Mobile payment in Fintech environment: trends, security challenges, and services

TLDR

Recent IT advances have spurred the growth of Fintech, driving a surge in mobile payment demand and a projected 38 % annual increase in the global market to $224.3 billion by 2017. The study surveys current mobile Fintech payment services, categorizes them, and identifies requirements and security challenges to guide future, more secure offerings. It defines and compares traditional and Fintech payment services, analyzes recent offerings, and classifies providers into hardware makers, OS makers, payment platforms, and financial institutions, highlighting shared features. The analysis suggests that mobile Fintech payment services will evolve toward greater security in the future.

Abstract

Abstract Due to recent developments in IT technology, various Fintech technologies composing of finance and technology are being developed. Especially, because of rapidly growing online market and supply of mobile devices, the need for mobile Fintech payment service that enables easy online and off-line payment has increased. According to the 2013 report by market research company Gartner, purchase related global mobile payment market size was predicted to grow from $45.1 billion in 2012 to $224.3 billion in 2017 with average annual growth of 38%. The study will surveyed the recent trends of mobile Fintech payment services and categorized them based on the service forms to suggest requirements and security challenges so that better and securer service can be provided in the future. First, the study defined existing payment services and Fintech payment services by comparing them, and analyzed recent mobile Fintech payment services to classify mobile Fintech payment service providers into Hardware makers, Operating System makers, payment platform providers, and financial institutions to show their common features. Finally it defined requirements that mobile Fintech payment services must meet and security challenges that future and present mobile Fintech payment services will encounter in the perspective of mutual authentication, authorization, integrity, privacy, and availability. Through the suggested study, it is expected that mobile Fintech payment services will develop into more secure services in the future.