INTEGRATING M-COMMERCE PAYMENTS WITH THE MOBILE OPERATOR´S BILL

M-COMMERCE FROM AN OPERATOR POINT OF VIEW| BERTHOLD RUF PAGE 1 OF 26

INTEGRATING M-COMMERCE PAYMENTS WITH THE MOBILE OPERATOR´S BILL

BERTHOLD RUF | 29th September [email protected]+43 699 1 699 3847www.one.at


50,10 % 17,45 % 17,45 % 15 %

ABOUT ONE

ONE GMBH

- Third Mobile Operator in Austria- First GSM-1800 Provider

- Currently approx. 970 Employees- 4 Shareholders


ONE MILESTONES

GPRS

Regional Launch

ONENewsflash

TakeONE

ONE 99

Launchf-ONE

TakeTwo

Launchi-ONE

ONE High Speed

Dual VPN

ALL IN ONE

ONECockpit

U-BahnCoverage

ONEWebshop

NationalLaunch

ONEFOR ME

UMTSLicence

QuickLoad

ONE Pocket Plus

ONE takesover

eWave

WAP

0307 10 11 0302 11 12 01 0705 09 11 12 02 111009 1204

1998 1999 2000 2001 2002

06

Cooperationwith

LIWEST

ONE Compass

ONE SmartSIM

ONEMobile Office

Easy

11 02

MMS

2003

04

ONEGmbH

07

Re-Launch www.one.at

LaunchONE WLAN


CUSTOMERS

A 12/98 < 30,000 customersB 06/99 200,000 customersC 12/99 500,000 customersD 06/00 830,000 customersE 12/00 1,300,000 customersF 06/011,500,000customersG 12/01>1,600,000 customersH 12/02>1,600.000 customersI 09/03>1,700.000 customersJ 07/04>1,800.000 customers

ONE CUSTOMERS

1.5 MILLION MOBILE | 150,000 i-ONE | 145,000 f-ONE.

BA D EC F G H I J


Mobile ShoppingONE‘s m-commerce solution


ONE Mobile Shopping Partners


Usage of M-Payment @ ONE

– Strong increase of mpayment usage– No special advertising for mpayment so far


M-Commerce Use Case:

Coke Vending Machine



Coke Vending Machine

OrderOrder DeliveryDelivery

PurchasePurchaseConfirmationConfirmation



Java Game Download (1)

PaymentInformation

and AcceptanceSelect Game



Java Game Download (2)

Install ... andEnjoy!

Payment Confirmation- Start Download



ONE‘s CANTEEN (1)

1. Register by SMS a short time before paying:Send an empty SMS to 8377

Pay at the checkout simply by giving the last 4 digits of your mobile phone number

2.

Directly after payment you will receive a confirmation SMS. Registration is only valid for a maximum of 10 minutes.


M-Commerce Use Case: ONE‘sCanteen (2)

- Registration only valid for one location - Registration only valid for 10 minutes- Users receive a confirmation SMS stating the amount- Cancellation can be made directly at the checkout- Detailed list of payments and complaint feature at the user self-administration tool


ONE‘s CANTEEN (2)


Customer Merchant Payment Platform ONE back-office

Start payment

Clearing request

Clearing response

Merchant request

Payment result

Merchant delivers the goods/content to customer

Customer authorization (including PIN/TAN authentication)

Customer identification (Web)

Iden

tifi

cati

on &

Aut

hori

zati

on

Validate balance (prepaid) and expenditure limits Payment

channelLock transaction amount until capture Payment

channel

Charge customer Payment channel

Capture

Extract MSISDN or User ID

WAP Gateway

LDAP

Merchant response (with Transaction ID)Redirect URL

Payment result responseRedirect URL to merchant

Go to success URL

PAYMENT OVERVIEW


Network MIA

$

Bank

Merchant

MerchantAggregator

Customer

Merchant

TrivnetPaymentPlatform

GenevaBilling

System

CustomerInvoice

MerchantCredit Note

Mediation

S A PClearing

&Settlement

M-Payment Architecture – Overview


Many attractive Services drive the Business

– Be prepared for individual Merchants as well as Merchant-Aggregators– Key Account Manager / Technical Account Engineer– Merchant Monitoring and Restrictions– Flexible automatic merchant settlement– Flexible automatic merchant aggregator settlement


Billing and Settlement

– Pre-priced events – Merchant manages the price of every transaction

– Tax issues – different tax per product (tax override)– tax exempt customers or merchants

– Multi Revenue Sharing – Multi Party Event & Individual Rating Tariffs


ONE Bank

– Since June 2004 ONE has a banking license– Necessary to guarantee payments to the merchant


COOPERATION WITHIN OPERATORS IS BETTER FOR CUSTOMERS, MERCHANTS AND

OPERATORS


COOPERATION AMONG OPERATORS HELPS GAINING CRITICAL MASS

COOPERATION IS KEY– Parking, Ticketing (for public

transport)– News, Games

DON‘T WANT TO COOPERATE– community, exclusive mobile

content

NEED TO COOPERATE?– mobile time recording; fleet

management (closed usergroup)

– Physical Goods


MIA | M-COMMERCE INTERFACE AUSTRIA

– open standard jointly developed– almost all Austrian operators participate– Specifies technical interface merchant/operator

Mobile PhoneSubscribers




Connected Merchants

Connected Merchants

Connected Merchants

Connected Merchants

One Interface

Tele.ring Interface

T-mobile Interface

HutchisonInterface

Join

t fun

ction

al a

nd

te

chn

ical in

teg

ratio

n


TECHNICAL DETAILS OF MIA

– Based on exchanging XML-documents between merchant and operator (specification defines DTD‘s and gives XML-examples)

– Connection between merchant and operator done via https

– Open for all possible channels: SMS, WAP, WEB– Customer may be redirected from merchant to

operator for explicit authentication (PIN/TAN-entry...)– May be used for micropayments and macropayments


1. First inter-operator standard which is already live

2. ONE has connected all its m-commerce partners via MIA

3. T-mobile Austria uses MIA for ticketing, lotto and other services

4. Tele.ring and “3” (Hutchison) to follow soon

MIA- SUCCESS STORY


MIA-Homepage http://mia.co.at

– Free download of Java/Perl toolbox + manuals

– Latest MIA-specification

– FAQ– Test-Shop to test

MIA-transactions– Access to test-

server– Contact


LESSONS LEARNED

– Many merchants – especially for content – are very interested in doing m-commerce with operators

– Flexible merchant interface and banking license important

– Attractive services are the key for successful m-commerce

– MIA is the first life-standard for m-commerce and already successful

– Try to use standards wherever possible


Documents

INTEGRATING M-COMMERCE PAYMENTS WITH THE MOBILE OPERATOR´S BILL