Mobile Payment Ecosystem ITI

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Mar 2014

Mobile Payment Ecosystem

ITI

By: Mostafa Elnahhas

Chief Architect & Senior Manager

Fawry

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Agenda

Mobile Payment Ecosystem

Supporting Infrastructure

Mobile Payment Opportunities

Worldwide Mobile Payment Solutions

Fawry Mobile Payment Ecosystem – Case Study

What’s Next

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Egypt’s First EBPP Network – Sep 2013 3 www.fawry.com

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Mobile Payment - Gartner forecasts

0

100

200

300

400

500

600

700

800

2012

2013

2017

mPayment Trx Value (B)

mPayment Users (M)

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Mobile Financial Services

Mobile

Payment

•Use your phone as your credit card or your purse

Peer-To-Peer

•Transfer money fast and easily

Loyalty

and

Couponing

•Get rewarded instantly

Saving,

Loans

and

Insurance

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Mobile Payment Use Cases

Load Wallet

Pay Your Bills

Send Money

E commerce

Offline Purchase

Customer Services

Reconciliation Services

Cash out

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Mobile Payments & Remittance ecosystem Actors

Mobile network

operators

• Provide infrastructure

and communications

service

• Provide agent oversight

and quality control

• Issue e-money (where

permitted by law)

• Exercise leadership in

drawing mobile payments

ecosystem

• Advise other businesses

(banks, utilities, etc.) on

their mobile payments

strategies

Financial

institutions/Banks

• Offer banking services via

mobile

• Hold float or accounts in

customers’ names

• Handle cross-border

transactions, manage

foreign exchange risk

• Ensure compliance with

financial sector

regulation

Distributors/Agents

• Perform cash-in and

cash-out functions

• Handle account opening

procedures, including

customer due diligence

• Report suspicious

transactions in

accordance with

AML/CFT requirements

• Identify potential new

mobile payment

applications

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Mobile Payments & Remittance ecosystem Actors

Regulators

• Provide enabling environment for mobile

payments

• Protect stability of financial system

• Demonstrate leadership to encourage

and protect behavior change

User Groups/Consumers

• Use mobile payments to improve their

lives

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Mobile Payment Ecosystem

Supporting Infrasctucture

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Mobile Payment Ecosystem Supporting Infrasctucture

Infrastructure

Security

Integration

Scalability

Transaction

Management

Operation Support

Risk Management

Mobile Device

Management

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Security

Communication

Security

Leased Lines

VPN Protocol

SSL

Multi-Level

Access Control

HW & network

access controls

O/S, DB,

application and

client levels access

controls

Roles and

responsibility

Audit trail

PKI

infrastructure

PKI used to

exchange

encryption keys

PKI used to

encrypting the

transportation

layer.

PKI used to

electronically sign

critical messages

and files.

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Security

Data Encryption

Encryption at communication

link level.

Encrypt confidential data

exchanged

Encrypt data storage.

Supports encryption using

symmetric, asymmetric,

message digest, and digital

signature cryptographic

algorithms.

Authentication

User Authentication

• LDAP

• MPIN

Terminal Authentication

• HW Serial Number validation

• Installed Application authentication

Channel Authentication

• Mutual SSL authentication

• Digital signature

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Mobile Device Management

Maintaining

Terminal

Information

and encryption

keys

Activating and

deactivating

terminals

Handset OS

and model

detection

Support

different

handsets' OS.

Support

different

versions for

different

handsets

Terminal

reports (Active

, Deactivated ,

versions ,..etc)

Backward

Version

compatibility

Support

optional and

forced version

upgrade

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Risk Management

Max Amount

per

transaction

Max Daily

accumulated

transactions

Amount

Max Count

of daily

transactions

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Operations Support

Flexible operational Inquiries and reporting using multiple

search criteria including but not limited to User name,

Account number, Organization, Outlet, Merchant, mobile

number, national ID, terminal code, transaction number, date

range, etc.

Error and Exception handling.

The System Logger is the component responsible for logging

low level events including info, warning, and errors for tracing,

and debugging the system.

Notification Messaging and broadcastings .

Reconciliation leveraging Transaction State Machine.

Action Oriented Dispute Management.

Configuration Manager.

Business Model definition.

Single and Batch entities creation.

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Transaction Management

Unique Ref

Persistence

Dispute Mgmt

Reconciliation

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Integration Capabilities

Solution facilitates adding new adapters for different

Organization channels and the Switch billers using

different message formats [XML, SOAP, JSON, XMLRPC,

IFX, ISO8583, etc.]

Solution supports different communication protocols to

integrate with different Organization channels and the

Switch billers, like [TCP/IP, HTTP, HTTPS, FTP, SFTP,

JMS, etc.]

Protocol and message transformation is implemented

through an adapter framework to insure the

consistency and coherence of the main transaction

engine.

Error Mapping , the system will map the errors

generated by other systems to match the end user and

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Scalability, Availability, and Performance

Scalability

Horizontal

extension

Vertical extension

Availability

Load

Balancing

Clustering

SAN Storage

Performance

Compact

Message

format

DB Physical

design

Queue

Management

Object

Caching

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Fawry Mobile Payment

Ecosystem [Case Study]

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Fawry Mobile Payment Stakeholders

Technology Provider,

Agents Network, Biller

Aggregator

Mobile Payment Gateway

Provider

Prepaid System and wallets

interoperability Provider

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