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Ecosystem Scenarios for Cloudbased NFC Payments

Pardis Pourghomi and George Ghinea

School of Information Systems, Computing and Mathematics
Brunel University
London, UK

Introduction to NFC

NFC is designed for short distance wireless communication

NFC is complementary to Bluetooth and 802.11 with their

long distance capabilities

Easy and simple connection method

Enables the exchange of data between devices over the

distance of up to 20 centimetres

Provides communication method to non-self powered

devices Brunel University, UK

Examples of using NFC enabled mobile phones

Download music or video from a smart poster

Exchange business cards, Pay bus or train fair, Parking

tickets, Pay at Kiosks, Pay and purchase at Point of Sale

Access controls in office, hotels, airports, print receipts to

printer Brunel University, UK

What is a Secure Element (SE)?

SE is intended as an attack resistant microcontroller

Combination of hardware, software, interfaces and

protocols embedded in a mobile handset that enable secure

Provides a secure area for the execution of the applications

and protection of the payment assets (i.e. payment keys,
application codes, payment data)

Can also be involved in authentication process Brunel University, UK

What is a Secure Element (SE)?

Operating system running on the SE must be able to install,

personalize and manage multiple applications

The SE is essential in NFC transactions and

ownership/control of it may yield commercial or strategic

SE types: Stickers, removable Secure Memory Card (SMC),
Universal Integrated Circuit Card is (UICC), Embedded SE
(eSE) Brunel University, UK

NFC ecosystem players

Consumer: is the party that is considered as the end user

in an NFC ecosystem.
Merchant: is considered as the consumer matching part.
Secure Element issuer (SEI): is the party that issues the
SE in an NFC ecosystem. It is also controlling the SE in
which it decides how the storage of an SE should be used.
Secure Element provider: SE provider is the
manufacturer of the SE. It has a direct relationship with SE
issuer and service provider.
Service Provider (SP): is the party that issues the
payment application and deploys data element to
consumer. SP is also responsible for managing the payment
application which is stored in SE. Brunel University, UK

NFC ecosystem players

Mobile Network Operator (MNO): is responsible for

providing the GSM network for data transmission. In our
case, the MNO is the SE issuer (SE in the form of UICC).

Trusted Service Manager (TSM): The role of TSM is to

integrate several SEs and SPs.

Acquirer: The main role of the acquirer is handling

financial payments by clearing and settling transactions
through the financial institutions. Brunel University, UK

SE management

SE management in a mobile multi-application environment

is very challenging

SP and SE issuers have n to n active relationship

Partners may have limited control over the service


Current card issuance models cannot support the dynamic

post issuance personalization process (lack of SPs control
on SE) Brunel University, UK

Mobile wallet + Cloud computing

Is there a need for cloud?

Would NFC do the job on its own?

There is a need for a clear right to go market strategy for

mobile payments

There is not much agreement in the minds of mobile wallet


Which technology will finally get accepted by consumers and


PayPal, Telefonica/O2, and Best Buy have announced wallets

that are using cloud technology cloud wallets Brunel University, UK

NFC wallet & Cloud wallet

NFC Wallet

Cloud Wallet

A chip is required stored in the


A mobile app is required


A mobile app is required


Client registers with the SP


Phone can be scanned on the POS Registered info are stored in an

offline database
Beneficial for busy environments
e.g. train stations

Pre-paid account is required

Improves the loyalty experience

of clients

Required info (e.g. credit card

details) is pulled out from the
database when client aims to
make a payment

Different apps can be integrated

into a single app

Beneficial for merchants no

need to change their current POS
terminals Brunel University, UK


NFC Cloud Wallet model Overview

1) Customer scans his NFC enabled phone on the POS to
make the payment
2) The payment application is downloaded into customers
mobile phone SE
3) The POS communicates with the cloud provider to check
whether the customer has enough credit
4) Cloud provider transfers the required information to the
5) The merchant either authorizes the transaction or rejects
customers request
6) The merchant communicates with the cloud to update
customers balance Brunel University, UK


NFC Cloud Wallet model General idea

Additional Security (optional)

When NFC enabled phone sends a

request to the cloud provider to
get permission to make a payment
(step 1), the cloud provider sends
a SMS requesting a PIN number to
identify the user of the phone

Customer sends the PIN back to

the cloud provider as an SMS
Verification Brunel University, UK


Ecosystem scenarios: Direct Link between POS and MNO

Extension to NFC cloud wallet model
The SE is part of the SIM (UICC)
The cloud is part of the MNO
The MNO manages the SE/SIM
Banks, etc. are linked with the MNO
MNO is the only party which
manages confidential data stored in
the cloud
More info: Pourghomi, P., Saeed, M., Q.,
and Ghinea, G. A Proposed NFC Payment
Application, In International Journal of
Advanced Computer Science and Applications
(IJACSA), volume 4, Number 8/2013, pages
173-181. The Science and Information
Organization Ltd, 2013. Brunel University, UK


Ecosystem scenarios: Unlinked POS and MNO


The main SE (virtual SE) is

part of cloud managed by
A secure tamper resistant
component is in mobile
device used for
authentication (phones SE)
The MNO manages the
Banks, etc. have
connections with MNO
Vendor trusts MNO Brunel University, UK


The virtual SE V.S. phones SE

Virtual SE (stored in cloud):
Securely store personal data such as debit and credit card
information, user identification number, loyalty program data,
payment applications, PINs and networking contacts

Phones SE:
Stores authentication data such as keys, certificates, protocols and
cryptographic mechanisms Brunel University, UK


Research challenges

Integration of financial institution(s) with MNO

Integration of cloud with MNO

Design secure transaction protocols according to payment


Further exploration of cloud architecture (SP perspective) Brunel University, UK


Thank you for your attention!

Question time
Contact: pardis.pourghomi@brunel Brunel University, UK