Version 2.3. Operations Manual for Users, Agents and Merchants

SETECS SAFE System Secure Mobile Transactions System Version 2.3 Operations Manual for Users, Agents and Merchants (for Smart Phone Applications) ~~~~~~~~~~~~~~~~ December 2011 Copyright 2009 2011 SETECS Mobile Technologies

SETECS SAFE System: Wallet, Agent, and Merchant Manual 2 Table of Contents: Foreword... 3! Chapter 1: Installation and Initialization Initial Sequence... 4! Chapter 2: SAFE Secure Mobile Wallet Application... 6! 2.1! Mobile Financial Transactions... 7! 2.1.1! Mobile Payments: Over!the!Counter (OTC) and Over!the!Air (OTA)... 7! 2.1.1.1! Mobile Payments Over!the!Counter (OTC) using Bluetooth... 7! 2.1.1.2! Mobile Payments Over!the!Air (OTA) using GPRS... 12! 2.1.2! Transactions with SAFE Mobile Accounts... 13! 2.1.3! Operations with SAFE Mobile Accounts... 15! 2.1.4! Mobile Banking (m Banking)... 17! 2.1.5! Mobile Bankcard Transactions (m Cards)... 19! 2.1.6! Transactions with Stored Money (m Cash)... 21! 2.2! Mobile Shopping Functions... 22! 2.3! Wallet Settings Functions... 30! Chapter 3: SAFE Secure Mobile Merchant Application... 33! 3.1! Mobile Payments... 34! 3.1.1! Mobile Payments Over!the!Counter (OTC) and Over!the!Air (OTA)... 34! 3.1.1.1! Mobile Payments: Over!the!Counter (OTC) using Bluetooth... 34! 3.1.1.2! Mobile Payments Over!the!Air (OTA) using GPRS... 39! 3.2! Mobile Marketing Functions... 39! 3.3! Mobile Business Functions... 48! 3.4! Mobile SAFE Accounts... 50! 3.5! Merchant Settings Functions... 51! Chapter 4: SAFE Secure Mobile Agent Application... 54! Chapter 5: Using SAFE System with SMS Messages... 60! 5.1! Introduction SMS Messages... 60! 5.2! SAFE Registration... 60! 5.3! Registration of User s SAFE Account... 61! 5.4! Account Status... 61! 5.5! List Accounts... 61! 5.6! Money Deposit... 61! 5.7! Money Withdraw... 62! 5.8! Money Transfer... 63! Chapter 6: SAFE System Security... 64! 6.1! Access to Mobile Phone Applications... 64! 6.2! Protection of Local Data... 65! 6.3! Network Key Management... 65! 6.4! Protection of Messages in Transfer... 65! 6.5! Authenticity of Users... 66! 6.6! Reliable Registration of Users and Merchants... 66! 6.7! Confirmation of Transactions... 66! 6.8! Biometric (Fingerprint) Authentication... 66! 6.9! Protection of Data in Databases... 67! 6.10! Suspension and Re Activation of SAFE Mobile Accounts... 67! 6.11! Access to System Administration Functions... 67! 6.12! Role based Authorization of System Administrators... 68! 6.13! Role based Authorization of Transactions performed by Agents... 68! 6.14! Role based Authorization of Transactions performed by System Officers... 68! 6.15! Confirmation of Transactions... 68! 6.16! Financial Transactions Policy... 68!

SETECS SAFE System: Wallet, Agent, and Merchant Manual 3 Foreword This Manual describes in detail operations of the SAFE system from a user s perspective. There are three types of users in the system:! Subscribers, who use the system for various financial and shopping functions! Agents, who assist subscribers with registration, cash in and cash out operations, and! Merchants, who use the system for mobile marketing, mobile business transactions, and for accepting mobile payments by subscribers. Subscribers use smart phone application called SAFE Wallet. Agents use smart phone application called SAFE Agent. Merchants use smart phone application called SAFE Merchant. SAFE Wallet application supports three groups of mobile functions:! Various types of mobile payments using mobile pre paid accounts, standard bank accounts, bankcards and stored money payments! Various types of mobile shopping functions: promotions, mobile coupons, mobile gift cards, and mobile tickets! Mobile security functions: registration of an user, configuration of the SAFE system, detection of locations, management of Wallet s local and SAFE system PINs, selection of cryptographic options, and managing X.509 digital certificates. SAFE Merchant application supports three groups of mobile functions:! Mobile payments with subscribers using over the air (OTA) SMS and GPRS messages and over the counter (OTC) Bluetooth protocols! Various types of mobile marketing functions: depositing promotions, mobile coupons, mobile gift cards, and mobile tickets into the SAFE system! Various types of mobile business functions: accepting discounts based on promotions, mobile coupons, mobile gift cards, and verification of mobile tickets! Mobile security functions: registration of a merchant, configuration of the SAFE system, detection of locations, management of Merchant s local and SAFE system PINs, selection of cryptographic options, and managing X.509 digital certificates. SAFE Agent application supports three groups of mobile functions:! Self registration and registration of subscribers and merchants, including registration of locations for merchants! Cash in and cash out financial transactions with subscribers and merchants! Mobile security functions: registration of an agent, management of agent s local and SAFE system PINs, selection of cryptographic options, and managing X.509 digital certificates. All three applications are available on a variety of smart phones including iphone, various Android phones, various Java phones, and Blackberry phones. The Manual describes operational steps for all three of these smart phone applications.

SETECS SAFE System: Wallet, Agent, and Merchant Manual 4 Chapter 1: Installation and Initialization Initial Sequence Installation of the three smart phone applications is performed in a standard way, as installation of any other application for mobile phones, after their download. After installation and activation, each application performs an initial sequence of steps whose goal is to setup and configure the application. This sequence is performed by all three SAFE smart phone applications: Wallet, Agent and Merchant. The sequence comprises three steps, demonstrated here using Mobile Wallet: Step 1: Personalization of the application Step 2: Configuration of the SAFE server Step 3: Registration of the user Step 1:Wallet Configuration This is the first step in the initial sequence. Each application has local PIN, which is used to enter and activate the application. The size of the PIN is not limited and it can comprise of digits, letters or any combination of them. In addition, each application must be configured with the Country code of the user and his/her mobile number. The screen appears when starting SAFE Wallet the first time. User should enter local PIN and confirm it, country code and mobile number. Step 2: Configuration of the SAFE System This is the second step in the initial sequence. Its purpose is to specify SAFE system to which an application will connect. This screen allows user to enter mobile number and IP number of the SAFE server. Mobile number is used for SMS messages and IP number is used for GPRS messages. (Sometimes, SETECS Mobile distributes versions of the Wallet preconfigured to one particular instance of the SAFE system in which case these parameters do not have to be entered, just confirmed).

SETECS SAFE System: Wallet, Agent, and Merchant Manual 5 Step 3: User Registration This is the third step in the initial sequence. Its purpose is to register the user who will be using the application. User must enter his/her first name and last name. Mobile number is reproduced from the first step, for verification. After sending registration message, the system will confirm user registration. SAFE system PIN is returned. It must be remembered for future secure communications with the SAFE system, using SMS messages or Web interface. Registration is pending, so user must confirm it. After confirmation, user registration is completed and confirmed by the SAFE system. The system returns customer ID and user s SAFE account number. Customer ID is permanent customer s identification in the SAFE system. SAFE account number is permanent, until user terminates it. User s mobile number may change with its subscription with the telecom servicers provider. SAFE account number comprises three groups: Two digits: SAFE system country code (in the example: 46 for Sweden) Two digits: SAFE system sequence number within a country (in the example: 01 for the first instance of the SAFE system in Sweden) Seven digits: User s sequence number in the SAFE system (in the example: 0000030). When using SAFE account number for SAFE transactions, user may use only the last significant digits from user s sequence number. In the example that would be 30

SETECS SAFE System: Wallet, Agent, and Merchant Manual 6 Chapter 2: SAFE Secure Mobile Wallet Application After completing the initial sequence, when starting SAFE Wallet, user must specify PIN. SAFE Wallet Login using PIN To start Wallet, user must specify PIN. After login into the Wallet by providing local PIN, Wallet will display the main menu. SAFE Secure Mobile Wallet supports several groups of functions, accessible through their corresponding buttons on Wallet s home page:! m Wallet: Mobile financial transactions! m Shopping: Mobile shopping transactions! m!club: Collecting various bonus points and benefits! m!health: Mobile medical services! m Settings: Selecting or updating various Wallet parameters With the current version of the SAFE Wallet, only m!wallet, m!shopping and m Settings groups of functions are available. Users may hide icons for m!club and m!health using Wallet Applications in the m!settings group (see section 2.3) SAFE Wallet Main Menu m-wallet mobile financial transactions with pre paid (SAFE ) accounts, bank accounts, credit cards or stored money m-shopping mobile shopping transactions using promotions, discounts, coupons, gift cards and tickets m-club mobile application to accumulate and spend various bonus points, loyalty rewards, etc. (under development) m-health mobile application supporting transactions with health data (under development) m-settings various functions to configure Secure Mobile Wallet

SETECS SAFE System: Wallet, Agent, and Merchant Manual 7 2.1 Mobile Financial Transactions SAFE Wallet Mobile Financial Transactions Menu SAFE Wallet supports six groups of secure mobile financial transactions, selected through m Wallet financial transactions menu. From this menu users can perform the following functions: m-pay payments with merchants over the air (OTA) using GPRS or SMS messages or over the counter (OTC) using Bluetooth protocol m-transactions transactions with SAFE mobile (pre paid) accounts m-accounts administration of and access to SAFE mobile (pre paid) accounts m-banking access to and use of bank accounts m-cards administration of and payments using bankcards (debit or credit cards) m-cash handling of and payments using money stored in the Wallet 2.1.1 Mobile Payments: Over!the!Counter (OTC) and Over!the!Air (OTA) SAFE Merchant supports two types of mobile payment protocols between merchant and customer, both using mobile phones: OTC based on Bluetooth and OTA based on GPRS/SMS messages. Since for both protocols SAFE Wallet and SAFE Merchant work through the sequence of steps and messages, in the next two sections the sequence is shown through corresponding screen shots of the SAFE Merchant and SAFE Wallet. The first section (2.1.1.1) demonstrates payments OCT using Bluetooth, while the next section (2.1.1.2) demonstrates payments OTA using GPRS. 2.1.1.1 Mobile Payments Over!the!Counter (OTC) using Bluetooth With OTC mobile payment, the sequence is initiated by the merchant by pressing m!pay button. SAFE Merchant: m Pay When merchant selects m!pay function, SAFE Merchant application starts Bluetooth protocol. For that, the system asks for permission. In this protocol SAFE Merchant acts as the Server, SAFE Wallet acts as the Client. If the merchant selects Yes, Bluetooth protocol will be initiated. If the merchant rejects, i.e. selects No, m!pay will be performed using GPRS/SMS messages. In this section, we demonstrate the case when merchant decides to use OTC payment using Bluetooth protocol and selects Yes.

SETECS SAFE System: Wallet, Agent, and Merchant Manual 8 SAFE Merchant: m Pay Next, m!pay form for the merchant is displayed. It has Amount to pay and Tax fields. Both fields are dimmed, since SAFE Wallet still has not connected to the SAFE Merchant through the Bluetooth protocol. So, the merchant is waiting. SAFE Merchant: m Pay When Wallet connects, the fields in the form open for data entry. Merchant fills amount to pay and eventually tax and requests payment from the customer. This step will transfer the amount to pay and tax to customer s SAFE Wallet. SAFE Wallet: m Pay When customer presses m!pay button, SAFE Wallet starts Bluetooth protocol. For that, the system asks for permission. If the customer selects Yes, Bluetooth protocol will be initiated. If the customer rejects, i.e. selects No, m!pay will be performed using GPRS/SMS messages. In this section, we demonstrate the case when customer decides to use OTC payment using Bluetooth protocol and selects Yes. SAFE Wallet: m Pay Starting Bluetooth needs some time, so the system shows the message to wait. SAFE Wallet is starting Bluetooth protocol and discovering Bluetooth servers in the proximity. If one or more are detected, SAFE Wallet will recognize merchant s Bluetooth server and connect to it.

SETECS SAFE System: Wallet, Agent, and Merchant Manual 9 SAFE Wallet: m Pay After connection is established, SAFE Wallet displays the form for payment. All data fields are empty. Since Bluetooth connection has been established, data will be transferred from the SAFE Merchant and SAFE Wallet waits for data to be received. SAFE Merchant: m Pay When SAFE Wallet connects, Merchant s fields are enabled for entering payment data. Merchant fills amount to pay and eventually tax and requests payment from the customer. This step will transfer the amount to pay and tax to customer s SAFE Wallet. In the background, SAFE Merchant also transfers merchant s SAFE account number to receive the payment. SAFE Merchant: m Pay When the merchants presses Request Payment button, payment data will be transferred to the SAFE Wallet and merchant must wait.

SETECS SAFE System: Wallet, Agent, and Merchant Manual 10 SAFE Wallet: m Pay When merchant fills in amount to pay and tax and presses Request Payment button, data are transferred to the SAFE Wallet and displayed in the m-pay form. SAFE Merchant also transfers merchant s SAFE account, which will be used to receive payment. When payment data are displayed in the m!pay form, the customer first selects payment type: SAFE account, bank account or bankcard. In the case of having multiple SAFE or bank accounts or multiple bankcards, the customer must select one SAFE account, bank account or bankcard for payment. When the customer presses Pay button. SAFE Wallet sends the message to the SAFE system. SAFE Wallet: m Pay SAFE system performs the transaction! transfers money from the customer s SAFE account to the merchant s SAFE account and informs the customer about successful completion of the transaction. SAFE Wallet: m Pay When the customer presses OK button, SAFE Wallet, using again Bluetooth connection, informs SAFE Merchant that the payment has been completed. During that transfer, SAFE Wallet displays Please wait... message.

SETECS SAFE System: Wallet, Agent, and Merchant Manual 11 SAFE Merchant: m Pay When SAFE Merchant receives payment confirmation message, it displays information to the merchant. The next step, merchant asks the customer if he/she wants the receipt. SAFE Merchant: m Pay The message is transferred to the SAFE Wallet, so SAFE Merchant waits for the reply. SAFE Wallet: m Pay Customer receives the question if he/she wants to get the receipt from the merchant for the payment. If No the transaction is completed and SAFE Wallet s main menu is displayed. If Yes, SAFE Wallet informs SAFE Merchant. SAFE Wallet: m Pay SAFE Wallet must wait for merchant s receipt. SAFE Merchant: m Pay Merchant receives customer s request for the receipt. It presses Send Receipt and the receipt is transferred to the SAFE Wallet.

SETECS SAFE System: Wallet, Agent, and Merchant Manual 12 SAFE Merchant: m Pay The message is transferred to the SAFE Wallet, so SAFE Merchant waits. When transfer is completed, SAFE Merchant returns to its main menu. 2.1.1.2 Mobile Payments Over!the!Air (OTA) using GPRS With OTA payment, the merchant just tells the customer how much to pay. When payment is completed, merchant is notified simply by checking its SAFE account status. So, all steps are performed only by the SAFE Wallet. The sequence is initiated by the customer by pressing m!pay button. SAFE Wallet: m Pay When customer selects m-pay function, SAFE Wallet application starts Bluetooth protocol. For that, the system asks for permission. In this protocol SAFE Wallet acts as the Client, while SAFE Merchant acts as the Server. If the customer selects Yes, Bluetooth protocol will be initiated. If the customer rejects, i.e. selects No, m-pay will be performed using GPRS/SMS messages. In this section, we demonstrate the case when customer decides to use OTA payment using GPRS protocol and selects No. SAFE Wallet: m Pay In the next step, SAFE Wallet will display m-pay form. The customer first selects payment type: SAFE account, bank account or bankcard. In case of having multiple SAFE or bank accounts or multiple bankcards, the customer must select one SAFE account, bank account or bankcard for payment. Then, customer enters amount to pay and eventually tip. Merchant informs the customer to which SAFE account the payment should be made using merchant s mobile number, so the customer enters it.

SETECS SAFE System: Wallet, Agent, and Merchant Manual 13 SAFE Wallet: m Pay Payment form filled by the customer is sent to the SAFE system by pressing Pay button. SAFE Wallet: m Pay SAFE system performs the transaction! transfers money from the customer s SAFE account to the merchant s SAFE account and informs the customer about successful completion of the transaction. When the customer presses OK button, SAFE Wallet returns to the main menu. 2.1.2 Transactions with SAFE Mobile Accounts m Transactions: SAFE Transactions Menu Users may perform three transactions using SAFE mobile accounts and also list those transactions: Deposit Cash performed between the user and an agent (user pre pays money to his/her SAFE account) Withdraw Cash performed between the user and an agent (user cashes out money from his/her SAFE account) Transfer Money performed between two users (one user transfers money to the SAFE account of another user) List Transactions user lists the last five transactions from his/her SAFE account

SETECS SAFE System: Wallet, Agent, and Merchant Manual 14 m Transactions: Deposit Cash User enters the amount to deposit and the mobile number of the agent. In case of multiple SAFE accounts, user also selects his/her SAFE account to which the money will be deposited. Note: SAFE v 2.3 supports only one SAFE account per user m Transactions: Withdraw Cash User enters the amount to withdraw and the mobile number of the agent. In case of multiple SAFE accounts, user also selects his/her SAFE account from which the money will be withdrawn. Note: SAFE v 2.3 supports only one SAFE account per user m Transactions: Transaction Code Both transactions deposit cash and withdraw cash require confirmation by the agent. For that, the system returns four digits random transaction code to the user. User tells that code to the agent, who uses it to confirm the transaction (see Chapter 4). m Transactions: Transfer Money User enters the amount to transfer and SAFE account of the recipient. In case of multiple SAFE accounts, user also selects his/her SAFE account from which the money will be withdrawn. The money is immediately transferred and the user is notified about new balance of his/her account. The recipient can verify the transfer by checking his/her SAFE account balance. Note: SAFE v 2.3 supports only one SAFE account per user

SETECS SAFE System: Wallet, Agent, and Merchant Manual 15 m Transactions: List Transactions The list of the last five transactions is displayed. This function displays transactions only if some transactions with mobile account have been performed. 2.1.3 Operations with SAFE Mobile Accounts m Accounts: SAFE Accounts Menu Users may perform five actions with their SAFE mobile accounts: List SAFE Accounts list all user s SAFE accounts registered in the system SAFE Account Balance get balance of the selected SAFE account Suspend Account temporally disable the use of the account Activate Account enable the use of an account after being suspended Terminate Account permanently remove the account from the system Note: Only accounts without money may be terminated m Accounts: List SAFE Accounts All user s SAFE accounts are listed Note: SAFE v 2.3 supports only one SAFE account per user m Accounts: SAFE Account Balance User selects one of the SAFE accounts and checks its current balance Note: SAFE v 2.3 supports only one SAFE account per user

SETECS SAFE System: Wallet, Agent, and Merchant Manual 16 m Accounts: SAFE Account Balance System displays selected SAFE account number and its current balance. m Accounts: Suspend SAFE Account User temporally disables the use of one of his/her SAFE accounts. m Accounts: Activate SAFE Account User activates previously suspended SAFE account. m Accounts: Terminate SAFE Account User permanently terminates one of his/her SAFE accounts.

SETECS SAFE System: Wallet, Agent, and Merchant Manual 17 2.1.4 Mobile Banking (m Banking) m Banking: Transactions Menu Users may perform three transactions using bank accounts, list those accounts, and list transactions with bank accounts: Register Bank Account register bank account in the SAFE system Pay Bill/Invoice pay bill (individuals) or pay invoice (companies) using bank account Transfer Funds transfer funds from one bank account to another Account Balancer inquire the balance for the selected account List/Delete Bank Accounts list all bank accounts registered in the SAFE system List Transactions list the last five transactions performed with the selected bank account Note: m Banking can be used only if SAFE system is connected to a bank s IT Server directly or through some banking switch m Banking: Register Bank Account User enters bank s name, IBAN or Routing Number and his/her bank account number. m Banking: Pay Bill/Invoice User enters bill/invoice number and the amount to pay using bank account.

SETECS SAFE System: Wallet, Agent, and Merchant Manual 18 m Banking: Transfer Funds User enters target bank account for transfer and the amount to transfer. Note: Money may also be transferred to user s own mobile account m Banking: List Bank Accounts The system lists all user s bank accounts registered in the SAFE system. m Banking: List / Delete Bank Accounts When one account is selected, the system displays it, together with its balance. User may choose to delete it from the Wallet, if that account has been closed in the bank. m Banking: List Transactions User may select bank account and list the last five transactions performed with the selected bank account.

SETECS SAFE System: Wallet, Agent, and Merchant Manual 19 m Banking: Listing of Transactions The system lists the last five transactions performed with the selected bank account. 2.1.5 Mobile Bankcard Transactions (m Cards) m Cards: Bankcards Menu Users may register bankcard in the Wallet, check balance of credit cards, list registered bankcards, and list transactions performed with bankcards: Register Card register bankcard Check Card Balance inquire balance for the selected credit card List/Delete Cards list registered bankcards and remove those that are no longer valid List Transactions list the last five transactions performed with the selected bankcard Note: m Cards functions can be used only if SAFE system is connected to some card transaction processing gateway Note: Payments are performed by selecting one of the registered bankcards in the m Pay function m Cards: Register Card User registers his/her bankcard by entering card brand, card type, issuing bank, card number, card authorization code and card expiration date. In order to select Issuing Bank, at least one bank and one bank account must be registered.

SETECS SAFE System: Wallet, Agent, and Merchant Manual 20 m Cards: List Cards User may list all registered bankcards. m Cards: View / Delete Card When one bankcard is selected, the system displays it. User may choose to delete it from the Wallet, if that card has been closed in the bank. m Cards: List Transactions User may list the last five transactions performed with the selected bankcard. m Cards: Listing of Transactions The system lists the last five transactions performed with the selected bankcard.

SETECS SAFE System: Wallet, Agent, and Merchant Manual 21 2.1.6 Transactions with Stored Money (m Cash) m Cash: Stored Cash Menu Users may perform two transactions with stored money and view money stored in the Wallet: Load Cash into Wallet transfer cash from the SAFE mobile account into Wallet Unload Cash from Wallet transfer cash stored in the Wallet back to the SAFE mobile account View Stored Money view the amount of money available in the Wallet Note: Payments are performed by selecting Stored Money in the m Pay function m Cash: Load Cash into Wallet Users must select SAFE account from which the money will be loaded into the Wallet and enters the amount to be loaded. m Cash: Unload Cash from Wallet Users must select SAFE account to which the money will be unloaded from the Wallet and enter the amount to be unloaded. m Cash: View Stored Cash Users may view the amount of money stored in the Wallet.

SETECS SAFE System: Wallet, Agent, and Merchant Manual 22 2.2 Mobile Shopping Functions m Shopping: Mobile Shopping Menu SAFE Wallet supports seven groups of secure mobile shopping transactions, selected using mobile shopping menu. From this menu users can perform the following functions: m-advertisements select and download announcements m-promotions select and download promotions with various discounts and benefits m Coupons select and download mobile coupons m-telecom inquire, select, purchase top-up) air time m-tickets inquire, select, purchase, transfer and use mobile tickets m-parking search for parking places, pay parking using SAFE account, receive expiration notifications m-gift Cards inquire, select, purchase, transfer and use mobile gift cards m Shopping: View / Download Advertisements Mobile advertisements are loaded into Mobile Marketing Server of the SAFE system by merchants, using m Marketing functions of the SAFE Merchant smart phone application. By pressing m Advertising button users can list mobile advertisements. Initially, only advertisements already stored in the Wallet are listed. By pressing On the Market tab users list advertisements loaded into Mobile Marketing Server. These advertisements can be downloaded into the Wallet selecting them individually. Users can view the downloaded advertisements by pressing the In the Wallet tab. Advertisements loaded at the Mobile Marketing Server can be filtered by user s location. Either all are listed (tab All ) at the bottom or only those uploaded by merchants close to user s location (tab At nearby Location ) at the bottom of the screen. m Shopping: View Stored Advertisements When the customer selects In the Wallet, advertisements stored locally in the Wallet are displayed.

SETECS SAFE System: Wallet, Agent, and Merchant Manual 23 m Shopping: View / Delete Advertisement When one advertisement is selected, it is displayed enlarged, so the customer can view its details and also remove it from the Wallet, if it is not valid any longer. QR bar code is used to present it to the merchant s SAFE Merchant application for mobile clearance, using merchant s mobile phone as mobile Point of Sale (PoS) device. m Shopping: View / Download Promotions Mobile promotions are loaded into Mobile Marketing Server of the SAFE system by merchants, using m Marketing functions of the SAFE Merchant smart phone application. By pressing m Promotions button users can list mobile promotions. Initially, only promotions already stored in the Wallet are listed. By pressing On the Market tab users list promotions loaded into Mobile Marketing Server. These promotions can be downloaded into the Wallet selecting them individually. Users can view the downloaded promotions by pressing the In the Wallet tab. Promotions loaded at the Mobile Marketing Server can be filtered by user s location. Either all are listed (tab All ) at the bottom or only those uploaded by merchants close to user s location (tab At nearby Location ) at the bottom of the screen. m Shopping: View Stored Promotions When the customer selects In the Wallet, promotions stored locally in the Wallet are displayed.

SETECS SAFE System: Wallet, Agent, and Merchant Manual 24 m Shopping: View / Delete Promotion When one promotion is selected, it is displayed enlarged, so the customer can view its details and also remove it from the Wallet, if it is not valid any longer. QR bar code is used to present it to the merchant s SAFE Merchant application for mobile clearance, using merchant s mobile phone as mobile Pont of Sale (PoS) device. m Shopping: View / Download Coupons Mobile coupons are loaded into m Marketing Server of the SAFE system by merchants, using m Marketing functions of the Merchant smart phone application. By pressing m Coupons button users list mobile coupons. Initially, only coupons already stored in the Wallet are listed. By pressing On the Market tab users list coupons loaded into the Mobile Marketing Server. These coupons can be downloaded into the Wallet pressing them individually. Users can view the downloaded coupons by pressing the In the Wallet tab. Coupons on the m Marketing Server can be filtered by user s location. Either all are listed (tab All ) at the bottom or only those uploaded by merchants close to user s location (tab At nearby Location ) at the bottom of the screen. m Shopping: View Stored Coupons When one coupon is selected, it is displayed enlarged, so the customer can view its details and also remove it from the Wallet, if it is not valid any longer. QR bar code is used to present it to the merchant s SAFE Merchant application for mobile clearance, using merchant s mobile phone as mobile Point of Sale (PoS) device.

SETECS SAFE System: Wallet, Agent, and Merchant Manual 25 m Shopping: View / Delete Coupon When one coupon is selected, it is displayed enlarged, so the customer can view its details and also remove it from the Wallet, if it is not valid any longer. QR bar code is used to present it to the merchant s SAFE Merchant application for mobile clearance, using merchant s mobile phone. m Marketing: Mobile Telecom Menu Through mobile telecom menu, telecom providers will be able to upload their airtime plans and in that way providing possibility to users to review various airtime plans, search for plans, select one plan and pay for it. This group of mobile services requires on line connection to telecoms offering airtime plans m Shopping: View Tickets at the Server Mobile tickets are loaded into m Marketing Server of the SAFE system by theaters, using m Marketing functions of the Merchant smart phone application. By pressing m Tickets button users list mobile tickets. Initially, only tickets already stored in the Wallet are listed. By pressing On the Market tab users list tickets loaded into the m Marketing Server. These tickets can be purchased and then downloaded into the Wallet pressing them individually. Users can view purchased tickets by pressing the In the Wallet tab. Tickets on the m Marketing Server can be filtered by user s location. Either all are listed (tab All ) at the bottom or only those uploaded by theaters close to user s location (tab At nearby Location ) at the bottom of the screen. Tickets may be paid using any SAFE payment method SAFE accounts, bank accounts, bankcards, or stored money.

SETECS SAFE System: Wallet, Agent, and Merchant Manual 26 m Shopping: View Stored Tickets When the customer lists ticket in the Wallet purchased tickets, the list of locally stored tickets is displayed. m Shopping: Purchase Ticket When one of the tickets available at the Server is selected, Wallet immediately displays m Pay form. The price of the ticket and merchant s account are preloaded in the form. When customer pays the ticket, the system will download the ticket into customer s Wallet. m Shopping: View Purchased Tickets After the ticket is downloaded in the Wallet, the Wallet will display locally stored purchased tickets, including the new ticket. This listing is equivalent with the listing shown by Wallet when listing of tickets in the Wallet is selected.

SETECS SAFE System: Wallet, Agent, and Merchant Manual 27 m Shopping: View / Present Ticket When one of the locally stored purchased tickets is selected, it is displayed with its full details. QR bar code is used to present it to the merchant s SAFE Merchant application for mobile clearance, using merchant s mobile phone as mobile Point od Sale (PoS) device. m Shopping: Mobile Parking SAFE Wallet supports four functions for mobile parking: Search Parking users may search available parking place at the local garage / parking location Pay Parking users may pay parking Extend Parking users may extend their parking hours Pay Ticket users may use SAFE system to pay tickets for parking violations Note: All mobile parking functions require SAFE system to be integrated with the parking system of some Parking Authority m Shopping: Search Parking Users may search for available parking place at the local garage / parking location by giving its registration number m Shopping: Pay Parking Users may pay for parking by specifying parking place, parking time and selecting method of payment.

SETECS SAFE System: Wallet, Agent, and Merchant Manual 28 m Shopping: Extend Parking The system will warn users about expiration of their parking time. In that case, users may extend parking by specifying parking place number and additional parking time. m Shopping: Pay Ticket The system will notify users if the ticket has been issued for parking violation. In that case, users may pay the ticket using SAFE system, by specifying ticket number, parking place number, amount to pay and by selecting the method for payment. m Shopping: View Gift Cards at the Server Mobile gift cards are loaded into m Marketing Server of the SAFE system by merchants, using m Marketing functions of the Merchant smart phone application. By pressing m Gift Cards button users list mobile gift cards. Initially, only gift cards already stored in the Wallet are listed. By pressing On the Market tab users list gift cards loaded into the m Marketing Server. These gift cards can be purchased and then downloaded into the Wallet pressing them individually. Users can view purchased gift cards by pressing the In the Wallet tab. Gift cards on the m Marketing Server can be filtered by user s location. Either all are listed (tab All ) at the bottom or only those uploaded by merchants close to user s location (tab At nearby Location ) at the bottom of the screen. Gift cards may be paid using any SAFE payment method SAFE accounts, bank accounts, bankcards, or stored money.

SETECS SAFE System: Wallet, Agent, and Merchant Manual 29 m Shopping: View Stored Gift Cards When the customer lists gift cards in the Wallet purchased gift cards, the list of locally stored gift cards is displayed. m Shopping: Purchase Gift Card When one of the gift cards available at the Server is selected, Wallet immediately displays m Pay form. The price of the gift cards and merchant s account are preloaded in the form. When customer pays the gift cards, the system will download the gift cards into customer s Wallet. m Shopping: View Purchased Gift Cards After the gift card is downloaded in the Wallet, the Wallet will display locally stored purchased gift cards, including the new gift card. This listing is equivalent with the listing shown by Wallet when listing of gift cards in the Wallet is selected.

SETECS SAFE System: Wallet, Agent, and Merchant Manual 30 m Shopping: View / Transfer Gift Card When one of the locally stored purchased gift cards is selected, it is displayed with its full details. Gift card can be transferred to another SAFE user. Gift cards may be used as one of the payment options with m-pay, as explained for the SAFE Wallet. 2.3 Wallet Settings Functions SAFE Wallet m!settings Menu SAFE Wallet supports four functions to perform settings of various Wallet parameters. From this menu users can perform the following functions: System Configuration enter/edit the SAFE server address. Wallet Applications select applications which will appear on Wallet s home page User Registration update user registration data entered during initial sequence Security Settings select / update various security options m Settings: System Configuration This function is the same as the one performed during initial sequence. Users may modify SAFE system mobile number and/or SAFE system IP number, entered during the initial sequence.

SETECS SAFE System: Wallet, Agent, and Merchant Manual 31 m Settings: Wallet Applications This function is used to select/unselect Wallet applications that will appear on Wallet s home page. m Settings: User Registration If the user is already registered, this function will display such message. If for some reason, user did not register during the initial sequence, this function will provide the user the possibility to register in the SAFE system. In that case the panel displayed is the same as in the third step of the initial sequence. m Settings: Security Settings With Security Settings users may select: to change local Wallet PIN to change SAFE system PIN to request certificate to select/modify various security options m Settings: Change Wallet PIN Users may modify local PIN specified during the initial sequence.

SETECS SAFE System: Wallet, Agent, and Merchant Manual 32 m Settings: Change SAFE System PIN Users may modify SAFE system PIN which was assigned to them automatically during registration. m Settings: Request Certificate By executing this function, user will generates RSA key pair send certificate request to the CA Server and download the resulting certificate m Settings: Security Options Users may select various security options for protection of their messages: no security, data integrity only, data confidentiality only, or both data integrity and data confidentiality

SETECS SAFE System: Wallet, Agent, and Merchant Manual 33 Chapter 3: SAFE Secure Mobile Merchant Application SAFE Secure Mobile Merchant as an application for smart phones used by merchants. It provides four groups of mobile functions: Mobile payments with SAFE Wallet over the air (OTA) using GPRS or SMS messages and over the-counter (OTC) using Bluetooth protocol Mobile marketing functions, where merchants can upload to the Mobile Marketing Server their advertising and promotion messages, coupons, tickets and gift cards and telecoms may upload their airtime top up plans Mobile business functions, first mobile transactions in locations using Point of Sale (PoS) systems, then mobile services for the owners/drivers of vehicles, and various mobile commerce transactions accepting and clearing mobile vouchers from customers, uploaded by merchants using m Marketing services Mobile accounts administration of and access to SAFE mobile (pre paid) accounts. Settings various functions for configuring Secure Mobile Merchant application Note: If merchant wants to use full scope of mobile services, with mobile SAFE accounts, mobile services with bank accounts, bank cards, etc., then the merchant must use SAFE Wallet for those functions. Initial sequence for SAFE Merchant is equivalent as for SAFE Wallet. After initial sequence, when starting SAFE Merchant application, merchant must specify PIN. SAFE Merchant Login using PIN To start SAFE Merchant application, merchant must specify PIN. After login into the Merchant application by providing local PIN, the application will display the main menu. SAFE Secure Mobile Merchant supports several groups of functions, accessible through their corresponding buttons on the Merchant s home page:! m Pay: Mobile payments using different payment methods and protocols! m!marketing: Uploading and distribution of various mobile discounts and vouchers! m Business: Mobile PoS transactions, mobile vehicles services, and mobile commerce transactions! m!accounts: Administration and use of SAFE mobile accounts! m Settings: Selecting or updating various Merchant parameters

SETECS SAFE System: Wallet, Agent, and Merchant Manual 34 SAFE Merchant Main Menu m-pay mobile payments (accept payments from customers) m-marketing uploading advertisements, promotions, coupons, gift cards, tickets and other vouchers to the m Marketing Server m-business perform mobile business transactions: handle inventory, create orders, invoices and perform payments m-accounts administration of and access to SAFE mobile (pre paid) accounts m-settings various functions to configure Secure Mobile Merchant 3.1 Mobile Payments 3.1.1 Mobile Payments Over!the!Counter (OTC) and Over!the!Air (OTA) SAFE Merchant supports two types of mobile payment protocols between merchant and customer, both using mobile phones: OTC based on Bluetooth and OTA based on GPRS/SMS messages. Since for both protocols SAFE Wallet and SAFE Merchant work through the sequence of steps and messages, in the next two sections the sequence is shown through corresponding screen shots of the SAFE Merchant and SAFE Wallet. 3.1.1.1 Mobile Payments: Over!the!Counter (OTC) using Bluetooth With OTC mobile payment, the sequence is initiated by the merchant by pressing m!pay button. SAFE Merchant: m Pay When merchant selects m!pay function, SAFE Merchant application starts Bluetooth protocol. For that, the system asks for permission. In this protocol SAFE Merchant acts as the Server, SAFE Wallet acts as the Client. If the merchant selects Yes, Bluetooth protocol will be initiated. If the merchant rejects, i.e. selects No, m!pay will be performed using GPRS/SMS messages. In this section, we demonstrate the case when merchant decides to use OTC payment using Bluetooth protocol and selects Yes.

SETECS SAFE System: Wallet, Agent, and Merchant Manual 35 SAFE Merchant: m Pay Next, m!pay form for the merchant is displayed. It has Amount to pay and Tax fields. Both fields are dimmed, since SAFE Wallet still has not connected to the SAFE Merchant through the Bluetooth protocol. So, the merchant is waiting. SAFE Merchant: m Pay When Wallet connects, the fields in the form open for data entry. Merchant fills amount to pay and eventually tax and requests payment from the customer. This step will transfer the amount to pay and tax to customer s SAFE Wallet. SAFE Wallet: m Pay When customer presses m!pay button, SAFE Wallet starts Bluetooth protocol. For that, the system asks for permission. If the customer selects Yes, Bluetooth protocol will be initiated. If the customer rejects, i.e. selects No, m!pay will be performed using GPRS/SMS messages. In this section, we demonstrate the case when customer decides to use OTC payment using Bluetooth protocol and selects Yes. SAFE Wallet: m Pay Starting Bluetooth needs some time, so the system shows the message to wait. SAFE Wallet is starting Bluetooth protocol and discovering Bluetooth servers in the proximity. If one or more are detected, SAFE Wallet will recognize merchant s Bluetooth server and connect to it.

SETECS SAFE System: Wallet, Agent, and Merchant Manual 36 SAFE Wallet: m Pay After connection is established, SAFE Wallet displays the form for payment. All data fields are empty. Since Bluetooth connection has been established, data will be transferred from the SAFE Merchant and SAFE Wallet waits for data to be received. SAFE Merchant: m Pay When SAFE Wallet connects, Merchant s fields are enabled for entering payment data. Merchant fills amount to pay and eventually tax and requests payment from the customer. This step will transfer the amount to pay and tax to customer s SAFE Wallet. In the background, SAFE Merchant also transfers merchant s SAFE account number to receive the payment. SAFE Merchant: m Pay When the merchants presses Request Payment button, payment data will be transferred to the SAFE Wallet and merchant must wait.

SETECS SAFE System: Wallet, Agent, and Merchant Manual 37 SAFE Wallet: m Pay When merchant fills in amount to pay and tax and presses Request Payment button, data are transferred to the SAFE Wallet and displayed in the m-pay form. SAFE Merchant also transfers merchant s SAFE account, which will be used to receive payment. When payment data are displayed in the m!pay form, the customer first selects payment type: SAFE account, bank account or bankcard. In the case of having multiple SAFE or bank accounts or multiple bankcards, the customer must select one SAFE account, bank account or bankcard for payment. When the customer presses Pay button. SAFE Wallet sends the message to the SAFE system. SAFE Wallet: m Pay SAFE system performs the transaction! transfers money from the customer s SAFE account to the merchant s SAFE account and informs the customer about successful completion of the transaction. SAFE Wallet: m Pay When the customer presses OK button, SAFE Wallet, using again Bluetooth connection, informs SAFE Merchant that the payment has been completed. During that transfer, SAFE Wallet displays Please wait... message.

SETECS SAFE System: Wallet, Agent, and Merchant Manual 38 SAFE Merchant: m Pay When SAFE Merchant receives payment confirmation message, it displays information to the merchant. The next step, merchant asks the customer if he/she wants the receipt. SAFE Merchant: m Pay The message is transferred to the SAFE Wallet, so SAFE Merchant waits for the reply. SAFE Wallet: m Pay Customer receives the question if he/she wants to get the receipt from the merchant for the payment. If No the transaction is completed and SAFE Wallet s main menu is displayed. If Yes, SAFE Wallet informs SAFE Merchant. SAFE Wallet: m Pay SAFE Wallet must wait for merchant s receipt. SAFE Merchant: m Pay Merchant receives customer s request for the receipt. It presses Send Receipt and the receipt is transferred to the SAFE Wallet.

SETECS SAFE System: Wallet, Agent, and Merchant Manual 39 SAFE Merchant: m Pay The message is transferred to the SAFE Wallet, so SAFE Merchant waits. When transfer is completed, SAFE Merchant returns to its main menu. 3.1.1.2 Mobile Payments Over!the!Air (OTA) using GPRS With OTA payment, the merchant just tells the customer how much to pay. When payment is completed, merchant is notified simply by checking it SAFE account status. So, all steps are performed only by the SAFE Wallet. The sequence is shown in the section 2.1.1.2. 3.2 Mobile Marketing Functions With mobile marketing functions merchants can upload various marketing items to the SAFE Mobile Marketing Server. SAFE Merchant Mobile Marketing Menu SAFE Merchant supports the following m Marketing functions: m-advertising upload advertising messages to the Mobile Marketing Server and view/remove uploaded advertisements m-promotions upload promotions to the Mobile Marketing Server and view/remove uploaded promotions m-coupons upload mobile coupons to the Mobile Marketing Server and view/remove uploaded coupons m-telecom upload various airtime plans m-tickets upload tickets to the Mobile Marketing Server and view/remove uploaded tickets m-gift Cards upload mobile gift cards to the Mobile Marketing Server and view/remove uploaded gift cards m Marketing: Mobile Advertising Menu For mobile advertising, merchant can upload its advertising messages to the Mobile Marketing Server, view, and delete those that are not valid any longer. Advertisements are messages with general information about products and services. They are informative and no benefits are offered to customers. Benefit offers (discounts, special offers, etc.) are handled by m!promotions and m Coupons.

SETECS SAFE System: Wallet, Agent, and Merchant Manual 40 m Marketing: Upload Advertisement Merchant uploads an advertisement to the Mobile Marketing Server by specifying its description, starting and expiration dates. m Marketing: View Advertisements Merchant can view all its advertisements uploaded to the Mobile Marketing Server and delete those not accurate or relevant any longer. m Marketing: View / Delete Advertisement When one advertisement is selected, it is displayed enlarged, so the merchant can view its details and also remove it from the Mobile Marketing Server, if it is not valid any longer.

SETECS SAFE System: Wallet, Agent, and Merchant Manual 41 m Marketing: Confirm Deletion When the merchant decides to remove the advertisement from the Mobile Marketing Server, he/she will be asked to confirm this action. m Marketing: Mobile Promotions Menu For mobile promotions, merchant can upload its promotion messages using Mobile Marketing Server, view and delete those that are not valid any longer. Promotions are various informative messages offering benefits to customers, like discounts, special deals, special arrangements, etc. m Marketing: Upload Promotion When uploading mobile promotions, merchant enters description of the promotion, its starting and expiration dates. m Marketing: View Promotions Merchant can view all its promotions uploaded into the Mobile Marketing Server and delete those that are not relevant or accurate.

SETECS SAFE System: Wallet, Agent, and Merchant Manual 42 m Marketing: View / Delete Promotion When one promotion is selected, it is displayed enlarged, so the merchant can view its details and also remove it from the Mobile Marketing Server, if it is not valid any longer. m Marketing: Confirm Deletion When the merchant decides to remove the promotion from the Mobile Marketing Server, he/she will be asked to confirm this action. m Marketing: Mobile Coupons Menu For mobile coupons, merchant can upload and view mobile coupons. Mobile coupons are messages that have certain benefits to user, like discounts, special deals, special arrangements, etc. The difference with promotions is that, contrary to the promotion, where users must only be informed about them, with mobile coupons to use their benefits. They must be presented to the merchant. Mobile coupons may have discounted value or discount percentage.

SETECS SAFE System: Wallet, Agent, and Merchant Manual 43 m Marketing: Upload Coupon When uploading mobile coupon, merchant enters description of the coupon, its discounted value or discount percentage, its starting and expiration dates. m Marketing: View Coupons Merchant can view all its coupons loaded to the Mobile Marketing Server and delete those that are not relevant or accurate. m Marketing: View / Delete Coupon When one coupon is selected, it is displayed enlarged, so the merchant can view its details and also remove it from the Mobile Marketing Server, if it is not valid any longer.

SETECS SAFE System: Wallet, Agent, and Merchant Manual 44 m Marketing: Confirm Deletion When the merchant decides to remove the coupon from the Mobile Marketing Server, he/she will be asked to confirm this action. m Marketing: Mobile Telecom Menu Through mobile telecom menu, telecom providers will be able to upload their airtime plans and in that way provide possibility to users to review various airtime plans, search for plans, select one plan and pay for it. This group of mobile services requires on line connection to telecoms offering airtime plans. m Marketing: Mobile Tickets Menu For merchants selling tickets (movie, concert, football game, etc.) Merchant application offers the possibility to upload tickets, view and remove mobile tickets, plus get sales report for claimed tickets. Mobile tickets are similar to mobile coupons! in order to claim them, they must be presented to the merchant. The difference is that tickets always have only the value and must be purchased in advance. m Marketing: Upload Ticket When uploading mobile tickets, merchant enters description of the event, ticket s price, the date of the event and starting time of the event.

SETECS SAFE System: Wallet, Agent, and Merchant Manual 45 m Marketing: View Tickets Merchant can view all its tickets uploaded into the Mobile Marketing Server and delete those that are not relevant or valid. m Marketing: View / Delete Ticket When one ticket is selected, it is displayed enlarged, so the merchant can view its details and also remove it from the Mobile Marketing Server, if it is not valid any longer. m Marketing: Confirm Deletion When the merchant decides to remove the ticket from the Mobile Marketing Server, he/she will be asked to confirm this action.

SETECS SAFE System: Wallet, Agent, and Merchant Manual 46 m Marketing: Tickets Sales Report Merchant can view the sale of tickets for the given day. m Marketing: Mobile Gift Cards Menu For merchants selling gift cards Merchant application offers the possibility to upload gift cards, view mobile gift cards, plus get sales report for claimed gift cards. Mobile gift cards are similar to mobile tickets! in order to claim them, they must be presented to the merchant. They also have the value and must be purchased in advance. m Marketing: Upload Gift Card When uploading mobile gift cards, merchant enters description of the gift card and the amount (value) of the gift card. m Marketing: View Gift Cards Merchant can view all its gift cards loaded into the Mobile Marketing Server and delete those that are not offered any longer.

SETECS SAFE System: Wallet, Agent, and Merchant Manual 47 m Marketing: View / Delete Gift Card When one gift card is selected, it is displayed enlarged, so the merchant can view its details and also remove it from the Mobile Marketing Server, if it is not valid any longer. m Marketing: Confirm Deletion When the merchant decides to remove the gift card from the Mobile Marketing Server, he/she will be asked to confirm this action. m Marketing: Gift Cards Sales Report Merchant can view the sale of gift cards for the given day.

SETECS SAFE System: Wallet, Agent, and Merchant Manual 48 3.3 Mobile Business Functions m Business: Mobile Business Menu SAFE Merchant supports the following m Business functions: m!pos System: mobile functions with PoS systems: create inventory, review inventory, create quote, create order, create check m!vehicles: mobile functions for owners of motor vehicles: pay registration fees, pay toll, pay parking, pay for gasoline m Commerce: verification of mobile vouchers created and uploaded by m!marketing functions m Business: Mobile PoS System Menu Mobile PoS services can be used by merchants that have PoS system, like restaurants, supermarkets, bookstores, small shops, etc. This subsystem provides the following functions: POS Server configure PoS Server Sale Items create and manage inventory of items on the PoS Server (menu in restaurants, goods for sale in shops, etc.) Create Order! create order (quote) to be presented to the customer containing selection of sale items Create Invoice! based on the confirmed order, create invoice to be paid by the customer List Transactions! list all orders and invoices for some period of time m Business: Mobile Vehicles Transactions Using SAFE Merchant, Parking Authorities, may perform the following functions: Parking Locations register all parking locations (garages and parking places) and their parking rates Verify Payments get the list of expired parking payments and inspect violations at parking locations Issue Ticket issue ticket for cards whose parking has expired

SETECS SAFE System: Wallet, Agent, and Merchant Manual 49 m Business: Parking Locations Parking Authority can register parking locations by specifying its name, registration number and the number of parking places. Based on this information, SAFE system will generate registration number for each parking place at that location. m Business: Verify Payments With this function, parking inspector can get the list of all parking places at the selected parking location which are not paid at the moment of the inquiry. Each occupied parking place (vehicle parked) means that parking has not been paid or expired. m Business: Issue Ticket With this function, parking inspector can issue the ticket for parking violation. m Commerce: Mobile Tickets Merchants can accept and list mobile tickets

SETECS SAFE System: Wallet, Agent, and Merchant Manual 50 m Commerce: Accept Mobile Tickets In order to accept mobile ticket, barcode application must be installed. If it is not installed, Merchant application will ask the merchant for permission to install bar code application. Note: Currently bar code recognition works only for Android smart phones m Commerce: List Mobile Tickets Merchant may list locally stored mobile tickets accepted from users. This is for inventory or control purposes 3.4 Mobile SAFE Accounts SAFE Merchant Mobile Accounts Menu This group of functions is used to manipulate with SAFE mobile accounts. Merchants can get the balance of their accounts or they can list the last five transactions. Note: SAFE Merchant application offers only limited set of functions with mobile accounts. For all other functions, merchants must use SAFE Wallet.

SETECS SAFE System: Wallet, Agent, and Merchant Manual 51 m Accounts: SAFE Account Balance In case of multiple SAFE accounts, merchants can select one of the SAFE accounts and get its balance. m Accounts: Account Balance When Check Balance is performed, the system will return SAFE account number and its balance. 3.5 Merchant Settings Functions SAFE Merchant m!settings Menu SAFE Merchant supports four functions to perform settings of various Merchant parameters. From this menu users can perform the following functions: System Configuration enter/edit the SAFE server address. Merchant Registration update merchant registration data entered during initial sequence Register Location! register the location of the merchant s shop Security Settings select / update various security options m Settings: System Configuration This function is the same as the one performed during initial sequence. Merchant may modify SAFE system mobile number and/or SAFE system IP number, entered during the initial sequence.

SETECS SAFE System: Wallet, Agent, and Merchant Manual 52 m Settings: Merchant Registration If the merchant is already registered, this function will display such message. If for some reason, merchant did not register during the initial sequence, this function will provide the merchant the possibility to register in the SAFE system. In that case the panel displayed is the same as in the third step of the initial sequence. m Settings: Security Settings With Security Settings users may select: to change local Merchant PIN to change SAFE system PIN to request certificate to select/modify various security options m Settings: Change Merchant PIN Merchant may modify local PIN entered during the initial sequence. m Settings: Change SAFE System PIN Merchants may modify SAFE system PIN, which was assigned to them automatically during registration. m Settings: Request Certificate By executing this function, merchant will generates RSA key pair send certificate request to the CA Server and download the resulting certificate

SETECS SAFE System: Wallet, Agent, and Merchant Manual 53 m Settings: Security Options Merchants may select various security options for protection of their messages: no security, data integrity only, data confidentiality only, or both data integrity and data confidentiality

SETECS SAFE System: Wallet, Agent, and Merchant Manual 54 Chapter 4: SAFE Secure Mobile Agent Application Agents are persons, merchants or any other member of the SAFE system, authorized by the system administrator to perform the functions of an agent. Those functions are! Registration of users and merchants! Acceptance of deposits into SAFE accounts (cash in transactions)! Payment of cash from SAFE accounts (cash out transactions) If an individual, who is the customer of the SAFE system, acts also as an agent, he/she must use SAFE Wallet application for its own financial transactions and use SAFE Agent application when performing agent s transactions. The same with merchants: if they perform their own transactions, they use SAFE Merchant application, while if they act as an agent, they use SAFE Agent application. Initial sequence for the SAFE Agent is equivalent as for SAFE Wallet. After initial sequence, when starting SAFE Agent, the agent must specify PIN. SAFE Agent Login using PIN To start SAFE Agent, the agent must specify PIN. After login into the SAFE Agent application by providing local PIN, the application will display the main menu. SAFE Secure Mobile Agent supports several groups of functions, accessible through their corresponding buttons on the Agent s home page:! Registration functions! to register users, merchant s and merchant s locations for those merchants who do not have mobile phones supporting location!based registration! Financial transactions! to confirm cash!in and cash!out transactions by users and review agent s daily log of transactions in order to decide how much money to deposit back to the agent s mobile account! m Settings! Selecting or updating various SAFE Merchant parameters

SETECS SAFE System: Wallet, Agent, and Merchant Manual 55 SAFE Agent Main Menu SAFE Agent supports seven mobile functions: Register User agents can register other users Register Merchant agents can register merchants Merchant Location agents may register location of a merchant, if merchant s mobile phone does not have location based capabilities Confirm Transaction agent must confirm all cash in and cash out transactions SAFE Account Balance agents can check the balance of their SAFE account after cash in and cash out operations Daily Report agents may list their daily transactions when depositing cash to the SAFE escrow account m Settings various functions to configure Secure Mobile Agent Note: In order to perform Merchant Location function, agent s phone must support location based services SAFE Agent: Register User This function on a mobile phone is equivalent to User Registration (see section 2.3). The difference is at the system side users are labeled as being registered by an agent, through face to face validation of user s identity Note: When registered by an agent, users must confirm registration (see section 2.3) SAFE Agent: Register User After user s confirmation, the agent will get notification message that the user has been successfully registered SAFE Agent: Register Merchant This function on a mobile phone is equivalent to Merchant Registration (see section 3.5). The difference is on the system side merchants are labeled as being registered by an agent, through face to face validation of user s identity Note: When registered by an agent, merchant must confirm registration (see section 3.5, since that function for merchant is equivalent to the same function for users)

SETECS SAFE System: Wallet, Agent, and Merchant Manual 56 SAFE Agent: Merchant Location If merchant does not have location based enabled phone, agent can register merchant s location. In this process agent! either selects one of the pre defined business types or! specifies new business type! enters description of merchant s business! specifies merchant s SAFE account! specifies merchant s address! specifies Wi-Fi network name, and! Wi-Fi network secret key Note: The last two parameters are used for free Wallet access to the Wi Fi network, if the merchant is willing to provide such service for its customers SAFE Agent: Confirm Transaction When the user performs cash in or cash out transaction with an agent, the agent must confirm the transactions (see section 2.1.2). SAFE Agent: Confirm Transaction When performing cash in and cash out transactions, user receives four digits authorization code and tells it to the agent. Agent enters the code to confirm cash transaction. SAFE Agent: SAFE Account Balance Agent may verify his/her SAFE account balance.

SETECS SAFE System: Wallet, Agent, and Merchant Manual 57 SAFE Agent: Daily Report At the end of the day (or periodically) agents must deposit cash, received from users, into a bank SAFE escrow account. To review total amount to deposit, agents may review daily balance the difference between the amount of money cashed in and the amount cashed out. SAFE Agent: m!settings Menu SAFE Agent supports three functions to perform settings of various Agent parameters. From this menu agents can perform the following functions: System Configuration enter/edit the SAFE server address. Agent Registration update agent registration data entered during initial sequence Security Settings select / update various security options m Settings: System Configuration This function is the same as the one performed during the initial sequence. Agents may modify SAFE system mobile number and/or SAFE system IP number, entered during the initial sequence. m Settings: Agent Registration If the agent is already registered, this function will display such message. If for some reason, agent did not register during initial sequence, this function will provide the agent the possibility to register in the SAFE system. In that case the panel displayed is the same as in the third step of the initial sequence.

SETECS SAFE System: Wallet, Agent, and Merchant Manual 58 m Settings: Security Settings With Security Settings agents may select: to change local Agent PIN to change SAFE system PIN to request certificate to select/modify various security options m Settings: Change Agent PIN Agents can modify local PIN specified during the initial sequence. m Settings: Change Agent PIN If current PIN is specified correctly, agent s PIN will be modified. m Settings: Change SAFE System PIN Agents may modify SAFE system PIN which was assigned to them automatically during registration. m Settings: Request Certificate By executing this function, agent will generates RSA key pair send certificate request to the CA Server and download the resulting certificate

SETECS SAFE System: Wallet, Agent, and Merchant Manual 59 m Settings: Security Options Agents may select various security options for protection of their messages: no security, data integrity only, data confidentiality only, or both data integrity and data confidentiality

SETECS SAFE System: Wallet, Agent, and Merchant Manual 60 Chapter 5: Using SAFE System with SMS Messages SAFE system can be used based on standard SMS messages or using SAFE Secure Mobile Wallet, Agent and Merchant smart phone applications. 5.1 Introduction SMS Messages Nomenclature in the text is the following: <...> means that the indicated value must be provided as mandatory. [... ] means that the value is optional. Money Deposit (cash in) and Money Withdraw (cash out) transactions require presence of a SAFE agent. They are two parties transactions and cash is transferred from an agent to a customer or the other way around over the counter. The agent may be designated either by his/her SAFE account number of his/her mobile phone number. Current SAFE functions and their corresponding SMS messages are the following: 5.2 SAFE Registration The first function (message) that each customer will execute is System Register (sr) to register into SAFE system using mobile phone. With this function, only the first name and the last name of a new customer will be registered in the system. Other registration data must be complemented using SAFE Administration Station. The syntax of the command is sr <first_name> <last_name> For example, sr sead muftic will register Sead Muftic in the system. The system will reply with customer s four digits PIN. The customer must confirm registration using System Confirm (sc) command: sc <user_pin> For example, sc 5841 will confirm previous registration of Sead Muftic and the PIN for the new customer is 5841. Customer can later change his/her PIN by sending the command: sp <old_pin> <new_pin> The customer could also register himself/herself via agent. In this case, the agent should send the command: sra <customer_first_name> <customer_last_name> <customer_mobile_number> After that, the customer should receive a message from the SAFE system containing four digits PIN. The customer must confirm that using the command: sc <user_pin>

SETECS SAFE System: Wallet, Agent, and Merchant Manual 61 5.3 Registration of User s SAFE Account After the customer confirms registration with sc message, the next step is to register SAFE account. This is performed with the Account Register (ar) message. The syntax of the message is very simple: ar The system will assign automatically new SAFE account number and return information message to the customer. From that point on, the customer may start using his/her SAFE account. 5.4 Account Status This function is used to get the status of a SAFE account. If a customer (phone number) has only one SAFE account, use: as If a customer (phone number) has multiple SAFE accounts, use: as <account_number> For example, as 1010000036 means to check the status of the SAFE account 1010000036. SAFE System will return the status of the SAFE account. 5.5 List Accounts This function is used to get the list of all customer s SAFE accounts registered with the same mobile number. al SAFE system will return the list of customer s SAFE accounts registered with the mobile number of the phone from which the message was sent. 5.6 Money Deposit This function is used to deposit money to the SAFE account (cash in) in cooperation with an agent. The money (cash) should be given to the agent. Agent must be indicated by his/her mobile phone number. If a customer (phone number) has only one SAFE account, then use: md <amount_to_deposit> <agent_phone_no> If a customer (phone number) has multiple SAFE accounts, use: md <amount_to_deposit> <agent_phone_no> [<customer_account_number>]

SETECS SAFE System: Wallet, Agent, and Merchant Manual 62 For example, md 50 12405352095 means to deposit 50 units to the customer s SAFE account using SAFE agent with mobile number +1-240-535-2095. As the reply to the md message, the system will return two authorization messages: one to the agent and the other to the customer. Both messages will have random authorization numbers for this transaction. The next step (after the customer gives the money to the agent), the agent must send money confirm (mc) message. For that, the customer must give his/her authorization code to the agent. The syntax of this message is mc <agent_auth_code> <customer_auth_code> If everything OK, the system will return two notification messages to both parties, equivalent to the reply message for the as message, i.e. with the new updated statuses of the two accounts. Agent s account will be debited by the deposited amount, while customer s account will be credited by the same amount. In case that the agent does not have sufficient funds on his/her SAFE account to receive the deposit or in case of any other problem, the system will not perform the transaction and it will return an Error message to both parties. 5.7 Money Withdraw This function is used to withdraw money from the SAFE account (cash out), also in cooperation with an agent. The money (cash) should be given to the customer by the agent. If a customer (phone number) has only one SAFE account, then use: mw <amount_to_withdraw> <agent_phone_no> For example, mw 20 12405352095 means to withdraw 20 units from customer s SAFE account with an agent whose mobile number is +1-240-535-2095. If a customer (phone number) has multiple SAFE accounts, use: mw <amount_to_withdraw> <agent_phone_no> [<customer_account_number>] As the reply to the mw message, the system will return two authorization messages: one to the agent and the other to the customer. Both messages will have random authorization numbers for this transaction. The next step (after the agent gives money to the customer), the agent must send money confirm (mc) message. For that, the customer must give his/her authorization code to the agent. The syntax of this message is mc <agent_auth_code> <customer_auth_code> If everything is OK, the system will return two notification messages to both parties, equivalent to the reply message for the as message, i.e. with the new updated statuses of the two accounts. Agent s account will be credited by the withdrawn amount, while customer s account will be debited by the same amount.

SETECS SAFE System: Wallet, Agent, and Merchant Manual 63 In case that the customer does not have sufficient funds on his/her SAFE account to receive the deposit or in case of any other problem, the system will not perform the transaction and it will return an Error message to both parties. 5.8 Money Transfer This function is used to transfer money from one SAFE account to another SAFE account. If a customer (phone number) has only one SAFE account, use: mt <amount_to_transfer> <receiver_account_number> For example, mt 70 1010000036 means to transfer 70 units from the customer s SAFE account to the destination SAFE account 1010000036. If a customer (phone number) has multiple SAFE accounts, use: mt <amount_to_transfer> <receiver_account_number> <sender_account_number> For example, mt 50 1010000036 1010000037 means to transfer 50 units to the SAFE account 1010000036 from the customer s SAFE account number 1010000037. SAFE System will return two messages to the owners of the two SAFE accounts confirming the transfer, with the new status of each SAFE account, one debited and one credited with the transferred amount.

SETECS SAFE System: Wallet, Agent, and Merchant Manual 64 Chapter 6: SAFE System Security Security features of the SAFE system are the following: 1. It provides protection of mobile phone applications using local PIN, 2. It provides strong protection of data locally stored in smart phone applications, 3. It supports management of secret (shared) and also private/public cryptographic keys in communication networks, 4. It provides protection of messages during transfer through Internet and/or 3G/GPRS networks using cryptography, 5. It verifies authenticity of users accessing the system based on their mobile numbers and system PIN, 6. It provides reliable registration of users and merchants by agents through face to face verification of identities (KYC procedure), 7. All cash transactions (cash in and cash out) are confirmed by agents using real-time, challenge/response protocol, 8. Authentication of users may be based on fingerprint verification if SAFE smart cards are used and PoS devices with built in fingerprint reader, 9. It provides protection of data stored in databases, 10. Through Web interface it provides the possibility to suspend and re activate SAFE accounts in case mobile phone is lost or stolen, 11. Access to system administration functions is protected either by user name / password authentication method or by authentication based on smart cards, 12. The system enforces role based authorization for system administration, so only persons designated as system administrators may manage the system, 13. The systems enforces role based authorization for transactions, so only authorized agents may perform cash in / cash out transactions, 14. The system enforces role based administration of the SAFE escrow account, so only persons designated as system officers may accept deposits into SAFE escrow account, 15. It enforces confirmation of transactions by agents, and finally 16. It has very comprehensive financial transactions policy limiting the number, level and value of individual transactions. The details of these security features are described in this Chapter. 6.1 Access to Mobile Phone Applications Access to local applications in mobile phones is protected using local PIN. PIN may be any combination of letters or digits. The size of the PIN is arbitrary, so users may select long PINs. PIN is specified during initial sequence and later may be modified.

SETECS SAFE System: Wallet, Agent, and Merchant Manual 65 Local PIN Each SAFE mobile phone application requires PIN in order to activate it. Figure 5.1: Activation of Mobile Applications using PIN 6.2 Protection of Local Data SAFE Wallet, Agent and Merchant applications store various data locally in mobile phones. All such data are strongly encrypted using symmetric key cryptography. Cryptographic key is derived based on PIN, so it Is not stored in the phone. If the phone is stolen, data cannot be recovered by exhaustive search. Note: AES algorithm is used for data protection with 256 bits keys. 6.3 Network Key Management Both secret and private/public keys are used for security in communication networks. Secret keys are pre loaded in the applications and shared with Mobile Services Providers. Public and private keys are generated in the phone. Private key is encrypted using secret key, derived base don PIN, so it is never exposed in clear and can not be used outside of the phone where it was generated. 6.4 Protection of Messages in Transfer Various schemes are used for protection of messages in transfer depending on the capabilities of mobile phones and type of communication network used for transfer of messages. These schemes are briefly shown in the following Figure. If simple phones and SMS messages are used, then the system depends on protection of messages by the GSM network. It is based on weak cryptography. System PIN may be appended to each messages, if so selected by SAFE system operator. If Java phones and/or USSD protocol are used, then messages are protected using secret key cryptography (AES algorithm) using functionality of the SIM chip. With smart phones and GPRS communications, full end to end security is provided, based on the combination of secret key and public key cryptography.

SETECS SAFE System: Wallet, Agent, and Merchant Manual 66 6.5 Authenticity of Users Figure 6.2: Three Levels of Message Security Authenticity of users is verified using their mobile numbers. The numbers are provided by the telecom operators, so they can not be forged. In addition, if so configured, the system requires system PIN to be appended to each message. 6.6 Reliable Registration of Users and Merchants Registration is performed by trusted agents in a face to face procedure. During the registration process, agents verify identification documents of users, thus supporting KYC procedure. Registration by agent must be confirmed by the user or merchant being registered. This guarantees live communication, so registrations cannot be faked. 6.7 Confirmation of Transactions Cash in and cash out transactions are confirmed by agents in a real time, based on challenge/response protocol. The protocol is based on three party communication (system, user and agent) and guarantees aliveness and accuracy of each transaction. 6.8 Biometric (Fingerprint) Authentication User and merchant s registration and financial data may also be stored in a chip of a SAFE smart card. User fingerprints are also stored in the card, supporting unforgeable authentication based on biometric data.

SETECS SAFE System: Wallet, Agent, and Merchant Manual 67 Fingerprints are verified by the Point of Sale (POS) devices equipped with the fingerprint sensor and fingerprint verification algorithm. The next figure shows SAFE smart card and fingerprint verification POS device. Figure 6.3: SAFE Smart Card and Fingerprint PoS Device 6.9 Protection of Data in Databases Access to data in databases are protected by standard network access control mechanisms (VPN and Firewall) and standard database access control mechanisms (authentication of users and enforcement of various access privileges). Consistency and correctness of data is enforced by treating financial transactions as atomic database transactions, so updates are performed only if the complete transaction cycle is successfully completed. 6.10 Suspension and Re Activation of SAFE Mobile Accounts SAFE system provides the feature to users to suspend, later re activate or completely terminate their SAFE accounts. This can be done using Wallet (see section 2.1.3). But, if the phone is stolen or lost, this feature can be performed through SAFE Web interface. In this way, in case of lost or stolen mobile phones, users may immediately prevent illegal use of their SAFE mobile accounts. 6.11 Access to System Administration Functions Only authorized persons, declared as system administrators, may access and administer the system. At the lower security level, their authentication is based on use of User Name and password. At the higher level of security, smart cards are required for authentication of system administrators. Figure 6.4: Authentication of Administrators (User Name / Password and Smart Cards)

SETECS SAFE System: Wallet, Agent, and Merchant Manual 68 6.12 Role based Authorization of System Administrators There are three types of users in the system with special privileges: system administrators, agents, and system officers. After their authentication, only system administrators may perform administrative functions of the system. At the higher level of security, if smart card used for authentication, is pulled out of the smart card reader, all administration functions will be blocked (administrative interface will be frozen). 6.13 Role based Authorization of Transactions performed by Agents There are three types of users in the system with special privileges: system administrators, agents, and system officers. Agents can register users and perform cash in and cash out transactions with them. They are using SAFE Agent application for smart phones or SMS messages. For each such transaction, the role of the person is verified by the system and transactions are performed only if the participating user is declared as an agent in the SAFE system. 6.14 Role based Authorization of Transactions performed by System Officers There are three types of users in the system with special privileges: system administrators, agents, and system officers. System officers are users with privileges to accept deposits to the SAFE escrow account. When money transfer transaction is performed with the SAFE escrow account, then the user receiving the money must be declared as system officer in the SAFE system. 6.15 Confirmation of Transactions Cash in and cash out transactions performed by users must be confirmed by the assisting agent. The confirmation is three party protocol that assures aliveness of transaction, presence of both parties, and confirmation of its correctness. When the transaction is initiated by the customer, he/she indicates to the system with which agent the transaction is performed. The system returns two random codes one to the user and the other to the agent. Agent must obtain random confirmation code from the user and return it to the system, together with its own authorization code. Only when both random codes are returned correctly by the agent,. The system will clear the transaction and send confirmation messages to both parties user and the agent. Confirmation messages show updated status of the two accounts, so both parties may verify the correctness of the transaction. 6.16 Financial Transactions Policy The system is controlled by the comprehensive financial policy, so various parameters may be specified in order to control execution of individual transactions: the number of transactions per user per day, maximal amount of each transaction, etc.