Portal Payment Possibilities 1(21) Department of Teleinformatics KTH – Celltribe Business...

Department of Teleinformatics KTH – Celltribe Business Solutions AB

Portal Payment Possibilities 1(21)

Portal Payment Possibilitiesfor a start-up company

Master of Science thesis2000-12-13

Fredrik Jansson Marcus Larsson



• 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:

o A mobile portal targeted directly at end-users using SMS.o Business consulting and implementation for corporate

clients.

Celltribe data

Celltribe

Celltribe Business Solutions

Celltribe Mobile Services



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

o Reasonable security. o Possible for Celltribe to implement now.

o User friendly. o Mobile.

• Demands



E-com m erce penetration

0

100

200

300

400

500

600

700

800

1999 2000 2001 2002 2003 2004

Mill

ion

Mobile e-commerce users Fixed e-commerce users

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.



Mobile commerce enabling applications

• Today information tomorrow everything.

o Instant mesaging and mobile chat. o Personal information

management.o Shopping and reservations.o Entertainment and gambling.o E-mail.o Banking and postal services. o Vending machines.o Personal cards.



Celltribe’s income from services

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

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



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

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

• Credit card.

Available payment methods



Paying on your phone bill

• Sonera Mobile Pay (Vending machines).o One amount per number.

• Telia PayIT (eCharge).o Requires the user to have a modem.o The user has to be connected to Telia’s PSTN net.o Not expandable to the mobile market.

• 900 numbers.o Not suitable for this kind of service.



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).



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).



Recomendation

• Direct Internet payment.o Establish contracts with each bank.(Double fee if

third party is used).o Easy to implement.o High security, high user confidence.o Best for the swedish web-portal.

• Credit card.o Global paymnet method.o Only the credit card number is needed.o Fits Celltribe’s profile the best.o NetGiro should be used to test the demand from the

market.



Credit card implementation

Merchant serverNEO

JSP pagesJAVA beans

NEO

CeloComcrypto

program NEO

Switch

ÖstGöta Enskilda Bank

Card redempterer

Card redemption agreement

Celltribe user

NetGiroSET hotel

128 bits SSLcertificate



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.



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.



CTI

Positive:• Immediate response, no waiting time for the user.• No cost after initial hardware purchases.• High user confidence.

Negative:• Unsecure.• Not fitting Celltribe’s profile.



SMS

Positive:• Widespread and popular technology.• Available on every mobile phone.• Fitting Celltribe’s profile the best.

Negative:• Time consuming, long waiting times for the user.• Poor user interface.



Conclusion

SMS!• Fitting Celltribe.• No investments.

Merchant serverNEO

JAVANEO

Switch

ÖstGöta Enskilda BankCard redempterer

Card redemption agreement

NetGiroSET hotel

Celltribe user

CeloComcrypto program

NEO

GSM Mode

m

SMS-C(Minick)

: SMS from user : SMS from Celltribe



SMS implementation

IncomingSMS Server

OutgoingSMS Server

ManagerServer

RMI

RMI

NEO

GSM Modem

SMS-C(Minick)

COM port

AT commands



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.





SMS Implementation















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).



Portal Payment Possibilitiesfor a start-up company

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Portal Payment Possibilities 1(21) Department of Teleinformatics KTH – Celltribe Business...

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