Mobile Payment

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Mobile Payment

• Hana Lee, Nhut (Jimmy) Huynh, Kalani Lagao

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Summary

• Payment has evolved from the physical exchange of
  notes and coin, to writing checks, through to
  transferring payment card details either in
  person, over the phone or the Internet.
• Payment has involved a shift from the physical
  transference of tangible tokens of value to an
  exchange of information between parties. .

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Relationship to the text

• Mobile payment is not mentioned in the text

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Definition

• Mobile payment
• Using wireless communication device to make
  payment in return for goods or services

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Payment Transaction
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Typical Payment Transaction
Source Mobile Payment Forum
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Payment Lifecycle
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Mobile Payment
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Types of Mobile Payments

• Micro-payment
• A transaction of 10 or less
• In the mobile environment it is often for mobile
  content
• Such as video downloads and gaming
• Security level is low and use of a network
  authentication is sufficient
• Macro-payment
• Refers to a larger value payment
• Such as online shopping or proximity-based
  payments
• Security is higher and its authentication
  transaction is through a trusted financial
  entity.

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Global Adoption Issue

• Security
• Increased security will minimizes fraud and
  therefore reduces cost of operating the payment
  system.
• A benefit from this is that it can increase
  consumer and merchant confidence and then will
  boost usage and trust in the payment network.

• Elements of Security
• Authentication
• Confidentiality
• Data integrity
• Non-repudiation

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(No Transcript)
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Whos in it?

• Korea
• SK Telecom and Visa
• Japan
• NTT DoCoMo and KDDI and Visa
• Finland
• Nokia and Nordea Bank
• U.S.
• Nokia and MasterCard

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• We see a lot of potential in the mobile phone
  environment. The mobile phone is rapidly becoming
  the most personal object someone carries.
• --Christopher Duverne vice president and
  general manager of Philips Semiconductors

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Multiple Choices

• 1) What are the four parties involved in typical
  payment transaction?
• a) The user, merchant, issuer and acquirer.
• b) The merchant, bank, user and acquirer.
• c) The acquirer, merchant, issuer and employee.
• d) Gap, user, issuer and acquirer.

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True or False

• 2)Christopher Duverne says that PDAs are
  becoming the most personal object someone
  carries.
• True False
• 3) Based on Global Adoption Issue, increase
  security will minimizes fraud therefore reduces
  cost of operating the payment system.
• True False

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Source

• Brad Smith,Credit Companies Size Up Mobile
  Phones, Wireless Week, February 1, 2004,
  http//www.wirelessweek.com/article/CA378485?space
  descDepartmentsstt001, September 15, 2004.
• Mobile Payment Forum White Paper, Mobile
  Payment Forum, December 2002, lthttp//www.mobilepa
  ymentforum.org/pdfs/mpf_whitepaper.pdf, September
  15, 2004.
• Moneta, SK Telecom, n.d., http//www.sktelecom.c
  om/eng/services/moneta/introduction/index.html,
  September 15, 2004.