Mobile Payment Solutions

There are various types of mobile payment systems, including:

Banks / Credit Card Companies / Dedicated Payment Processors

• Mobile Credit Card Payments
• Migrating Internet Payment Systems

Mobile Network Operators

• Utilization of existing Billing Mechanisms (Prepaid and contract based)

Multi-Payment Method Frameworks

• Mobile Network Operators
• Dedicated Payment Processors
• Shopping Malls, Large Shops

Other Mobile Payment Systems

• Mobile Home Banking, Internet Payments, Mobile Retailer Support

The type of system implemented depends largely upon the type of service to be supported. This may include:

• Prepaid Accounts
• Mobile Credit Card Payments
• Migrating Internet Payment Systems
• Multiple Payment Method Platforms
• Internet Payments With Mobile Phones
• Mobile Home Banking
• Mobile Retailer Support
• Other Mobile Payment Systems

An example of a simple mobile payment is using vending machines:

1. Customer connects to payment center by dialing number displayed on
   vending machine
2. Payment system calls vending machine and informs it that customer can purchase the item
3. When the item is selected, a response is sent to payment center
4. Customer‘s phone bill charged (fixed rate call = cost of item)

Mobile SET – Secure Electronic Transactions

Mobile SET is a Mobile Payment Standard set by Visa & MasterCard. It is used for for secure usage of credit cards on the Internet

The standard defines key protocols between Customer, Merchant and Payment Gateway, including:

• Cardholder registration
• Merchant registration
• Purchase Request
• Payment Authorization
• Payment Capture

Mobile SET uses public-key cryptography, and is being supported by Credit card companies interested in alternatives to smart cards & advanced security support in products such as:

• Server Wallets with Customer Id and PIN authorization
• Merchant initiated SET in the background, proprietary forms in the front-end

Both these services void the main security feature of SET, i.e. customer non-repudiation.

Issues

Certain issues are still outstanding relating to mobile payments. These include:

1. Suitable Security Support in the Mobile Environment

• Not just UserId / PIN / TAN
• Strong Public Key Cryptography Based Security Mechanisms
• Smart Card Support

2. Mechanisms Required

• Ensure: Confidentiality, Integrity, Authentication, Non-Repudiation.
• End-2-End security between customer and merchant - – Equivalent to SSL, WTLS mostly isn‘t good enough
• Mobile Digital Envelopes & Signatures
• Authentication and WPKI-Support

Mobile Security and Payment Standardization Bodies

• WAP Forum
• 3GPP SIM Toolkit standardization
• GMCIF - MasterCard Global Mobile Commerce Interoperability Forum
• MSign - Brokat Mobile Digital Signature Merchant API

Back To Top