Security and Infrastructure for Mobile Phone Payments using Near Field Communication

Abstract: Near Field Communication (NFC) is a short distance radio frequency communication technology that is suitable for use in a mobile handset. The technology enables payment cards, transport tickets and access cards to be replaced by software in the handset, thereby creating a mobile wallet with virtual cards. This thesis is focused on the mobile phone payment environment including NFC technology, industry collaboration and security. The research is based on literature studies, interviews and the development of a prototype system. The prototype was developed to demonstrate payments and loyalty membership transactions using an NFC-equipped mobile phone. The technology of NFC is ready for commercial use since the most critical standards have been published. What remains to be done before widespread technology implementation is to establish the payment infrastructure. This consists of compatible systems and a solid business model supported by industry collaboration agreements. When wireless communication and embedded systems including software applications are introduced to the payment environment, new threats to payment security arise. Due to this, there is a need for continuous research to maintain the security and suppress new attack methods but the current protection against attacks in these areas is strong. A suggestion for future work is to further study the threats from software attacks as well as usability aspects regarding mobile phone payment systems. Another suggestion is to further develop the prototype for integration into an existing payment system.