POSLink Overview

SENA: 

March, 2002 June, 2002 POSLink series Serial-Ethernet connectivity for credit card payment terminals SENA

Contents: 

Contents Embedded Connectivity The Market Opportunity POSLink 100/400 Benefits System Configuration Technical Details: Technical Specification Software Architecture Hardware Architecture System Comparison Legacy off-line payment processing system IP-based off-line payment processing system References Target Customers Implementation Issues

The Market Opportunity: 

The Market Opportunity Broadband Service Providers (in South Korea) 25M Internet users, 8.9M Broadband households nation-wide (70% of total households, DSL 5.6M, Cable 3.3M), 45M population USD20~30 per month Three major providers for DSL & Cable Credit Card Processors (in South Korea) 10 processors nation-wide 1.5M payment terminals in the market Very competitive market Limitation Still locked into dial-up or proprietary leased line Long processing time for dial-up: 20secs High monthly service charge for leased line: USD50+ per line per terminal

POSLink 100/400: 

POSLink 100/400 Merchant Location Credit card Processor Location Payment Processing Server POSLink 100 POSLink 400 Payment terminal Merchant LAN Or Broadband line A box for IP-based off-line credit card payment processing

POSLink 100/400: 

POSLink 100/400 Secure transaction Full SSL Data Encryption for secure credit card transaction Lightspeed transaction Overall processing time less than 2 secs Multiple terminals with single broadband account (POSLink 400) Remote firmware download & monitoring for payment terminals Extremely low transition cost Out-of-box installation without any modification of existing devices: Just hook up & go Platform alternatives Firmware based platform with 16bit microprocessor Linux based platform with 32bit microprocessor

Benefits: 

Benefits Broadband Service Providers Looking for new revenue sources Saturated market for households and small offices More than 1.5M new subscribers that are POS terminals and still increasing Credit card processors Strong needs to provide quality services to dominate market Easy system maintenance with Internet-based remote device & system management Seamless integration of on-line and off-line payment system Generate new revenue model with Internet-based services such as on-line lottery & joint promotion with merchants Merchants Lower monthly cost for credit card transaction Fast credit card payment processing time Easy installation and relocation of payment terminals

System Configuration: 

System Configuration Enable serial-line based credit-card payment terminals to be connected to Ethernet or broadband Internet Transaction via TCP/IP with SSL encryption Payment Authentication Server ADSL/Cable modem HUB 211.115.67.188 66.12.89.34 ADSL/Cable ISP

Technical Specification: 

Technical Specification Embedded Connectivity

Software Architecture: 

Software Architecture Encryption algorithm (SSL, IPSEC) SSL(Secure Socket Layer) as a basic encryption method Asymmetric key exchange, Popular method in PC-based credit card transaction Flexible TCP/IP stack software and the encryption software Easy-to-customize to customer’s requirement

Hardware Architecture: 

Hardware Architecture POSLink

System Comparison: 

System Comparison Legacy off-line payment processing System Phone-line based system Charge per transaction The more the transaction, The higher the maintenance cost Slow overall processing time for payment terminal No data encryption required Proprietary leased-line based system Flat rate but expensive Fast overall processing time compared to phone-line No data encryption required Leased line service providers do not invest for infrastructures PSTN Modem Leased Line Modem PSTN/Leased Line Modem pool

System Comparison: 

System Comparison IP-based off-line payment processing system Connect to Ethernet or broadband Internet (ADSL, Cable) Flat & lower monthly rate Fast overall processing time Benefits from the shared line connection Secure transaction is the key Data Encryption: Industry standard SSL (Secure Socket Layer)

Slide13: 

Phone-line Proprietary leased-line Internet (ADSL, Cable) System Comparison Charged by the number of phone calls = 4 cents/call Flat rate per line = $65 for 4 line multiple Flat rate per line = $23/month Monthly Fee 20 sec 5 sec 2 sec Transaction Time For low-volume transaction & Small retail shop For large-scale retailer Saturated infrastructure but no investment plan by service providers Good for high-volume transaction Good for existing Internet users Comment In Korean market

References: 

References KMPS: processor & acquirer Field test at merchants location completed with 16bit-based POSLink100 16bit-based POSLink400 Payment terminal by domestic manufacturer Close an initial supply contract of POSLink100 KFTC: processor & acquirer Feasibility test with 32bit & Linux based POSLink IDphone: Payment terminal manufacturer Demonstration for other 7 domestic processors with payment server emulation software

Target Customers: 

Target Customers Credit card processors and acquirers Payment terminal manufacturer POS system integrator or value added resellers Broadband service providers Merchants as end users

Implementation Issues: 

Implementation Issues Communication with authorization server For servers that doesn’t support SSL The authentication server for credit card payment processing may have to be modified for server-side data encryption/decryption for the case of legacy dial-up & leased line based server. SENA’s tool kit with standard SSL For servers that supports SSL No server-side job required Legacy POS terminal interface Serial interface with POS terminal Dial-up only terminals without any serial port Dial-in interface is to be supported according to the payment terminal

Contact SENA: 

SENA Technologies, Inc. info@sena.com Phone:+82-2-529-7025 Fax: +82-2-573-7710 Web Address: http://www.sena.com 210 Yangjae-dong Seocho-gu Seoul 137-130, South Korea Contact SENA