e-cash & mobile payments karen uttecht. overview what is money? e-cash (ideal) – history –...
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![Page 1: E-Cash & Mobile Payments Karen Uttecht. Overview What is Money? E-Cash (Ideal) – History – Basic Concept – Technologies – Features – Trade-offs Real “Electronic](https://reader035.vdocuments.site/reader035/viewer/2022062717/56649e3a5503460f94b2bb27/html5/thumbnails/1.jpg)
E-Cash & Mobile PaymentsKaren Uttecht
![Page 2: E-Cash & Mobile Payments Karen Uttecht. Overview What is Money? E-Cash (Ideal) – History – Basic Concept – Technologies – Features – Trade-offs Real “Electronic](https://reader035.vdocuments.site/reader035/viewer/2022062717/56649e3a5503460f94b2bb27/html5/thumbnails/2.jpg)
Overview• What is Money?• E-Cash (Ideal)
– History– Basic Concept– Technologies– Features– Trade-offs
• Real “Electronic Cash” Systems– Online Payment Systems– Peer to Peer Systems– Smart Cards– Mobile Payments (in detail)
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What is Money?
Stone Money of Yap Island
Photo from [20]
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History of E-Cash
• Invented by David Chaum in 1982 in his paper “Blind Signatures for Untraceable Payments”
• Chaum filed patents and founded DigiCash, Inc.
• Chaum’s mismanagement of DigiCash ultimately lead to Bankruptcy in 1998
• Hundreds of papers improving on Chaum’s E-Cash have been written since.
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E-Cash: Basic Concept
Bank
Service ProviderPayer
2
3
1 4 5
1. Send Prepared E-Cash
2. Return Signed E-Cash
3. Give E-Cash
4. Check E-Cash Validity
5. Return Verification
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Cryptographic TechnologyUsed By E-Cash Schemes• RSA / Public Key
Cryptography• Elliptic Curve Cryptography• Blind Signatures• Hash Functions• Digital Certificates
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Ideal E-Cash:Security Requirements• Non-Reproducible• Can’t be Double Spent• Tamper-Proof• Private and Anonymous• Theft Resilient• Dispute Resolution
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Ideal E-Cash:Usability Requirements• Fast• Easy to Use• Easy to Learn• Available• Accountable• Predictable Performance• Accurate
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E-Cash: Trade-Offs and Challenges
• Double Spending vs. Availability• Double Spending vs. Anonymity• Dispute Resolution vs. Anonymity• Fair Trading
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Real “Electronic Cash” Systems• Online Payment Systems• Peer to Peer Systems• Smart Cards• Mobile Payments
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Online Payment Systems
• Users exchange money through their site• Money stays put (with the site), ownership
changes hands• Online Wallets, Shopping Carts & Checkout
through participating retailers• Mobile web payments• Examples: Paypal, WebMoney, Gogopay,
CashU
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Peer to Peer Systems• No Central Authority• Coins are chains of digital signatures of all
previous owners
Diagram from [12]
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Peer to Peer Systems• Double spending is prevented by announcing all
transactions to the network, majority of nodes decide which transaction came first
• Timestamps determined using longest proof-of-work chain
• Examples: BitCoin (Open Source)
Diagram from [12]
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Smart Card Systems
• Essentially like a “Smart Card” Visa gift card• Anonymous – the user does not open an account• Cards are loaded up at kiosks• Many are transit cards retailers have chosen to
accept as payment• No theft protection• Examples: FeliCa System – Widely Used
– Notably extensively used in Hong Kong, Singapore, Japan, and Netherlands as E-Cash
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Mobile Payments
• Exchanging money using Mobile Devices
• Four General Types– SMS– Direct Mobile Billing– Mobile Web Payments– Near Field Communications
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Mobile Payments: SMS
• Payment Request Sent via Text Message
• Charge is added to Phone Bill• Very clunky• Unreliable• No Security – Messages are
plaintext
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Mobile Payments:Direct Mobile Billing
• Essentially Charging Services to your Phone Bill
• Uses a pin code & one-time-password
• Prevalent in Asia• Bypasses banks & credit cards
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Mobile Payments: Mobile Web Payments• Accessing a payment web service
on your mobile phone• Example: Paypal Mobile:
https://www.paypal.com/mobile
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Mobile Payments: Near Field Communications• NFC is an extension of ISO/IEC
14443, RFID proximity card standard• NFC device can communicate with
existing infrastructure and other NFC devices
• Range of 7-8 inches• Low Power Consumption• Designed for Mobile Devices
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NFC Mobile Payments
Pictures From Reference [11]
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NFC Mobile Payments
• NFC embedded into mobile phone• Allows User to Pay with their Phone• E-Cash Schemes could be used in conjunction• Mobile to Mobile Payments Possible• “Offline” Payments Possible• Predicted: $75 Billion globally in NFC Mobile
Payments by 2013• 59% of US consumers want to make purchases with
their mobile phone
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NFC Mobile Payment Systems
• Pay-Buy-Mobile Initiative– Working on World Wide Standard for NFC Mobile
Payments– Over 50 Mobile Operators involved
• Payforit – UK• Bling Nation – US – “Smart Sticker”• China Mobile• Blaze Mobile (US) – “Sticker Based”• Many trials worldwide
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Questions?
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References• [1] History of DigiCash http://jya.com/digicrash.htm• [2] E-Cash System Architecture http://rtds.cs.tamu.edu/aaa2.php• [3] Bitcoin http://www.bitcoin.org/• [4] Paypal www.paypal.org• [5] WebMoney www.wmtransfer.com• [6] CashU www.cashu.com • [6] Liberty Reserve www.libertyreserve.com/en/• [7] Wikipedia: Mobile Payments
http://en.wikipedia.org/wiki/Mobile_payment• [8] Wikipedia: Near Field Communications
http://en.wikipedia.org/wiki/Near_Field_Communication • [9] NFC Mobile Payments to Reach US$75 Billion by 2013
http://www.paymentsnews.com/2008/07/nfc-mobile-paym.html•
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References• [10] Architecture and Development of NFC Applications
http://www.slideshare.net/tdelazzari/architecture-and-development-of-nfc-applications
• [11] NFC: Payment and Beyond http://www.nfc-forum.org/resources/presentations/Tagawa_Barcelona_2010.pdf
• [12] Bit Coin: A Peer-To-Peer Electronic Cash System http://www.bitcoin.org/bitcoin.pdf
• [13] Pay-Buy-Mobile Initiative http://gsmworld.com/our-work/mobile_lifestyle/mobile_money/pay_buy_mobile/index.htm#nav-
• [14] Pay-for-it http://www.payforit.org/• [15] Bling Nation http://www.blingnation.com/• [16] Near Field Communications World Payments News
http://www.nearfieldcommunicationsworld.com/category/applications/payments/
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References• [17] NFC Trials and Rollouts worldwide
http://www.nearfieldcommunicationsworld.com/list-of-nfc-trials-pilots-tests-and-commercial-services-around-the-world/
• [18] Blaze Mobile http://www.blazemobile.com/ • [19] Newswire: Consumers want to use their phones to make purchases at
the point of sale http://www.nearfieldcommunicationsworld.com/2009/12/01/32406/59-of-consumers-want-to-use-their-phone-to-make-purchases-at-the-point-of-sale/
• [20] Yap Island Sights http://www.visit-fsm.org/yap/sights.html • [21] “What is Money?” Ray Byler• [22] “mFerio: the design and evaluation of a peer-to-peer mobile payment
system” Balan, Rajesh Krishna and Ramasubbu, Narayan and Prakobphol, Komsit and Christin, Nicolas and Hong, Jason