Mobile Payment Ecosystem ITI Mar 2014 By: Mostafa Elnahhas Chief Architect & Senior Manager Fawry
Agenda Mobile Payment Opportunities Mobile Payment Ecosystem Supporting Infrastructure Worldwide Mobile Payment Solutions Fawry Mobile Payment Ecosystem Case Study What s Next 2 www.fawry.com
Mobile Payment 3 www.fawry.com
Mobile Payment - Gartner forecasts 800 700 600 500 400 mpayment Trx Value (B) mpayment Users (M) 300 200 100 0 2012 2013 2017 4 www.fawry.com
Mobile Payment - Juniper Research 5 www.fawry.com
Mobile Payment Yankee group forecast 6 www.fawry.com
Mobile Payment Linklaters Report 7 www.fawry.com
Mobile Financial Services Mobile Payment Use your phone as your credit card or your purse Peer-To- Peer Transfer money fast and easily Loyalty and Couponing Get rewarded instantly Saving, Loans and Insurance Access to core banking services everywhere 8 www.fawry.com
SUBWAY-MAP-MCOMMERCE 9 www.fawry.com
Mobile Wallet 10 www.fawry.com
Mobile Payment Ecosystem 11 www.fawry.com
Mobile Payment Use Cases Load Wallet Cash out Pay Your Bills Reconciliation Services Send Money Customer Services E commerce Offline Purchase 12 www.fawry.com
Mobile Payments & Remittance ecosystem 13 www.fawry.com
Mobile Payments & Remittance ecosystem Actors Mobile network operators Provide infrastructure and communications service Provide agent oversight and quality control Issue e-money (where permitted by law) Exercise leadership in drawing mobile payments ecosystem Advise other businesses (banks, utilities, etc.) on their mobile payments strategies Financial institutions/banks Offer banking services via mobile Hold float or accounts in customers names Handle cross-border transactions, manage foreign exchange risk Ensure compliance with financial sector regulation Distributors/Agents Perform cash-in and cash-out functions Handle account opening procedures, including customer due diligence Report suspicious transactions in accordance with AML/CFT requirements Identify potential new mobile payment applications 14 www.fawry.com
Mobile Payments & Remittance ecosystem Actors Regulators Provide enabling environment for mobile payments Protect stability of financial system Demonstrate leadership to encourage and protect behavior change User Groups/Consumers Use mobile payments to improve their lives 15 www.fawry.com
Mobile Payment Ecosystem Supporting Infrasctucture 16 www.fawry.com
Mobile Payment Ecosystem Supporting Infrasctucture Risk Management Security Operation Support Mobile Device Management Infrastructure Transaction Management Integration Scalability 17 www.fawry.com
Security Communication Security Multi-Level Access Control PKI infrastructure Leased Lines VPN Protocol SSL HW & network access controls O/S, DB, application and client levels access controls Roles and responsibility Audit trail PKI used to exchange encryption keys PKI used to encrypting the transportation layer. PKI used to electronically sign critical messages and files. 18 www.fawry.com
Security Data Encryption Authentication Encryption at communication link level. Encrypt confidential data exchanged Encrypt data storage. User Authentication LDAP MPIN Terminal Authentication HW Serial Number validation Installed Application authentication Supports encryption using symmetric, asymmetric, message digest, and digital signature cryptographic algorithms. Channel Authentication Mutual SSL authentication Digital signature 19 www.fawry.com
Mobile Device Management Support optional and forced version upgrade Maintaining Terminal Information and encryption keys Activating and deactivating terminals Backward Version compatibility Handset OS and model detection 20 www.fawry.com Terminal reports (Active, Deactivated, versions,..etc) Support different versions for different handsets Support different handsets' OS.
Risk Management Max Amount per transaction Max Daily accumulated transactions Amount Max Count of daily transactions 21 www.fawry.com
Operations Support Flexible operational Inquiries and reporting using multiple search criteria including but not limited to User name, Account number, Organization, Outlet, Merchant, mobile number, national ID, terminal code, transaction number, date range, etc. Error and Exception handling. The System Logger is the component responsible for logging low level events including info, warning, and errors for tracing, and debugging the system. Notification Messaging and broadcastings. Reconciliation leveraging Transaction State Machine. Action Oriented Dispute Management. Configuration Manager. Business Model definition. Single and Batch entities creation. 22 www.fawry.com
Transaction Management Reconciliation Dispute Mgmt Persistence Unique Ref 23 www.fawry.com
Integration Capabilities Solution facilitates adding new adapters for different Organization channels and the Switch billers using different message formats [XML, SOAP, JSON, XMLRPC, IFX, ISO8583, etc.] Solution supports different communication protocols to integrate with different Organization channels and the Switch billers, like [TCP/IP, HTTP, HTTPS, FTP, SFTP, JMS, etc.] Protocol and message transformation is implemented through an adapter framework to insure the consistency and coherence of the main transaction engine. Error Mapping, the system will map the errors generated by other systems to match the end user and system errors 24 www.fawry.com
Scalability, Availability, and Performance Scalability Availability Performance Horizontal extension Load Balancing Compact Message format Vertical extension Clustering DB Physical design SAN Storage Queue Management Object Caching 25 www.fawry.com
Mobile Payment Worldwide 26 www.fawry.com
Mobile Wallets 27 www.fawry.com
Fawry Mobile Payment Ecosystem [Case Study] 28 www.fawry.com
Fawry Mobile Payment Stakeholders Technology Provider, Agents Network, Biller Aggregator Mobile Payment Gateway Provider Prepaid System and wallets interoperability Provider Customer Service Provider 29 www.fawry.com
Fawry Mobile Payment Ecosystem Architecture 30 www.fawry.com
Fawry Mobile Payment Ecosystem Screenshots 31 www.fawry.com
What s Next 32 www.fawry.com
GSMA Creating what s Next! 33 www.fawry.com
TSM 34 www.fawry.com
TSM Main Players 35 www.fawry.com
NFC Mobile Payment Ecosystem 36 www.fawry.com
HCE 37 www.fawry.com
HCE 38 www.fawry.com
HCE 39 www.fawry.com
SE in the Cloud 40 www.fawry.com
HCE 41 www.fawry.com
Thank You 42 www.fawry.com