• Like
  • Save
Overview of Mobile Payment Systems
Upcoming SlideShare
Loading in...5

Thanks for flagging this SlideShare!

Oops! An error has occurred.

Overview of Mobile Payment Systems


Overview of the Different Mobile Payment systems …

Overview of the Different Mobile Payment systems

- NFC based Platforms such as Google Wallet and ISIS
- Systems like Square, VeriFone, Card.io Naratte Zoosh and other exciting and disruptive startups in this space.

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
  • I always see your blog.I like it very much. I am looking forward to renewal of your blog. Please take a look my site,if it's possible. sms payment software | sms payment solutions
    Are you sure you want to
    Your message goes here
No Downloads


Total Views
On SlideShare
From Embeds
Number of Embeds



Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

    No notes for slide


  • 1. Overview of Mobile Payment Systems Amit Naik BMC Software
  • 2. Agenda
    • Why should we care?
    • Mobile Payment types
    • World of NFC
    • NFC Payment Platforms
    • Start-ups in Mobile Payments space
    • Wrap-up
    • Q&A
  • 3. Why should we care?
    • Lot of money in this space
    • Mobile Payments To Triple To $670 Billion By 2015 – Report by Juniper Research
    • 141 Million people spending $86.1 Billion Using Mobile Payments - Gartner 2011
    • Paypal alone seeing $ 3 Billion Using Mobile Payments in 2011 – Paypal blog
    • "And one more thing..."
  • 4.  
  • 5.  
  • 6. iPhone 5 rumored to have NFC! Are you willing to bet against Apple disrupting the mobile payments space? Just like: - Music (iPod) - Phones (iPhone) - Tablets (iPad)
  • 7. Is it safe?
    • PIN protected
    • Safer than Cash
    • Lost SmartPhone noticed in 15 mins, Lost Wallet 60 mins on avg.!
    • Info Encrypted while on Phone
  • 8. Mobile Payment Types
  • 9. Types of Mobile Payments
    • Interactive Voice Response (IVR) based
      • Applies to Landline and Mobiles
    • Premium SMS based
    • Direct Billing – Customer Identity based
    • Web Payments
    • Contactless (NFC)
      • Point-of-Sale
      • Peer-to-Peer
  • 10. Mobile Payment types – cont’d
    • Direct Billing and Contactless modes of mobile payment seeing faster adoption
    • Direct Carrier Billing examples: Zong (Paypal) , BilltoMobile, Boku, MoPay, Billing Revolution, etc.
    • NFC leads in contactless payments tech.
    • Juniper Research: 1 in 6 users worldwide will have an NFC-enabled phone by 2014
  • 11.
    • World of NFC
  • 12. Overview of NFC - Origins
    • Near Field Communications (NFC) is a form of Radio Frequency ID (RFID) communication
    • Invented by NXP Semiconductors (Philips) & Sony in 2002
    • “ Near Field” (less than 0.10 meters) typically not more than a few centimeters
    • Enhanced Security and lower power needs
  • 13. NFC Overview – 3 operation Modes
    • Card Emulation
      • Enables devices to act like contactless cards
      • NFC-enabled mobile phones used for payment
    • Reader/ Writer
      • Enables devices to interact with RF tags
      • E.g. NFC-enabled phones used to read “smart posters”
    • Peer-to-Peer
      • Enables devices to communicate with one another
      • E.g. NFC-enabled laptops and printers
  • 14. NFC Overview - Technology
  • 15. NFC ready smart phones
    • BlackBerry Bold Touch 9900/9930
    • Samsung Galaxy S II (select phones)
    • Nokia C7-00 (Symbian) aka T-Mobile Astound
    • HTC Incredible S with NFC chip (China)
    • Nokia has numerous non-smart phones with NFC for a while in the market
    • iPhone 5?
  • 16. NFC Software Stack
    • Open NFC is a open source software stack with Hardware Abstraction Layer
    • Multiple bindings available for different devices
      • Open NFC for Android™
      • WinCE/Mobile Edition
      • Linux Edition (for embedded Linux or Linux for PC)
      • PC Edition (for Windows XP/Vista/7)
      • Core Edition for small OS (Nucleus, REX...)
  • 17.  
  • 18.
    • NFC Payment Platforms
  • 19. Google Wallet
  • 20. How Does Google Wallet Work?
    • Android App – Stores your “plastic” details Credit card numbers, Name, Expiry, etc
    • Point-of-Sale (PoS) equipped with NFC Contactless Readers (PayPass)
    • App. transfers Credit Card authorization using NFC chip on Mobile device
    • Compatible with Nexus S/Nexus S 4G today
    • Citi MasterCard and Google Card used
  • 21. Google Wallet – Security layers
    • Credit card info stored in encrypted form
    • Secure Element - Separate Chip on phone
      • Its own memory isolated from phone memory
      • Restricted access by “trusted apps” only
    • PIN reqd. to activate phone’s NFC antenna – turned off after each info. exchange
    • Device must be in close proximity reader
  • 22. Wallet Security Layers – Cont’d
    • NFC transceiver is only enabled when the phones screen is illuminated
    • PIN is a must to authorize payment transfers – in form of Secure Credentials
    • Credentials transferred directly using Master Cards Paypass protocol
    • Wallet app prevents obvious weak PIN like 1234 , 1111 & Enforces lock out
  • 23. ISIS Payment Network
  • 24. ISIS Payment Network
    • NFC based Payment Network
    • AT&T, Verizon, & T-Mobile together formed ISIS network
    • Supports VISA, MasterCard, American Express, and Discover
    • ISIS enabled Phones not on the market and Architecture is not yet published
    • US trials starting 2012
  • 25. NFC Adoption Stats
    • Credit card companies worried about new entrants disrupting ecosystem
    • Chicken-and-Egg: People can’t use NFC no hardware – manufactures do not make NFC hardware as people do not use it
    • NFC to become widely deployed by 2014
    • Multiple Startups filling gap between Full NFC and Pure Old Credit Card (POCC)
  • 26.
    • Startups - Mobile Payments Area
  • 27. Square - P-2-P mobile payments
  • 28. SMB and P-2-P mobile payments
    • Square Dongles allows merchants to use Cell Phones/Tablets to swipe credit cards
    • Attachment fits into the audio jack of the iPhone/iPad/Android device
    • App. on the phone then transmits info to Square’s servers and Charges the card
    • VISA recently made a strategic investment
    • Start-up Valued at around $1 Billion!
  • 29. Square Competitors
    • VeriFone – Makes both NFC software and traditional Credit card readers for iPhone
    • Reader Case wraps around the bottom-half and plugs into the dock of iPhone
    • InnerFence is another company that makes a similar card reader for iPhone/iPads
    • Plugs into the dock of the iPhone/iPad
  • 30. FigCard – WiFi based payments
    • Fig card (Paypal) provides an application for Wifi enabled smart phones
    • Cheap USB dongle for Merchant POS
    • Fig card app stores Credit cards details
    • When customer is ready to pay, app on phone sends encrypted WiFi signal to POS
    • Phone number/ Credit card number etc not exchanged – Electronic confirmation
  • 31. Card.io – Capture card info easier
    • App on phone takes a picture of Credit Card
    • Strips out reqd. info & send it to Merchant
    • Deletes picture from phone once completed
    • API available for third-party integration
  • 32. Jumio – Similar to Card.io
    • Mobile app that takes a picture of Card
    • Scans picture and extracts info.
    • Also can use WebCam at a POS terminal
    • Securely transmits data
  • 33. Naratte Zoosh – Ultrasound Paymts
    • Data delivery by ultrasound waves ~20,000 Hz
    • Any phone that plays normal mp3s will work
    • Regular Speakers and Microphone capable of sending and reception
    • Works securely even in noisy environments
  • 34. Wrap-up: Future of Mobile Payments
    • Almost unlimited possibilities for disruption of existing shopping experience
    • Low barrier to demo stage
    • Location aware offers – Phone GPS + NFC
    • Verified check-ins Offers (FourSquare)
    • Personalized Offers (Browsing history)
    • Instant in-store offers (Proximity based)
  • 35. Wrap-up – cont’d
    • Instant coupons, instant offers (on-line)
    • Receipts are electronically processed – Phone App. has a transaction log and actual Receipt could be E-mailed/Scanned
    • Lots of innovation – From SMS based payments to NFC based payments in all markets
  • 36. Q & A
  • 37. Get in touch!
  • 38. References
    • Juniper Research Report: http://www.marketwire.com/press-release/mobile-payments-market-almost-triple-value-2015-reaching-670bn-according-new-juniper-1534333.htm
    • Gartner 2011 mobile data: http://www.gartner.com/it/page.jsp?id=1749114
    • Paypal blog on mobile payments: https://www.thepaypalblog.com/2011/06/paypal-doubles-mobile-payments-predictions-to-3-billion-in-2011/
    • Steve Jobs Images by Albert Watson (Angry old Man) and National Geographic October 1982 - Moira Johnston/Charles O’Rear
    • NFC Technology Architecture: http://www.nfc-forum.org/resources/presentations/
    • Open NFC: http://www.open-nfc.org/infos.html
    • Google Wallet: http://google.com/wallet
  • 39. References – cont’d
    • Google Wallet Security: http://www.pcworld.com/article/228959/google_wallet_security_has_a_weakness.html
    • ISIS: http://www.paywithisis.com
    • Square: https://squareup.com/
    • VeriFone: http://www.verifone.com/
    • InnerFence: http://www.innerfence.com/
    • FigCard: http://figcard.com/
    • Card.io: http://card.io
    • Jumio: https://pay.jumio.com/
    • Naratte: http://www.naratte.com/