By Anirban Kar +91 9642950999 www.anirbankar.com Mobile-Wallet By Anirban Kar +91 9642950999 www.anirbankar.com

Contents What is Mobile-Wallet? Advantages and Disadvantages Stakeholder’s AXIS Operating Schema Roll Out Strategy Security Risk and Risk Mitigation Strategy Success Factors Conclusion Value Addition by Anirban Kar

What is Mobile-Wallet? A concept of using hand held devices for electronic transactions for payment reception and delivery A new device or a mobile can be used for transactions Even if stolen, the electronic money is secured, as there is a tough 3 level security mechanism Uses E-Money or Electronic-Money for transactions

Advantages Removes felling of trees Faster Transactions Secured Transactions Greater Efficiency Saves Time Cash is not used Free all over a geography, that can be decided by the extent of the bank Greater circulation avoids inflation A newer responsibility for telecom operators and banks

Disadvantages Requires a stronger secured mechanism No rotating credit facility Rendering plastic money obsolete in the longer run Rendering a cash less transaction

Secondary Stakeholders Stakeholder’s AXIS Governing Bodies Business Entities Secondary Stakeholders Prime Stakeholder User of the Device Second Party Telecom Operators Banks First Party Third Party Payment Gateway RBI TRAI

Operating Schema- Interdependency Master or the Owner Slave or the Device

Operating Schema – 3 levels of security Slave Biometric Software Finance Gateway Embedded Security Management Systems Master Network

Operating Schema – Towards Utilities Retail Store Master Schema Visa/ Mastercard Bank 1 Telecom Operator Finance Gateway Secured Path Visa/ MasterCard Secured Path Utility Store Visa/ Mastercard Bank 2

Operating Schema – From User to User Master/Owner User-2-User Visa/ Mastercard Bank 1 Telecom Operator Finance Gateway Secured Path Visa/ MasterCard Secured Path Master/ Owner

Operating Schema – From User to Bank User-2-bank-2-User Bank 1 Telecom Operator Finance Gateway Secured Path Visa/ MasterCard Secured Path Master/ Owner

Roll Out Strategy A requirement of 4-6 months to develop the products An initial trial period of 3 months after the complete development of the product as a mock test Test running of the cases of all types Phasing out in 4-6 geographical places with high teledensity Allowing professional hackers to be a part of the place by allowing tests to hack the secured mechanism as a competition Concept of the product to be launched before the actual product An incubation period of 3-6 months for aggressive product marketing

Roll Out Schema SMS or MMS after prior selection Key-Words towards SMS for gateways Unique number towards a Short Code PIN at different levels Running Password for a level/(s)

Risks Hacking at several node points Non-Acceptance of the product Susceptible to no change High Cost of Device as a conception Not all will be given the Product High-End Product Application TRAI Rules RBI Guidelines on the cap of transactions Initial Cost for Development

Risk Mitigation Can use professional hackers Needs aggressive marketing Need to understand the product

Success Factors Words of the masses A Pilot Project can be used New methods and methodologies to be devised in the pilot project Requires time and patience

Conclusions The vision of the future The Process of cash less transactions Speeds up the process of instant payments Greater Efficiency Secured Connection Advanced Features

Value Addition By Anirban Kar I can work towards building a successful prototype of M-Wallet and help in designing the interfaces.