Portal Payment Possibilities for a start-up company

1
Portal Payment Possibilitiesfor a start-up
company

• Master of Science thesis
• 2000-12-13

Fredrik Jansson Marcus Larsson

2
Celltribe data

• Founded in September 1999.
• Head office in Stockholm.
• Pan-European company.
• 90 employees.
• Vision Everything that can be mobile will
  be.
• Two main business areas
• A mobile portal targeted directly at end-users
  using SMS.
• Business consulting and implementation for
  corporate clients.

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Problems with start up companies

• Fast changing in priorities.
• No experience with thesis works.

PKI based end-to-end security with micro
payments.
Automatically reload refill cards.
Portal Payment Possibilities

• Demands

Reasonable security. Possible for Celltribe to implement now.
User friendly. Mobile.
4
Market for mobile commerce

• New channel that can complement the existing
  ones.
• New techniques such as WAP, GPRS, and UMTS.
• Scandinavia today has a mobile penetration of
  more than 50.
• Less than 5 of all transmitted data uses
  mobile devices. By 2005 it is predicted to be
  25.
• By 2004 1 billion cellular subscribers.

5
Mobile commerce enabling applications

• Today information tomorrow everything.
• Instant mesaging and mobile chat.
• Personal information management.
• Shopping and reservations.
• Entertainment and gambling.
• E-mail.
• Banking and postal services.
• Vending machines.
• Personal cards.

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Celltribes income from services

• Include advertisement in the sent SMSs.
• Increase traffic in the GSM operators network.
• Charge the customer for the service.

• Loyalty points (Ipoints, CellPoints, Beenz,
  yadaCash).
• Electronic cash (eCash, CyberCoin, Millicent).
• Existing currency.

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Available payment methods

• Paying on your phone bill.
• Direct Internet payment.
• Credit card.

• Paying on your phone bill.
• Direct Internet payment.
• Invoice.
• Credit card.
• Check.
• Micro payment.
• Cash card.

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Paying on your phone bill

• Sonera Mobile Pay (Vending machines).
• One amount per number.
• Telia PayIT (eCharge).
• Requires the user to have a modem.
• The user has to be connected to Telias PSTN net.
• Not expandable to the mobile market.
• 900 numbers.
• Not suitable for this kind of service.

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Direct Internet payment

• Special solution for each large bank in Sweden
  (Certificates, digipass, smartcard, one time
  codes).
• Unique Scandinavian solution.
• Not expandable to the mobile market.
• High security.
• High user confidence.
• Can establish contracts direct with each bank or
  use a third party (NetGiro, DebiTech, Telia
  SäkerHandel).

10
Credit card

• The main payment method on the Internet.
• Global payment method.
• Expandable to the mobile market.
• Scandinavians sceptical to give out credit card
  information.
• Secure Electronic Transactions (SET).
• Merchant Initiated Authorisation (MIA).
• Swedish banks demand the company to use a SET
  engine. Can use third party (NetGiro, DebiTech,
  Telia SäkerHandel).

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Recomendation

• Direct Internet payment.
• Establish contracts with each bank.(Double fee if
  third party is used).
• Easy to implement.
• High security, high user confidence.
• Best for the swedish web-portal.
• Credit card.
• Global paymnet method.
• Only the credit card number is needed.
• Fits Celltribes profile the best.
• NetGiro should be used to test the demand from
  the market.

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Credit card implementation
Celltribe
Merchant server NEO
JSP pages JAVA beans NEO
Celltribe user
HTTPS
128 bits SSL certificate
CeloCom crypto program NEO
Switch
Card redemption agreement
VPN tunnel
ÖstGöta Enskilda Bank Card redempterer
NetGiro SET hotel
SET tunnel
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Expanding the solution to the mobile market

• Interesting technologies.
• WAP.
• Computer Telephony Integration (CTI).
• Dedicated numbers.
• Sim Application Toolkit (SAT).
• SMS.

• WAP.
• Computer Telephony Integration (CTI).
• SMS.

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WAP

• Positive
• The leading standard for providing advanced
  telephony services for digital mobile phones and
  other wireless devices.
• Strong back-up (Ericsson, Nokia).
• Negative
• Known security problems. (The Gateway and weak
  WTLS layer).
• Low penetration of WAP devices.
• Frequent warnings in media about WAP.

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CTI

• Positive
• Immediate response, no waiting time for the user.
• No cost after initial hardware purchases.
• High user confidence.
• Negative
• Unsecure.
• Not fitting Celltribes profile.

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SMS

• Positive
• Widespread and popular technology.
• Available on every mobile phone.
• Fitting Celltribes profile the best.
• Negative
• Time consuming, long waiting times for the user.
• Poor user interface.

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Conclusion

• SMS!
• Fitting Celltribe.
• No investments.

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SMS implementation
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SMS Implementation

1. User sends a fill request.
2. Merchant replies with a confirmation message
   containing a one-time code.
3. User confirms the purchase by replying with the
   one-time code and a PIN code.
4. Merchant confirms the purchase.

1. User sends a fill request.
2. Merchant replies with a confirmation message
   containing a one-time code.
3. User confirms the purchase by replying with the
   one-time code and a PIN code.
4. Merchant confirms the purchase.

1. User sends a fill request.
2. Merchant replies with a confirmation message
   containing a one-time code.
3. User confirms the purchase by replying with the
   one-time code and a PIN code.
4. Merchant confirms the purchase.

1. User sends a fill request.
2. Merchant replies with a confirmation message
   containing a one-time code.
3. User confirms the purchase by replying with the
   one-time code and a PIN code.
4. Merchant confirms the purchase.

1. User sends a fill request.
2. Merchant replies with a confirmation message
   containing a one-time code.
3. User confirms the purchase by replying with the
   one-time code and a PIN code.
4. Merchant confirms the purchase.

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Future Work

• Wireless Identity Module (WIM).
• Exchange system. Differnt types of points (IKEA,
  Statoil, Ica, Beenz, Flooz) should be able to
  exchange into each others.
• Micropayment systems (Jalda).

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Portal Payment Possibilitiesfor a start-up
company
THE END