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
Department of Teleinformatics KTH – Celltribe Business Solutions AB
Portal Payment Possibilities 2(21)
• 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
Department of Teleinformatics KTH – Celltribe Business Solutions AB
Portal Payment Possibilities 3(21)
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
Department of Teleinformatics KTH – Celltribe Business Solutions AB
Portal Payment Possibilities 4(21)
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.
Department of Teleinformatics KTH – Celltribe Business Solutions AB
Portal Payment Possibilities 5(21)
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.
Department of Teleinformatics KTH – Celltribe Business Solutions AB
Portal Payment Possibilities 6(21)
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.
Department of Teleinformatics KTH – Celltribe Business Solutions AB
Portal Payment Possibilities 7(21)
• 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
Department of Teleinformatics KTH – Celltribe Business Solutions AB
Portal Payment Possibilities 8(21)
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.
Department of Teleinformatics KTH – Celltribe Business Solutions AB
Portal Payment Possibilities 9(21)
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).
Department of Teleinformatics KTH – Celltribe Business Solutions AB
Portal Payment Possibilities 10(21)
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).
Department of Teleinformatics KTH – Celltribe Business Solutions AB
Portal Payment Possibilities 11(21)
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.
Department of Teleinformatics KTH – Celltribe Business Solutions AB
Portal Payment Possibilities 12(21)
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
Department of Teleinformatics KTH – Celltribe Business Solutions AB
Portal Payment Possibilities 13(21)
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.
Department of Teleinformatics KTH – Celltribe Business Solutions AB
Portal Payment Possibilities 14(21)
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.
Department of Teleinformatics KTH – Celltribe Business Solutions AB
Portal Payment Possibilities 15(21)
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.
Department of Teleinformatics KTH – Celltribe Business Solutions AB
Portal Payment Possibilities 16(21)
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.
Department of Teleinformatics KTH – Celltribe Business Solutions AB
Portal Payment Possibilities 17(21)
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
Department of Teleinformatics KTH – Celltribe Business Solutions AB
Portal Payment Possibilities 18(21)
SMS implementation
IncomingSMS Server
OutgoingSMS Server
ManagerServer
RMI
RMI
NEO
GSM Modem
SMS-C(Minick)
COM port
AT commands
Department of Teleinformatics KTH – Celltribe Business Solutions AB
Portal Payment Possibilities 19(21)
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.
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
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.
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.
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.
Department of Teleinformatics KTH – Celltribe Business Solutions AB
Portal Payment Possibilities 20(21)
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).