A secure wireless point of sale system

Online financial transactions using mobile devices is a convenient solution for future payment systems. However, security on the wireless channel and the cost of an Internet connection on the mobile device limit its adoption and feasibility. This paper presents a solution that uses an Infra-red link between the mobile device and a dongle connected to a Point of Sale (POS) which in turn is connected through a network to the transaction server. Transactions are then carried out through the server's communication link with the banking system. To render the system secure, a simple solution based on a cryptographic hash function is adopted to protect each packet from eavesdropping. A prototype was developed in order to test and verify the proposed solution.