conceived and created by raja nagendra kumar, [email protected] personalized payment model for...
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Conceived and created by Raja Nagendra Kumar, [email protected]
Personalized Payment ModelPersonalized Payment Modelfor mPayeefor mPayee
31st October 2000
Conceived and created by Raja Nagendra Kumar, [email protected]
Self IntroductionSelf Introduction
• Technical Manager in Satyam Infoway,Bangalore, India
• 8 year in the IT industry • C, C++ and Java• 5 years of Internet and
Java• Result of constant watch
and analysis of evolution of commerce models over a period of time
Conceived and created by Raja Nagendra Kumar, [email protected]
• Commerce Evolution
• Existing Net Commerce Models
• Proposed NagAsthra model for mPayee
• Advantages
• - Customer
• - Bank
• - Cellular Service Provider
• Risks and Recovery
• Road Map
• Conclusion
Conceived and created by Raja Nagendra Kumar, [email protected]
Commerce Evolution - CashCommerce Evolution - Cash
Store Customer
Manufacturer
Cash
• Flexible to have a Proxy Buyer
Conceived and created by Raja Nagendra Kumar, [email protected]
Commerce Evolution - Plastic CardCommerce Evolution - Plastic Card
Bank
Authorization
Goods
Store Customer
Manufacturer
Cash/Credit Card
Conceived and created by Raja Nagendra Kumar, [email protected]
Commerce Evolution - InternetCommerce Evolution - Internet
BankPhysical / Virtual
Internet
Credit cardAuthorization
Goods
Customer
Manufacturer/Store
Conceived and created by Raja Nagendra Kumar, [email protected]
Net Shopping - Popular Model TodayNet Shopping - Popular Model Today
Tools to Shop– Personal Computer
– Reliable Internet Connection
– Web Literacy
Steps to Shop– Surf the web for the best product and price
– Go to the desired e-Shop site
– Add the items to the Shopping Cart
– Provide the Shipping Details
– Provide the Payment Information
– Order placement is fulfilled
Conceived and created by Raja Nagendra Kumar, [email protected]
Net Shopping - Cellular ModelNet Shopping - Cellular Model
Tools to Shop– Subscribe for the Data Services (CSP)
– Cell and Web Literacy
Steps to Shop– Surf the web for the best product and price
– Go to the desired e-Shop site
– Add the items to the Shopping Cart
– Provide the Shipping Details
– Provide the Payment Information
– Order placement is fulfilled
Conceived and created by Raja Nagendra Kumar, [email protected]
Net Shopping - ComparisonNet Shopping - Comparison
How about blending best of both?
On a PC
• Bigger screen size
• Lower data flow cost
• More interactive
• Physical presence
On a Handheld Device
• Greater accessibility
• Ideal for personalization
• Physical presence
Conceived and created by Raja Nagendra Kumar, [email protected]
Statistical InfoStatistical Info
• 63% of web surfers will not purchase over the internet until they are assured more human interaction (Personal Touch)
• 2/3 of all online shopping carts are abandoned before checkout (Time)
• 85% of online households have only 1 phone line so they can’t call and be on your site at the same time (Infrastructure)
• Most selling items on the net are Books, Software, Music, Stationary items
Conceived and created by Raja Nagendra Kumar, [email protected]
NagAsthra Model - OverviewNagAsthra Model - Overview
• Promotes local trade through Order Helpdesk• Uses WAP phone only, - no PC or Internet
connection• Onetime sharing of Credit Card details, only
with the issuing bank• Complementary to the existing Credit Card
payment
Conceived and created by Raja Nagendra Kumar, [email protected]
NagAsthra Model - Overview (cont.)NagAsthra Model - Overview (cont.)
• Addresses Business transaction security not technology based security (eg. servant as proxy buyer)
• SET (Secure Electronic Transaction)
• Transportation layer security has to be assured by SSL & WTSL
Conceived and created by Raja Nagendra Kumar, [email protected]
Commerce Evolution (proposed) - mPayeeCommerce Evolution (proposed) - mPayee
Virtual Card Number
Bank’s Payment Processor CSP Provider mPayee(True Buyer)
Order Help Desk(Proxy Buyer)
Internet
Authorization
GoodsManufacturer/
Store
Conceived and created by Raja Nagendra Kumar, [email protected]
NagAsthra ModelNagAsthra Model
Order Help DeskOrder Help Deske-shope-shop
Bank’s Payment Pre-Processor+GatewayBank’s Payment Pre-Processor+GatewaymPayeemPayee
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Conceived and created by Raja Nagendra Kumar, [email protected]
Peek into Payment SystemPeek into Payment System
Payment Pre-Processor
Payment Gateway
Payment System
Conceived and created by Raja Nagendra Kumar, [email protected]
• One would apply for Credit card and get the same issued from the bank along with web activation key (WAK)
• Credit Card Activation– Logon to the Payment Pre-Processor using
the activation key– Virtual Card Number = Permanent Part +
Customizable Part– Permanent Part is assigned by the Bank
Credit Card ActivationCredit Card Activation
Conceived and created by Raja Nagendra Kumar, [email protected]
– Provide the customizable part *– Provide the d-PIN (device PIN) *– Store the True Credit Card Information– Enter the WAP phone number to which he
prefers to receive payment alerts
* can be changed at any point in time
Credit Card Activation (cont.)Credit Card Activation (cont.)
Conceived and created by Raja Nagendra Kumar, [email protected]
Advantages - Net CustomerAdvantages - Net Customer
• Novice can shop (Digital Civilization)• Commerce without surfing as opposed to
single click buy• No need to have a dependent card for the
family• No fear that the e-Shop would charge the user
every month
Conceived and created by Raja Nagendra Kumar, [email protected]
Advantages - Net Customer (cont.)Advantages - Net Customer (cont.)
• Order anything from anywhere taking anyone’s help (just a phone call away) and still have full control on your e-payments.
• Valid period for payments can be enforced• Credit Card can be used as a guarantee e.g
age proof (yahoo.com)
Conceived and created by Raja Nagendra Kumar, [email protected]
Advantages - BankAdvantages - Bank
• Probable increase in customer retention• Drastic reduction in fraud cases due the
existence of d-PIN• As the customers feel more secure more
purchase will be made• More money flow due to increased net
purchases
Conceived and created by Raja Nagendra Kumar, [email protected]
• Increased volume of customers and phone calls due to simplified buying process and assured transaction security
• More money due to more usage of data service
• The CSP can offer considerable discount to the mPayee depending on the volume of payments made
Advantages - Cellular Service ProviderAdvantages - Cellular Service Provider
Conceived and created by Raja Nagendra Kumar, [email protected]
• Changed/Lost/Misplaced cell phone.– Due to non disclosure of d-PIN,
authorizations are prevented
• If Virtual Card Number is widely distributed one may receive many alerts– Modify the custom extension part of Virtual
Card at the Pre-Processor. This would invalidate the Previous Virtual Card
Risks and RecoveryRisks and Recovery
Conceived and created by Raja Nagendra Kumar, [email protected]
• If the user himself is surfing he/she may not be interested in receiving the alerts– User can register for more than one Virtual
Card by providing different Card Extension– He/she can also assign the Risk factors
associated with each Virtual Card Number– Depending the Risk he/she can opt whether
to have alerts or not
Risks and Recovery (cont.)Risks and Recovery (cont.)
Conceived and created by Raja Nagendra Kumar, [email protected]
Road MapRoad Map
• Corporate purchase model (hierarchical payments) can be brought on-line
• Thumb impression can be used instead of d-PIN
• Voice/Video enabled assistance for Payments• Swiping of the Credit Card, if the device has
integrated Card Reader
Conceived and created by Raja Nagendra Kumar, [email protected]
ConclusionConclusion
• Brings in positive change in the mindset of people
• Masses can enjoy the advantages of buying over the net
• Let your Credit Card enjoy the Internet Freedom– and help you to do commerce with out surfing
Conceived and created by Raja Nagendra Kumar, [email protected]
Conclusion (cont.)Conclusion (cont.)
• Removes the practical boundaries that deter the growth of commerce on the net– Lack of awareness and education
(Computer literacy)– Social and Psychological factors (Fear of
paying using Credit Card on the net)
Conceived and created by Raja Nagendra Kumar, [email protected]
Thank youThank you
“Let your Credit Card enjoy Internet Freedom
with NagAsthra”
Conceived and created by Raja Nagendra Kumar, [email protected]
Payment Pre-Processor
Payment Gateway
Payment System
Data
user
Data
transaction
Data
bank
Database DetailsDatabase Details
Conceived and created by Raja Nagendra Kumar, [email protected]
Role of Permanent PartPermanent Part of Public KeyRole of Permanent PartPermanent Part of Public Key
• This is the primary key for – Bank’s Database– User Customizable Database– Transaction Database
Conceived and created by Raja Nagendra Kumar, [email protected]
Role of Customizable PartCustomizable Part of Public KeyRole of Customizable PartCustomizable Part of Public Key
• User can own more than one public key with different customizable part
Conceived and created by Raja Nagendra Kumar, [email protected]
Role of Payment Pre-ProcessorPre-ProcessorRole of Payment Pre-ProcessorPre-Processor
• Provide HTML and WAP interface to add/update user database
• e-Shop– When the request for payment approval is
received, pre-processor would get the user data using the permanent part of public key
– compare if the customizable part of public key matches the one in database
– it will reject the shoppers request if customizable part does not match
– on matching, it sends an alert to mPayee Phone
Conceived and created by Raja Nagendra Kumar, [email protected]
Role of Payment Pre-ProcessorPre-Processor (cont.)Role of Payment Pre-ProcessorPre-Processor (cont.)
• mPayee– on payee entering private payment key, pre-
processor validates the public and private keys– it would throw the order details if private key was
correct– when the user accepts the payment for the order
• it asks the Payment Gateway to validate the Credit Card
• the response from the Gateway is returned to e-Shop
– if the user declines the order, payment failure is notified to e-shop
Conceived and created by Raja Nagendra Kumar, [email protected]
FlexibilityFlexibility
• Customizable Public Payment Key• Sending of alert during payment
Conceived and created by Raja Nagendra Kumar, [email protected]
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