R&D (Research and development)
Development of the concept of the Universal Payment Platform (UPP) for the payment of services and goods, using existing and advanced communications networks
The Universal Payment Platform (UPP) provides equal opportunities, for the subscribers of different service providers, for making payments using their cell phones. The goal of this job was to create a platform, which would use existing and advanced communication networks.
In the commercial module of the UPP, the buyers-subscribers and the sellers get into direct contact, selling or buying services and goods, while using electronic banking products for settlement. As experience has shown, this commercial-module better corresponds to the demands of the developing market of info-communication services and new models of interaction between the operators and content & service providers.
Use of UPP standardized technical solutions by the communications operators, banks and other players in the market, substantially simplifies the deployment of the platform. The developed model is general in character and embraces the whole range of payment transactions and financial services, which are provided using cellular devices.
Fig 1: The schematic diagram, showing interaction between the participants of UPP.
The principle of universality of technical solutions and business processes is one of the main ones and is designed to provide access to mobile commerce services for all the subscribers, independent of the service providers, whose services they use. The compliance to this principle will allow, in future, different sellers to get connected to the platform, allow an unlimited number of banks to participate simultaneously and to retain subscriber profile even if the user changes his/her service provider.
The use of UPP helps all the participants reduce their risks, increase the number of service providers and eventually, optimize settlements.
Research and development of the proposals to introduce the payment of goods and services via mobile networks, in Russia, based on the use of fragments of experimental zones built using UPP, in the cities of Moscow, St-Petersburg and Sochi.
The aim of this project is the formation of conditions and research of prospects of use of mobile networks for the payment of goods and services by making fragments of pilot zones of the Universal Payment Platform (UPP) in Moscow, St-Petersburg and Sochi, as well as the analysis of the NFC technology and the possibilities of its use with UPP, compiling relevant recommendations.
With the help of the Universal Payment Platform the subscribers of existing and future communications networks will have the opportunity to pay for a broad range of goods and services, by giving their device (phone) the functions of a POS terminal.
The architecture of the mobile commerce pilot zones, which represent the needs of the projects, implemented by the major Russian communications companies in association with banks and (data) processing companies, has been developed as a part of the whole project. The plan and method of testing the fragments of the pilot zones has also been developed, proposals for the improvement of the legal framework regarding the establishment of rules, regulating the activities of the companies engaging in e-commerce, has also been prepared.
The pilot zone is created to practically test the theoretic provisions of the concept of the Universal Payment Platform and helps to work out legal and technical cooperation among the mobile commerce market players, study the possibilities of using new technologies, test the efficiency of certain business-models and technical solutions.
Fig 2: Schematic plan showing cooperation among the participants of the pilot zone.
This job also includes the analysis of international (overseas) experience of the use of NFC technologies, trends of its development and use, study of standards and specifications and the study of questions related to the integration of NFC devices into the cellular phones. The technical, technological and organizational aspects, related to the implementation of applications using NFC interface, have been analyzed. The conditions and prospects of manufacturing cellular NFC capable telephones have also been determined. The scenarios for mobile NFC payments have also been developed.
Research and development of instrumentals for the creation of next generation mass on-line mobile services
The objective of this job is to develop the concept of automated design of mobile services and demonstration of their main provisions using models. The working method is based on the use of a two-tier business-model (service provider – client), presentation of mobile services and analysis of on-line services as paid services, which requires not only interactive cooperation of the mobile service provider with the user, but also the payment of each stage of cooperation (interaction) in real-time.
As a result of efforts a prototype has been developed, which provides a unified programming environment (including visual design) for the creation and support of new generation mobile services. This prototype is independent of the mobile service provider’s technological platform and helps create distributable mobile applications in Java for use over the GSM (GPRS/EDGE) and CDMA standard communications networks.
This development significantly simplifies the creation of different types of mobile services, such as mobile content provision services, LBS-services, parking lot payment services, e-ticket purchase services and financial and settlement services. The independence of the services created using the developed solution, from the billing system of the cellular service providers, will significantly broaden the market by attracting independent providers, as well as it will significantly increase the economic efficiency of the projects.
Research and development of proposals for the introduction and implementation of mass services, based on NFC technology, via mobile networks of the Russian Federation
The objective of this job is to analyze the NFC technology and the possibilities of its use in the systems of contactless mobile payments, as well as the compilation of relevant recommendations.
As part of this job the overseas commercial projects of mobile NFC service provision were studied, regarding their technical-technological, organizational, financial-legal and marketing aspects. The analysis of the current state of the NFC equipment market and the prospects of its future development, including alternative and intermediate solutions, was also carried out. Also studied were the schemes of security management depending on the architecture of the cellular device and the instrumentals of development and implementation of mobile NFC services. The requirements for the implementation of mobile payment services were also developed. Special attention was paid to the aspect of information security.
The practical part of the work includes:
- Construction of models, which demonstrate the functioning and interaction of the hardware-software components, used for rendering mobile transport and NFC payment services.
- Construction of models, showing the compatibility of mobile NFC phones and contactless cards ISO 14443, as part of a unified hardware-software environment.
- Creation of fully functional prototypes of transport NFC services for the suburban train system and the service for the sale of contactless event e-tickets using Nokia 6212 phones.
- Creation of NFC pilot zone for suburban railway transport for Ltd. “Aeroexpress” based on the system of e-ticket sales.
Fig 3: Data scheme for the provision of mobile NFC transport service, implemented for Ltd.“Aeroexpress”.
Development and deployment of mass mobile NFC services will help introduce, enhance and streamline payments in the unified telecommunication networks of the Russian Federation, as well as it will stimulate the use of highly technological, competitive, payment technologies developed locally and will substitute cash flow. Introduction of mass mobile NFC services will simplify user access to new generation payment services, as well as it will provide extra income for the cellular service providers and other market stakeholders.