Welcome!

Mobile IoT Authors: Elizabeth White, Pat Romanski, Janakiram MSV, Shelly Palmer, Laureen Fagan

Related Topics: Mobile IoT, Microservices Expo, Agile Computing, Wearables, Cloud Security

Mobile IoT: Article

Securing Mobile Payments

As the mobile payment industry continues to develop at lightning speed, best practices have yet to be solidified

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.

Reducing Risk
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.

More Stories By Ian Hermon

Ian Hermon is Product Marketing Manager at Thales e-Security. He has more than 15 years’ experience in the payment industry, being responsible for the Thales portfolio of payment and transaction security products. He represents Thales on both the MasterCard Global Vendor Forum and Visa Europe Vendor Forum, is a member of the Smart Card Alliance Payments Council and the Smartex Smart Payments Forum Steering Committee. Ian also represents Thales as a participating organization on the PCI Security Standards Committee and is an EMV subscriber.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@ThingsExpo Stories
DX World EXPO, LLC., a Lighthouse Point, Florida-based startup trade show producer and the creator of "DXWorldEXPO® - Digital Transformation Conference & Expo" has announced its executive management team. The team is headed by Levent Selamoglu, who has been named CEO. "Now is the time for a truly global DX event, to bring together the leading minds from the technology world in a conversation about Digital Transformation," he said in making the announcement.
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
Everything run by electricity will eventually be connected to the Internet. Get ahead of the Internet of Things revolution and join Akvelon expert and IoT industry leader, Sergey Grebnov, in his session at @ThingsExpo, for an educational dive into the world of managing your home, workplace and all the devices they contain with the power of machine-based AI and intelligent Bot services for a completely streamlined experience.
"The Striim platform is a full end-to-end streaming integration and analytics platform that is middleware that covers a lot of different use cases," explained Steve Wilkes, Founder and CTO at Striim, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, will examine the regulations and provide insight on how it affects technology, challenges the established rules and will usher in new levels of diligence...
SYS-CON Events announced today that Calligo, an innovative cloud service provider offering mid-sized companies the highest levels of data privacy and security, has been named "Bronze Sponsor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Calligo offers unparalleled application performance guarantees, commercial flexibility and a personalised support service from its globally located cloud plat...
What sort of WebRTC based applications can we expect to see over the next year and beyond? One way to predict development trends is to see what sorts of applications startups are building. In his session at @ThingsExpo, Arin Sime, founder of WebRTC.ventures, discussed the current and likely future trends in WebRTC application development based on real requests for custom applications from real customers, as well as other public sources of information.
SYS-CON Events announced today that DXWorldExpo has been named “Global Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Digital Transformation is the key issue driving the global enterprise IT business. Digital Transformation is most prominent among Global 2000 enterprises and government institutions.
SYS-CON Events announced today that Datera, that offers a radically new data management architecture, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Datera is transforming the traditional datacenter model through modern cloud simplicity. The technology industry is at another major inflection point. The rise of mobile, the Internet of Things, data storage and Big...
While the focus and objectives of IoT initiatives are many and diverse, they all share a few common attributes, and one of those is the network. Commonly, that network includes the Internet, over which there isn't any real control for performance and availability. Or is there? The current state of the art for Big Data analytics, as applied to network telemetry, offers new opportunities for improving and assuring operational integrity. In his session at @ThingsExpo, Jim Frey, Vice President of S...
"We provide IoT solutions. We provide the most compatible solutions for many applications. Our solutions are industry agnostic and also protocol agnostic," explained Richard Han, Head of Sales and Marketing and Engineering at Systena America, in this SYS-CON.tv interview at @ThingsExpo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We are focused on SAP running in the clouds, to make this super easy because we believe in the tremendous value of those powerful worlds - SAP and the cloud," explained Frank Stienhans, CTO of Ocean9, Inc., in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"DX encompasses the continuing technology revolution, and is addressing society's most important issues throughout the entire $78 trillion 21st-century global economy," said Roger Strukhoff, Conference Chair. "DX World Expo has organized these issues along 10 tracks with more than 150 of the world's top speakers coming to Istanbul to help change the world."
"We've been engaging with a lot of customers including Panasonic, we've been involved with Cisco and now we're working with the U.S. government - the Department of Homeland Security," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held June 6-8, 2017, at the Javits Center in New York City, NY.
The financial services market is one of the most data-driven industries in the world, yet it’s bogged down by legacy CPU technologies that simply can’t keep up with the task of querying and visualizing billions of records. In his session at 20th Cloud Expo, Karthik Lalithraj, a Principal Solutions Architect at Kinetica, discussed how the advent of advanced in-database analytics on the GPU makes it possible to run sophisticated data science workloads on the same database that is housing the rich...
SYS-CON Events announced today that Massive Networks will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Massive Networks mission is simple. To help your business operate seamlessly with fast, reliable, and secure internet and network solutions. Improve your customer's experience with outstanding connections to your cloud.
"MobiDev is a Ukraine-based software development company. We do mobile development, and we're specialists in that. But we do full stack software development for entrepreneurs, for emerging companies, and for enterprise ventures," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
SYS-CON Events announced today that DXWorldExpo has been named “Global Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Digital Transformation is the key issue driving the global enterprise IT business. Digital Transformation is most prominent among Global 2000 enterprises and government institutions.
In his opening keynote at 20th Cloud Expo, Michael Maximilien, Research Scientist, Architect, and Engineer at IBM, discussed the full potential of the cloud and social data requires artificial intelligence. By mixing Cloud Foundry and the rich set of Watson services, IBM's Bluemix is the best cloud operating system for enterprises today, providing rapid development and deployment of applications that can take advantage of the rich catalog of Watson services to help drive insights from the vast t...
SYS-CON Events announced today that EnterpriseTech has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. EnterpriseTech is a professional resource for news and intelligence covering the migration of high-end technologies into the enterprise and business-IT industry, with a special focus on high-tech solutions in new product development, workload management, increased effic...