CISC 849 : Applications in Fintech The future is already here? .

CISC 849 : Applications in Fintech

The future is already here?

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


Eriselda Danaj

Dept of Computer & Information Sciences

University of Delaware

The story behind Mobile Payments


The world of Fintech

• First Bullet


What are mobile payments?


How are MP funded?

1. Bank account

2. Credit/ Debit card

3. Mobile carrier


For what are MP used?

1. P2P transfers

2. Purchases

3. POS


Technologies used for MP

1. Near field communications (NFC)

2. Radio frequency identification (RFID)

3. 2D barcode

4. Wireless Application Protocol (WAP)


NFC- best known technology

Eriselda Danaj

Trusted by Google and Isis!


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!!!


2D barcode

Used by target and Starbucks.


WAP – PayPal

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


Current use of MP worldwide


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


Risk model for MP


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)


……

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.


What comes next??

CISC 849 : Applications in Fintech The future is already here? .

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