NFC Mobile Payment Architecture

A. First Architecture Option

This architecture represents the next step from the current
credit card payment architecture. From users point of view, the
only difference will be that their Mobile Devices will play the
role of the credit card. In the ideal case, Mobile Device
manufacturers would include only NFC chip and the antenna
to their Mobile Device; SE  will be stored preferably to
SIM/UICC. Credit Card Companies role stays similar like in
current credit card payment system, with added responsibility
of authenticating Customers Mobile Device using the  applet
on Secure Element. Basic design with all interacting parties is
shown on Figure 1.
MIDlet on customers Mobile Device simulates contactless
smartcard mode, so that POS (Point of Sale) Terminal
manufacturers might not need to make new terminals that will
be equipped with NFC chip reader. POS Terminals would use
the same types of connection to the Credit Card company
network as they currently do with credit card payment process:
Dial-up or Internet Protocol (IP) whereas the dial-up is a
backup option. Consumer also gets the revolving account from
a Credit Card company, while the service/product provider
gets the merchant account.
Since this architecture has MNOs and Credit Card
companies as important players, both would get a piece of the
multi-application NFC Secure Element (SE) stored in the
SIM/UICC card. This is a significant improvement to current
charge card payments in the security area, because two parties
will perform authentication before engaging the payment.
Assigning a part to Mobile network  operators  also  means 
enabling the possibility of SMS payment confirmation to both,
user and merchant. The Bank where user has the account and
the Credit Card company are to provide the Application
(MIDlet) for the users Mobile Device.

Main differences from standard credit card payment system
are the interfaces INT1, INT3 and INT7, presence of MNO in
the architecture, and the slightly different role of Credit Card
company. From users point of view, the main difference
between this mobile payment architecture and the previously
described Credit Card payment protocol is that user needs to
turn the application on the Mobile Device and perform the
authentication procedure before the payment. INT2 is where
POS terminal is  reading a smartcard chip, because upon
having the Customer authenticated by Credit Card company
and MNO, MIDlet on Mobile Device would be in charge of
starting the smartcard-simulating mode.


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