"Cisco E-Pocket" - the most popular cell phone application. © PcWorld June 2012
In the modern world the role of paper money is reduced to nothing, being replaced by credit card payments. Payments have become a simple exchange of "0" and "1" between computers.
Modern cell phone may well cope with such an exchange. Herewith:
- There will be no need to use cards (of different payment systems, different banks).
- There will be no need for the payment terminal for the payment transaction as is the case with cards. There will always be a transaction possibility everywhere.
- Terminals and ATMs won't be required.
- Cell phone is a more affordable product than the credit card. Almost everybody has it.
- Its computational power is sufficient to realize the function of personal payment terminal. Or in other words - the electronic pocket.
To turn ANY cellular phone into a payment terminal will only need to run a small JAVA application "Cisco E-Pocket". It will ensure safe execution of all the daily financial transactions (purchase, tax payment, paying for using transport, paying bills, receiving transfers, etc.).
Typical usage scenario:
- In order to pay for purchases in a store you need to "open the wallet" by simple launching of the E-Pocket application. At the same time a short, generated, single-use ticket lights up on the screen. It may be a 4-digit sequence (e.g.: "22B2", "C3PO", "R2D2"). You need to tell or show the cashier this ticket or the cashier's scanner will scan it from the screen of your mobile.
- Cashier processes the purchase using the obtained ticket number. He draws money from your account.
- You get the receipt and go home.
At the backstage:
- At "opening the wallet" the application "Cisco E-Pocket" generates a request to the network and passes the user data to the bank.
- Bank conducts the authentication and authorization procedure. If successful, the bank's server generates a unique one-time ticket (temporarily identifying the client's account) and transfers it to the user.
- Ticket number is passed to the cashier.
- Cashier "opens his wallet" and gets his own single-use ticket.
- The cashier prepares a payment transaction with the use of both ticket and sends it to the bank.
- Bank conducts the transaction and sends a confirmation.
The mechanism of using single-tickets is simple, safe and reliable. It is possible to introduce it today, using the current generation of mobile phones.
To make E-Pocket really popular it is necessary to make its usage as simple and convenient as of a regular wallet. To use it you do not need to undergo any pre-registration, go to a bank and open an account. It is not necessary. E-Pocket is a UNIVERSAL, NEUTRAL solution to organize own finances. And it should stay that way.
Let us explain with an example:
- We have an E-Pocket, we like using it and we advise my friend use it.
- Our friend downloaded E-pocket from Cisco site and set it up on his mobile.
- He launched his E-Pocket and "opened the wallet". The single-use ticket is generated. The wallet is ready to use.
- Using the ticket of our friend, we transferred $20 to his account.
As we see, in order to begin using E-Pocket you don't need anything, it is as simple as possible. Registering your bank account takes place automatically as soon as you start using the E-Pocket. The authentication of the account holder is done with the phone IMEI. If necessary, it will be easy to increase security by introducing an additional procedure of checking the password and certificates.
For the successful implementation of this project one of the main issues will be the question the reliability of the network, service availability and speed of transactions. To fulfil these requirements, Cisco may offer to use its technologies: Unified computing, Application networking services, etc.
I would like to note that with the implementation of the project Cisco will have a truly mass-market application, which will be used by billions (everyone needs a wallet). To ensure a more efficient operation of the application Cisco can unfold own infrastructure of name resolution (example: OpenDns, UltraDNS, Google Public DNS), expand the system replacing the DNS and handling its shortcomings. See the idea of "New Name Resolving System (NNRS)".
An important aspect of this system implementation is the choice of bank(s) serving the user's account. We consider it important to prevent the emergence of clone applications E-Pocket bound to work with a particular bank. This will inevitably lead to financial dependence and complexity of the mutual transactions. This situation can be avoided by using the idea of "Cisco Universal Money Platform" posted on this site. "Cisco Universal Money Platform" is a platform for conducting full-cycle cash flow and all the processes associated with it. Individuals as well big companies can use it.