1.
Background of the Studies:
Zain Bahrain was established in Bahrain market in 2003 when
the country is on the bleak of telecommunications operations where services
were inefficient and high rate of costs prevails. To make life better in
Bahrain Zain formulated a technological aspiration among Bahrainis in terms of
excellent services and an atmosphere of excitement through mobile technology.
Its broadband and WiMAX services enhance
every individual and businesses as well and considerably accommodates thousands
of Bahrain users with pride and
enthusiasm. The excellent delivery of services with the energetic customer
service serves at the affront of operations that gives Zain the epitome as the
best telecommunication in Africa and Middle East.
Zain strength is on training and development as major standpoint
of growth in building Bahrain market. Presently, Zain lunches its 4G that enhances
the capability of its operations to the maximum in terms of reliability, high
speed and cost savings. The company is banking on its Core Values to provide
aspiration to its thousands of customers in Bahrain.
Zain venture in M-Payment is another landmark that magnifies
Zain into a pedestal of success to
enhance its image in the MENA region. As Zain is engrossed to the excellent
customer service, more product alignment is meted to suit its customer needs,
wants and expectations.
2.
Introduction:
Using the internet and mobile environments allows customers
in buying goods and services from anywhere and anytime with Mobile payment.
Payment is through digital goods by downloading software, tickets and e-books
or by services like games, booking tickets, auto parking and trading. Using the
payment through mobile phone is the important factor for an organization. The
benefit of which is for convenience and economical to customers in mobile
payment category.
When the customer shops online they can use mobile phone for
the payment of the product and services for transaction purposes. Unique code
is required for bank recognition when payments are made. Validation is done
after the payment is made.
In Bahrain , according to the Ministry of Telecommunications
, mobile phone users is at almost 6,34,500 as of February, 2014, 98% of the
total population living that are both expatriates and Bahrain nationalities.
For security and convenience purposes any of the customers are able to adapt to
a new payment system to provide a solution based on this new technological
payment. The cost of transaction is negligible as compared to the transaction
costs. The transformation of the mobile phone to a personal mobile wallet is
the vision of the m-payment (Ding&Unittan, 2006).
There are some suggested m- payment applications ( Ding and
Unittan, 2006)
1, Payment through automation like vending machines and
ticket machines
2. Taxi meters and shop counters
3. Wireless application protocol for internet payment
through mobile access.
4. Using the internet fixed sites
5. Individual to individual payments.
There are some payment schemes that were successful but that
is based on the implementations and geographical locations. (Padilla, J, 2011)
An interoperable payment system and standard is set in the acceptance of m-payment
must be obtained. Mediators like Paybox m-payments is implemented and extracted
through m-payment infrastructure.
The key players that played the important role in M-Payments
are the consumers or customers which transact the payments through his mobile
device in which they are installed and registered with the Zain
Telecommunications or financial institutions. They obtained a credit and debit
statements. Merchants which is Zain telecommunications sells the services to
the consumers ; the issuer that maintains the consumer accounts and payments by the
financial institution; acquirer which maintains accounts of the business organization by
transferring funds and the certification authority that Issue certificates to banks customers and merchants.
3.
Information System Background:
Reasons why M-payments is essential:
1.
Convenience and personal attachment- M-Payment
is convenient to carry by the use of mobile device and ensure trust among the
merchants.
2.
Payment is airtime- airtime payment is computed
with accuracy and settled amicably.
3.
It acts as a third party mediator and familiar
with the customers- consumer location and person identification is known and
the transactions are known by the mobile operator.
4.
Provides text and voice communication- a
multifaceted services can be used since it provides
Text and voice data.
5.
Provides access to the world regardless of time
and location.
6.
Ensure protection of transaction because it is
authenticated and becomes secure.
7.
Preference to geographic area where location is
being provided.
8.
In remote towns and rural areas, mobile services
can provide access to the merchants
9.
Transactions can be personalized with mobile
phones.
Issues with M Payments
There are limitations and constraints among mobile banking like
keyboard, memory, processing and bandwidth which prevent the transactions of
m-payment. But in the future these limitations are be stricken out due to
faster broadband access.
Others restrictions are:
1.
With M-payment, customer’s shares data from
other customers which will keep them away from the payments, thus they wanted
to be anonymous.
2.
Mobile phones got lost easily, that restricts
them to use m-payment
3.
The limitations of signal receptions which the
customers have the perception that the mobile operator is less reliable.
4.
Due to the high investments of mobile operator,
like upgrading the solutions and no interoperable global solutions that cause
the roaming becomes complicated. Also, there is a higher credit risks from the
banks or mobile operator.
5.
The inflexibility of m-payment solutions in the
use of hardware and software.
M-Payment Security
The transaction amount is based on the level of security
required. In the case of the low valued amount the security implementation is
less worth therefore no security is provided. In case the customer requires
notwithstanding the value of the amount, PIN is used for encryption. This PIN
is only known to the customer and nobody can do the transaction for him/her.
The transaction is to be authenticated and a X.509 v3 marginal key is kept to
authenticate an encryption. A high level of security is used by the use of
smart card.
There are many security communications are being used in
m-payments. One of this is WAP that displayed an Internet Information enabling
WAP in the mobile device. The Wireless Transport Layer Security (WTLS) standard
which is the basis in WAP 1.x security is a provision of TLS. There are many
standards that are connected to security at the level of application, the level
of transport and management level that increase the security capacity in WAP.
These are 1) WAP Identity Module ( WIP)
which is stored in the mobile device, a tamper resistant smart card chip used
to store Public Key Infrastructure (PKI) keys. 2) The WMLSSCrypt , WML Scriptto
API interfacing the application programming that is in WMLS Crypto Library (WMLSClib) as a
security functions and using the basic
security services , WIM and 3) The Wireless PKI (WPKI) are used to extend at
the maximum and the wireless environment PKI( Aswin , R, 2003).
111. Analysis of the IS
Systems of Zain M-Payment:
M Pay bill through Vodafone
It is the simplest and easiest way system using the virtual
point of sale (POS) small amount of money. The charge is through the phone bill
of the customers or from prepaid. The transactions involve three systems which
are the customer, merchants and the m-Pay Bill server. There is a registration
for m-Pay Bill online by registering their credentials, phone numbers and PIN
number. The prepaid airtime is then deducted with the phone bill and the amount
is charged.
Customer data is kept in the database and can be shared with
other service providers thus privacy is exposed which is part of the system
problem.
TextPayMe
TextPayMe provides payments for P2P in sending to mobile
phones and Web browser. The payment system solves the unattended segments of
the market namely the parking market, the F2F payments with the merchants and
transferring funds whenever the customers has short of payment bills in the
restaurants or any service establishments. No registration and installation is
to be done in the mobile device, just send and receive text messages. The
customer need not worry about fraud and losing the mobile device.
TextPayMe needs a credit card or bank account initially as
funds. SMS with a specified number of mobile phone by the customer is being
sent to TextPayMe .After which call is initiated requesting for the PIN
authorizing the customer to pay to complete the payment. This system is
convenient with a secure dominance for every mobile phone nowadays.
PayME
The PayMe is being supported by Gemplus, PBS and Orange. A
WAP based mobile phone, a PC and the internet is used supported by a credit,
debit cards. There will be a registration by the customers with the payment
server. A PIN is then issued and in the mobile phone through SIM. The purchase
request is sent by the customer through SMS to a merchant via the payment server. The response by the
payment server authorizing the payment is being sent for confirmation purposes.
PIN is then issued by the customer to confirm the purchase request and debit
the appropriate amount. The process pass through the payment gateway, which
then generates a receipts and send it back to the merchant.
Customer’s information is not detailed online which is of
the advantage to the customer. This system is fraud free because it is secured
by tapping the PIN on the payment terminal or on the phone. The authentication
confirmation by the payment center is with the coordination with the Elliptic
Curve Cryptography (ECC) cryptographic system (public key cryptography though
elliptic curves). Encryption of data is validated with the digital signature
with the banks availability though end to end encryption.
Paybox
P2P system is being used with the POS payment through mobile
phone. The customer need to register and Paybox gives them a PIN. Customer
communicates with Zain Telecom according to his telephone numbers. Zain then send messages to Paybox then message the players for the authority to
pay with the merchant name and amount requested. A PIN number is then issued by
the payer informing any authorize banks in Bahrain to act on the payment using
the system. The process is similar with the Internet payments through the
customer accounts and both the users and merchants are being charged a service
fee. The system is being used in micro and macro payments, Any fraudulent acts
is being detected by Paybox . The system uses the Interactive Voice response
(IVR) to call the customer which is less secured. The transaction is only
available with Global System for Mobile Communications (GSM) enabled phones
(Padilla, J, 2010). The system used the GSM for authentication and
authorization by the use of Caller ID and (MSISDN) – mobile subscriber
integrated services digital network.
OBopay
This allows mobile phone users to purchase and receive funds
through their mobile phones. The market segments targeted are restaurant bills
and considerably the theatre and cinema houses. OboPay depends not on SMS but
on the java client. This gives the interfaces
secured Cingular and T-Mobile and represented by handset manufacturer like
Nokia, Samsung, IPhone and Sony Ericssson.
P2P payments support this service system. Customer is being
issued a debit card and ATM withdrawals for payments. After the registration
and installation on the mobile devices, a debit message is received and any
amount is credited to a receiving person. Charge is being included during the
transactions. ATM is used to buy or purchase any items in the retail outlets.
MasterCard or Visa Card is also associated with the system. Money called or any
message is similar to the debit card, therefore balance of payment can be
checked anytime and anywhere.
MobiPay
The system can be used for mobile or stationary merchant;
internet payment; the P2P payments or to recharge mobile telephone and pre-paid
accounts. With customer’s telephone number a registration is made with all
operation is being carried out during the transactions. PIN numbers is being
issued to the customer for safety purposes. The remittance is being charged to
the issuer cards or with the associate of the clients with the confirmation
message is sent to the issuer. Security code using the PIN based on the personal
Mobipay number and being encrypted in the mobile phones.
BIBIT
IBM, Microsoft, Intershop, Oracle, Mercantec, KPN Mobile and
Allaire supports BIBIT. BIBIT is used by International Internet payments paying the
customer by way of foreign internet by means of the traditional paying method
by a specific country using the local currency. A virtual shop is then chooses
by the customer and redirected to the BIBIT system which notifies the customer
the specific action like shipment of the customer from country to country.
BIBIT responds by informing the customers to all the transaction whatever the
method of payment is. Software used is Java based. SSL is encrypted in BIBIT
server which is included in all transaction. A different mobile devices connected
through the Internet can be used to accept payment with the use of BIBIT
Payment Suite. The system acted on the security specifically in Europe uses
GPRS as transactional standard.
PayPal Mobile
Paypal commence 300million accounts throughout the world.
The system allows sending and receiving securely by online applications by
means of authorized bank accounts with corresponding e-mail address. Paypal
ensures privacy because it acts on the payments without shared financial
information with the merchant.
Paypal works through credit cards. The customer has to registered
and applied with the system using his credit card details. Specific software
must be installed when the PDA or mobile phone is used. Mechanics are two ways,
firstly by texting through the phone number with the amount of the receiver’s
phone number and secondly setting instructions according to the scheme by
calling the recipient’s number. Using the Paypal Mobile, the activation of
accounts is by registering and logging through Paypal accounts , choosing the
PIN to secure the m-payment. PayPal
Mobile sends text message to PayPal to make payments and PayPal calls back to
the user to confirm the payment. For text to buy method after the merchant
receives the payment, the items is shipped to the receiving party.
Future Trends of M-Payment
Many innovative payments methods depends upon the failure of
acceptance following the success of eCash and the German’s GeldKarte setting a
criteria for the satisfaction of the customers. According to the survey by GA
Consultancy (Padilla, J, 2010) shown that there is no accepted payment system
globally. A standard payment method for the B2B and B2C m-payment should be
accepted and exist in this technological environment.
E-commerce situation has proved to be successful in
designing the m-payment system. M-commerce should concentrate on micro and
macro payments until customer is flexible enough to adjust to this kind of
payments. There will be no automatic changes on the part of the customer to
shift from the traditional payments to the m-payment. Teenagers are flexible
enough to adapt to this kind of technology faster than the old ages. A
predominant payment through cash is currently used but decreases as the present
generation favors this technological advancement.
The problem lies on wireless network infrastructure that
varies based on the global payment system. A secure infrastructure can provide
the consumer and merchants to use the m-payment which serves as a challenge to
Zain telecommunications. Posed by the
Internet problems and WAP signifies a challenge to m-payment. PKI keys provide
mostly a security solution to m-payment. Other issues in security like privacy
of data, confidentiality, integrity, authentication, non repudiation,
accountability, system availability and customer protection are to be given
priority in m-commerce development.
Software and hardware solutions can solve technical
difficulties. Global m-payment with good
transactional intermediaries and inoperable standards is best serve with
satisfaction to the customers.
Requirements for a Common M-Payment Model
The future of M- payment should have processes: 1) Payment
service is to be registered, 2) Authentication and authorization, 3) Proof of
transactional completion, 4) Conflict resolution
According to Ding and Hempe,(2005) and Schwiderski-Grosche
and Knospe (2206) , the ease of use,
security, divisibility, transferability, interoperability, privacy, popularity
or brand cost, and standardization are
the key results areas for m-payment. The adaptability of m-payment is of utmost
importance and should be well accepted by the customers. This standardization
is further enhanced by PKI keys combined with smart cards that increased trust
and acceptability of m-payment.
Padilla, J (2010) noted that the future payment will be
supported by the payment process through credit cards, debit cards; direct
debit to bank account, and account based stored values. The insistent of bank
using a definite network service provider is a taboo to the customers since
they have the right to choose the network provider and only when the bank is to
process the m-payment.
There are many mobile
devices that has many featured network standards like Bluetooth, 802.11a,
80211b, HyperLAN2, and 802.11g WLANs. The 2G, 3G, systems are most commonly
used 3G are CDMA2008 by Qualcom and WCDMA by Ericsson. The GSM network is using
the WCDAM called UTMS and dominates in the European Countries while in the
United States; the usage of CDMA is widely welcome. According to Padilla, J,
2010, the most common issues that connect to the M-Payment are security,
interoperability, convenience, and ease of use.
Recommendation:
Zain telecommunications should adapt to m-payments in terms
of global interoperability and a setting of standards must be developed. The
development of the business models should have to deal with customers and
merchants for these are important to the business circulations. Fraudulent
activities like virus and stolen devices creates a big problem in M-payment
thus security policies by countries all over the world should be mitigated and
addressed for. Fraudulent activities hinder the growth of M-Payment. Privacy
and anonymity should always be emphasized to which is relevant to security
where personal data, transactions and content should always hold confidential
and should not be divulged to anyone. The customers trust the network operators
and the its business partners so they play an important factors in the
developing M-Payment in the future. Trust and security lies on both the
merchant and customers as M-Payment dominates into the marketplace.
Conclusion
Many m-payments have been in the market today relying on the
specified segments but the existing m-payments systems has its own limitations
and generalized payment procedures. To adopt m-payment the customers are
benefitted such as convenience, savings and least cost, reliable, adaptability,
quick response and scalability. The issues concern is anonymity, robbery, poor
signal reception in some areas, and the hardware and software used are
inflexible. Gender, age, cultural diversity, regional adaptability, kind of purchase, amount of purchase, mobile
devices used, and the network operator greatly influenced m-payment in the
world’s context. Proper standardization and security policies should be a
primordially requirements when there is an interoperability problems.
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Carat, G (2003) E-Payment system database: Trends and
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