SMS Used to Authorise Credit Card Transactions

Mobileway has said that its Mobile Transaction Tracker solution was used for the Verified by Visa mobile authentication services launched in Hong Kong to customers of the Bank of China International.

The service offering launched yesterday by Visa International and Bank of China in Hong Kong is the first to use existing SMS technology over mobile phones for payment authentication. The Mobile Transaction Tracker works by managing a request and response tracking mechanism for an SMS session. This is the first time that the notion of 'sessions' has been introduced in SMS technology. For each new transaction, a new service number is dynamically allocated in order to originate the message sent to the consumer and track the response from the consumer. When validating the transaction, the consumer only has to hit the REPLY button avoiding the need to re-type some transaction number or even the destination mobile number in the response.

Carles Guillot, Head of Business Development for Mobile Commerce at Mobileway and residing chairman of the Mobile Payment Authentication Group within pioneering industry group, the Mobile Payment Forum explains the motive behind the initiative, "In today's increasingly mobile environment, the potential for mobile commerce is vast, mobile devices form an essential part of consumer life both professionally and personally and the number of value-added services being introduced to the mobile grows on a daily basis. Historically attempts to introduce Mobile Commerce have been plagued by the scale of investment needed in both time and infrastructure, which has prevented any significant uptake. The case for using SMS as a way to offer secure authentication for mobile payment is extremely persuasive: SMS functionality exists in the vast majority of the World's mobile handsets avoiding the need for device upgrade or SIM Card adaptation, consumers are already familiar and comfortable with the technology, and the capability exists for issuers to seamlessly reach the vast majority of their cardholders via SMS through one connection to Mobileway's global network." Linda Chan, Head of m-commerce, e-Visa Asia Pacific, said, "As the leading payment brand, Visa's goal for mobile commerce is to develop and expand credit and debit acceptance to new delivery channels including SMS and WAP. With Visa payment, consumers and merchants can feel the same sense of trust, security and ease whether the transaction is done using mobile phone or in the physical world."

Verified by Visa is a global specification that ensures the security of payments online and with mobile phones and other wireless devices. Officially launched in Asia Pacific in March 2002, the authentication service is being implemented by more than 6000 Visa card issuers worldwide."

Posted to the site on 26th February 2003