NFC Mobile Transactions and Authentication Based on GSM Network

This paper describes a mobile payment system for merchant micropayments, which can be build on existing GSM and NFC architecture components. Many mobile payment methods have been proposed, although such methods are intended for peer-to-peer transactions rather than a conventional merchant payment environment. Our proposal leverages the SIM´s authentication and identification capabilities and uses GSM cryptographic primitives, which simplifies integration into the current mobile infrastructure. The use of NFC for short range communication allows for possible integration with existing Point-of-Sale (POS) equipment and the payment process from the customer and merchant´s perspective remains unchanged. The system offers acceptable security for low value payments, customer anonymity and ubiquitous implementation using available technical components.