The Mobile Payments Revolution
Pragati Ogal RaiChief Technology Evangelist, PayPal
@pragatiogal
Technology + People = Technology Engagement
14+ development experience
Author of “Android Application Security Essentials”
Mobile & security expert
Thought Leader
Mobile Developer Relations, North America
A Revolution?
Founded in 1998, PayPal allows payments and money transfers through the Internet
Logos!
PayPal processed $14 billion in mobile payment volume in 2012 – more than
3 times the mobile payment volume of $4 billion it processed in 2011.
In 2012, eBay generated $13 billion through mobile devices, an overall
increase of 120% from 2011. eBay expects to transact $20 billion in 2013.
On Black Friday and Cyber Monday mobile commerce volume via eBay mobile in the U.S. more than doubled in 2012 compared to 2011. http://www.digitaltrends.com/
M-payments is a Global Phenomenon
In Q4 2012, 60% of eBay’s mobile purchases came from outside the U.Swww.centives.net
PayPal’s international business accounted for more than half of total revenue in 2012
Why?
Global Social
Mobile Local
DigitalService & delivery
Six Trends Shaping Consumer Behavior
Consumer Behavior is Changing Commerce
Promotions & coupons
Mobile commerce
Payments
Location-based services
In-store research
Self-scanning & self-checkout
Social commerce
Loyalty
Mobile shopping lists
Connected CommercePromotions &
coupons
Mobile commerce
Payments
Store location
In-store research
Self-scanning & self-checkout
Social CommerceLoyalty
Mobile shopping lists
Online commerce
Mail order
Offline commerce
A Closer Look
Infrastructure
Clients Merchants
Mobile Payments Ecosystem
Security
What are Mobile Payments?
• Consumer uses a mobile device
• Merchant uses a mobile device
• Both consumer & merchant use a mobile device
How do you define mobile payments?
Remote Mobile Payments
• Send and request money
• SMS based payments
• Mobile banking
• Application/ Browser based payments
• Carrier Billing
Fahad.com
Proximity Mobile Payments
• Barcode Scanning
• Point of Sale
• NFC
• Bluetooth
• RFID
• Accelerometer
Wikepedia.org
Your Definition of Mobile Payments
What does a Merchant want?
• Quick, easy, hassle free
• Security compliance
• Fraud prevention systems
• Current and up to date system
• Reliable
• Pricing
What does a Consumer want?
• Fast
• Secure
• Easy
• Choice of payment providers
Challenges?
Diverse & Evolving Mobile Ecosystem
Wireless Networks
Security
Developers
Carriers
OS VendorsOEMs
Services & Infrastructure
Diverse & Evolving Payments Ecosystem
payfirma.com
Security Issues
Device security Privacy Fraud & Risk Authentication Authorization Evolving Standards
http://mollythewally.blogspot.com/
http://mollythewally.blogspot.com/
Device security Privacy Fraud & Risk Authentication Authorization Evolving Standards
Security Issues
• Device security
• Privacy
• Fraud & Risk
• Client-merchant authentication
• Client authorization
• Evolving standards
Side-effects
Increased Collaboration among Mobile Payment
Stakeholders
M-payments is Spurring Innovation
http://pritamkabe.wordpress.comM-pesa Chipknip GeldKarte Royal Canadian Mint
Improvements in Payment Security
• Consumer awareness
• Improved device security
• Newer authentication techniques
• Evolving security standards like PCI Security Standards
PCI Standard Council
• Independent organization
• Develop common set of payment standards
– PCI-DSS v2.0
– PCA-DSS
– PCI-PTN
– PCI-P2PE
Innovation in Hardware Space
http://gadgetian.com/44495/google-lg-nexus-4-4g-lte-chip-inside-ifixit/
TrustZone: Trusted Execution Environment
www.arm.com
• Two domains: Normal & Secure
• Implemented as SoC
• Security extensions to processor
• Trusted OS
• Virtualization
Mobile brings New Use Cases
Promotions &
coupons
Location-based services
In-store research
Self-scanning & self-checkout
Global Social Commerce
Loyalty
Online Commerce
Mobile Wallet
Shopping Lists
Changing Form of Payments
• Money becomes more abstract• Digital goods• Anonymous payments: Bitcoin
Less cash society Cashless society
Future Predictions!
"We expect global mobile transaction volume and value to average 42
percent annual growth between 2011 and 2016, and we are forecasting
a market worth $617 billion with 448 million users by 2016,"
Sandy Shen, research director at Gartner, May 2012
Summary
• Mobile payments is a global phenomenon
• Define what mobile means to your business
• Think beyond the hype
• Security, trust, and safety is of paramount importance