CISC 849 : Applications in Fintech

The future is already here?

https://www.youtube.com/watch?v=0z46KzHOgmM

CISC 849 : Applications in Fintech

Eriselda Danaj

Dept of Computer & Information Sciences

University of Delaware

The story behind Mobile Payments

CISC 849 : Applications in Fintech

The world of Fintech

• First Bullet

CISC 849 : Applications in Fintech

What are mobile payments?

CISC 849 : Applications in Fintech

What are mobile payments?

CISC 849 : Applications in Fintech

How are MP funded?

1. Bank account

2. Credit/ Debit card

3. Mobile carrier

CISC 849 : Applications in Fintech

For what are MP used?

1. P2P transfers

2. Purchases

3. POS

CISC 849 : Applications in Fintech

Technologies used for MP

1. Near field communications (NFC)

2. Radio frequency identification (RFID)

3. 2D barcode

4. Wireless Application Protocol (WAP)

CISC 849 : Applications in Fintech

NFC- best known technology

CISC 849 : Applications in Fintech

RFID- Japan and Korea!

Can be read from several meters away.

Receives the message and responds with identification information.

Transmits an encoded

radio signal to interrogate

the tag.

Can be used for both POS and P2P mobile payments.

Less secure than NFC!!!

CISC 849 : Applications in Fintech

2D barcode

Used by target and Starbucks.

CISC 849 : Applications in Fintech

WAP – PayPal

In other words: WAP transmits information over a mobile wireless network. Consumer logs on to the payment provider’s website.

CISC 849 : Applications in Fintech

Current use of MP worldwide

CISC 849 : Applications in Fintech

What is holding back MP in US?

1.Lack of common Business

Models 2.Lack of

information on what

consumers want

3.Agree on tech standards

Lack of a better understanding of

the benefits of MP

1.Uncertainty about net benefits2.Lack of information regarding the value of MP

Supply Side Barriers Demand Side

CISC 849 : Applications in Fintech

Risk model for MP

CISC 849 : Applications in Fintech

Opportunities

1.Leverage mobile device & apps to mitigate fraud

(increase level of encryption and move towards

cloud-based environment).

2.Develop strong RM to prevent intentional and

unintentional data leakage.

3.Mitigation tools should be re-assessed

(example: iPhone 5S fingerprint device activation)

CISC 849 : Applications in Fintech

……

4.MP is driving the need to reinvent strong authentication

• Fast Identification Online Alliance (FIDO)

• Initiative for Open Authentication

5.Cloud-based authentication services are cost efficient.

CISC 849 : Applications in Fintech

What comes next??