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

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

3. 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

4. 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

5. General framework
A simple conceptual model with four major participators

6. Platforms Based on Different Channels
Short Message Service (SMS)

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

8. Platforms Based on Different Channels
GPRS/UMTS

9. Platforms Based on Applications
Phone-based Application

10. Platforms Based on Applications
SIM-based Application

11. Platforms Based on NFC
Near Field Communication

12. 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

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

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

15. 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

16. 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

17. 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

18. Thank you for your participation
THE END
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