Mobile payment in Fintech environment: trends, security challenges, and services

Jungho Kang

doi:10.1186/s13673-018-0155-4

Abstract

Due to recent developments in IT technology, various Fintech technologies composing of finance and technology are being developed. Especially, because of rapidly growing online market and supply of mobile devices, the need for mobile Fintech payment service that enables easy online and off-line payment has increased. According to the 2013 report by market research company Gartner, purchase related global mobile payment market size was predicted to grow from $45.1 billion in 2012 to $224.3 billion in 2017 with average annual growth of 38%. The study will surveyed the recent trends of mobile Fintech payment services and categorized them based on the service forms to suggest requirements and security challenges so that better and securer service can be provided in the future. First, the study defined existing payment services and Fintech payment services by comparing them, and analyzed recent mobile Fintech payment services to classify mobile Fintech payment service providers into Hardware makers, Operating System makers, payment platform providers, and financial institutions to show their common features. Finally it defined requirements that mobile Fintech payment services must meet and security challenges that future and present mobile Fintech payment services will encounter in the perspective of mutual authentication, authorization, integrity, privacy, and availability. Through the suggested study, it is expected that mobile Fintech payment services will develop into more secure services in the future.

Highlights

The financial system is already largely digitalized, mobile payment services are used in limited areas, due to various regulations and marketability [1, 2]
There is much research conducted on mobile payments, to the best of our knowledge, there are no studies that summarize security requirements by comparatively analyzing mobile Financial Technology (Fintech) payment service with existing mobile payment services
The study defined each characteristic according to mobile Fintech payment service provider type classified into HW makers, OS maker, payment platform provider, and financial institution, and defined requirements that mobile Fintech payment services must meet differentiated from traditional payment services

Summary

Introduction

The financial system is already largely digitalized, mobile payment services are used in limited areas, due to various regulations and marketability [1, 2]. While traditional payment services required payment software and hardware such as POS or barcode readers making a burden for small-scale stores to install and maintain, PayPal here enables users to pay with credit cards or PayPal accounts through linking with financial institutions by attaching a PayPal here reader on normal smart phones.

Results

Conclusion