Mobile Payment Forum of India

1. Mobile Payment Forum of India Key Technology Considerations Sanjay Swamy, CEO, mChek sanjay@mchek.com

2. Overview • Scenarios of use – mobile payments • Anatomy of a mobile payments transaction • Linking bank accounts vs. Card Models • Transport Protocols • Server-Side vs. Client-Side Models • Authentication Methods

3. MOBILE PAYMENTS – SCENARIOS • Consumer Scenarios • Remote Merchant & Utility Bill Payments • Call centers and on Internet • Physical Merchants • Substitute for cash/card • Person-to-person • Long-distance remittances • Business to consumer disbursements • Physical merchants • A “mobile” POS terminal • Banks • Turning “trusted agent” mobiles into ATM’s

4. Merchant on Mobile E-commerce Website ATM Customer POS Terminal 4. Transaction Authorization Request 5. Transaction Authorization Response Transaction Authorization Switch Bank 1 Bank 2 Bank 3 ANATOMY OF A MOBILE TRANSCATION 1. Payment Request by merchant / customer, across multiple channels 2. Payment Request sent to Customer 6. Receipt sent to customer 3. Customer authorizes on personal handset Channel Integration Platform Mobile Network Connectivity Mobile Payments Platform Transaction Settlement Clearinghouse Minor variation – transaction initiated by sender

5. Key technology issue – 1mapping mobile # to bank a/c#

6. Key technology issue – 2transport protocols

7. Key technology issue – 3account storage – server or client

8. KEY TECHNOLOGY ISSUE – 4AUTHENTICATION METHODS • Numeric PIN-based • 4-6 digit PIN verification is most commonly used • Option 1: Server-based PIN verification • Requires PIN to be sent • Option 2: client-based PIN verification • Requires PIN to be stored on client • Option 3: Bank PIN vs. Application PIN • Benefit of not transmitting/storing bank PIN • Can be combined with one-time use of bank PIN • Fingerprint-based • Expected to be mainstream in a few years • Fingerprint == identity; PIN == signature

9. Summary