ABSTRACT
Contents Abstract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 262 11.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 263 11.2 Useful Terminologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 264
11.2.1 Mobile Phone-Related Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 264 11.2.1.1 2G, 3G, 4G, and 5G . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 264 11.2.1.2 Global System for Mobile Communications . . . . . . . . . . . . . . . . . . . . . . . . 264 11.2.1.3 GSM Association . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 264 11.2.1.4 Universal Mobile Telecommunications System . . . . . . . . . . . . . . . . . . . . . 265 11.2.1.5 Long-Term Evolution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 265 11.2.1.6 Mobile Network Operators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 265 11.2.1.7 Smart Card. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 265 11.2.1.8 Subscriber Identity Module . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 265 11.2.1.9 Universal Integrated Circuit Card . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 266 11.2.1.10 Universal SIM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 266 11.2.1.11 GlobalPlatform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 266 11.2.1.12 European Technical Standards Institute . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 266 11.2.1.13 Near-Field Communication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 266 11.2.1.14 Trusted Service Manager . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 266
11.2.2 Financial Service-Related Terms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 267 11.2.2.1 EuroPay, MasterCard, and Visa. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 267 11.2.2.2 Electronic Commerce and Mobile Commerce . . . . . . . . . . . . . . . . . . . . . . 267
11.3 Background and Literature Review of the Digital Financial Services . . . . . . . . . . . . . . . . . . . 267 11.3.1 Transformation of Technology-Led Financial Services and
Payments Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 267
11.3.2 Prosperity of Mobile NFC (Contactless) Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . 268 11.3.2.1 Key Component: Secure Element . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 269 11.3.2.2 Simplified NFC-eSE Mobile Device Working Principles . . . . . . . . . . . 270 11.3.2.3 Secure Element Ecosystem. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 270
11.4 Scenario Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 271 11.5 Background of the Employed Methodology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 272
11.5.1 Fuzzy Logic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 272 11.5.1.1 Fuzzy Sets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 272
11.5.2 Technology for Order Performance by Similarity to Ideal Solution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273
11.5.3 Fuzzy TOPSIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273 11.6 Focal Problem Formulation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 275 11.7 Numerical Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 281 11.8 Future Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 283
11.8.1 Broader M-Payments Ecosystem Viewpoint. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 283 11.8.2 Deeper M-Payments Technology Innovation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 284
11.8.2.1 Hybrid Secure Element . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 284 11.8.2.2 Variant SIM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 285 11.8.2.3 Emerging Host Card Emulation Technique . . . . . . . . . . . . . . . . . . . . . . . . . 285 11.8.2.4 Advanced Authentication Technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 285
11.9 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 286 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 287
Abstract As mobile technologies are becoming more sophisticated and mobile devices are penetrating into our daily life, a brand new type of payment system, that is, mobile payments (m-payments), facilitating users to complete their payment activities while on the move via various wireless devices (in particular mobile phones), has emerged. Currently, mobile network operators, banks, device manufacturers, big Internet titans, and all sorts of other provision institutions (e.g., financial service firms and payment service companies) are playing a part in developing a mature m-payments ecosystem. Therefore, the first part of this chapter is devoted to the discussion of the characteristics of the m-payment system, and an overview of the current security trends related to the m-payments market is also provided. Meanwhile, we have passed the periods of irrational exuberance and equally irrational disillusionment (each championed by involving parties who have yet to fully explore the landscape of m-payments); it’s time to stop seeing m-payments as wrecking balls ready to shake many players’ conventional business to their foundations. Instead, in this chapter, we think of m-payments from a device manufacturer’s perspective via the lens of secure element, a key enabling hardware for m-payments. Although handset manufacturers have been late entrants in the m-payments market, they could still become relevant and play game-changing roles. A principal sticking point in making this role leap is the selection of innovative technology. By selecting an appropriate secure element supplier and integrating this novel hardware to their products, handset manufacturers are expected to be able to find a niche in an expanding m-payments ecosystem, rather than being just a device maker for the financial services: churning out miscellaneous smart
widgets while others grab the really valuable parts. The second part of this work illustrates a secure element supplier evaluation scenario. A fuzzy TOPSIS (i.e., technology for order performance by similarity to ideal solution) is also employed to solve the encountered multicriteria decision-making problem. The experimental results demonstrated the feasibility of the utilized methodology in the chosen context.
