The basics of mobile payments

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AnDevCon Boston 2013

AnDevCon Boston 2013

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  • Barcodes are used for two purposes: generating communication for payment and loading prepaid gift cards into wallet.
  • Build and maintain a secure networkMaintain vulnerability management programImplement strong access control measuresProtect cardholder dataRegularly test and monitor networksMaintain an InfoSec policy
  • The way consumers are shopping is changing. The adoption of smart phones are allowing consumers to control how, when, and where they shop. Consumers have more leverage.


  • 1. The Basics of MobilePaymentsPragati Ogal RaiMobile Technology Evangelist, PayPal@PayPalDev @pragatiogal
  • 2. Agenda• Journey of Payments• Current Landscape• Mobile Payments Use Cases• Emerging Trends in Mobile Payments
  • 3. Journey of Payments
  • 4. Food & GrainsAncient Indian and Roman Coins500 Cash 1269-1365Emperor Kublai KhanFirst Diners Club credit cards were given out in 1950
  • 5. Founded in 1998, PayPal allows payments andmoney transfers through the Internet
  • 6. Logos!PayPal processed $14 billion in mobile payment volume in 2012 –more than 3 times the mobile payment volume of $4 billion itprocessed in 2011.In 2012, eBay generated $13 billion through mobile devices, anoverall increase of 120% from 2011. eBay expects to transact $20billion in 2013.
  • 7.
  • 8. On Black Friday and Cyber Monday mobile commerce volume via eBay mobile in theU.S. more than doubled compared to 2011.
  • 9. CurrentLandscape
  • 10. InfrastructureClients MerchantsMobile Payments EcosystemSecurity
  • 11. What are Mobile Payments?• Consumer uses a mobile device• Merchant uses a mobile device• Both consumer & merchant use a mobile deviceHow do you define mobile payments?
  • 12. Remote Mobile Payments• Send and request money• SMS based payments• Mobile banking• Application/ Browser based payments• Carrier
  • 13. Proximity Mobile Payments• Barcode Scanning• Point of Sale• NFC• Bluetooth• RFID•
  • 14. Your Definition of Mobile PaymentsWhat does a Merchant want?• Quick, easy, hassle free• Security compliance• Fraud prevention systems• Current and up to date system• Reliable• PricingWhat does a Consumer want?• Fast• Secure• Easy• Choice of payment providers
  • 15. Use Cases
  • 16. • Fundraising for schools, non-profits• Check out for lower fees• Accept payments anywhere• Not restricted to one payment type• Easy to implementsDonations
  • 17. Content & Digital goods• Games, media, content• In-context, less clicks payments• Low fees for both small and largetransactions• One-time micropayments, pay-as-you-go, and subscription models• International markets
  • 18. Payment Gateway• Process major credit cards• Hosted or customizable• Any merchant account, processor orcart• Sandbox environment, dev tools• Bill Me Later option• Small and large transactions• Advanced fraud protection• 24x7 customer support• Scalable• International markets
  • 19. Shopping Cart• Multiple selections• View shipping, taxes, other costs• Quick setup• Integrated payments• Integrated social media• Advanced fraud protection• 24x7 customer support• Scalable• International
  • 20. Online Invoicing• Create and email invoices• Click a payment• Professional looking templates• Customizable• Send invoices from phone• Manage invoices• Quick transfers
  • 21. Mobile Point of Sale• Accept cards, checks, invoices,cash• Clear pricing• Quick access to funds• Customer support• Connect multiple readers• Global solution
  • 22. Mobile Point of SalePayPal’s chip and pin solution
  • 23. Commerce Identity• Single sign-on• Enter and update billing andshipping information once• Security and privacy• Reporting and analytics
  • 24. Development PhasesCreate SandboxaccountGet APIcredentialsDesign, build &test applicationSubmit forapproval*GO LIVE
  • 25. Biggest Challenge?Security
  • 26. Security IssuesDevice security Privacy Fraud & Risk Authentication Authorization Evolving Standards
  • 27. security Privacy Fraud & Risk Authentication Authorization Evolving Standards
  • 28. PCI Standard Council• Independent organization• Develop common set of payment standards• PCI-DSS v2.0• PCA-DSS• PCI-PTN• PCI-P2PE
  • 29. EmergingTrends….
  • 30. Mobile Payments are Here to Stay"We expect global mobile transaction volume and value toaverage 42 percent annual growth between 2011 and 2016, andwe are forecasting a market worth $617 billion with 448 millionusers by 2016,"Sandy Shen, research director at Gartner, May 2012
  • 31. M-payments is a Global PhenomenonIn Q4 2012, 60% of eBay’s mobile purchases came from outside the U.Swww.centives.netPayPal’s international business accounted for more than half of total revenue in 2012
  • 32. M-payments is a Global Phenomenonhttp://pritamkabe.wordpress.comM-pesa Chipknip GeldKarte Royal Canadian Mint
  • 33. Mobile brings New Use CasesPromotions&couponsLocation-based servicesIn-storeresearchSelf-scanning &self-checkoutGlobal Social CommerceLoyaltyOnline CommerceMobile WalletShopping Lists
  • 34. Changing Form of Payments• Money becomes more abstract• Digital goods• Anonymous payments: BitcoinLess cash society Cashless society
  • 35. Increased Collaboration among Mobile PaymentStakeholders
  • 36. Improvements in Payment Security• Consumer awareness• Improved device security• Newer authentication techniques• Evolving security standards like PCI Security Standards
  • 37. Summary• Mobile payments are here to stay• Define what mobile means to your business• Think beyond the hype• Security, trust, and safety is of paramount importance
  • 38. @pragatiogal you!