Discussion on Mobile Payment Technology Architecture and Application Mode

With the comprehensive advancement of bank card chips, the rapid development of mobile communication networks and the rapid spread of smart phones, mobile finance based on mobile payment has gradually entered the field of financial services and people's livelihood. The mobile payment technology architecture, especially the mobile payment technology model based on financial IC card, is discussed.

1. Mobile payment technology architecture

Mobile payment applications are mainly divided into two types: remote payment and near-field payment. Remote payment refers to the payment method in which the mobile terminal accesses through the mobile communication network and directly interacts with the background server to complete the transaction processing. From the perspective of terminal carriers, mobile remote payment can also be divided into two types based on SE mode and no SE mode. Based on the SE mode, the terminal chip has a financial function conforming to the PBOC standard, and the client software uses the SE-based security service application to sign and verify the message. The mode without SE means that only the mobile communication function is available in the chip, and the financial function is not available, and the password is generally authenticated by means of a password or a mobile phone short message.

Near-field payment refers to the payment method in which the mobile terminal completes the transaction processing online or offline at the transaction site through the entity acceptance terminal (POS, ATM). Near field payment mainly refers to the SE-based mode, and the financial function in the terminal chip is equivalent to the ordinary financial IC card function. Other near-field payment modes without SE, such as offline two-dimensional code payment, are not promoted as trusted payment technologies due to lack of security technologies such as password authentication. The relationship between entities in the mobile payment system architecture is shown in Figure 1.

Figure 1 Relationship between entities in the mobile payment system architecture

The payment content platform in FIG. 1 refers to a platform for providing goods or service content; the remote payment system provides functions for mobile terminal access, transaction information, and settlement data processing for remote payment; the acquiring system is responsible for generating and transferring online transaction information. Transfer and settlement data collection, sorting and submission; transfer clearing system to achieve business transfer, clearing and settlement functions across agencies; account management system for bank card accounts or non-bank card settlement accounts to provide fund management, settlement and other services Access channel refers to access methods such as SMS, OTA and dedicated terminals; TSM (Trusted Service Management) is the entity responsible for mobile payment security unit management and application lifecycle management; application provider system provides various mobile payment applications; public The service platform is a trusted third-party system recognized by all parties involved in mobile payment, and provides functions such as registration of the enterprise, application registration, cross-TS M interactive transfer, SE trusted management, SE open sharing function, and application sharing.

Second, the server operation cooperation mode

1. Direct cooperation mode between commercial banks and communication operators

From the perspective of the server, this direct cooperation model can be divided into two categories: one is that the commercial banking system and the operator system are not connected, and the two parties write and read in the financial area and communication area of ​​the chip according to their respective standards. take. Such cooperation requires the user to open the financial function and communication function to the commercial bank business outlet and the operator business hall respectively.

The other type is the interoperability of some information between the commercial banking system and the operator system. For example, China Merchants Bank and Jiangsu Telecom jointly launched the “Zhongyin Wing Machine Pass”, the basic information of the financial functions in the card is pre-written at the time of card making, the user only needs to open the communication function in the operator's business hall, and the operator back-office system will The card opening information is transmitted to the China Merchants Bank system for real-name authentication, and the financial function in the card is activated after passing.

The mode of direct cooperation between commercial banks and communication operators is based on the lack of an intermediate public service platform. It is a relatively decentralized cooperation model. The application services provided are limited, and the convenience of users' opening and use is also Lower.

2. UnionPay as a financial institution convergence point and communication operator cooperation mode

In February 2013, China UnionPay Trusted Service Management Platform TSM (hereinafter referred to as UnionPay TSM) and China Mobile TSM achieved cross-industry docking. The commercial bank's system uses the “total-to-total” approach to access UnionPay TSM, realizing the model of indirect cooperation between UnionPay as a financial institution convergence point and communication operators. In addition, China Telecom and China Unicom, two other major operators, are also actively engaged in the docking work with the UnionPay TSM platform.

In this mode, the commercial banking system can connect to the carrier system indirectly by simply accessing the UnionPay TSM. In this way, as long as the mobile phone supports the Near Field Communication Protocol (NFC), the user of the bank can open the financial function through the “air card opening” method.

The model of cooperation between commercial banks and UnionPay as a convergence point is a kind of “total-to-total” cross-industry docking mode. UnionPay TSM needs to be connected with mobile, telecommunications and Unicom operators TSM respectively. Unify the public service platform. However, compared with the direct cooperation mode, the cooperation efficiency of all parties has improved, and the convenience of users to open financial functions and communication functions has also been greatly improved.

3. The cooperation model with the PBC public service platform as the core

In October 2013, the People's Bank of China Mobile Financial Security Trusted Public Service Platform MTPS (referred to as the Public Service Platform) passed the acceptance review and put into trial operation. As a national mobile financial infrastructure, the platform builds a public secure and credible air transmission platform for all parties in the industry, providing integrated services such as data exchange, security certification, application management and key management. Construction has a central role.

Under the public service platform architecture, the TSM system of UnionPay, commercial banks and third-party payment institutions serves as the application provider access platform, and the TSM system of China Mobile, Telecom and China Unicom serves as the issuer access platform. The application provider TSM is responsible for registering the certified mobile financial applications on the public service platform and providing application downloading and personalization services: the issuer TSM is responsible for issuing products that have been tested and certified to comply with financial mobile payment standards, and to provide financial functions for users. . After the user applies for the opening of the financial function, the mobile client can download the mobile financial application through the mobile client, and perform operations such as air card opening, personalization, and electronic cash deposit, so that the mobile phone can be consumed on the POS terminal supporting the “flash payment”.

At the beginning of the platform, TSM systems of seven institutions including China Construction Bank, UnionPay and China Mobile have been commissioned for trial operation. In the future, more mobile financial technology innovation applications will be developed based on the platform.

The cooperation model with the PBC's public service platform as the core effectively solves the problems of TSM interconnection, application sharing and entity mutual trust of service parties, and is conducive to the formation of an open, collaborative and win-win mobile financial operation environment.

Third, the mobile terminal technology implementation mode

According to the SE location, there are three main implementation modes of the mobile terminal product: NFC full terminal mode, NFC-SIM mode, and NFC-SD mode, which are respectively loaded into the terminal, SIM card or SD card. In the NFC full terminal mode, the SE can be integrated in the NFC controller or can be set independently. All three modes require the phone to support NFC near field communication. Three models are currently available on the market.

The NFC-SIM mode, such as mobile and package, is generally carried out in a cooperative mode between financial institutions and operators. Due to the high degree of standardization, low cost, and good mobile phone compatibility, the application of the industry chain is relatively good. The NFC-SD mode, such as CCB with core, UnionPay wallet, etc., can be issued by the card issuer independently, but the cost is higher. The NFC full terminal mode requires the support of mobile phone manufacturers. It is an early commercial mode, such as Apple Payment, which is still in its infancy in China.

No matter which mode is used to set the SE in the mobile terminal chip, the loaded financial account is no different from the financial account in the ordinary financial IC card, and can be loaded with a single electronic cash account, or can be loaded with a debit + electronic cash composite account, credit + Electronic cash compound account, etc. The only difference from the ordinary financial IC card is that in the near-field payment, the financial function in the mobile terminal chip cannot be inserted into the card, and the fund transfer must be realized through near-field contactless communication.