Point & Pay Mobile Electronic Wallet

Point & PayMobile Electronic Wallet Presentation by: Dalal Elmahdy Jason Juneau

Agenda • What is Point & Pay? • Key Players • How it works • Examples • Benefits • Conclusion

What is Point & Pay? • Smart cards not as effective as hoped • Payment from a mobile device • Transactions • From credit and debit to chequing account • PDA, Cell phone, Ir Deviceto POS terminal • Store e-receipts andsynchronize with PC’sbookkeeping software What it is

Key Players • IrDA’s IrFM • Mobile Electronic Transaction Forum • Bluetooth Short Range Financial Transaction Study Group • National Retail Federation’s Association for Retail Technology Standards Key Players

How it Works - Radio Frequency • No line of sight • Non-metal barriers (furniture/walls) not a problem • Initiated by devices themselves • Not as common How it Works

Esso Speedpass • Uses RF • Free • Marketing • Receive extra Esso points • Entered into contests How it Works

Esso Speedpass • No credit info transmitted • 2-part transaction validation • Validates Speedpass device, not user • Security Issues • No PIN or authentication • No signature • More authentication to cancel than to use How it Works

How it Works - Infrared • Oldest wireless technology • Not competing with RF • Can be used in hospitals, airports • Inherent Security • Requires direct line of sight • Readily available hardware • IrFM accommodates 200+ million devices • 5x faster • 5x less power • 10x less expensive How it Works

IrFM v1.0 Unveiled! • Approved v1.0 in Dec. 2002 • Standards already implemented • Existing financial services infrastructures • Official introduction at ARTS booth at NRF Show, NYC, Jan. 2003 • Built on Harex/ZOOP test in South Korea How it Works

ZOOP and U of SC • ZOOP: Korean P&P • Universal Mobile Payment Service (UMPS) • Positioned as world leader in implementation on mobile phones • Success in city of Seongnam (South Korea) How it Works

ZOOP and U of SC • First testing ground in U.S. • ZOOP Ir receiver is $30 • Bookstore first, then • Dining venues • Residence buildings • Library card • Reduces congestion, improves services • Homogeneous system How it Works

Marketing • Everyone who makes purchases • Inform the masses • No charge for service • Loyalty incentives • Emphasis on benefits • Ease of Use • Convenience Marketing & Money

Making Money • Software applications • Devices • Backbone system • Database • Integration • Usage • Like VISA Marketing & Money

Consumer Benefits • Convenient • Economic • Secure • Universal Benefits

Business Benefits • Card Companies • Wireless Service Providers • Mobile Phone companies • Merchants • Financial Institutions Cash 22% Cheques 57% Credit 16% Debit/ATM 5% Benefits

Currently Toll booths Parking lots/meters Fuel stations USC Campus stores Vending machines Future: Credit and debit card companies Banks Retailers Shops Public transit Where is it being used? Conclusion

Summary Conclusion

3G Co. “Wireless Phones: Credit Card Fraud Boost” February 5, 2003. Online. Internet. http://www.3g.co.uk/PR/November2002/4454.htm • CardTrack. “Future Payments” February 19, 2003. Online. Internet. http://www.cardweb.com/cardtrak/pastissues/oct02.html • Carson, K.M. “Point and Shoot!” February 20, 2003. Online. Internet. http://retailsystemsreseller.com/archive/Aug01/Aug01_2.shtml • Esso. “Esso Imperial Oil Website” February 20, 2003. Online. Internet. http://www.esso.ca/ • Godwin-Jones, B. “Emerging Technologies: Wireless Networks”. February 20, 2003. Online. Internet. http://llt.msu.edu/vol6num1/emerging/default.html • Gore, D. “USC Tests Korean Company's "Point and Pay" Mobile Phone Service” February 19, 2003. Online. Internet. http://www.marshall.usc.edu/Web/Press.cfm?doc_id=4171 • Harex InfoTech. Website. February 19, 2003. Online. Internet. http://www.mzoop.com/ • Immtec, Inc. “mewallet-Mobile Electronic Wallet from Immtec” February 20, 2003. Online. Internet. http://www.mewallet.com/mewallet_modules.htm • Infrared Data Associations. “Creating an End-to-End Digital Payment System”. February 24, 2003. Online. Internet. http://www.irda.org/FMPAY/FM_Whitepaper.pdf • Infrared Data Associations. “Harex InfoTech, Inc. Adapting Handspring Treo for its wireless mobile payments trial at the University of Southern California” February 20, 2003. Online. Internet. http://www.irda.org/news/Harex_Handspring.pdf • Infrared Data Associations. IrDA Webpage. February 22, 2003. Online. Internet. http://www.irda.org/ • Long, M. “IrDA Releases Wireless 'Point & Pay' Standard” February 12, 2003. Online. Internet. http://www.e-insite.net/index.asp?layout=article&articleid=CA195178 • McommerceTimes. “Wireless Point and Pay?” February 3, 2003. Online. Internet. http://www.mcommercetimes.com/Technology/296 • Peretz, M.A. “Wireless Payment Solution on USC Campus Uses Treo” February 19, 2003. Online. Internet. http://www.allnetdevices.com/wireless/news/2002/09/26/wireless_payment.html • Sundgot, J. “Point-and-pay with IrFM” February 18, 2003. Online. Internet. http://www.infosync.no/news/2002/n/2868.html • Zayels, J. “Point And Shoot: The Future Of Wireless Payment Technologies” February 20, 2003. Online. Internet. http://www.webtrendsolutions.com/guestarticle32.htm References

Point & Pay Mobile Electronic Wallet