The document is an attempt to give insights into digital payments space on the whole. It describes the different payment scenarios or methods and how the underlying technology works. Topics covered - NFC;;contacless payments;Mobile Payments;smart cards chips technology;apple pay;Card operating system
EMV is a standard for smart payment cards and terminals. EMV stands for – EuroPay, MasterCard and Visa, the three companies who were the founder of the standard. This standard is maintained by EMVCo – a consortium with payment brands like Visa, MasterCard, JCB, American Express, China UnionPay, Discover as members.
EMV is a standard for smart payment cards and terminals. EMV stands for – EuroPay, MasterCard and Visa, the three companies who were the founder of the standard. This standard is maintained by EMVCo – a consortium with payment brands like Visa, MasterCard, JCB, American Express, China UnionPay, Discover as members.
The AEPS (Aadhaar Enabled Payment System) banking service aims to empower all sections of the society by making financial and banking services available to all through Aadhaar.
With cashless society being the current hot topic .. Digital Wallet surely covers one of them ...Here is a description about what is it and how it works .. may aid you during your final year seminar .. Cheers !!
Digital wallet service in india - NetscribesNetscribes
A digital wallet is a virtual web and mobile-based wallet where one can store cash for making mobile, online or offline payments
For the complete report, please write to info@netscribes.com
Unified Payments Interface (UPI) - easy way to transfer money through banksCA Janardhana Gouda
A system for instant online bank payments. A new initiative for cashless and more digital economy. A perfect system for India in Banking System. Using of Mobile in a perfect way. (awesome feature of Virtual ID for transfer of money online through online.
Modes of Cashless Transactions - Cash-less Indian EconomyRajan Chhangani
This presentations is all about the different modes of cashless transactions and a small step to promote digital India and digitization in India.
Sources:- NPCI
Axis Bank
SBI
RBI
out line of this Presentation.
Elaboration of Mobile banking.
What is the Mobile banking.
How to connect with Mobile banking.
Features & Benefits of Mobile banking.
Advantages & Disadvantages of M-banking
Mobile banking in world.
Mobile banking in sri lanka.
E-BANKING EMERGING ISSUES AND OPPORTUNITIESVinit Varma
Innovation in technology, enlarged completion, globalization and changing environments are the crucial aspects that have forced our Banking services to change. With the diminishing cost of computers and digital gadgets like tables and smart phones along with decreasing charges and easy accessibility of internet and Wifi etc would certainly boosted the awareness of technology which resulted into increasing usage of E-banking day by day. Electronic Banking is a beautiful tool to deliver banking services at customers’ convenient place like office, home etc. E-Banking is not just only help in providing quick and efficient services but it also helps in reducing transaction and delivery costs. It improves profitability providing a platform for cross selling and cost effective product information. But there are some challenges in front E-banking like security threads, lack of awareness and knowledge of end users, peoples’ perceptions, user interface, failure of bank transitions, etc. But apart from any barriers, electronic banking is the future of modern banking and this is the stage where e-banking is helping to delineate the role of a bank branch and taking branches away from that transactional banking to become customer service centres but this transformation is not that much simple and it needs a lot of innovative steps, planning and investment. This paper throws light on emerging issues and opportunities of Electronic Banking. Here, an attempt would be made to highlight some issues in E-Banking and its prospects.
Studied technology involved in E-Wallets and how it helps in payment process,market place model, revenue generation of Paytm,its marketing strategy,demonitisation and its after effects.
The AEPS (Aadhaar Enabled Payment System) banking service aims to empower all sections of the society by making financial and banking services available to all through Aadhaar.
With cashless society being the current hot topic .. Digital Wallet surely covers one of them ...Here is a description about what is it and how it works .. may aid you during your final year seminar .. Cheers !!
Digital wallet service in india - NetscribesNetscribes
A digital wallet is a virtual web and mobile-based wallet where one can store cash for making mobile, online or offline payments
For the complete report, please write to info@netscribes.com
Unified Payments Interface (UPI) - easy way to transfer money through banksCA Janardhana Gouda
A system for instant online bank payments. A new initiative for cashless and more digital economy. A perfect system for India in Banking System. Using of Mobile in a perfect way. (awesome feature of Virtual ID for transfer of money online through online.
Modes of Cashless Transactions - Cash-less Indian EconomyRajan Chhangani
This presentations is all about the different modes of cashless transactions and a small step to promote digital India and digitization in India.
Sources:- NPCI
Axis Bank
SBI
RBI
out line of this Presentation.
Elaboration of Mobile banking.
What is the Mobile banking.
How to connect with Mobile banking.
Features & Benefits of Mobile banking.
Advantages & Disadvantages of M-banking
Mobile banking in world.
Mobile banking in sri lanka.
E-BANKING EMERGING ISSUES AND OPPORTUNITIESVinit Varma
Innovation in technology, enlarged completion, globalization and changing environments are the crucial aspects that have forced our Banking services to change. With the diminishing cost of computers and digital gadgets like tables and smart phones along with decreasing charges and easy accessibility of internet and Wifi etc would certainly boosted the awareness of technology which resulted into increasing usage of E-banking day by day. Electronic Banking is a beautiful tool to deliver banking services at customers’ convenient place like office, home etc. E-Banking is not just only help in providing quick and efficient services but it also helps in reducing transaction and delivery costs. It improves profitability providing a platform for cross selling and cost effective product information. But there are some challenges in front E-banking like security threads, lack of awareness and knowledge of end users, peoples’ perceptions, user interface, failure of bank transitions, etc. But apart from any barriers, electronic banking is the future of modern banking and this is the stage where e-banking is helping to delineate the role of a bank branch and taking branches away from that transactional banking to become customer service centres but this transformation is not that much simple and it needs a lot of innovative steps, planning and investment. This paper throws light on emerging issues and opportunities of Electronic Banking. Here, an attempt would be made to highlight some issues in E-Banking and its prospects.
Studied technology involved in E-Wallets and how it helps in payment process,market place model, revenue generation of Paytm,its marketing strategy,demonitisation and its after effects.
This report starts with a review of the mobile payments value chain, stakeholders, and business models. It then explores the market drivers, sizing, and forecast for the opportunity at hand. From there, an analysis of market’s drivers, segments, sizing, and forecast. Lastly, a market map of each segment and selected profiles of established ventures are provided.
CH&Co. eYeka Misys digital money white paper May 2015Patrick Bucquet
Banking tomorrow is going to be totally different from banking today, with payment being a clear illustration of the kind of major changes that could happen.
This white paper provides an overview of the payment industry and the move towards digital money.
To develop mobile payment, the payment industry has to take into account the new digital approach of Customer Experience. The payment has to be integrated easily in the User Experience by facilitating the enrolment, the authentication and the check out. Digital Wallet is an answer to integrate payment API in the user experience to develop mobile payment - by Olivier PERRIN, Head of Cards and Payments Consulting activity, Sopra Banking Software
This is a presentation of the Sector Study of Financial Technology focusing on Digital Payments by Alexis Dogwe, Camille Eusebio, Maurice Gonzales, Leslee May Tandoc and Al Marie Tating as part of the requirements in the subject: Marketing and Commercialization of High Technology Products.
University of the Philippines, Technology Management Center
Describing about digital payment in Indonesia and encourage all player how to execute digital payment and consumer how to use digital payment - by Heru Sutadi
Financial institutions in Europe are preparing to confront a major legislation revision for the banking industry: the proposal for a revised directive on payment services in the internal market, better known as Payment Services Directive, or PSD2.
PSD2 represents one of the single biggest changes in banking industry history, because it’s the first time banks will be obligated by law to open their infrastructures to third parties. Many banks are concerned about this legislation, feeling exposed and under attack from new entrants. It also enables customers to be in the driving seat when it comes to their finances. Yet, does it need to be a huge threat?
In this special, exclusive webinar, Jouk Pleiter and Jelmer de Jong of Backbase talk about what PSD2 means for the banking industry, and how can banks can prepare for this inevitable change. We are looking at:
What PSD2 actually is
PSD2 and the connection with APIs
PSD2’s impact on banks
New entrants in the banking space
The bank’s fundamental strategic choice: the defensive or offensive strategy
Opportunities to capitalise on.
Consumers Perception Towards Growing Mobile-WalletAshitha Devan
The study provides the insights of the consumer’s behavior and preferences towards M-wallets. Findings reveals that security, necessity, time, satisfaction of the services used are the factors which influences the consumers towards M-wallets and the respondents also feel that M-wallet saves time and has made life easier. Moreover the study identified the hurdles that consumers face when they want to adopt M-wallet as their mode of payment, the study witnessed that security issue is the prime concern of the respondents.
Outlook on Cashless Society: Mobile Money, Banking and ePaymentHenry Sampson
I presented this at the 2015 West African Telecom and ICT Summit in Accra. My focus was mainly to show how innovators like Slydepay are trying to solve the huge gap of payments in the Ghana cashless agenda journey.
Types of ewallets and their issues & challenges in 2022nimbleappgenie
The emergence of eCommerce and the digital economy calls for new payment methods in the market. The online-only shift of some buyers has forced the digital ecosystem to migrate from cash payments to plastic cards, and now it is taking a leap towards contactless payments.
If you're looking to develop a digital wallet app, this guide is for you. In this comprehensive guide, we'll take you through the entire process of developing a digital wallet app, from conceptualization to deployment.
All the 12 Payment Enabling Technologies & 54 Illustrative CompaniesMEDICI admin
All the 12 Payment Enabling Technologies & 54 Illustrative Companies
Near Field Communication (NFC): NFC is in its most common avatar is a Tap & Pay solution that can be used for retail
offline payments, transit, entertainment and numerous other touch points. Any unattended payment situation such
as a parking lot presents huge opportunity. For e.g., clipper card or any cashless cards being used today for public
transport can be integrated into the ubiquitous phones itself thereby making the public transport payments easier
Continuous improvements in technology and quality of life have had a strong impact on the development of payment techniques. With the evolution of near-field communication (NFC) technology, contactless payment has received recent attention because of its short-range, conducive nature. As mobile computing made great leaps due to enormous development in the smart phone platform, companies like Google, Samsung, and Apple embedded NFC in smart phones to provide on-the-go payment capabilities, eliminating the need for payment cards. But due to interoperability and high cost, these technologies are not available to everyone. Dr. B Srinivasa Rao | Ch. Sphoorthi | K. TejaSree | G. Sai Snigdha | V. S R Harika"Pay-Cloak:Biometric" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-2 | Issue-3 , April 2018, URL: http://www.ijtsrd.com/papers/ijtsrd11430.pdf http://www.ijtsrd.com/computer-science/other/11430/pay-cloakbiometric/dr-b-srinivasa-rao
Types of ewallets and their issues & challengesnimbleappgenie
The emergence of eCommerce and the digital economy calls for new payment methods in the market. The online-only shift of some buyers has forced the digital ecosystem to migrate from cash payments to plastic cards, and now it is taking a leap towards contactless payments.
Contactless Card Shipments Jump enabling Shoppers Take Advantage of Everyday ...Smart Payment Association
Contactless Card Shipments Jump enabling Shoppers Take Advantage of Everyday Payment Convenience
Smart Payment Association releases its annual review of the smart payment card market.
• 450 million contactless cards delivered by Smart Payment Association (SPA) members in 2013 – twice the quantity that was shipped in 2012
• 37% of all payment cards shipped to issuers worldwide in 2013 featured contactless technology
• Contactless growth in all regions: Asia Pacific + 193%, Europe +64%, Americas +45%
• Now present in over 30 countries, contactless payment infrastructure paving the way for contactless mobile payments and bringing NFC to the mass market
• Contactless brings convenience and speed, and multi-application possibility: payment, transit, access control etc.
Munich, 13th May 2014 - Contactless payment card shipments accelerated globally in 2013, according to figures released today by the Smart Payment Association (SPA). at an opening-day session at the CARTES America conference and exhibition in Las Vegas. In its annual review of the smart payment card market, the SPA reports that contactless technologies were present on over one-third (37 percent) of all smart payment cards shipped in 2013.
Full release at www.smartpaymentassociation.com
At the end of this presentation, you will learn:
-Different types of smart cards
-What are differences between MIFARE family members
-How and where to use each technology in payment solutions
-The NFC business ecosystem, use-cases and secure element’s basics
-How to secure e-banking and e-commerce authentication
-The differences between Apple Pay and Android Pay
-Why the world is migrating to EMV
-What are the emerging payment technologies
1. DECODING DIGITAL
PAYMENTS
Methods and Technology Landscape
Santosh S. Potadar
Samtosh.potadar@gmail.com
Abstract
The document is an attempt to give insights into digital payments space on the whole. It
describes the different payment scenarios or methods and how the underlying technology
works.
2. Introduction
Payments and downstream clearing & settlement is at
the heart of commerce. We have seen evolution of
payment instruments from bartering, centuries ago, to
digital payments in today’s digital era. There has never
been so easier access to your money on the go. The
ubiquitous mobile phone has already made inroads deep
into this space.
Following is an attempt to decode payments by looking at different payment methods,
technologies involved and some of the popular and widely accepted payment solutions revolving
around mobile payments, digital wallets.
This writing is a high level techno functional document that should give some insights into digital
payments space.
Payment Methods
Remote Payments – Payments that are made from distance where payer and payee are not
face to face. Primarily such payments happen through channels like mobile native app wallets,
digital wallets over mobile browser or web browser, and through payment gateways that accept
payment instruments like credit, debit cards, NetBank account, and in some geographies digital
cheques.
3. Proximity Payments – Payment made where payer and payee are in the vicinity or face to face
however the payment card (contactless payment instrument) may be few inches away from
accepting terminal. The payment instrument may also be in direct contact with the accepting
terminal e.g. contact cards.
Digital wallets / mobile wallets and cards are one of the key instruments used for payments.
However, globally, predominantly mobile payments is on the rise. There are about 6.5 billion
mobile subscriptions out of which there are over 5 billion active mobile users. There were about
245 million mobile payment users in 2013 and Juniper Research predicts that this number will
almost double to 450 million mobile payment users and according to Statista volume will grow
to 721 billion dollars by 2017. Australian banks reported that due to their adoption of NFC
technology the contactless payments increased from 10% to 60% in 2013. According to World
Payment Report 2014 the mobile payments to grow by 60% in 2015.
Technology Landscape:
More or less, be it contact or contactless payment, the ecosystem uses among set of technologies
as shown below. For instance, the mobile payments, a form of contactless payment when used
in proximity scenario, may use NFC, SE, HCE, Tokenization, Cryptography etc in its solution
ecosystem driven by specifications like EMV.
4. Different Types of payment chip cards:
The discussion won’t be complete
without the mention of types of
chip cards that are used in day to
day life.
Payment cards are categorized
into contact, contactless card and
dual interface. The contact chip
cards have to come in physical
contact with accepting terminal.
The way card interacts with
terminal is governed by the EVM
specifications, which have become
global standard for chip card
technology.
a. What is EMV? – EMV is global set of standards, specifications for credit and debit payment
chip card technology. (Europay, MasterCard, Visa). The specifications are managed by
5. EMVCo. EMVCo is an organization first established by Europay, MasterCard, and Visa. The
primary purpose was to globally standardize requirements for interoperability and
acceptance of cards by card readers/accepting terminals.
The top reason why EMV cards are so widespread is the fact that it significantly enhances the
security in transaction with added functionality in main areas like Card Authentication,
Cardholder Authentication and Transaction Authorization, thus reducing the frauds
emanating from counterfeit, and stolen or lost cards.
Globally, 32% of transactions are EMV. There are over 2 billion EMV cards in use and more
than 35 million EMV PoS machines deployment around the world.
b. What is EMV Chip? – As shown in the figure the chip is small rectangular micro-controller
processing unit embedded in plastic card. One of the features of this chip is there is a
payment application resident in the chip. (http://www.smartcardbasics.com/smart-card-
types.html)
c. COS Chip Operating System
The card operating system is hardware specific firmware that provides basic functionality to
applications, like access to on-card memory, authentication and encryption. The COS is a
sequence of instructions embedded onto ROM of smart card. Most applications make use of
these instructions
Two primary types of COS: a) General purpose COS and b) dedicated COS. Dedicated COS has
commands specifically designed for applications. Typically, the issuer has to stick with one
application developer, operating system and the chip when they come up with a chip based
card product like credit card, debit card, travel card with pre-loaded money etc.
6. However, the trend
now is multi-
application cards.
JavaCard and MULTOS
are the most popular
COSs with the bigger
market exposure.
(Source: http://www.cardwerk.com/smartcards/MULTOS/)
d. Standards
ISO/IEC 7816, ISO/IEC 14443 are the primary standards for smart cards. ISO/IEC 7816 is a multipart
(about 15 in total) international standard for contact and contactless smart cards. Each part of this
protocol focuses on specific area of complete card. For example, ISO/IEC 7816-1 talks about Card with
Contacts – Physical characteristics. 7816-2 specifies dimensions and location of contacts, 7816-3
specifies electrical interface and transmission protocols and so on and so forth.
ISO/IEC 14443 is a four part international standard for contactless smart cards operating at 13.56 MHz
for proximity payments at distance less 10cm. Similar to 7816, each part of 14443 specifies certain areas
and aspects of contactless cards. For example, 14443-Part 1 describes the physical characteristics of
cards, 14443-Part 2 describes the radio frequency power and signal interface, 14443-Part 3 describes
the initialization and anti-collision provisions and 14443-Part 4 describes the transmission protocol
requirements.
What is the difference between ISO/IEC 7816 and EMV standards?
The EMV Chip Specifications are based on, and are a subset of, the requirements in the ISO/IEC
7816 series of standards. EMV is implementation oriented, simplified specification. According to
EMVCo, if there are any differences in documents the EMV specification takes the precedence.
What is difference between ISO/IEC 14443 and NFC standards?
ISO/IEC 14443 is a four part standard for contactless smart cards. There are three types of
contactless cards Type-A, Type-B and Type-F. The difference is primarily in the part 2 of specification
where the RF modulation (signaling method) is different for different types.
The actual underlying governing international standard for NFC is ISO/IEC 18092 driven by NFC forum
and based on ISO/IEC 14443. ISO/IEC 18092 includes two communication modes viz active and passive
(peer-to-peer and NFC tags). There are 3 modes of operations within two modes of communication in
ISO/IEC 18092:
1. Read/Write
2. Peer to Peer
3. Card Emulation
7. There are many mobile payment solutions out there. The few innovative and disruptive ones
have been described in following sections.
Apple Pay How does it work?
In October 2014, with the roll out of iPhone 6
and 6 plys Apple also launched a payment and a
digital wallet service based on NFC, SE (Secure
element) technology. Apple nicely leveraged
and integrated the existing passbook, iTunes
and Touch ID services into a payment
ecosystems that is being adopted at very fast
pace. Apple Pay is being seen as game changers
in mobile payments space as it is easier to use for consumers and easier to set up for merchants.
The best innovative part is that there is no intervention of MNOs (mobile network operators)
required and it works with existing contactless payment terminals like MasterPass, Visa PayWave
etc. There is significant reduction in complexities due to the fact that secure element (SE) is not
SIM based but within phone hardware itself thus nullifying the need for integrating with MNO
payment infrastructure. The secure element is where tokenized information of card credentials
stored.
8. Apple has not yet published its Apple Pay implementation details. However based on some
research and their press release here is how the underlying technology works.
1. User adds the card in Passbook or iTunes. Passbook for iPhone will also allow users to use
iSight camera to capture card and add information. The default card is generally the first
card that is added. Apple Pay can be used in remote payment scenario as it can be
integrated with iPhone apps using the APIs. It can also be used in “tap and pay”
contactless scenario. The contactless tap and pay payment only works on iPhone 6 and 6
plus.
2. Apple says that they don’t store any card payment information like PAN or any other
credentials in cloud. So question is how transaction happens if no card details are stored.
Here is the innovative part. Apple provisions a Token for the card in the secure element
(SE) of the phone. Who gives a Token for card information? How it is provisioned in SE?
Well, the way it is done is like: Once the card is entered manually or through Passbook
iSight camera the PAN details are sent over to Apple servers, from there they get sent to
payment networks such as MasterCard, Visa or AMEX. The payment network returns
token and along with it a token key. Apple Pay is token requester (TR) and payment
networks are Tokenization Service Providers (TSP). Payment networks return the token
only when a request to card issuer for identification and verification of card is successful.
3. Apple Pay uses EMVCo contactless specification. When user taps the iPhone on
contactless NFC terminal the NFC triggers the SE. The SE in phone generates a dynamic
cryptogram using combination of token, token key, amount and other transaction details.
This token, dynamic cryptogram and other details are sent to terminal. All this interaction
happens in compliance with EMVco contactless specification.
4. Once the contactless terminal accepts this information the authentication, authorization
process kicks in. The terminal sends this data to acquirer for verification. Acquirer passes
this onto payment network. Payment network identifies the data sent as tokenized PAN
and sends it to its TSP (token service provider) for de-tokenization. The PAN obtained
after de-tokenization is passed onto issuer for authorization. Issuer does authorization
based on customer card and account status. After authorization, information flows back
to terminal for printing the receipt.
9. Google Wallet How does it work?
Google wallet is a digital/mobile wallet. Google’s aim is to have everything in digital wallet that
you typically keep in your physical wallet: credit,
debit cards, loyalty cards, coupons, tickets, gift
cards etc.
Google has released 3 version of its wallet
service, the latest one being 3.0 which was
released along with Android KitKat (4.4). With
this release Google introduced what it is called a
Host Card Emulation technology for mobile
payments. With this release google has officially
ended support for physical device SE in google wallet application.
http://www.nfcworld.com/2014/03/17/328326/google-wallet-ends-support-physical-secure-
elements/
Google has confirmed its move to HCE: “Host card emulation allows Android applications to
communicate directly over NFC on supported devices with Android 4.4 KitKat. When you tap your
phone to pay, HCE enables Google Wallet to pass transaction information to the point-of-sale
terminal to complete your transaction. Devices that are running older operating systems may no
longer support Google Wallet’s tap-and-pay feature”
Google Wallet too is compliant with EMVCo contactless specification therefore like Apple Pay
there is no need of Google Wallet specific terminal infrastructure.
What does HCE work?
Users add credit, debit cards payment method
onto google wallet account either through web
interface or through mobile app. What happens
when a card is added to wallet? Where is it stored?
Is it really stored anywhere? Yes, unlike ApplePay,
Google Wallet stores card details or payment
credentials in their secure cloud servers. Secure
cloud is new secure element in this ecosystem.
Earlier two versions of Google wallet were solely
using device based SE (either UICC or embedded
device SE or SD card based SE). The NFC controller
based on its “AID routing” mechanism directs the NFC communication to either HCE or SE.
10. The figure summarizes how NFC controller redirects the communication from reader to either SE
or to host CPU for HCE transaction.
In HCE transaction a host operating system (like Android) and an app running on it is involved.
The app may have user interface but in turn it uses HCE service on host operating system. From
security perspective HCE app on host OS does not store any card credentials. Instead, HCE app in
real-time or at pre-set frequency connects with cloud before each transaction to fetch a limited
validity Token or dynamic data for provisioning into the HCE app. This dynamic data is sent to
contactless terminal when phone is tapped on terminal. This method is called Tokenization with
cloud storage. There is also a method, cloud storage without tokenization where actual card
credentials are retrieved from cloud which are then passed onto contactless terminal during the
transaction. However this method is least secure. Google in March 2015 announced a revamped
version of google wallet called AndroidPay.
In a nutshell, Mobile payments will be here to stay with new innovations coming into play day by
day. Future looks bright for NFC, contactless payments as it has already gone beyond mobile
payments into payments through wearables. As Internet of Things (IoT) or Internet of Everything
evolves, it could bring in business models that would require payments. This in itself would be an
immense untapped opportunity to look forward to.