SEMINAR ONNFC FOR MOBILE PAYMENTS

AND GOOGLE WALLET IMPLEMENTATION

Submitted by Aishwarya

Roll no: 1105295

What is NFC?

• NFC stands for “Near Field Communication” and, it enables short range communication between compatible devices.• The range of NFC is about 10-14cms.• Requires two devices: one transmitting

device, and another to receive the signal.

Types of NFC Communications

• Two-way communication: This involves two devices that can both read and write to each other. For example, using NFC, you can touch two Android devices together to transfer data like contacts, links, or photos.

• One-way communication: Here, a powered device (like a phone, credit card reader, or commuter card terminal) reads and writes to an NFC chip. So, when you tap your commuter card on the terminal, the NFC-powered terminal subtracts money from the balance written to the card.

Range Comparision compared to other wireless technology

How it works

• Just like Bluetooth and WiFi, and all manner of other wireless signals, NFC works on the principle of sending information over radio waves.• The technology used in NFC is based on older RFID (Radio-frequency

identification) ideas, which uses electromagnetic induction in order to transmit information. • This marks the one major difference between NFC and Bluetooth/WiFi,

as it can be used to induce electric currents within passive components as well as just send data.• This means that passive devices don’t require their own power supply,

and can instead be powered by the electromagnetic field produced by an active NFC component when it comes into range.

NFC Architecture

What is Google Wallet?

• Google Wallet is a mobile payment system developed by Google .• Users can store debit cards, credit cards,

loyalty cards, and gift cards among other things, as well as redeeming sales promotions on their mobile phone. • Google Wallet can use near field

communication (NFC) to make secure payments fast and convenient by simply tapping the phone on any PayPass-enabled terminal at checkout.

Steps To Use

• First we have to download the Google Wallet app to a smartphone or tablet.• A phone has to have NFC• The cellular carrier must also enable the device to use NFC with a digital

wallet, and most carriers are not doing this. • As of June 2013, only Sprint, Virgin Mobile, US Cellular and Metro PCS

offered any smartphones that work with Google Wallet and NFC in the U.S. These include devices from Samsung , LG and HTC. The Google Nexus 7 And Google Nexus 10 tablets also allow you to use NFC. • Google Wallet is an upcoming technology that has great use in the future.

Payment Process

• After launching the payment application on your phone, the phone is tapped on the credit card terminal and a connection is made using NFC. • At this point, you may be asked to scan your finger or enter a

passcode to approve the transaction. • The transaction is then validated with a separate chip called the

secure element (SE), which relays that authorization back to the NFC modem. • From there, the payment finishes processing the same way it would in

a traditional credit card swipe transaction.

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Secure Element

• The most important step in the mobile payment transaction is the secure element, which holds all the authorization power. • Whether it's a chip in the phone, or functions virtually in the cloud,

the secure element is tamper-proof and protected by a unique digital signature.• Secure Element is designed to be hardened against any attacks on the

phone.• When you pay with Google Wallet, Google issues a temporary

MasterCard number that is passed to the merchant in lieu of your actual account information.

The Virtual Onetime Card

Instead of giving merchants the buyer's actual backing credit card, Google creates and passes a Virtual Onetime Card that can only be used for the specific purchase for which it was issued. Using

this card, merchants can process payments with their existing payment processor.

Google Wallet for non-NFC devices

• Google Wallet API that allows online merchants to include a Buy with Google button.

• A new feature allows users to send money through Gmail via their Google Wallet account.

API process flow overview

1. The app requests masked Wallet information (a Java object containing a masked, or partially hidden, credit card number along with shipping address if requested).

2. Google returns a masked wallet response object containing the user's Wallet information. The app uses this information to present order review screens and other options.

3. To complete the order, the app requests the full wallet. 4. Google passes back full wallet information, which includes the details for the

single-use virtual credit card for the transaction. 5. The app responds to Google after contacting the payment processor, providing

the status of the transaction. Along with failure/success status, this object contains data that Google uses for important risk analysis.

Conclusion• In a lot of ways, digital wallets -- including Google's ambitious offering

-- are not quite ready for prime time. But m-commerce (mobile commerce) is coming, and soon. And when it does, you may be using Google Wallet, or one of its competitors, for almost every transaction.

• One day, we'll all be paying for things with our phones, and NFC is the ticket to that future. In light of them any recent credit card data breaches, now is an especially good time to present a solution that finally shields our wallets from theft and fraud.

REFERENCES

1. http://www.cnet.com/how-to/how-nfc-works-and-mobile-payments/

2. http://nfc-forum.org/ 3. http://electronics.howstuffworks.com/google-wallet2.htm 4. http://www.androidauthority.com/what-is-nfc-270730/