Transcript Mobile Payments Commerce Without Cash or Credit Cards Traditional Methods of Payment • • • • • • Cash Check or Money Order Traveler’s Checks Credit Cards and Debit Cards Pre-paid Cards (e.g.,

Mobile Payments
Commerce Without Cash or Credit
Cards
Traditional Methods of Payment
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Cash
Check or Money Order
Traveler’s Checks
Credit Cards and Debit Cards
Pre-paid Cards (e.g., Gift Cards, MetroCard)
Combination Cards (Loyalty Plus Payment)
▫ e. g., Starbucks Card
• NFC or RFID Tokens (“tap to pay”)
Cyber Payments
• Secure Web site
▫ Uses credit card numbers, often with CVV
• Cyber Wallets
▫ PayPal, Amazon.com, iTunes, Google Wallet
• Cryptocurrency
▫ Bitcoin, eGold, etc.
Mobile Payment Processing
• Moves credit/debit card processing to the
mobile device
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Square
Pay Anywhere
PayPal Mobile
Intuit
Hybrid Payment Systems
• Moving Cards and Cyber Wallets to mobile
devices
▫ PayPal app – access your PayPal account
▫ Amazon apps – purchase merchandise, MP3s
▫ Google Wallet – for Google Play & apps that
accept the wallet
▫ iTunes and the App Store
▫ Combination card apps
 Starbucks, Dunkin Donuts, etc. (scan to pay)
NFC: Payment’s Next Iteration?
• NFC: Near Field Communication
▫ Devices must be in close proximity (??)
▫ Login plus secure PIN to access payment method
▫ Secure settings within the NFC chip (specific to
the device)
▫ Accounts must be manually migrated to upgraded
devices
NFC and Mobile Payments
• Isis Wallet
▫ Hover/tap to pay
▫ Available for Android and iOS
▫ Based on NFC (built into newer, high-end Android
phones, newer iOS systems can access with special
cases)
▫ Copies credit/debit card information to your
phone (limited number of banks and services)
▫ Limited (but growing) number of loyalty programs
Isis Incentives
• Isis and American Express Serve (a prepaid
card) have been offering $25 to join the program
(available through certain wireless carriers)
• Verizon Wireless has been offering $1 credit per
wireless purchase with AmEx Serve
• My Coke Rewards incentives to join through, or
to attach existing accounts to, Isis
• Other credit incentives have been offered to
“seed the market”
Other Incentives
• Dunkin Donuts and Isis are both offering
referral incentives
• Loyalty programs usually reward in merchandise
or in “points” to be redeemed for merchandise
Is Mobile More Secure than Credit
Cards?
• Pros:
▫ NFC: Secure chip, dual identification
▫ Magnetic stripes cannot be force-read (street device) if
cards are not present
• Cons:
▫ NFC: Can the radio and/or the app(s) be hacked?
▫ NFC: Despite the availability map, many locations
have “contactless payment” disabled
▫ What if you lose or break your device (or it is stolen)?
 Security apps, remote wipe of device
 Card management through computers/Web
Other Considerations
• Resource Management
▫ How many different places do you want to store
money? (What if you suddenly need it all in one
place?)
▫ How much room on your device do you want to
allocate to wallet apps and loyalty apps?
 How many of these apps come pre-loaded as “carrier
bloatware”?
▫ What if you don’t have a data plan (or a 3G/4G chip)?
• Back End Security
▫ Your financial information is only as secure as the
systems through which it is sent
NFC Security: Resources
• 8 Myths About Mobile NFC (Gemalto Security)
• How Secure is NFC Tech? (How Stuff Works)
• Security Concerns with NFC Technology
(NearFieldCommunication.org)
• Nearfield Communication (Wikipedia)
• NFC FAQ (Smartcard Alliance)