|By Ian Hermon||
|October 27, 2012 12:00 PM EDT||
As mobile phones become as indispensable as credit cards for purchasing goods and services, mobile payment developments are quickly gaining pace. Many different service providers are competing for their piece of the action. Within the last year, we have witnessed the arrival of mobile payment solutions such as MasterCard's PayPass, Google's Android-based eWallet scheme and Starbucks' emerging Quick Tap PayPass service.
A study from Juniper Research predicts that mobile contactless payment transactions are to reach nearly $50 billion worldwide in 2014 and NFC solutions will be used in 20 countries within the next 18 months.
However, with the widespread adoption of this technology, there is a need to debate which type of scheme works best and is the most robust.
Setting the Standard
As with traditional payments, standardization is vital. Several effective standards are already gaining momentum in delivering a secure mobile payments ecosystem:
- Organizing Mobile NFC Services - The Trusted Service Manager (TSM) acts as an intermediary between Mobile Network Operators (MNOs) and third-party service providers that wish to offer additional services to subscribers. GlobalPlatform's ‘System Messaging Specification for Management of Mobile-NFC Services' defines the messaging between each of the three parties to guarantee secure ‘provisioning' of services to the device.
- The SIM Alliance Open Mobile API - Applications utilizing the Secure Element (the cryptographically secured piece of hardware on newer mobile devices) to secure their critical operations, such as payments, banking or transport tickets, can have a component running within the device's operating system that ensures the user can securely interact with the keyboard/touch screen while enjoying a rich graphical user experience. The SIM Alliance Open Mobile API allows application developers to utilize additional security of the Secure Element more easily, be this in a UICC SIM, a dedicated Secure Element built into the device or a secure SD card, by providing a common means of interfacing with it.
- Trusted Execution Environment (TEE) - The Secure Element cannot easily host apps with a highly developed or cutting edge user interface, but can look after critical data on the mobile handset. Applications that require complex user interactions must run on the device's primary processor. The TEE secures these apps; GlobalPlatform is leading the standardization and interoperability in this area to ensure that software and data are sufficiently protected. For example, payment apps that run their user interface in TEE and their transaction security in the Secure Element would have a particularly high level of security.
Such standards encourage the industry to work together and benchmark best practices, but they remain as fundamental elements of successful mobile payment security. It is also required that technology that makes the security of provisioning mobile payment applications is as safe as issuing cards, and designing the necessary infrastructure requires much needed consumer confidence.
Security Issues Prompt Consumer Fear
Consumer's perceived fear surrounding new mobile payments technology often looms around security. The lack in consumer confidence originates from the threat of information being intercepted during a transaction. Yet risks are prominent at every stage of the mobile payment life cycle, including how payment applications get onto a phone securely in the first place. Constructing the data needed to issue a payment application and generate the secure messages to personalize a handset can be a lengthy and inefficient process, and the various cryptographic functions pose the possibility that sensitive data is at risk of exposure.
This initial set-up process or ‘provisioning' usually takes place over-the-air (OTA). The process increases security risks due to the various parties involved - typically the payment application provider (usually a bank), a Trusted Service Manager, the Mobile Network Operator and the end user. A vital success factor is maintaining security throughout this procedure, ensuring that no data is compromised. Successful provisioning utilizes unique personalization keys to not only encrypt the loading of data onto a device, but also the succeeding transactions performed by the application.
Mobile Payment Security as Secure as Traditional Payment Cards
By implementing the newest cryptography methods, users can ensure that ‘provisioning' occurs securely with the same level of protection provided by traditional payment cards. Providers of physical cards tend to favor Hardware Security Modules (HSMs), which generate and secure the encryption keys crucial to managing issuance risk. This method is also relevant for provisioning services to a mobile phone and can significantly reduce the complexities associated with the process while simultaneously avoiding the weakness of keys stored in software. The primary benefit of an HSM is to secure encryption keys and sensitive data in a way that safeguards such data from exposure. With this method, service providers reduce risk.
While encryption is crucial to the security of mobile payments, it isn't the only answer. For a more comprehensive approach to optimize security, encryption and authentication must be combined to provide protection for data exchanges and authorizations.
As the mobile payment industry continues to develop at lightning speed, best practices have yet to be solidified. Operators and related parties are still unsure about who ultimately controls the mobile wallet. But one thing that is for sure is that security remains the primary hurdle most consumers can't get over.
Extinguishing this concern is no easy task; it requires a mixture of robust standards and best practices, accompanied with the right technical path to ensure the experience is safe from the second that a user opts to download a payment app. If businesses want to take advantage of the mobile payments, security needs to be at the forefront of their approach to mitigating risk and encourage comprehensive consumer adoption.
Operationalizing the network continues to be a driving force behind DevOps and SDN. The ability to solve real problems using programmability to automate and orchestrate infrastructure provisioning and configuration across the application release process remains the hope for many interested in one or the other - and often times both. A recent Avaya sponsored, Dynamic Markets survey (reg required) dove deep into the demesne of SDN and found that many of the problems companies have - and expect ...
May. 5, 2015 08:00 AM EDT Reads: 2,076
We just finished the first O’Reilly Software Architecture Conference and the overwhelming most popular topic was microservices. Why all the hype about an architectural style? Microservices are the first post-DevOps revolution architecture. The DevOps revolution highlighted how much inadvertent friction an outdated operations mindset can cause, starting the move towards automating away manual tasks.
May. 5, 2015 08:00 AM EDT Reads: 1,992
We’re living in exciting but demanding technological times. Big Data, Internet of Things, Apple Watch, ubiquitous computing, smart machines, robotics, and home automation . . . things that were the talk of science fiction only a few short years ago are on every CIOs wish list today. But to the point, the revolution in technology has led to major shifts in how organizations today ideate, plan, develop, and deploy software solutions. It used to be that software release cycles would take upwards of...
May. 5, 2015 08:00 AM EDT Reads: 368
“This win means a great deal to us because it is decided by the readers – the people who understand how use of our technology enables new insights that drive the business,” said Matt Davies, senior director, EMEA marketing, Splunk. “Splunk Enterprise enables organizations to improve service levels, reduce operations costs, mitigate security risks, enhance DevOps collaboration, create new product and service offerings and obtain deeper insight into customer behavior. Being named Best Business App...
May. 5, 2015 07:45 AM EDT Reads: 2,916
Software is eating the world. Companies that were not previously in the technology space now find themselves competing with Google and Amazon on speed of innovation. As the innovation cycle accelerates, companies must embrace rapid and constant change to both applications and their infrastructure, and find a way to deliver speed and agility of development without sacrificing reliability or efficiency of operations. In her Day 2 Keynote DevOps Summit, Victoria Livschitz, CEO of Qubell, discussed...
May. 5, 2015 06:00 AM EDT Reads: 4,755
SYS-CON Events announced today that Akana, formerly SOA Software, has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Akana’s comprehensive suite of API Management, API Security, Integrated SOA Governance, and Cloud Integration solutions helps businesses accelerate digital transformation by securely extending their reach across multiple channels – mobile, cloud and Internet of Thi...
May. 5, 2015 04:00 AM EDT Reads: 2,455
SYS-CON Events announced today that Open Data Centers (ODC), a carrier-neutral colocation provider, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Open Data Centers is a carrier-neutral data center operator in New Jersey and New York City offering alternative connectivity options for carriers, service providers and enterprise customers.
May. 5, 2015 03:30 AM EDT Reads: 3,253
BlueBox bridge the chasm between development and infrastructure. Hosting providers are taking standardization and automation too far. For many app developers it does nothing but spawn mayhem and more work. They have to figure out how their creations live on a pre-fab infrastructure solution full of constraints. Operations-as-a-Service is what BlueBox does. BlueBox utilizes development tools such as OpenStack, EMC Razor, Opscode’s Chef and BlueBox's proprietary tools give the power to do the unor...
May. 5, 2015 03:00 AM EDT Reads: 1,885
SYS-CON Events announced today that Vicom Computer Services, Inc., a provider of technology and service solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. They are located at booth #427. Vicom Computer Services, Inc. is a progressive leader in the technology industry for over 30 years. Headquartered in the NY Metropolitan area. Vicom provides products and services based on today’s requirements...
May. 5, 2015 03:00 AM EDT Reads: 2,500
SYS-CON Events announced today that Blue Box has been named “Bronze Sponsor” of SYS-CON's DevOps Summit New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Blue Box delivers Private Cloud as a Service (PCaaS) to a worldwide customer base. Built on a technology platform leveraging decades of operational expertise in cloud and distributed systems, Blue Box Cloud is a managed private cloud product available in both hosted and on-prem versions. Each Blue Box ...
May. 5, 2015 02:00 AM EDT Reads: 1,981
“We are a managed services company. We have taken the key aspects of the cloud and the purposed data center and merged the two together and launched the Purposed Cloud about 18–24 months ago," explained Chetan Patwardhan, CEO of Stratogent, in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
May. 5, 2015 01:00 AM EDT Reads: 3,016
"Blue Box has been around for 10-11 years, and last year we launched Blue Box Cloud. We like the term 'Private Cloud as a Service' because we think that embodies what we are launching as a product - it's a managed hosted private cloud," explained Giles Frith, Vice President of Customer Operations at Blue Box, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
May. 5, 2015 12:30 AM EDT Reads: 3,686
SYS-CON Events announced today Isomorphic Software, the global leader in high-end, web-based business applications, will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Isomorphic Software is the global leader in high-end, web-based business applications. We develop, market, and support the SmartClient & Smart GWT HTML5/Ajax platform, combining the productivity and performance of traditional desktop software ...
May. 4, 2015 10:00 PM EDT Reads: 692
This is a no-hype, pragmatic post about why I think you should consider architecting your next project the way SOA and/or microservices suggest. No matter if it’s a greenfield approach or if you’re in dire need of refactoring. Please note: considering still keeps open the option of not taking that approach. After reading this, you will have a better idea about whether building multiple small components instead of a single, large component makes sense for your project. This post assumes that you...
May. 4, 2015 03:00 PM EDT Reads: 1,920
SYS-CON Events announced today the DevOps Foundation Certification Course, being held June ?, 2015, in conjunction with DevOps Summit and 16th Cloud Expo at the Javits Center in New York City, NY. This sixteen (16) hour course provides an introduction to DevOps – the cultural and professional movement that stresses communication, collaboration, integration and automation in order to improve the flow of work between software developers and IT operations professionals. Improved workflows will res...
May. 4, 2015 01:30 PM EDT Reads: 3,347
This digest provides an overview of good resources that are well worth reading. We’ll be updating this page as new content becomes available, so I suggest you bookmark it. Also, expect more digests to come on different topics that make all of our IT-hearts go boom!
May. 4, 2015 01:00 PM EDT Reads: 1,850
Cloud computing seems destined to be the way enterprises will use information technology. The drastic cost reductions and impressive operational improvements make the transition an unstoppable trend. The “What is cloud computing?” question now, however, seems to be morphing into “Where is cloud computing going?” While software-as-a-service (SaaS) providers see their market rocketing upward as the easiest and quickest path for cloud adoption, infrastructure-as-a-service providers are suffering...
May. 4, 2015 12:45 PM EDT Reads: 921
SYS-CON Events announced today that B2Cloud, a provider of enterprise resource planning software, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. B2cloud develops the software you need. They have the ideal tools to help you work with your clients. B2Cloud’s main solutions include AGIS – ERP, CLOHC, AGIS – Invoice, and IZUM
May. 4, 2015 12:00 PM EDT Reads: 4,432
I woke up this morning to the devastating news about the earthquake in Nepal. Sitting here in California that destruction is literally on the other side of the world but my mind immediately went to thinking about my good friend Jeremy Geelan. See Jeremy and his family have been living in Kathmandu for a while now. His wife, in fact, is the Danish Ambassador to Nepal!
May. 4, 2015 12:00 PM EDT Reads: 1,112
Lacking the traditional fanfare associated with any technology that can use the word "container" or mention "Docker" in its press release, Ubuntu Core and its new Snappy system management scheme was introduced late last year. Since then, it's been gaining steam with Microsoft and Amazon and Google announcing support for the stripped-down version of the operating system. Ubuntu Core is what's being called a "micro-OS"; a stripped down, lean container-supporting machine that's becoming more pop...
May. 4, 2015 12:00 PM EDT Reads: 1,012