Privacy-preserving Payments for Transportation Systems

The operation of our society heavily relies on high mobility of people. Not only our social life but also our economy and trade are built upon a system where people need to be able to move around easily. The costs for building and maintaining a suitable transportation infrastructure to satisfy those needs are high, and to charge users is thus a central requirement. This calls for well functioning payment systems satisfying the multitude of requirements that transportation systems impose on them. Electronic payment systems have many benefits over traditional cash payments as they are easy to maintain, can be more secure, reduce revenue collection costs, and can reduce the execution time of a payment. However, as a drawback, currently employed electronic payment systems usually reveal a payer’s identity during a payment which greatly infringes customer privacy. In the transportation domain this allows to generate fine grain patterns of customers’ locations. Cryptographic payment protocols called e-cash have been proposed which allow to preserve a customer’s privacy. E-cash provides provable guarantees for both security and user privacy, as it allows secure, unlinkable payments which do not reveal the identity of the payer during a payment. From a security and privacy perspective these protocols present a good solution. However, even though e-cash protocols have been proposed three decades ago, there are relatively few actual implementations. One reason for this is their high computational complexity which makes an implementation on potential mobile payment devices rather difficult. While customers usually value their privacy they often do not accept to sacrifice convenience. A fast execution of payments is thus a hard constraint, which conflicts with the computational complexity of e-cash schemes. This dissertation analyzes how e-cash can be used to solve the issue of privacy in the domain of transportation payments while satisfying the unique requirements of transportation payment systems and achieving high security and ease of use. Highlyefficient implementations of the underlying cryptographic primitives of e-cash schemes on constrained devices as they might be used in the transportation setting are presented. Based on the efficient implementations of these primitives, e-cash schemes are analyzed with regards to speed and hardware requirements. The results show that e-cash presents a good solution for privacy-preserving payments in the domain of public transport, if the number of coins that have to be spent can be limited. It is further practically shown that this limitation can be alleviated relying on the e-cash based privacy-preserving pre-payments with refunds scheme (P4R). Moreover, it is demonstrated that the promising feature of supporting the encoding of user attributes into electronic coins can be implemented at only moderate extra cost. Finally, an ecash based e-mobility payment scheme is presented which highlights the flexibility and unique advantages of e-cash based transportation payment schemes

Mobile banking and financial inclusion : the regulatory lessons

Mobile banking is growing at a remarkable speed around the world. In the process it is creating considerable uncertainty about the appropriate regulatory response to this newly emerging service. This paper sets out a framework for considering the design of regulation of mobile banking. Since it lies at the interface between financial services and telecoms, mobile banking also raises competition policy and interoperability issues that are discussed in the paper. Finally, by unbundling payments services into its component parts, mobile banking provides important lessons for the design of financial regulation more generally in developed as well as developing economies.Banks&Banking Reform,Access to Finance,Emerging Markets,Debt Markets,Technology Industry

A COMPARISON OF THE MOST POPULAR ELECTRONIC MICROPAYMENT SYSTEMS

The buying and selling of products or services over electronic systems such as the Internet and other computer networks is known as electronic commerce. In order to reduce the costs of electronic transactions, when one exchanges cheaper goods and services, specific payment protocols must be used. These protocols are actually the foundation for electronic micropayments, which implement simplified and cheaper schemes intended for small value transactions. In this paper we shall present and compare the main characteristics of the most popular micropayment systems used in both face-to-face and remote commerce.e-commerce, micropayment, security, encryption, Chipper, GeldKarte, Mondex, Proton, First Virtual, NetBill, KLELine, Odysseo, MicroMint

Anonymous reputation based reservations in e-commerce (AMNESIC)

Online reservation systems have grown over the last recent years to facilitate the purchase of goods and services. Generally, reservation systems require that customers provide some personal data to make a reservation effective. With this data, service providers can check the consumer history and decide if the user is trustable enough to get the reserve. Although the reputation of a user is a good metric to implement the access control of the system, providing personal and sensitive data to the system presents high privacy risks, since the interests of a user are totally known and tracked by an external entity. In this paper we design an anonymous reservation protocol that uses reputations to profile the users and control their access to the offered services, but at the same time it preserves their privacy not only from the seller but the service provider

Mobile banking and financial inclusion: The regulatory lessons

Mobile banking is growing at a remarkable speed around the world. In the process it is creating considerable uncertainty about the appropriate regulatory response to this newly emerging service. This paper sets out a framework for considering the design of regulation of mobile banking. Since it lies at the interface between financial services and telecoms, mobile banking also raises competition policy and interoperability issues that are discussed in the paper. Finally, by unbundling payments services into its component parts, mobile banking provides important lessons for the design of financial regulation more generally in developed as well as developing economies. --Banking,Regulation,Microfinance,Payments System,Mobile Money

Fighting Poverty, Profitably: Transforming the Economics of Payments to Build Sustainable, Inclusive Financial Systems

The Gates Foundation's Financial Services for the Poor program (FSP) believes that effective financial services are paramount in the fight against poverty. Nonetheless, today more than 2 billion people live outside the formal financial sector. Increasing their access to high quality, affordable financial services will accelerate the well-being of households, communities, and economies in the developing world. One of the most promising ways to deliver these financial services to the poor -- profitably and at scale -- is by using digital payment platforms.These are the conclusions we have reached as the result of extensive research in pursuit of one of the Foundation's primary missions: to give the world's poorest people the chance to lift themselves out of hunger and extreme poverty.FSP conducted this research because we believe that there is a gap in the fact base and understanding of how payment systems can extend digital services to low income consumers in developing markets. This is a complex topic, with fragmented information and a high degree of country-by-country variability. A complete view across the entire payment system has been missing, limiting how system providers, policy makers, and regulators (groups we refer to collectively as financial inclusion stakeholders) evaluate decisions and take actions. With a holistic view of the payment system, we believe that interventions can have higher impact, and stakeholders can better understand and address the ripple effects that changes to one part of the system can have. In this report, we focus on the economics of payment systems to understand how they can be transformed to serve poor people in a way that is profitable and sustainable in aggregate