Originally developed as part of a joint work effort of five telecommunications companies - AT&T Unisource - As they worked to determine their role int eh world of Electronic Payments

1. © 2006
Telecommunications & Payments

2. © 2006
Assumptions
• electronic purse neutral
• Bank and Brand neutral
• do competing with the banks
• Telecommunications
– Is the business of offering payment services and
systems, federated infrastructure and provides
support and services for international projects

3. © 2006
Settlement Bank
Issuing
Bank
Scheme
Acquiring
Bank
Issuing
Processor
Acquiring
Processor
Merchant
Processor
ISP
Access
Provider
Toll
Road
Certificate
Authority
Regulation Standards
Consumer
InfrastructureTechnology
Int’l
Hosting
Service
Merchant
The Roles in eCommerce
and Electronic Payments

4. © 2006
Electronic Commerce Framework
The Selected Means of
Payment Defines the
Bank, Scheme,
Jurisdiction, Protocol
and Procedures Which
Will Be Employed to
Process the Payment
Advertising
Information
Negotiation
Agreement
SELECT MEANS
OF PAYMENT
Process Payment

5. © 2006
Where Is the Customer
Where Is the Merchant
Merchant
Consumer
Merchant
Merchant
Consumer
Local
Net
40%
Same
Country
20% Global
Net
40%
Merchant
Consumer
Merchant
One Groups
View

6. © 2006
Value Proposition
The Merchant Expects Freedom To Chose
The Customer Wants Choice
Merge these into an ASP
Acquiring
Processor
Merchant
Processor
ISP
Access
Provider
Toll
Road
Certificate
Authority
Int’l
Hosting
Service

7. © 2006
Telecommunications & Payments
A Strategy Developed for a Consortium of
Telecommunications Operators to Enable
eCommerce With ePayments

8. © 2006
The Merchant Has
the Following Needs:
• Reliable identification of customer
• Digitally signed order/contract
• Encrypted communication
• Catalogues for certificates
• Electronic mail boxes
• Address information
• Time stamp
• Customer Information

9. © 2006
The Customer Has Certain Needs:
• Reliable identification about merchant or
service provider
• Signed confirmation of order, delivery time
and conditions
• Payment receipt
• Digital signed contract or equally valuable paper
Signature
• Means of managing certificates and receipts

10. © 2006
Cash Payments Anonymous,
Trusted and At Your Own Risk
Current
Account
Value Is Transferred Current
Account
Between Parties
Anonymous
-
+

11. © 2006
Cleared Payment Systems
Electronic Purse
Ubiquity Is the Key
to Success
Not the numbers of
Cards and Terminals
1 (-)
1 (+)4 (-)
2 (+)
3 (+)2 (-)
4 (+)3 (-)
Issuing Bank Acquiring Bank
MerchantConsumer
Scheme
Load
Unload
Totals Only
Transaction
Detail

12. © 2006
Cleared Payment Systems
Credit Cards
23
ab
A
B
4 (-)
4 (+)1 (-)
3 (+)
2 (+)3 (-)
1
1 (+)2 (-)
Issuing Bank Acquiring Bank
MerchantConsumer
Scheme
1. Shop
2. Request Approval
3. Authorization Code
a. From Acquirer
b. To Issuer
c. Net Settlement
A Monthly Statement
B Payment

13. © 2006
Cleared Payment Systems
Debit Cards
23
ab
4 (-)
4 (+)3 (-)
1 (+)
2 (+)1 (-)
1
3 (+)2 (-)
Issuing Bank Acquiring Bank
MerchantConsumer
Scheme
1. Shop
2. Request Approval
3. Authorization Code
1. Credit Merchant’s Account
2. Clear
3. Settle
4. Post to Account

14. © 2006
Five Payment Architectures To
Enable Electronic Commerce
• Support Credit and Debit cards via a 3D Secure
Implementation
• Create a Central Clearing System for existing
Domestic Purse Schemes
• Create a Central Clearing System leveraging
existing PTT billing relationships
• Create Pico Payments System leveraging existing
PTT relationship
• Establish the First "Euro" Bank
Compete with Prime Client the Banks