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Payment and Telecommunications

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Originally developed as part of a joint work effort of five telecommunications companies - AT&T Unisource - As they worked to determine their role int eh world of Electronic Payments

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Payment and Telecommunications

  1. 1. © 2006 Telecommunications & Payments
  2. 2. © 2006 Assumptions • electronic purse neutral • Bank and Brand neutral • do competing with the banks • Telecommunications – Is the business of offering payment services and systems, federated infrastructure and provides support and services for international projects
  3. 3. © 2006 Settlement Bank Issuing Bank Scheme Acquiring Bank Issuing Processor Acquiring Processor Merchant Processor ISP Access Provider Toll Road Certificate Authority Regulation Standards Consumer InfrastructureTechnology Int’l Hosting Service Merchant The Roles in eCommerce and Electronic Payments
  4. 4. © 2006 Electronic Commerce Framework The Selected Means of Payment Defines the Bank, Scheme, Jurisdiction, Protocol and Procedures Which Will Be Employed to Process the Payment Advertising Information Negotiation Agreement SELECT MEANS OF PAYMENT Process Payment
  5. 5. © 2006 Where Is the Customer Where Is the Merchant Merchant Consumer Merchant Merchant Consumer Local Net 40% Same Country 20% Global Net 40% Merchant Consumer Merchant One Groups View
  6. 6. © 2006 Value Proposition The Merchant Expects Freedom To Chose The Customer Wants Choice Merge these into an ASP Acquiring Processor Merchant Processor ISP Access Provider Toll Road Certificate Authority Int’l Hosting Service
  7. 7. © 2006 Telecommunications & Payments A Strategy Developed for a Consortium of Telecommunications Operators to Enable eCommerce With ePayments
  8. 8. © 2006 The Merchant Has the Following Needs: • Reliable identification of customer • Digitally signed order/contract • Encrypted communication • Catalogues for certificates • Electronic mail boxes • Address information • Time stamp • Customer Information
  9. 9. © 2006 The Customer Has Certain Needs: • Reliable identification about merchant or service provider • Signed confirmation of order, delivery time and conditions • Payment receipt • Digital signed contract or equally valuable paper Signature • Means of managing certificates and receipts
  10. 10. © 2006 Cash Payments Anonymous, Trusted and At Your Own Risk Current Account Value Is Transferred Current Account Between Parties Anonymous - +
  11. 11. © 2006 Cleared Payment Systems Electronic Purse Ubiquity Is the Key to Success Not the numbers of Cards and Terminals 1 (-) 1 (+)4 (-) 2 (+) 3 (+)2 (-) 4 (+)3 (-) Issuing Bank Acquiring Bank MerchantConsumer Scheme Load Unload Totals Only Transaction Detail
  12. 12. © 2006 Cleared Payment Systems Credit Cards 23 ab A B 4 (-) 4 (+)1 (-) 3 (+) 2 (+)3 (-) 1 1 (+)2 (-) Issuing Bank Acquiring Bank MerchantConsumer Scheme 1. Shop 2. Request Approval 3. Authorization Code a. From Acquirer b. To Issuer c. Net Settlement A Monthly Statement B Payment
  13. 13. © 2006 Cleared Payment Systems Debit Cards 23 ab 4 (-) 4 (+)3 (-) 1 (+) 2 (+)1 (-) 1 3 (+)2 (-) Issuing Bank Acquiring Bank MerchantConsumer Scheme 1. Shop 2. Request Approval 3. Authorization Code 1. Credit Merchant’s Account 2. Clear 3. Settle 4. Post to Account
  14. 14. © 2006 Five Payment Architectures To Enable Electronic Commerce • Support Credit and Debit cards via a 3D Secure Implementation • Create a Central Clearing System for existing Domestic Purse Schemes • Create a Central Clearing System leveraging existing PTT billing relationships • Create Pico Payments System leveraging existing PTT relationship • Establish the First "Euro" Bank Compete with Prime Client the Banks

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