Wireless Financial Messaging

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Wireless Financial Messaging
Infrared Financial Messaging (IrFM)
Secure Electronic Payments Using Wireless PDAs
H.R. Damon González, Jr. Marketing
Co-Chair Infrared Data Association
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Preface

• In the realm of compelling technologies, wireless
  is, hands down, the hottest on the horizon. As
  we move closer to the vision of pervasive
  computing wireless, whether it is radio
  frequency or light frequency, promises to be the
  interconnection medium that brings it all
  together. This will be a summary of Infrared
  Data Association (IrDA) and Bluetooth? efforts in
  the Wireless Financial Messaging space. Specific
  topics will include the Financial Messaging
  standards project as well as domestic and
  international pilots to implement secure payments
  using PDAs and mobile phones, etc.

NACHA Payments 2001 - Washington D.C., April 24,
2001

Slide 2
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Agenda

• Background Concepts
• Project Progress Report
• Market Trials

NACHA Payments 2001 - Washington D.C., April 24,
2001

Slide 3
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Fundamental Points

• Develop a Wireless Financial Messaging Standard
• Transport independent
• Transform Payment instruments into Digital
  Representations
• Cash, Credit, Debit, etc.

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Background ConceptsDevelopment Objective
Development Criteria Project Organization
Transaction FlowsEnablers
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Development Objectives

• Global Application
• Existing Payments Standards
• Existing Technologies and Infrastructures
• Interoperability

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Development Criteria

• Enable mobile commerce between merchants and
  consumers
• Paperless, End-to-End
• Simple, Fast, Convenient
• Automate Record Keeping
• Extensible Architecture

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Project Organization
Alliances/Co-Sponsors
IrDA
FSTC
Bluetooth
NRF
FMI
CommerceNet
BITS
IrFM SIG Membership
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Transaction Flows (Sequence)
Load Financial App
IrFM
Yes
No
Auth Seek
Auth Response
No
Yes
Gen Receipt
Session Terminate
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Transaction Flows (Environment)
Merchants
Security
Authorization Request
Wireless FM
TRANSMISSION OF SOFTCARD
PAYMENT RECEIPT
Privacy
Consumers
Processors/ Banks
Authorization Response
Request Processing / Data Analysis
Fund Transfer
Purchase Receipt
Credit Approval Response
Credit Card Companies
Credit Approval Request
Settlement Payments
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Transaction Screen Sample

• POS Announce invoice amount
• PDA Sends payment authorization SoftCard?
• POS Authorization cycle
• PDA On AuthNO then, present Alternative option
  or Cancel
• POS On Alternative then, new authorization cycle
• POS On AuthYES transmit receipt and terminate
  session

Available Payment Options for this Merchant
Credit Card 1 available 287.34
A
B
Checking balance 673.98
D
Cancel transaction
Payment requested 110.22
Pay
Cancel
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Enablers

• Consumer Devices
• Merchant Installations
• Clearing Settlement Networks
• Technologies

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IrFM Application Scenarios

• In-Store Point of Sale
• Vending Machine
• Internet Commerce
• Pay-at-Pump Service Stations
• QSR Drive Through
• Bridge and Turnpike Drive-by
• In-Flight Shopping
• Public Transportation Services

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Choosing Infrared Light

• Infrared standards defined and adopted
• Short-range, narrow-beam connection
• At present 150MM cell phones and PDAs Ir-enabled.
• Low cost technology
• Ease of converting POS terminals

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Progress ReportProject Initiation Project
Documentation Proofs-of-Concept Demonstrations

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Project Initiation

• Whitepaper
• October 15, 1999
• Preliminary Specification
• October 24, 2000
• Formation of Special Interest Group
• January 11, 2000
• Alignment with Bluetooth?
• April, 2001

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Project Documentation

• IrFM Profile Specifications
• IrFM Protocol Specification
• V1.0 IrFM Specification

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Proof-of-Concept Demonstrations

• CrossCheck IrFM Check Authorization
• IrDA Quarterl Meeting, July, 2000
• Aegis, Palm, Verifone POS Model
• World PC Expo, October, 2000
• Consumer Electronics Show, January 2001
• ESI, Ingenico, Sharper Image, Palm and VISA
  realtime purchase transaction
• Consumer Electronics Show, January, 2001

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Market TrialsMarket Trial C-SAM, Inc.Market
Trial Global e-Telecom, Inc. Market Trial
Harex IT, mZOOP Market Trial in2M
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Market Trial C-SAM

• Payment system trials in Latin America, EMEA and
  Pacific Rim
• Client and Server OneWallet application layer.
• Handheld/Mobile phone/Card centric
• Ifrared Communications layer

One Tower Lane, Suite 2060 Oakbrook Terrace, IL
60181 www.c-sam.com [phone]
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Market Trial Global e-Telecom

• Payment system trials in Southeastern U.S.
• Client and Server application layer.
• Handheld centric
• Ifrared Communications layer

35008 Emerald Coast Parkway Destin FL
32541 www.globaletelecom.com [phone]
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Market Trial Harex IT

• Seoul City trial Summer 2001
• Electronic wallet and virtual card application
  layer
• Mobile phone centric/POS adapter
• Ifrared Communications layer

3rd F. PoonSan Bldg 16-6, Pil-Dong 2Ga, Chung-Ku,
Seoul 100-272 www.mzoop.com 82 2 3406 4000
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Market Trial IN2M

• Salt Lake City trials in Fall 2001 and Summer
  Olympics 2002
• Electronic wallet and virtual card application
  layer
• Handheld Centric
• Ifrared Communications layer

857 West South Jordan Parkway, Suite 100, South
Jordan UT 84095 www.in2m.com [phone]
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For More Information
Ron Brown, Executive Director, IrDA ron_at_irda.org
Damon González, Marketing Co-Chair,
IrDA damon.gonzalez_at_verizon.net
http//www.irda.org