0722: Mobile Business and Implementation: Mobile Payment and Security Suronapee Phoomvuthisarn, Ph.D. suronape@mut.ac.th](https://reader035.vdocument.in/reader035/viewer/2022062800/56649e0c5503460f94af4e44/html5/thumbnails/12.jpg)
Online Wallet (2)• First payment:
– User registers, inputs their phone number, and the provider sends them an SMS with a PIN
– User enters the received PIN, authenticating the number– User inputs their credit card info or another payment
method if necessary (not necessary if the account has already been added) and validates payment
• Subsequent payments:– The user re enters their PIN to authenticate and
validates payment
![Page 13: ITEC0722: Mobile Business and Implementation: Mobile Payment and Security Suronapee Phoomvuthisarn, Ph.D. suronape@mut.ac.th](https://reader035.vdocument.in/reader035/viewer/2022062800/56649e0c5503460f94af4e44/html5/thumbnails/13.jpg)
Proximity Payment
• Definition:– The trading persons are in the same vicinity.
• Example– Contactless payment– Mobile phone used as PoS device– Mobile money transfer
• Benefits & Challenges– Offline transaction support– Compatibility issues such as interfaces for Infra red– Have some risks, ok for micro payments
![Page 14: ITEC0722: Mobile Business and Implementation: Mobile Payment and Security Suronapee Phoomvuthisarn, Ph.D. suronape@mut.ac.th](https://reader035.vdocument.in/reader035/viewer/2022062800/56649e0c5503460f94af4e44/html5/thumbnails/14.jpg)
Contactless Payment
• Contactless– Use a mobile device to shop conveniently, quickly
and securely in a face-to-face environment
![Page 15: ITEC0722: Mobile Business and Implementation: Mobile Payment and Security Suronapee Phoomvuthisarn, Ph.D. suronape@mut.ac.th](https://reader035.vdocument.in/reader035/viewer/2022062800/56649e0c5503460f94af4e44/html5/thumbnails/15.jpg)
Mobile-to-Mobile Payments
• Merchant applications allowing instantaneous transfer of funds from one account to another via smartphone
• Examples:– Paypal Bump
• Bump phones together to receive account info• Or enter email address to download appropriate account info• 1.9% - 2.9% + $0.30 transaction fee
Mobile Payments powerpoint::Kristen Meyer, PharmD Candidate, University of Charleston School of Pharmacy, PCCA CPMS Intern, January 3, 2011 – February 3, 2011
![Page 16: ITEC0722: Mobile Business and Implementation: Mobile Payment and Security Suronapee Phoomvuthisarn, Ph.D. suronape@mut.ac.th](https://reader035.vdocument.in/reader035/viewer/2022062800/56649e0c5503460f94af4e44/html5/thumbnails/16.jpg)
Mobile Devices as Credit Card Processors
• Square, Inc.– Device acts a mini credit card reader inputting
pertinent transaction information into the phone through Square App
– Cost: 2.75% + $0.15/card swiped; 3.5% +$0.15/card keyed in
• Intuit– Mobile credit card reader– Cost
• Low Volume: $0/month, 2.7% + $0.15/swipe, 3.7% + $0.15/keyed in
• High Volume: $12.95/month, 1.7% + $0.30/swipe, 2.7% + $0.30/keyed in
allaexpression.com
http://www.multicellphone.com/category/mobile-payment/page/2/
Mobile Payments powerpoint::Kristen Meyer, PharmD Candidate, University of Charleston School of Pharmacy, PCCA CPMS Intern, January 3, 2011 – February 3, 2011
![Page 17: ITEC0722: Mobile Business and Implementation: Mobile Payment and Security Suronapee Phoomvuthisarn, Ph.D. suronape@mut.ac.th](https://reader035.vdocument.in/reader035/viewer/2022062800/56649e0c5503460f94af4e44/html5/thumbnails/17.jpg)
Mobile Devices as Credit Cards• Near Field Communication (NFC) Technology
– Allows consumers to wave their mobile phone over a point of sale terminal to purchase retail items
– Thought to threaten the existence of the wallet• Companies set to launch pilot programs:
– PayPass/PayWave– Google Wallet– ISIS (partnership between AT&T, Verizon Wireless, T-Mobile, Discover Financial Services and Barclays)
• Costs:
– Approximately $200/reader – you can use Google as your new payment processor, with
transaction fees starting at 1.9 percent
news.softpedia.com
Mobile Payments powerpoint::Kristen Meyer, PharmD Candidate, University of Charleston School of Pharmacy, PCCA CPMS Intern, January 3, 2011 – February 3, 2011
![Page 18: ITEC0722: Mobile Business and Implementation: Mobile Payment and Security Suronapee Phoomvuthisarn, Ph.D. suronape@mut.ac.th](https://reader035.vdocument.in/reader035/viewer/2022062800/56649e0c5503460f94af4e44/html5/thumbnails/18.jpg)
NFC Payments: Fast and Simple – Touch to Pay
Mobile Payments powerpoint::Kristen Meyer, PharmD Candidate, University of Charleston School of Pharmacy, PCCA CPMS Intern, January 3, 2011 – February 3, 2011
![Page 19: ITEC0722: Mobile Business and Implementation: Mobile Payment and Security Suronapee Phoomvuthisarn, Ph.D. suronape@mut.ac.th](https://reader035.vdocument.in/reader035/viewer/2022062800/56649e0c5503460f94af4e44/html5/thumbnails/19.jpg)
Security Challenges
• Sharing sensitive financial information via mobile devices.
• Application installation cannot be controlled.– new attack for malware to steal customer data
• Compared to PC, smartphones were not originally designed for data security.
![Page 20: ITEC0722: Mobile Business and Implementation: Mobile Payment and Security Suronapee Phoomvuthisarn, Ph.D. suronape@mut.ac.th](https://reader035.vdocument.in/reader035/viewer/2022062800/56649e0c5503460f94af4e44/html5/thumbnails/20.jpg)
Reference• http://www.paymentscardsandmobile.com/mobile-payment-transactions-record-27-
growth-worldwide-past-four-months/• http://en.wikipedia.org/wiki/Mobile_payment • http://www.businessnewsdaily.com/4457-mobile-payment-solutions.html • Mobile Payments powerpoint::Kristen Meyer, PharmD Candidate, University of Charleston
School of Pharmacy, PCCA CPMS Intern, January 3, 2011 – February 3, 2011
• Status of Mobile Payments, Eelco de Jong, 19 September 2007