A Payment Model of Mobile Phone based on Third-party Security

South China University of Technology School of Economics and Commerce

University City, Guangzhou, China, 510006 xuyong@scut.edu.cn

South China University of Technology School of Economics and Commerce

University City, Guangzhou, China, 510006 xueyanliu86@qq.com

Hebei Chemical Pharmaceutical College Dept. Of Mechanical and Electrical Engineering,

No. 88 Fangxing Road, Shijiazhuang, 050026 yaoruiying@126.com

Abstract—This article introduced the existing third-party mobile payment model, as well as third-party network security payment model and analysis their pros and cons and then concluded a mobile payment model of a combination of the two models - mobile payment model based on third-party security . Then systematically introduced the model structure, made the detailed design of their payment flow and pointed out its market advantages and characteristics of the application.

Keywords-mobile payment, mobile commerce, third-party guarantee to pay

I. INTRODUCTION With the development of mobile e-commerce , mobile

payment business began to flourish. But because China's credit system is still not perfect, and the risk of directly online transactions is not a small, this kind of mobile payment service brought new credibility problem, so in order to take into account the problem of integrity in mobile commerce transactions, mobile should be an urgent need to pay to play the role of third-party security, so this paper presents a mobile phone-based third-party secured payment modes.

II. REFER TO MODEL OF MOBILE PHONE PAYMENT BASED ON THIRD-PARTY GUARANTEE

A. The analysis of existing third-party mobile payment pattern The mobile payment platform operators of the third-party

mobile payment models are independent with banks and mobile operators as the third-party economic entity. As the bridge and bond between the mobile operators, banks and clients, it is responsible for bank accounts and banking service provider of funds between accounts and across the clearing, will be a "many-to-one" relationship instead of the past "many-to-many" relationship, and enhance the operational efficiency of business, such as UMPAY, Palm Qualcomm, and Shanghai smart pay[1]. The existing third-party mobile payment platform operators provided paid directly services, although this can provide real-time payment services for buyers and sellers, but in China's

national conditions imperfect credit system, this Service revealed significant deficiencies: because the credit system is not perfect, can not see each others’ reputation before trading, the integrity of the transaction process can not be guaranteed: after the buyers’ payment, businesses would not necessarily delivery or cargo board. These seriously blow consumers’ confidence, resulting in continued low trading volume.

B. The analysis of advantage of Third-party secured payment Third-party secured payment means that when buyers

and sellers reach agreement on merchandise trade, the buyer will pay money to a third party for custody and the third-party won’t pay the seller to complete the whole transaction until the buyer receives the seller of goods and confirmed [2] The advantage of Third-party secured payment is that it can restrict the trade practices of both buyers and sellers and at the same time ensure the normal two-way flow of capital flow and logistics in the transaction process in order to increase the credibility of online transactions, while can also provide technical support and other value-added services for the transactions[2]. It not only changed the trading situation of mutual distrust of the two sides so that more people willing to use online shopping and online shopping has increased the trading volume, but also greatly improve the rate of the success transaction, and set up a online shopping credit protection, and promoted the rapid development of e-commerce, so Third-party secured payment is successful case of network value-added beyond payment.

C. Third-party guarantees payment of mobile phone models In order to avoid not shipping after payment, buyer non-

payment after delivery, and other non-face-to-face transaction fraud from happening in mobile e-commerce, mobile payment is also an urgent need to introduce third-party security mechanism. So using the success of network security payments paid by a third-party, this paper presents a mobile phone-based third-party guarantees payment mode.

Yong Xu

Xueyan Liu

Ruiying Yao

2009 International Conference on Management of e-Commerce and e-Government

978-0-7695-3778-8/09 $26.00 © 2009 IEEE

DOI 10.1109/ICMeCG.2009.74

402

2009 International Conference on Management of e-Commerce and e-Government

978-0-7695-3778-8/09 $26.00 © 2009 IEEE

DOI 10.1109/ICMeCG.2009.74

400

III. MOBILE PHONE PAYMENT BASED ON THIRD-PARTY GUARANTEE

A. System architecture design Based on the existing third-party mobile payment

platform model, secured third-party mobile payment model has added the identity of the intermediary process of supervision of the transaction, set up credit systems. Secured third-party mobile payment platform in custody

pending the completion of the transaction price, in the buyer to confirm after receiving the money paid to the seller.

Fig.1 shows the architecture of third-party secured mobile payment system. The system includes the mobile communication network, message systems, third-party mobile service platform, third-party billing server accounts, third-party security systems, third-party credit evaluation system, order management systems, mobile payment gateways, banking system. .

Figure 1 System Architecture

Mobile communication network is mainly used to support the mobile user terminals and merchants, as well as WAP wireless terminals business platform for the link between the waythe main WAP, GPRS, 3G and so on, so it requires the mobile phone to install the client or mobile phone WAP browse.

The main function of the message system is to send a variety of notification, such as payment notification messages, sellers shipping notification message and other messages such as a variety of coding and certificate.

Third-party mobile services platform is a wireless portal that merchant and mobile phone users use the third-party network security payment model, some operations such as merchandise browsing, Member logging will be implemented through this interactive portal and a variety of third-party treatment and services will also be shown through the portal on the user's mobile phone.

Third-party clearing accounts server mainly manages Member Account information, as well as dealing with the settlement between the various accounts, of course, also include accounts recharge, cash mention and other account service management.

Third-party security system is the core modules, which provides customers with third-party guarantee, saves money temporarily in the process of transactions, and ensures the normal completion of the transaction.

Third-party credit evaluation system is used for members to manage credit, the mutual evaluation can be carried out after transactions between members , the system will give members access to the evaluation of a credit rating so that when other members engage in transactions they can have a credit reference .

Mobile payment gateway is mainly used to isolate network with banks outside the network when recharging account, to ensure the safety of the banking network and a secure connection between third-party platform and the bank.

Banking system is the most basic support system, through which a variety of clearing banks will eventually be completed.

B. Flow design The flow of the payment model is shown in Fig.2:

1) Consumers use the mobile to browse business mobile website, select products and then generate orders. 2) Business back-end server confirms orders information. 3) The merchant will sent orders information to third-party information security platform, request money collected and at the same time link the consumer mobile phone to a third party platform for mobile website. 4) Secured third-party platform for mobile payment services notifies the buyer to pay. 5) Mobile website buyer enters password and validation

Third-party clearing accounts server

Third-party mobile service platform

Mobile Payment Gateway

Banking system

Mobile Terminal

Mobile communication network

Business cell phone / computer

Third-party logistics mobile terminal

Message center

Message center

Wireless network

Third-party security system

s

Third-party credit evaluation system

Cable network

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code to log in to his own account to confirm payment. 6) After verifying the password and account information, the third-party successfully collect the receivables and inform the shipping and send the seller a transaction code. 7) After the seller receives shipment notification, it will make a delivery, and then provide transaction code to third-party logistics, finally confirm the goods have been shipped. 8) Third-party platform informs the buyer that the seller has shipped the goods, and sends the buyer a pickup code. 9) When the third-party logistics delivers goods, the

buyers will examine the goods at the scene. If they are satisfied with the Goods, they will give goods code to the logistics staff, the staff will send goods code and transaction code to a third party platform by mobile phone. Coded to match the two third-party certification will be paid into the sellers account and to the logistics staff proved to be successful message receipt, notify the sellers and buyers at the same time the completion of the transaction (Messages must be immediately notified in order to avoid the

Figure 2 The payment flow chart of the model

logistics side error without successfully confirming the completion of the transaction happened. 10) After the transaction being completed, the third-party will remind the two transaction sides of mutual evaluation, by using message or WPA network evaluation message.

IV. ADVANTAGES AND CHARACTERISTICS OF NEW MODEL

1. Third-party guaranteed mobile phone payment retains the ease and convenience of former mobile phone payment. It breaks the bank card payment barriers by using of “one-to-many”, it also breaks the banking hours and location restrictions. As long as there is cell phone signal, the payment can be completed, thus, users can really achieve the goal of "anytime, anywhere". 2. The advantage of the use of the client or the WAP browser connections is that it is user-friendly, and it can enhance the effect of user experience. Moreover, users do not have to worry about the problems of cell phone account information leakage. Because users do not have the account number and password stored in the mobile phone, they just land by inputting them through mobile phone, which uses the background accounts bounded mode. So even if the users replace mobile phones, they just need to install a new client or directly use of WAP browsers. The progress in the original cell phone in is not useful at all. 3. The security features provided by the mode play a good "intermediary" role in the cases of virtual wireless networks and lack of credit. It binds the buyer and seller’s trade practices, and ensures the safety of the completion of the

transaction. 4. A sound credit rating system makes it possible for both sides of the transaction to query each other's credit situation at any time, and conduct two-way selection before transaction. Good credit can help the two sides complete the transaction even more enjoyable. The credit evaluation system helps kick out those with low credibility, reducing the risk of fraud. 5. Third-party secured mobile phone implements membership system, each member is required to carry out real-name authentication, while merchants are required more stringent business certification. Moreover, the bank card selected for payment must be bounded, the bank card cardholder must agree with the registered ID card. And for each account, there is stringent password-protection, such as dynamic passwords, security codes, so account information can be guaranteed. 6. The mode also solves the problem of network of capital turnover existing in network-based third-party guaranteed payment. It introduces third-party logistics to immediately verify the transaction. Once the verification has been proved successful, it means that the transaction has been completed, and payment will be immediately transferred to the seller’s account. It would not result in residual funds and can protect the benefits of the seller. 7. Third-party secured mobile payment platform provide users with Order Management Service. Even if merchants do not have their own mobile commerce platform, buyers can also generate their own orders, manage orders information. As a seller, the user can also make use of

Third-party clearing accounts server

WAP Business Platform Mobile Phone Users

Logistics

2

4

3

5

5

6 7 7

8

9

9

91

1

Third-party credit evaluation system

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Third-party mobile service platform

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order management systems, to accept the buyer's orders. 8. As the mode provides its own order system, shopping is not limited to mobile commerce. Traditional transactions, as well as online shopping can implement this method of payment. This can truly realize the goal that, as long as the business users see the ads, no matter on the bus, on the trip, they can place orders through the mobile phone, just buy freely. 9. Thanks to the security services and the broader range of merchandise other than those released on its own platform, types of merchandise that can join in mobile transaction are sure to increase, the range of value-added services is certainly to become larger. It can be said all the things the seller wants to sell can be paid in this way.

V. SUMMARY With the arrival of 3G era, mobile e-commerce market

has also shown broad prospects, and the mobile payment environment will become increasingly close to the network payment, the integrity problem of network payment is bound to appear in the mobile payment, so we should timely develop a new payment model to deal with the development of mobile commerce, mobile phone-based third-party guarantee of payment models may lead us to take the first step.

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