Developments, Issues, and Initiatives in Retail Payments

Innovations in basic information technologies, in payment applications, and in the availability of global markets, as well as substantial changes in financial sector policy, have fundamentally changed how the retail payments system in Canada operates. Principally, the volume and types of electronic payments have grown, and there is increased participation by diverse groups of financial and non-financial institutions as providers of retail payment services. The resulting policy problem for payment systems is how best to benefit from efficiency gains while managing payment risks. O'Connor examines the effect of the technological and legislative changes and the initiatives developed by the public and private sectors in such areas as the market arrangements for services; customer risks and costs for settling large-value retail payments; the security of payment information and the efficiency with which it is transmitted; and the effects of differing regulatory regimes on competition among providers of retail payment services.

Electronic security - risk mitigation in financial transactions : public policy issues

This paper builds on a previous series of papers (see Claessens, Glaessner, and Klingebiel, 2001, 2002) that identified electronic security as a key component to the delivery of electronic finance benefits. This paper and its technical annexes (available separately at http://www1.worldbank.org/finance/) identify and discuss seven key pillars necessary to fostering a secure electronic environment. Hence, it is intended for those formulating broad policies in the area of electronic security and those working with financial services providers (for example, executives and management). The detailed annexes of this paper are especially relevant for chief information and security officers responsible for establishing layered security. First, this paper provides definitions of electronic finance and electronic security and explains why these issues deserve attention. Next, it presents a picture of the burgeoning global electronic security industry. Then it develops a risk-management framework for understanding the risks and tradeoffs inherent in the electronic security infrastructure. It also provides examples of tradeoffs that may arise with respect to technological innovation, privacy, quality of service, and security in designing an electronic security policy framework. Finally, it outlines issues in seven interrelated areas that often need attention in building an adequate electronic security infrastructure. These are: 1) The legal framework and enforcement. 2) Electronic security of payment systems. 3) Supervision and prevention challenges. 4) The role of private insurance as an essential monitoring mechanism. 5) Certification, standards, and the role of the public and private sectors. 6) Improving the accuracy of information on electronic security incidents and creating better arrangements for sharing this information. 7) Improving overall education on these issues as a key to enhancing prevention.Knowledge Economy,Labor Policies,International Terrorism&Counterterrorism,Payment Systems&Infrastructure,Banks&Banking Reform,Education for the Knowledge Economy,Knowledge Economy,Banks&Banking Reform,International Terrorism&Counterterrorism,Governance Indicators

Security Issues in Mobile Payment from the Customer Viewpoint

The perception of mobile payment procedures’ security by the customer is one major factor for the market breakthrough of the according systems. In this paper we examine security issues in mobile payment from the viewpoint of customers. Based on theoretical research we analyze empirical data from the MP2 mobile payment study with 8295 respondents in order to develop a set of dimensions, categories and aspects. The results do have a scientific as well as a practical impact: They provide a basis for the selection of appropriate indicators for further empirical studies. Furthermore they can serve as a guideline for mobile payment service providers in order to prevent security concerns through appropriate design and communication of payment procedures and to convince customers of the security of their mobile procedures by meeting concerns in informative advertising.

PKI Interoperability: Still an Issue? A Solution in the X. 509 Realm

There exist many obstacles that slow the global adoption of public key infrastructure (PKI) technology. The PKI interoperability problem, being poorly understood, is one of the most confusing. In this paper, we clarify the PKI interoperability issue by exploring both the juridical and technical domains. We demonstrate the origin of the PKI interoperability problem by determining its root causes, the latter being legal, organizational and technical differences between countries, which mean that relying parties have no one to rely on. We explain how difficult it is to harmonize them. Finally, we propose to handle the interoperability problem from the trust management point of view, by introducing the role of a trust broker which is in charge of helping relying parties make informed decisions about X.509 certificates

Mcommerce - a vision in time

Global mCommerce revenues are expected to grow from $400 million in 2000, to 22.2 billion by 2005 (Raczkowski, 2002) mCommerce is a key driver in developing the global information society, with applications emerging in numerous areas including banking, financial services, security services and shopping (Khalifa and Cheng, 2002). With optimistic projections regarding its growth, many researchers are actively determining the future of mCommerce. In this paper, we have tried to synthesise some predictions and evolving definitions, explored security as a critical impediment and developing solutions; investigated the mPayment scenario; and derived a futuristic research framework. Specifically, we have attempted to capture the moving mCommerce scenario in present time, with a special focus into mPayments.<br /

The State of the Electronic Identity Market: Technologies, Infrastructure, Services and Policies

Authenticating onto systems, connecting to mobile networks and providing identity data to access services is common ground for most EU citizens, however what is disruptive is that digital technologies fundamentally alter and upset the ways identity is managed, by people, companies and governments. Technological progress in cryptography, identity systems design, smart card design and mobile phone authentication have been developed as a convenient and reliable answer to the need for authentication. Yet, these advances ar enot sufficient to satisfy the needs across people's many spheres of activity: work, leisure, health, social activities nor have they been used to enable cross-border service implementation in the Single Digital Market, or to ensure trust in cross border eCommerce. The study findings assert that the potentially great added value of eID technologies in enabling the Digital Economy has not yet been fulfilled, and fresh efforts are needed to build identification and authentication systems that people can live with, trust and use. The study finds that usability, minimum disclosure and portability, essential features of future systems, are at the margin of the market and cross-country, cross-sector eID systems for business and public service are only in their infancy. This report joins up the dots, and provides significant exploratory evidence of the potential of eID for the Single Digital Market. A clear understanding of this market is crucial for policy action on identification and authentication, eSignature and interoperability.JRC.DDG.J.4-Information Societ