Virtual Currency Micro-payments using NFC capable Mobile devices

Abstract

Mobile technology has become an integral part of modern life thanks in no small part to the titanic rise of the Smartphone. Even as smartphones have become the new personal computer we all carry around with us, ways in which mobile technology can make our lives simpler have constantly presented themselves. Making monetary transactions through the use of mobile devices is an area that has sparked recent interest in the industry, and with the introduction of Near Field Communication or NFC, a wireless communication technology, in many modern smartphones, it has been envisioned that a future where most if not all payments are made through mobile devices, is close at hand. However, this concept is still in its early stages and a decisive widely-accepted solution has yet to be introduced to the mass market. This thesis investigates and implements a payment protocol that harnesses NFC in order to successfully make virtual monetary transactions using a mobile device. The proposed protocol is secure, anonymous and user-friendly, and offers a viable solution to the concept of mobile payments. Making use of an Android mobile device as well as a desktop NFC reader, a practical prototype has been implemented to illustrate how this protocol can be successfully used to make virtual currency transactions. The protocol is evaluated sufficiently to prove its effectiveness and efficiency. Furthermore, potential on how this protocol can be built upon towards future improvement and innovation is examined.