190 Mobile Electronic Commerce
In this modern world, people try to nd more comfortable ways to satisfy
their day-to-day needs. Banks have competitively introduced new technolo-
gies to make these nancial transactions more hassle free and user-friendly.
Today, most nancial institutions, including banks, provide services to sat-
isfy their customers’ needs and continuously introduce new services.
Thus, information and communication technologies play a vital
role in the nancial and banking industry. During the last two decades,
researchers and developers have applied information and communica-
tion technology concepts to introduce smart solutions for the banking
industry. The e-commerce concept has been introduced as an alternative
to traditional methods. Examples of such solutions are automated teller
machine (ATM) services, credit card/debit card services, and online pay-
With the rapid enhancement and popularity of mobile technologies,
banking institutions try to go beyond the e-commerce applications by intro-
ducing mobile commerce. This opens up a new arena for electronic bank-
ing. It is one of the newest approaches to the provision of nancial services
through the wireless network, which has been made possible by the wide-
spread adoption of mobile phones everywhere. The process involves the use
of mobile devices to perform various nancial transactions either directly
with the recipient (micropayments) or indirectly via a customer’s bank
account. The functional capabilities of mobile telephony have been rapid
and have extended operations well beyond classical applications (telephone
calls and short messaging). There is mounting evidence of positive nan-
cial, economic, and social impact of those technologies all over the world.
Remarkably, in most countries, the mobile telecommunication sector
has achieved rapid expansion  in recent years. Therefore, the mobile
communication infrastructure can be used as a good deployment plat-
form for the electronic base of banking and nancial systems.
Given these capabilities, the most important consideration regarding
such transactions is the issue of security. Mobile networks are based on
the use of poorly secured wireless protocols. This makes mobile nancial
applications even more vulnerable to fraud and illegal use than similar
transactions performed over open networks. Therefore, one of the main
prerequisites for successful, large-scale deployment of mobile nancial
services applications is their security.
11.1.1 Related works
The rst electronic wallet CAFÉ, which contains digital currency, was
introduced in 1994 . It was a pocket-sized workstation that lets users
undertake cash payments electronically. The CAFÉ  electronic wallet