Department of IT, American University in Dubai UAE Mobile Phone Market Mobile phone infrastructure...
-
Upload
dylan-farrell -
Category
Documents
-
view
214 -
download
0
Transcript of Department of IT, American University in Dubai UAE Mobile Phone Market Mobile phone infrastructure...
Department of IT, American University in Dubai
UAE
Mobile Phone MarketMobile Phone MarketMobile phone infrastructure has grown exponentially over the past few years to cover large numbers of people around the world. A payment system that takes advantage of this existing infrastructure will be highly attractive.
The penetration rate of is by far larger than any other type of technology in history.
In Asia, it is expected that by 2009, 901 million people will be using mobile phones.
Research TeamHaikel Alhichri, Basma Marhoon, Mohammad Alrubaiy, and Amirhosein Sharifisistani
www.aud.edu
Mobile Phone Payment Mobile Phone Payment SystemSystem
Fig. 1. New payment system based on SMS and the internet. It uses the mobile-operator as the third party to arrange the payment.
New IT PlatformNew IT Platform
Fig. 2. New IT platform required for e-commerce website to use the new SMS payment system.
The mobile network is the link between customers’ mobile phones and the business. Once the transaction
1
2
invoice (SMS)
3
4
invoice & confirmation (SMS)
5
5
66
seller
customer bank seller bank
2) invoice (SMS)
Buyer
4) invoice & confirmation (S MS)
AdvantagesAdvantages1. More accessible since almost
everybody has access to a mobile-phone.
2. Cheaper because based on SMS. 3. Easier because involves use of
mobile phones. 4. Can be used for small and
medium size payments. 5. Can have any float period (time
between purchase payment). 6. Safer because more limited in
funds, does not include sharing sensitive info, and relies on the local-PIN to transmit. Also, if somebody wants to use somebody else’s mobile-phone number, then the owner of the phone would be notified.E-Commerce SystemsE-Commerce Systems
The type of online paymentsystem used is heavily influenced by the financial infrastructure.
U.S.: In 2002, Credit Cards accounted for 80% of online payments. While only 50% of consumers outside the US use credit cards for online commerce.
Europe and Asia: Cash on Delivery (COD) & Bank Transfers are relied more on as a method of online payment.
Underdeveloped: In many parts of the world, including the Middle East, financial infrastructure is still underdeveloped. Credit Cards are not accessible, nor affordable for the majority of people. Digital Cash systems or prepaid cards are available but still costly because of the needed infrastructure to support them.
server
Web
server
SMS
server
(with a
wireless
capability)
mobile
network
Customer
Ord
er
SM
S invoice
Internet
Middle -
ware
DB
server
server
SMS
server
Ord
er
Internet
Middle
-
SM
S invoice
Mobile Network Customer
Internet
6) confirmation (S MS)6) confirmation (S
MS)
5) request (internet)mobile-service
provider
3) confirmation (SMS)
1) product ID (internet)
5) funds (internet)
Middle-ware
New Components
Web-Server
DataBase
4) invoice
1) confirmation
3) in
voic
e
2) c
onfi
rmat
ion
SMS-server with wireless
capability
DisadvantagesDisadvantages1. Mobile-phone must be physically
available. 2. Spam is more likely to occur
because fake merchants would attempt to fool a customer by sending fake invoices to them.
SecuritySecurityThe information exchanged includes: mobile phone number, invoice, and receipt.
Confidentiality (hiding of info): can be met by an SSL encryption algorithm.
Integrity (keeping the info unchanged): Also by SSL. Non-repudiation (authenticated proof of destination arrival): by the presence of a third party in the transaction, namely the mobile operator.