LU Chenglong (1010161750) DIAO Wenrui (1010089510) A Journey through Mobile Payment from the Technology and Business Perspectives LU Chenglong (1010161750) DIAO Wenrui (1010089510) ELCT 5820 Distributed and Mobile Systems

Outline Part I: Introduction Part II: General framework Part III: System platforms Part IV: Security issues Part V: Business models

Introduction The payment for goods and services using a mobile device Alternative payment method to cash and credit cards Services Digital contents Physical goods Transport fare Bills Music Videos Books Tickets Current situation Widely deployed in many regions of Asia and Europe Around 100 million active users in the world

Participators of Mobile Payment Customer -mobile phone user Merchant -provides goods or services Payment Service Provider - responsible for the payment process Trusted Third Party -provides the service certificate

General framework A simple conceptual model with four major participators

Platforms Based on Different Channels Short Message Service (SMS)

Platforms Based on Different Channels Unstructured Supplementary Services Date (USSD)

Platforms Based on Different Channels GPRS/UMTS

Platforms Based on Applications Phone-based Application

Platforms Based on Applications SIM-based Application

Platforms Based on NFC Near Field Communication

Five Aspects of Security for M-Payment Confidentiality -Transmission data encryption Authentication -Possession, knowledge and property Integrity -Digital signatures Authorization -Digital certificates Non-repudiation -Digital signatures

Security Challenges Security of Mobile Devices Security of Network Technologies Security of Service -SMS -USSD -Voice-based Standardization

Business model: Operator-Centric Model Mobile network operator deploys mobile payment service independently Lack of connection with existing payment networks

Business model: Bank-Centric Model Bank responsible for deployment Payments processed through existing financial networks Clear value chain, easy to implement Transaction fees charged only by the banks

Business model: Peer-to-Peer Model Independent peer-to-peer service provider Revenue from transaction fees and licensing fees Not utilizing existing banking networks Insufficient customer base, lack of established brand and infrastructure

Business model: Collaboration Model Collaboration among different stakeholders Third party Trusted Service Manager Most feasible: each stakeholder focus on own core competency Dispute about the revenue sharing model

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