Contents Introduction
The adoption of digital innovation initiatives has resulted in the development of disruptive technologies that have shaped traditional industries in many ways [1]. One such invention was the development of the mobile payment platform that has changed the dynamics of the financial sector. The platform that is also called M-payment became the main idea of disruptive technologies and a boon for organizations seeking a system for reimbursement in the 21st century [2]. Further, the technology has no geographical limits and can be used both domestically and internationally. Notably, it can be used to make payments to friends, institutions, and governments. Thus, mobile money is any service that enables the transfer of funds through devices such as smartphones, tablets, PDAs [3].
Firstly, the development of mobile payment platforms has mostly been promoted by governmental regulations, technological changes, and industry competition. Notably, governments across the world have passed legislation aimed at developing innovations in the mobile phone sector [4].
Further, by allowing the sending and receiving of money through mobile phones, governments opened up the development and adoption of mobile payments. Also, technological changes have led to the mass development and production of smartphones. The availability of these devices enabled developers to disrupt the payments sector by developing systems that would make such services accessible to consumers. Industry wide competition among financial players and technology companies like Apple, Google, and Samsung led to the development of mobile payment applications such as Apple Pay and Google Wallet that led to the further adoption of mobile payment. Thus, the technology developed out of the need for organizations to improve service delivery and create a competitive advantage.
M-payment has had tremendous effects on businesses. It has helped fuel competition as companies seek unique ways to use the technology to edge out rivals and improve the quality of service delivery. Besides, mobile phone manufacturers such as Apple, Google, and Samsung have also ventured into the mobile payments business with the goal of diversifying their products. The diversification strategy has resulted in the development of products such as Google Wallet, Apple Pay, and Samsung Pay alongside well-known platforms such as PayPal and Stripe. Banks have also joined the race to get a share of the mobile payments market and even remain relevant in an industry that is fast going mobile [5]. For example, today many financial institutions have a revenue-sharing agreement with mobile payment firms that allow them to profit from every cash transaction made on mobile phones [6]. In so doing, they have become a vital part of the mobile payments infrastructure. Thus, M-payments have permeated the socio-economic aspects of society and changed the mode of business in the 21st century.
Moreover, it was predicted that by 2019, the world would have about three billion smartphones in active use [7]. The ownership of these devices on such a large scale would result in the broad adoption and use of mobile payments. In fact, Gartner Group predicted that the global M-payment market would exceed 450 million users coupled with monetary transactions of over $930 billion [8]. Furthermore, significant parts of the world still do not have an internet connection. As such, mobile phones remain the device of choice for making payments as people adopt technologies such as Interactive Voice Response (IVR), Short Message Service (SMS), and Unstructured Supplementary Service Data (USSD) [9].
In short, Mobile Payment System (MOPS) has enabled the provision of a convenient, automated means to transfer money without the need to handle cash, use credit cards or other non-mobile based payment methods.
However, the current implementations of mobile payment systems have several limitations that prevent them from reaching their full potential. Firstly, the system is dependent on third parties, which necessitates that customer open separate accounts that are different from the regular bank accounts. For example, in some instances, accounts are dependent on one’s telephone number. In this respect, customers have to operate accounts that are different from ones managed by their bank, and they also have to replenish them by either cash deposits or credit cards. Furthermore, the process of managing mobile money customer accounts entails getting bank guarantees to cover the transaction’s monetary value. Another limitation is that any new updates to the system often require that customers and agents replace their handsets or SIM chips. Besides, users must have accounts in one bank only to conduct Real Time Person-to-Person (RT P2P) transactions. Lastly, the nature of M-payments does not promote real-time payment because of the lengthy process involved in transferring money from one bank to another. Thus, these factors limit the full exploitation of mobile money payment technologies.
Therefore, in the light of these problems, we intend to develop a unique communication network that will overcome the hurdles that limit M-payment transactions. Notably, the system will connect banks to each other and to customers to allow all mobile phone-based transactions and payments seamlessly and securely. This article aims to develop a system that will satisfy the needs of all stakeholders by creating an efficient and secure system. It will allow users to pay, track, manage, and receive money as long as they are using the system. Furthermore, mobile financial services, in this case, will include P2P, C2B, and B2B transactions, microfinance services, and mobile banking. Thus, the proposed system will ensure an efficient and effective integration with other systems.
The remainder of this article is as follows. In section II we have an overview of trends and published research in the area of mobile payments. Section III gives us more about mobile payment methods. In section IV we present our proposed solution in more detail. In section V we discuss various aspects of the proposed system. Finally, section VI is the conclusion and future research directions.
Trends and Related Research
The disruptive nature of M-payment has prompted numerous studies on the dynamics of the technology, more so, its ecosystem and adoption [2]. Some studies have documented the impact of the technology on the banking and financial sector including the resources and assets of these institutions [10]. Some scholars studied the effect of the technology in Netherlands, more so, the relationship between banks and mobile network providers (MNOs) [11]. Another research in Denmark revealed that organizational use of the technology ranged from sharp to flexible payment methods [1]. A study by [12] showed that timing has significant effect on the impact on the success of the adoption of mobile payment. Other scholars have studied the success of mobile payments in developing and developed countries. In fact, one of the most studied mobile payment systems is in Kenya where the development of a service called M-PESA revolutionized the financial sector. The rapid adoption of mobile phones in the country led to the introduction of a mobile payment system to improve the circulation of money. The project was a success because, currently, M-PESA payments make up a quarter of the country’s GDP [13]. In countries like China, approximately 80 percent of internet users make payments using their smartphones [14].
In fact, the adoption of mobile payments is rising exponentially. A study by [15] revealed that users would soon adopt contactless credit card payments with smartphones that use radio frequency identification or near-field communication technologies. These advancements will become the most used platforms for mobile payments. A person’s technological frame is essential in making them adopt NFC enabled smartphones. In this respect, consumers need to have a good understanding of the technology including how it will ensure the prevention of risks and threats associated with money transfers [16]. Besides, stakeholders need to provide adequate information to help correct the negative perceptions of consumers towards the technologies [15], [17]. Countries like Canada already use the NFC enabled phones in making payments [18]. Thus, contactless payments are increasingly being adopted because they are believed to be convenient, safe, and open to further development [19].
Research on the security of mobile payment systems revealed that there are risks such as user masquerading, malware, man-in-the-middle attacks, and traffic interception. Furthermore, the lack of two-factor authentication increases the risks of sending money to the wrong account or someone stealing a password [8]. Financial institutions have responded to these threats by providing consumers and dealers with trusted service managers that approve and verify any mobile-based transactions [20]. The process is geared towards making customers, and third parties trust the system and ensuring the safety of all partners. The delicate nature of the transactions between banks and mobile payment service providers also necessitates that any conflicting issues be addressed efficiently to achieve set objectives [21].
Mobile payment technologies have been designed to appeal to users. For example, they allow one to personalize the applications, use geo-targeting features, and even integrate social networks. Besides, the data is user generated. As such, the future of mobile payments looks promising [7]. Studies on the technology have reinforced the need to integrate the system into everyday use without destabilizing traditional payment methods [22]. The attainment of that goal requires the collaboration of all stakeholders in the payment industry. On the other end, some researchers assert that there is a need to overcome country-level institutional constraints including those that govern access to resources, to ensure the successful implementation of m-payment systems [23].
Nonetheless, the success of mobile payment technologies is based on factors such as trust, user-friendliness, perceived usefulness, cost, and mobility. Several studies have been conducted to investigate the effects of these factors on mobile money adoption [2]. Other reviews have a major focus on the cultural implications of the technology [24], while others have studied how its adoption is influenced by the effect of mental accounting theory [25]. A study by [26] which was based on learning theories, centered on the technology usage habits of users influenced mobile payment adoption. Research by [27] concentrated on payment habits of m-payment users, while [28] examined the effect of trust and technological environment on use of mobile money services.
Overall, mobile payment technologies are developing at a blistering pace. Besides, users keep increasing, which paints the picture of a promising future. Phone manufacturers are also fast venturing into this market and keep adding new features in smartphones that seek to advance the adoption of M-payment. However, successful adoption of the technology is pegged on factors such as trust, its user-friendliness, governmental regulations, cost, and mobility. Several studies have been conducted on the use of the technology and most of them reveal a rise in its use and its positive disruptive nature in the banking and finance sector. In this respect, there is a need to develop a system that would ensure seamless and secure transactions to promote its continued use.
Existing Mobile Payment Methods
Presently, the modern digital world has various payment methods, each with its unique operational techniques depending on the needs of the business models. Below is a discussion of the popular M-payment systems, and how these services function.
A. PayPal
PayPal, a proprietary system owned by PayPal Holdings, Inc., functions by posing as a third-party between the merchants and the customers. As [29] explains, all transactions are performed via the merchant. Besides, PayPal does not charge the sender for any transaction. Rather, all charges are incurred by the payment receiver. PayPal users have the option of using three distinct payment methods: (i) payments can be made through the web browsers, (ii) short messages (SMS), as well as (iii) through phone calls. To start operating, PayPal only needs a mobile phone and a PayPal account. However, the account should be activated by linking it to a registered financial system, such as a bank account or a credit card.
B. PayBox
PayBox business model employs text messages, which are sent from the client’s phone number to the merchant. Subsequently, the merchant is required to send all the client’s information, including the expected cost to PayBox [30]. Next, PayBox verifies the order placed by the client through a voice message. After the authentication, the client proceeds with the payment by sending a PIN code to PayBox. To complete the transaction, PayBox requests the bank to perform the transaction and use an SMS report to notify the merchant that the process is complete.
C. PayForIt
PayForIt is another payment method that allows users to purchase digital content and services like videos, applications, as well as games. This mobile payment service is very popular in the United Kingdom and has been adopted by a majority of the mobile phone operators. The system can be used for micropayments, where the users only need a mobile device to make payments [31]. The main users involved in the operations of the application include the clients, merchants, operators, as well as personnel tasked with authorizing the payment intermediary. The client is required to sign a contract using their mobile device through an authorized payment intermediary. A screen displaying the information regarding certain goods, costs, and the respective merchant is presented to the consumer. To complete the process, the operator is required to authorize the payment, upon which the cost is transferred to the merchant’s mobile account.
D. Square
Square is a point-of-sale (POS) system that provides enterprises with fast and reliable transactions. Square, which can either be used via the counter (cashier) or on the go, allows its users to receive payments using their Android and IOS devices [32]. Square comprises a magnetic stripe reader that supports payments made through credit and debit cards. Other add-on features include free downloadable software, item management platform, as well as a real-time sales and inventory tracker. Square uses the transaction-based business model, where users are charged a certain percentage depending on the nature of the transaction.
E. Tips
TARGET Instant Payment Settlement (TIPS) is a relatively new market infrastructure service that was launched by the European Central Bank (ECB) to facilitate real-time monetary transactions for all its service providers [33]. Instant payment transactions verified via the TIPS platform are irreversible. Financial institutions using this system must satisfy the liquidity threshold that is pre-defined by the ECB to ensure payments are made in real time. Consequently, this fast and instant payments (in any currency) assists users to avoid credit risks. Ultimately, the TIPS system be valuable in enabling users to access financial services while ensuring secure transactions.
The Eurosystem is making strides to promote real-time settlement of payment transactions across all platforms. This is achieved through the development of a middleware application that allows all payment systems to complete successfully [33]. To promote this, ECB allows third-party developers to develop and integrate their payment solutions to the TIPS middleware. Consequently, ECB is responsible for ensuring that the different parties settle their payments. The middleware categorizes clients into three distinct groups, with all the parties required to have deposited funds at the central bank. End users can register with their preferred parties.
Proposed Solution Framework
In this section, we describe our proposed mobile payment scheme in some detail.
A. Overview of Speedy Pay
Speedy Pay will provide a fast, timely, and secure connection between old and modern systems. Furthermore, the Speedy Pay system is user-friendly and provides a secure medium that is based on modern technological tools. Its operation entails firstly taking a command from the MOP operator through input mechanisms such as the IVR, SMS, USSD, or browser. The system prompts the user to provide details such as the acquirer MOP ID, amount to be transacted, and the currency. Secondly, the details issued by the client are sent to the issuer’s bank for verification. Thirdly, the transaction details are forwarded to both the financial institutions and settlement bank once the request has been validated. The next step entails the issuer bank requesting for the verification code sent to the sender by the Speedy Pay system. The code helps in ensuring the integrity of the transaction to prevent any unauthorized transactions. Afterwards, the issuer bank debits the client’s account and sends a confirmation message to the settlement bank that also sends a message to the bank to confirm the transactions. Lastly, the issuer bank and acquire bank send a notification to the issuer and the acquirer to confirm the success of the transactions. Thus, this mode of operation ensures the authenticity of the transactions and inspires trust in customers. Figure 1 depicts the sequence of actions that need to take place in our proposed method.
B. Implementation Details of Speedy Pay
Our proposed system was implemented on a virtual machine. Given the diversity of user devices, the system has web and mobile versions (iOS), thus allowing users to make payments through calls, SMSs, USSD, Web browsers, or mobile applications. As illustrated in the appendix, we first build the network architecture as described by figure 2, which was later divided into three subsystems. The first entailed a MOP operator that contained a data center (storage) SAN switch, two login servers, two IVR servers, two authentication servers to load balance, and two database servers. The second subsystem entailed MOP banks (client), for which every client included a database and IVR server for a callback, which are connected using the service gateway SRX 550 (the third subsystem). Nations were connected to each other through the service gateway international private leased circuit that includes a point to point private line to enable communication among corporations.
Afterward, we installed the MOP system setup and outlined the respective steps explaining the installation procedures, as well as the required software and hardware required to set up the MOP System. MOP System runs on the Linux platform, which provides high availability and enhanced security. It can be installed on any certified platform of Linux such as Debian, Ubuntu, Red Hat, among others.
Several software packages will be required for the installation and operation of the MOP System. First, the latest version of the Debian Linux can be downloaded from (http://cdimage.debian.org/debiancd/7.1.0/amd64/iso-dvd/). Secondly, Asterisk, an open free platform for building communication systems that acts as the base of MOP System can be obtained from (http://www.asterisk.org/downloads/asterisk/all-asterisk-versions). Apart from the Asterisk setup, an additional two downloads need to be downloaded from Asterisk website; That is, the DAHDI Library to communication interfaces and LIBPRI Library to encapsulate the protocols used to communicate over ISDN Primary Rate Interfaces. Thirdly, the MYSQL database will serve as the project’s engine. Finally, users should download the Apache Web server that will be used to manage the system web server.
C. Using the Speedy Pay MOP System
We will describe the general factors that affect the product and its requirements. Users must have a valid unique MOP account number and PIN to use the system. MOP system has two types of IVR, a centralized inbound to receive requests from users and it is part of MOP operator, and decentralized outbound placed in each bank to contact the users and confirm their requests in order to proceed with the transactions, and this one is part of MOP bank. One centralized server (MOP operator) is responsible to manage, transfer, store, and update requests status, and stores all MOP user accounts received from banks’ servers. As shown in figure 3.
Many decentralized servers (MOP bank) placed in each bank are used to create, store and send bank user MOP accounts to the MOP operator. Also they are responsible for receiving open requests, processes and updates. They inform the MOP operator about their status.
Each server consists of two sub systems, MOP interface which is the part that is connected to MOP operator, and MOP bank segment that is connected to core bank system. MOP operator has one database used to store all MOP accounts and transactions, and two interfaces, one for bank administrator to create MOP user accounts, and the other one for users to check and print out transactions status as shown in figure 4.
D. Features of the System
This system will enable the user to:
Initiate a payment using his/her mobile or landline.
Easily track and manage his/her transactions.
Send/receive money for selling/buying products and services in an automated way.
MOP Solution will provide its users with a detailed history log of all performed transactions, whether it was successful, canceled or an aborted transaction. Users can view his transaction log either thorough the web interface of MOP system or by calling MOP Operator.
The archive storage of our MOP Solution, whether hosted in the MOP operator or at the bank, will store all the transaction details for the users.
MOP Number will be a short code that will be the same among all GSM operators and hopefully land line service provider.
E. How the System Works
To operate, the MOP will be required to dial the Inbound IVR number and either selects English or Arabic as the preferred language. After verifying the identity of the user, the IVR will display a welcome message and inform the user about all the information call cost, and prompt the visitor to select a payment service. The system will query the user’s transaction limit, as well as if the user is blacklisted using the core bank system. Next, the user is prompted to enter the receiver MOP account number and check the MOP receiver ID and the amount to be paid as input by the sender. After the sender confirms the transaction, the IVR system then displays transaction details after the sender confirms the transaction, while the system checks if there are sufficient funds in the MOP sender bank account. If so, the system informs makes a call to the user informing them that the transaction is being processed. As a security measure, the user is only allowed to make three trials for receiver number, after which the process is canceled. Figure 5 depicts the inbound IVR flowchart.
Next, the MOP operator makes a request to the MOP bank, prompting the bank to contact the sender as a security measure, describing the entire transaction details and requesting them to enter their PIN number. If the correct PIN is entered before the three trials, the IVR then confirms the message and the status of the process changes to complete. Eventually, the MOP bank transmits a confirmation message to settlement bank and operator. The settlement bank then replies with a confirmation message to the receiver bank. Figure 6 describe the outbound IVR flow chart.
F. Use Cases of Speedy Pay
1) Use Case 1: Bank Admin use Case – Create MOP User Account
Bank admin accesses the web-based MOP admin interface in order to manage needed MOP user accounts (create, modify, delete, and re-set PIN numbers). As shown in figure 7, which describes all the steps, the user requests an MOP user account from the bank customer service desk, then the bank customer service provides the user with MOP account application form. This form will vary based on the user requesting an MOP account, as the form for individuals is different from the form for corporate or service providers. After that, the user hands out the filled MOP form to bank customer service. Bank customer service desk opens the MOP admin interface in order to fill user information into the system based on the filled MOP account form and assigns an MOP ID from the available IDs generated by MOP operator.(MOP ID number will have 10 digits, 3 of them represent the country code). MOP bank Segment will generate MOP PIN number for the user. This PIN will be stored in the MOP bank database only and will not be transferred to the MOP operator. (MOP bank Segment will be responsible to generate MOP PIN, MOP user can have more than one PIN number for one MOP ID associated to his/her registered call-back number/s.). Once bank service desk creates the new MOP user account, all information except sensitive ones will be sent to the MOP operator (Call-back numbers, any other information that is confidential by the bank). Then, a certified courier will send the PIN number to the user.
2) Use Case 2: MOP User use Case – Follow up on Transactions
After the bank admin created MOP user account, the user is able to access the web-based interface in order to follow up and manage his/her transactions. We can describe these steps as shown in figure 8 where we have a user accesses MOP user interface. Then, the user enters MOP account and password. MOP bank will generate the user interface password, which enables searching for needed transaction. Finally, we have “check status”.
3) Use Case 3: MOP Operator
a: If Caller is not a MOP User
Inbound IVR detects that the caller is not an MOP user, described as shown in figure 9. Here, the caller dials MOP inbound IVR number using his/her mobile or landline number. Once the connection is started, inbound IVR will detect that caller is not a MOP user. Then, inbound IVR will play MOP welcome message followed by the call cost. After that, call will be handled by the non-MOP voice menu. One of the choices is that caller can choose to listen to MOP promotion audio and how to create an MOP account. List of banks registered with MOP can be presented to him/her if needed.
b: If Caller is a MOP User
After obtaining his/her MOP account and PIN, the user can initiate the process by calling the inbound IVR by following steps as shown in figure 10.
MOP user places a connection with the inbound IVR server using his/her mobile or landline number that is registered in the system. Once the connection started, inbound IVR will detect MOP user ID from his/her MSISDN, after a while, a pre-recorded welcome message will be played along with the call cost. A menu will be played in order for the user to choose the needed service. The user will select “Payment services” to perform the needed transaction. As an automatic mechanism, MOP operator will be aware of the limit per transaction/day/week requested for this user and will recognize if the client has been black listed by his bank or not. MOP operator will also be aware and able to identify if the client’s PIN status is frozen or not, the MOP user enters MOP receiver number, it checks if MOP receiver account number is correct or not. User has only three trials to re-enter MOP receiver account number, besides, MOP user enters amount to be paid. After that, inbound IVR will play the full transaction details, waiting for the caller to choose one of the following options (Confirm, modify, or cancel). Once the user confirms the transaction, MOP operator will check with MOP bank if there are enough funds in caller bank account or not. If the user has enough funds, inbound IVR will ask him/her to wait for a call-back call in order to proceed with the transaction process. The MOP operator will perform many jobs after the call, which are: Determining from MOP account number which bank is responsible to process this request, sending request to the exact MOP bank, updating request to “sent to MOP bank”, requesting will be processed in MOP bank. We will discuss this in details in the next use case. Outputting of the bank server process will be sent to MOP operator through MOP interface at MOP bank and MOP operator will update processed requests to the following status:
Success: If the request has been processed successfully.
Declined: For any reason if the request couldn’t be processed (no fund, wrong MOP user receiver account).
Aborted: When the user decided to stop the process.
Error: If any error appeared in the system.
4) Use Case 4: MOP Bank
MOP bank segment will handle the processing of open requests received from MOP operator through MOP Bank Interface and forward it to MOP Bank segment. Also it is responsible to provide MOP operator with request status. Each bank will receive and process only its requests as shown in figure 11, in which MOP operator keeps sending all open requests to MOP banks interface. Once MOP bank segment receives an open unprocessed request, outbound IVR calls back MOP user on his/her mobile number or landline used to open this request. It also shows clearly that outbound IVR plays the pre-recorded welcome message. And a full transaction message will be played again waiting for MOP user to confirm or cancel the request. If MOP user chooses to cancel the request outbound IVR will end the call, cancel the request and archive it. At the time that MOP user confirms the transaction message, outbound IVR will ask the user to enter his/her PIN number. User has only three trials to re-enter MOP PIN number. If the PIN number entered three times incorrectly, the transaction will be cancelled and the user will be blocked from using MOP. Here user will need to visit his/her bank and request to reactivate his/her PIN number without the need to issue a new one. A status update about the client’s PIN will also be forwarded to MOP operator. Next system will inform MOP user that the process is completed successfully and end the call.
On the other side, MOP bank will perform many duties like, notifying MOP operator and Guarantee bank about request status (completed successfully), sending SMS to MOP user. MOP operator and Guarantee bank will send request (completed successfully) to MOP receiver bank. In addition to that, MOP receiver bank will send SMS to MOP receiver user and can be followed by a confirmation call. At the end, this way MOP receiver bank will receive two confirmation messages, one from MOP operator and the other one from Guarantee bank or settlement agency. Failing to receive either or one of these messages will cancel the transaction and all parties will be informed.
Discussion
Our system is applicable at all times and places, for personal and electronic purchases, transferring money (B2P, P2B, P2P), invoices and payments for all services like (e.g. water, electricity and taxes), electrical governmental payments (passport fees, licenses and other documents), school and university tuitions, speed cash, and international transfers. This system assesses viability and feasibility of the new M-payment service from five perspectives: Legal, Market, Technical, Organizational, and Financial.
The proposed solution comprises the client and settlement segments, which represent the complete cycle for mobile payments. Today, users demand to have systems that are real-time, secure, interoperable, and fast.
In Indeed, the invention of the mobile phone changed the banking industry in tremendous ways. Today, most financial institutions had adopted mobile telephony in streamlining their services and connecting with their customers. These changes have been mandated by the vast use of smartphones by people even in the remotest parts of the world. The integration of mobile-based monetary transaction in banking has permeated sectors such as P2P, B2B, and P2B and made it easy and secure for people to access financial services. Thus, making such services accessible through mobile phones will increase access to financial services and expand the market for industry leaders in the financial sector.
However, despite widespread adoption of mobile-based payment systems, an audit of the same reveals several limitations, which Speedy Pay seeks to overcome [29]. To this end, the system will provide a platform for mobile-based transactions without the need for a new SIM card. Furthermore, the process will include real-time person-to-person transactions between users regardless of the banks they use, and without the need for a third party to facilitate the transaction. Another notable feature is that Speedy Pay will be integrated into existing banking systems and reliable financial institutions will confirm and authorize all transactions. In this respect, this proposal provides a mobile phone-based solution that will help financial companies achieve seamless mobile integration of their systems and services. Besides, it is worth noting that the technology does not require one to have a specific type of mobile phone, thereby enabling the provision of unified services to all stakeholders. Furthermore, the technology eliminates intermediaries and other third parties with questionable credentials.
The proposed solution seeks to mitigate security vulnerabilities by adopting different measures. First, the system leverages on information only known to the customer; i.e., the client’s pin code which is initiated by the customer’s bank HSM and only requested by the bank through its IVR system call back feature. The second measure involves something possessed by the customer, i.e., mobile phone and mobile SIM card. The third security feature is using several authentication methods and process flow. Through this measure, the process is initiated by the operator. Afterward, the transaction is split into 3 sections (sender’s bank, operator, and receiver’s bank). Next, the sender bank requests for pin code using the IVR call back to the sender’s phone number, who has the SIM card and knows pin code. Later, the pin code is verified by the sender bank. Finally, the client’s eligibility is determined by their internal bank system and all transaction information flow are highly encrypted and with no involvement of the other parts. The fourth safety measure is that a private network connects all parties with a secure VPN.
The trend these days for any payment solution is to cover the most important points: real time settlement, security, interoperability and user convention, Speedy Pay have all of these point. So in this section we will discuss the most relevant use cases for our MOP system.
Conclusion
Current mobile payment systems have many obstacles and limitations. In order to come over the aforementioned downsides, this article proposes a new mobile payment methodology. The proposed methodology has the following features: it jointly connects the banks together and allows the customers to process all kind of transactions with the use of their cell phones and without the need for a new SIM. Real-time person-to-person transactions between users with similar or different bank accounts can be processed without the need for a third party mediator. In addition, the proposed MOP system is built over the already existing “banking system” infrastructures, with processes approved by reliable financial institutions. This feature reinforces and strengthens consumer confidence and reliability in the proposed methodology.