April, 9, 2013 – Giesecke & Devrient (G&D) is to provide PayPal and Brazilian network operator Vivo with a mobile payment solution that allows their customers with prepaid accounts to top up their credit directly on their cellphone using PayPal. G&D will also deliver the necessary payment solution, the SmartTrust Mobile Transaction Gateway, to ensure that the transactions are executed securely.
The easy-to-use service gives customers direct access to phone credit, without having to buy a recharge card from a point of sale during normal opening hours. Based on USSD technology and compatible with all types of cellphone, the solution does not require users to download any other applications. For PayPal it is an opportunity to leverage on the mobile channel. Users can set up a PayPal account for the services directly on their mobile phone, and modify the account details to add or remove linked credit-card information whenever necessary.
The backend servers for this mobile payment solution are hosted and managed by Giesecke & Devrient in a secure data-processing center. The Mobile Transaction Gateway (MTG) via which all top-up and other mobile transactions are processed is based on the SmartTrust DP framework.
G&D will also ensure the security of applications in Telefónica Germany’s electronic wallet, the O2 Wallet. In February the telecommunications company became the first network operator in Germany to launch a wallet service. As part of a Friendly User Test, O2 customers are able to use their NFC-enabled smartphones with the related NFC SIM card to make contactless payments in all participating shops around the world. In future, the O2 Wallet will be expanded to include further applications such as coupons and loyalty programs. For the wallet service’s pilot phase, G&D is providing the NFC SIM cards and the TSM (Trusted Service Manager) service.
With the O2 Wallet, customers can use their cell phone to make contactless payments in any shop that displays the MasterCard PayPass™ logo. G&D is providing the O2 Wallet’s Trusted Service Manager service, which forms the basis for secure payments. Users’ personal payment-card details are transferred to a specially protected area on the NFC SIM card. The Trusted Service Manager also provides additional lifecycle management services such as locking and unlocking the payment applications, for example in the event the NFC-enabled smartphone is lost.
Today, payments made with mobile devices are as secure as those made with chip-based bank cards. G&D’s certified software and hardware elements, including its Trusted Service Manager services, fulfill the highest security requirements of payment providers such as MasterCard or Visa for payment transaction applications.
Telefónica S.A. and Giesecke & Devrient reached an agreement at the end of 2011 to establish a Europe-wide platform for NFC services. This agreement also covers provision of the necessary TSM technology.
For more information about the company please visit the Giesecke & Devrient website.