Mobile Electronic Commerce

189

chapter eleven

MobiCash

Smart mobile payment system

Amila Karunanayake and Kasun De Zoysa

Contents

11.1 Introduction ........................................................................................... 190

11.1.1 Related works ............................................................................ 190

11.1.2 Problem description ................................................................. 191

11.1.3 Why we propose another ATM system? ............................... 192

11.2 MobiCash ............................................................................................... 193

11.2.1 Mobile commerce ...................................................................... 193

11.2.2 Strengths and weaknesses ...................................................... 193

11.2.3 Public-key infrastructure (PKI) .............................................. 195

11.2.4 Digital certicates ..................................................................... 195

11.2.5 System design ............................................................................ 196

11.2.5.1 User registration ......................................................... 196

11.2.5.2 Certication issuing process .................................... 196

11.3 Cash dispensing .................................................................................... 198

11.3.1 System roles ............................................................................... 199

11.3.2 System deployment ................................................................... 199

11.4 Security architecture ............................................................................ 200

11.4.1 Customer-side security ............................................................ 200

11.4.2 Agent-side security ................................................................... 202

11.4.3 Nonrepudiation ......................................................................... 203

11.4.4 Privacy ........................................................................................ 203

11.5 Evaluation .............................................................................................. 203

11.6 Discussion .............................................................................................. 206

11.7 Conclusion ............................................................................................. 207

References ........................................................................................................ 207

190 Mobile Electronic Commerce

11.1 Introduction

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-

ment systems.

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 [1] 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 [2]. It was a pocket-sized workstation that lets users

undertake cash payments electronically. The CAFÉ [2] electronic wallet