The document provides an overview of mobile payment systems. It discusses different mobile payment schemes such as bank account based, credit card based, and micropayment schemes. It also outlines desirable properties of a mobile payment system including being easy to use, general purpose, interoperable, trustworthy, cost-effective, swift, and enabling global payments. Popular mobile payment solutions like SMS-based payments, POS-based payments, barcode payments, and NFC-based payments are also mentioned. Finally, the key steps in a typical mobile payment transaction process are summarized.
3. Mobile Device Operating
Systems• Design and capabilities of a Mobile OS (Operating System) is very
different than a general purpose OS running on desktop machines:
• Mobile devices have constraints and restrictions on their
physical characteristics such as screen size, memory,
processing power and etc.
• Scarce availability of battery power
• Limited amount of computing and communication capabilities
• Thus, they need different types of operating systems depending
on the capabilities they support. e.g. a PDA OS is different from a
Smartphone OS.
• Operating System is a piece of software responsible for
management of operations, control, coordinate the use of the
hardware among the various application programs, and sharing
the resources of a device.
4. Operating System Structure
• A mobile OS is a software platform on top of which other
programs called application programs, can run on mobile devices
such as PDA, cellular phones, Smartphone and etc.
6. Special Constraints &
Requirements• There are special constrains under which the operating system of
a mobile device to operate.
• Limited memory
• Limited screen size
• Miniature keyboard
• Limited processing power
• Limited battery power
• Limited and fluctuating bandwidth of the wireless medium
• Real-time data streaming
7. Special Service Requirements
• Support for specific communication protocols
• Support for a variety of input mechanism
• Compliance with open standard
• Extensive library support
• Support for integrated development environment (IDE)
9. Commercial Mobile Operating
Systems• It is a challenging task to design a mobile OS with a set of core
capabilities that are expected to be supported by mobile devices and
with a consistent programming environment across all smartphones
that install the OS.
• The mobile OS has to facilitate third party development of application
software and yet allow manufactures of different brands of mobile
devices to build their choice set of functionalities for the user.
• A few popular mobile OS are:
• Palm OS
• Symbian OS
• Windows Mobile OS
• BlackBerry OS
• iPhone OS
• Google Android Platform
10. Windows Mobile
• Microsoft Corporation developed an OS in 1996 for mobile.
• Windows CE 1.0 focused on devices that performs deterministic
scheduling of time-constrained tasks.
• An improved version of CE has got released in a year’s time.
• Pocket PC was designed for PDA in 2000.
11. Windows Mobile
• By 2003, Windows market had increased and it has introduced
Windows Mobile for mobile phones.
• This version of windows mobile OS can be used on many mobile phone
manufacturers such as Nokia, etc.
• Then Windows Phone 7 was introduced with features like Windows
Desktop OS version 7.
• To increase the market, Microsoft joined Nokia in 2011, to announce
Windows Phone 7 for Nokia smartphones.
• Thereafter, there was a three-horse race between Android, Windows,
iOS.
• Later on, Windows Phone 8 was introduced in 2012, that has similar
features of windows desktop OS version 8, such as live tiles, swipe
features, instant search, etc.
• Windows marketplace was introduced, where a third party app
developer can develop apps for windows phone.
12. Windows Mobile
• Then finally in 2015, Microsoft announced Windows Mobile 10 OS,
which is the edition 10 of Windows Mobile OS.
• It gives uniform experience to users in various platforms such as
desktops, mobiles, laptop, etc.
• It gives VMM, GWE, Security, easy app development.
Windows SDK
• Support 1080 (Full HD) resolution
• Increase memory for apps
• Custom sounds for toast notifications
• Windows Mobile apps can be developed in Visual Studio
• Debugging, testing, networking, emulator tools available
• Get notifications in Lock screen
• Maps and navigation services control
13. Windows Mobile
Windows SDK
• Interact with apps in voice input
• Wallet to collect coupons, credit cards, etc for transactions
• Multi-resolution:(VGA, WVGA, WXGA, HD-720p, FHD-1080p)
• DirectX 3D games
• “Lens” app for camera with web service, edit effects
• Media library: (playback, save, edit MP3 songs)
• BG audio control
• Launchers
• VOIP (Voice-Over-Internet-Protocol) for audio/video calls over internet
• New Bluetooth API
• Proximity API (exchange data using NFC)
• Networking (IPV6, sockets)
• Sense Data usage
14. iOS
• It was introduced in 2007 with iPhone. It was designed to replace iPod.
• Steve Jobs is the proprietary owner of Apple Inc.
• iOS was initially known as iPhoneOS, later became iOS
• It is derived from Apple’s derivative called Mac OS.
• Now it can be used in iPod Touch, iPad, Apple TV
• iOS is a closed and proprietary operating system, fully owned and
controlled by Apple Inc.
• Apple does not give license for installing third party softwares installed to
it.
• It has some special gestures such as SWIPE, PINCH, TAP, REVERSE PINCH.
• It also has accelerometers for some applications to UNDO after shaking
the device.
• Rotating the device in three dimensions to change from portrait to
landscape and vice-versa.
15. iOS
iOS SDK features
•New multitasking APIs to enable apps that update regularly
•Secure game center scores to prevent hacking of leader boards
•MFi (Made For iPhone) game controllers is an API for games
•Dynamic type size to allow devices to have built-in user defined
font scaling
•60FPS video capture facility for good slow motion videos
•Bar code and QR code scanning and reading
•UI dynamics to get transparency and 3D feel in image
•Peer-to-peer connectivity to connect with other iOS devices
•Geodesic polylines in Maps for enhanced features in Maps
16. iOS
Contents of iOS SDK
•iOS uses XNU variant of OSX
•develop apps on iOS based on Xcode
•Cocoa touch: multi-touch, accelerometer, camera
•Media: audio mix, record, video playback, Quartz, animation
•Core services: networking, SQLite DB, location, Threads
•MaC OS X Kernel: TCP/IP, Sockets, power management, file system
18. Blackberry OS
• BlackBerry OS has a multitasking environment.
• It enables heavy use of input devices like trackball, and scroll
wheel. It does not support touchpad.
• It is an event-driven Operating System.
• Later BlackBerry Smartphone's CPU architecture is based on ARM
XScale. The other BlackBerry devices has Intel-based processors.
• It supports multitasking and multithreading applications.
• Security: Any application that want to use certain BlackBerry
functionality must be digitally signed.
19. Android Platform
• Most popular Mobile OS as of now (2016).
• Google Corporation is the owner of Android.
• Google took up a start-up company called Android, to develop OS
in mobiles based on Linux.
• In 2007, many companies joined Open Handset Alliance (OHA) to
develop Android OS for mobile handsets.
• It was an open service software to help many 3rd party
developers to develop Android applications.
• Google embeds its own search engine into Android.
• Like Internet explorer embedded Windows OS.
• By 2015, Google has 78% of market share, 18% by iOS, 2.7% by
Windows.
20. Android Platform
Features of Android / Advantages of Android
•Android extended the facility to use the phone based on keyboard
or touch screen.
•Android provides built-in web browser capable of full web page
and not small screen mobile versions.
•Success of any OS depends upon its ease of use. Apple allows
third party applications only after approving it; But Google allows
third party applications to be installed on it.
•Android SDK works in Eclipse environment, developers are fully
aware of standards associated with Android OS.
•Android has RDBMS SQLite for database storage.
•Android has in-built applications: Maps, Voice search, etc.
21. Android Platform
Android Architecture
•Android developers write code in Java.
•With Google’s core Java libraries, these applications can be easily developed.
•These can be written in C or any other language.
22. Android Platform
Application Layer
•Some basic applications such as Email client, SMS, Web browser, Maps,
Calendar, Contact management programs are built in Android OS.
•They are written in J2ME.
•Android apps control their own priorities.
Application Framework
•It is required for implementing standard structure for various
applications.
•It provides set of services to be used by application developers.
•Content providers and managers are the services provided by
application framework.
•Ex: Notification manager (Give notifications for battery below 5%, dim
the screen brightness, reduce the Music player volume.
23. Android Platform
Libraries and Run time
•Android consists of set of core libraries such as 2D 3D graphics, Multimedia
codecs such as MPEG-4, MP3, SQLite and Web browser engine called Webkit;
They are written in C, C++, etc.
•Android Run time consists of DVM.
•It converts application program in Java to machine code of the device, which
is then invoked on OS call.
•It is a custom VM to run multiple instances on single machine.
•It is similar to JVM, designed for android platform.
•It uses Linux core features such as memory management and multi-
threading.
•It enables every android device to run its own process.
•It creates Dalvik Byte Code (.DEX) for all the Java classes present in an
android application.
•This .DEX (Dalvik Executable file) is larger than .CLASS file.
24. Android Platform
Kernel
•Android Kernel is based on Linux kernel.
•But it does not support complete set of GNU libraries.
•Arrangement problems are there in Android devices.
•Having Kernel code in Linux, Android has its own device drivers,
memory management, process management and network
management functions.
•Android is a multi-tasking OS.
•Prior to 2010, Kernel code of Android was made available in Linux
Public distribution.
•After 2010, Google does not make android kernel extensions available
in Linux Public Distributions.
•Now Google maintains its own code tree marking the branching of
Android from Linux code in public distribution.
25. Android Platform
Android Application Components
•Activity – Each activity presents a single GUI screen of an
application.
•Content Providers – Help to provide an application’s data at one
place. Like database. Used for reading and writing data . Can query
or modify the stored data.
•Service – Background task and not for interacting through a user
interface.
•Broadcast Receiver – Responds to broadcast announcements by
an application.
28. M-Commerce
• Mobile Commerce is defined as the process of carrying out any
activity related to buying and selling of commodities, services or
information using the mobile hand-held devices.
• It has become extremely popular in last decade.
• It is easy for both buyers and sellers.
• Examples:
• Mobile Ticketing
• Mobile Banking
• Information Services
29. M-Commerce - Architecture
• In Mobile OS, content provider implements an application by
giving two sets of programs: client side and server side.
• Client side programs run on Micro browsers, which is installed on
user’s mobile devices.
• Server side programs perform data base access and
computations will be present In host’s computers.
30. Components of Mobile
CommerceMobile Device
•Hand held devices give the UI part of mobile commerce to the end users.
•Users specify requests to the appropriate interfaces, which are
transmitted to mobile commerce application on the internet.
•The results obtained from servers are displayed in mobile devices of
suitable formats.
Mobile Middleware
•Map the internet content to the mobile phones seamlessly and
transparently.
•The content should be supported in wide range of Mobile OS, mark up
languages, micro browsers, protocols.
•They also handle encryption and decryption to provide secure
transactions when performing mobile banking.
31. Components of Mobile
CommerceNetwork
•Wireless networks are the core of mobile commerce.
•User requests are delivered to closest WAP (Wireless Access Point)
in WLAN or to a BS.
•Wired networks are not necessary for m-commerce.
•Host computers are connected only by wired networks.
•So the user requests are routed to these servers using standard
transport mechanism of the network.
32. Components of Mobile
CommerceHost computers
•They are powerful servers that process, store all info needed for
m-commerce applications.
•Most apps are hosted on these host computers.
•They consists of: Web servers, Database servers, apps.
•Web servers help interacting with mobile client.
•DB server stores the data.
•Application program is the middleware that implements business
logic of m-commerce applications.
33. M-Commerce Applications
B2C Applications (Business – to – Consumer)
•Products or services are sold by a business firm to a consumers.
• Advertising
• Comparison shopping
• Information about a product
• Mobile ticketing
• Loyalty and payment services
• Interactive Ad
• Catalogue shopping
B2B applications (Business – to - Business)
•Products or services are sold by a company to its dealers.
• Ordering and delivery confirmation
• Stock tracking and control
• Supply Chain Management
• Mobile inventory system
34. M-Commerce
Features required of a mobile device to enable m-
commerce
•Good internet connectivity
•Ability to display rich content
•Good quality camera
•Display and scan bar codes
•Read RFID tags
•MMS, SMS
•Ability to interact with POS terminals (card swipe device)
35. Pros and Cons of M-Commerce
Advantages of M-Commerce
•For business organization, customer convenience, cost savings, new business
opportunities.
•For customers, anytime and anywhere shopping using a light weight mobile
device.
•It saves substantial time when compared to visiting a store and finding the right
product at lowest price.
•Application software are used for corresponding websites to place orders
effortlessly and efficiently.
Disadvantages of M-Commerce
•No Graphics / processing power.
•Limited screen size to view the products.
•Complexity of menu choice, text typing capacity.
•Bandwidth restricted, unable to view many number of products in quick time.
•Security issues in wireless networks (payments).
37. Mobile Payment Systems
• Mobile payment or m-payment defined as any payment
instrument where a mobile device is used to initiate, authorize
and confirm an exchange of financial value in return for goods
and services.
OR
• Mobile payment, also referred to as mobile money, mobile money
transfer, and mobile wallet generally refer to payment services
operated under financial regulation and performed from or via a
mobile device.
38. Mobile Payment Schemes
Three popular types of M-payment schemes are currently used are
• Bank account based
• Credit card based
• Micropayment
•In each of these approach, a third party service provider (Bank,
Credit card company or telecom company) make payment on the
customer’s behalf.
•The service provider may charge small amount as service charge.
39. Mobile Payment Schemes
Bank Account Based mobile payment scheme
•Bank account of the customer linked to his/her mobile phone number
•When customer makes m-payment to a vendor through Bluetooth or Wireless
LAN with vendor’s machine, bank account of customer is debited and value is
credited to vendor’s account
•Ex: mChek (from 2007) – For booking flight tickets, movies, water bills, pay
phone bills, etc.
Credit card based m-payment scheme
•Credit card number is linked to mobile number of customer.
•When customer makes m-payment with a merchant, credit card is charged and
value is credited to merchant’s account.
•It has some limitations in India.
40. Mobile Payment Schemes
Micropayment schemes
•It is used for payment of small purchases such as items from
vending machines.
•Mobile device communicate with vending machine directly using
Bluetooth or WLAN.
•Otherwise customer has to make a call to service provider.
•It is implemented using cooperation of mobile users and 3rd party
service provider.
•Ex: Vending beverages from Coca-Cola machines.
41. Mobile Payment System -
PropertiesDesirable properties of a M-payment system
•Easy to use : personalize, customize the device.
•General purpose: It should support C2C, B2B, B2C.
•Interoperability: Should be supported in different platforms,
networks and applications.
•Trust: It should be reliable, information should not be misused.
•Cost: It should not be too costly.
•Swiftness: The response time should be very quick.
•Global payments: It should be possible to vendor worldwide
using m-payment system.
42. Mobile Payments Solutions
• SMS based payment: customer sends a text message for
payment
• POS based payment: User’s mobile device interacts with POS
devices
• Bar code based payment: Bar code is used to pay transaction,
immediately after scanning barcode
• NFC based payment (Near Field Communication)
• Mobile Wallet: Online purse (Ex: Google wallet, PayTm)
44. Process of Mobile Payments
Steps of Mobile payment transactions
•Step 1: Customer places order for goods with trader.
•Step 2: Trader securely transfers order to selected payment
service provider over the internet.
•Step 3: Customer authenticates with payment service provider
for security purpose.
•Step 4: Payment service provider formats all transaction details,
sends transaction authentication request through its payment
gateway to the selected customer’s bank. Bank can accept /
Decline the request.
•Step 5: Merchant is informed of the payment status.
•Step 6: After successful transaction, customer’s bank sends
requested amount to trader’s bank account.
45. Security Issues
• M-commerce is anticipated to introduced new security and
privacy risks.
• Users of mobile device can be difficult to trace because of
roaming of the users.
• The mobile device go on-line and off-line frequently, thus attacks
would be very difficult to trace.
• Another risk unique to the mobile devices is the risk of loss or
theft.
• A major problem in this regard is lack of authenticate a particular
user.
