Telegroup news

TeleGroup mPayment _A New Payment Solution

According to the report of the International Telecommunication Union (ITU) published in 2009, it is estimated that until the end of 2010, 61% of the world population will use mobile phones, which is almost four times the number of users in 2002. Statistics show that total number of Internet users in the same period was doubled, and is now 23%.

What is mPayment?

mPayment solutions are based on the use of mobile phone in the communication with the vendor of goods or services through an mPayment service provider, as the central part of the system. Generic system architecture is presented in Figure 1. The system also includes one or more banks as well as the Certification Authority (CA) or an institution within the Public Key Infrastructure (PKI) chain, which is responsible for verification of digital signatures (if the same are used in the system).

Depending on the way of implementation of the mPayment solution, the exchange of information between users and the system is performed via SMS, USSD and/or WAP/GPRS/3G channels. TeleGroup-DunavNET solution, with the support of the mobile service provider, enables the utilization of all the mentioned channels, in order to bring the service closer to the widest range of potential customers.

TeleGroup-DunavNET mPayment solution

This solution is fully developed within the company and is based on a modular approach, so that it can easily be integrated with the mobile service providers, banks, vendors, as well as with the existent mPayment platforms within mobile service providers.

The basic components include:

• Transaction processing module

• Interface for vendors

• Interface for financial institutions

• Interface for mobile service users

• Interface for mobile service providers

• Database

• Administrative, customer, and bank and vendor portals

• Security module

• Monitoring and log module

The system allows different configurations. It can be used as a unique mPayment platform within the system, or only certain components can be used for the integration with an existing parts of the mPayment system of the big service providers. TeleGroup-DunavNET mPayment solution will be initially used for utility bills payment. The basic idea is to connect public companies with the mPayment system and to enable issuance of electronic receipts. Using SMS, USSD or GPRS/3G channels, user can pay the bill without much effort.

Security aspects of the solution

TeleGroup-DunavNET devoted special attention to security aspects of the system and to the ways of raising the reliability to the highest possible level.For this purpose, the system uses several levels of protection:

• SSL certificates which enables safe communication between users’ mobile phones and mobile service provider

• User’s PIN for the authorization of each transaction prevents unauthorized use of the system

• Time-limited duration of each session

• Use of MSISDN and IMEI numbers during the login or authorization, which provide security to the SIM card and mobile device

• Confidential information is not stored on mobile phones

• Confidential information within the mPayment system is stored in encrypted format

• The communication between the mPayment system, banks, mobile service provider, and vendor is performed through an encrypted protocol (SSL, hardware VPN, etc.).

System reliability is provided by components which have passed rigorous testing during the development and integration. I addition, monitoring and log module allows tracking of every transaction, so if a problem occurs, the cause of the unsuccessful transaction can be easily identified.

We are sure that in 2010 and 2011, the TeleGroup-DunavNET mPayment solution will contribute to the full affirmation of this payment method in the market for goods and services of the Republic of Serbia. In addition to the benefits for citizens, TeleGroup-DunavNET solution will contribute to the improvement of the operational efficiency of public utility companies.