Abstract

QR Based Merchant Payment using android as the name states is used for QR code scanning for the transactions between a consumer and a merchant go Cashless.  This System deals with the liquid cash transactions between a merchant and consumer enhancing the reliability and the quick monitory transactions on both the ends. This System works in a different fashion when the Merchant scans the QR code from the consumers app the amount is transferred into the merchant’s wallet and he can transfer the amount to his bank account at his ease. The consumer has to load his wallet using his debit or credit card and he can also save his card details for future use. This System generates a unique QR Code Id to verify whether the Merchant or the data has not been tampered after the QR code is generated. All the passwords are encrypted using AES Encryption Algorithm.

Mobile commerce is expected to provide merchants with the ability to sell products and services to customers at any time from anywhere. This enables companies to create more contact points with customers and to bring products and services directly to customers (Coursaris & Hassanein, 2002). The universal availability and purchase possibilities are estimated to bring impulsive purchases to bring new customers to the company and increase incomes. Extensive use of mobile devices in e-commerce has a role in this growth. 

According to Ramezani (2008), mobile payment is defined as paying for goods or services with a mobile device such as a phone, Personal Digital Assistant (PDA), or other such devices. Thus mobile payment can be defined as the process of two parties exchanging financial value using a mobile device in return for goods and services (Ramezani, 2008). 

Mobile payments on the other hand can be referred to as two-sided markets, where retailers or merchants accepting mobile payments represent one side, and customers using the service form another side. Both sides express certain expectations about the benefits of mobile payments (Apanasevic, 2013). So, consumers expect an easy-to-use solution, better quality, and personalization of the service, guaranteed security, low service costs, and ubiquitous infrastructure (Apanasevic, 2013). In turn, when adopting mobile payments, retailers or merchants expect: to make payment process quicker and easier; low investment and service costs; compatibility and integration of all payment solutions with existing infrastructure like a point of sale terminals; reliable, secure and trusted service; and customization of service like adding loyalty schemes (Apanasevic, 2013

Lately, client side attacks on online banking and electronic commerce are on the rise due to inadequate security awareness amongst end users. As a result, end user would not be aware if there is vulnerability on their machine or platform that might lead to client side attack (Nilsson, 2012). As technological advances continue to influence the way society makes payment for goods and services, the requirement for more advanced security approaches for transaction verification in the online environment increases.

The adoption of mobile payments globally has followed a path unlike almost any other technological development, with rapid take-up in some developing economies, while advanced economies have been slower to follow.

Over the last few years, the mobile and wireless devices market has been one of the fastest growing markets in the world. Mobile devices are the most promising way to reach the masses and to create stickiness among customers, due to their ability to provide services anytime, anywhere, with high rate of penetration and potential to grow. Going by the Nigerian statistics, only 30% of Nigerians have bank accounts and over 70% who possess mobile phones.  As of 2009, 68% of the world’s population had mobile cellular subscriptions (ITU, 2009). The growth in mobile telecommunications services is expanding the reach of financial services across wireless networks in the less developed countries, creating the potential for significant growth in mobile commerce and financial inclusion.

As more citizens of the developed countries become unbanked as a result of widespread economic crisis, financial service providers have begun to explore the potential of mobile money as a means of enhancing financial inclusion as well as solving the challenges of remittances. Mobile money transfer (MMT) has the potential to catalyze the entire financial service market including mobile payment, banking and transfer because it stabilizes the infrastructure for remote mobile transactions and the concept of mobile wallet (GSMA, 2008).

This research aims to integrate different authentications and methods to provide an improved and secure online mobile payment transaction between the client and the server. Hence, the research intends to develop a mobile Wallet with merchant Payment System using android.

1.2 Statement of Problem

 Mobile phones have become an inseparable companion for many users, serving much more than just being a communication tool. Hence, mobile money has become a tool that allows individuals to make financial transactions using mobile cell phones. Nigeria is one of the fastest growing telecoms nations of the world and the adoption of mobile money will help a great deal to solve the problems associated with remittances.

The increasing cyber attacks during online financial transactions have necessarily initiated a need for secure and efficient means of mobile payment. Thus, enhancing the security of online payment systems emerges as an important issue to be addressed and this motivated the author to explore different types of mobile payment systems. As aresult of this problem, this study intends to develop a mobile wallet app with merchant payment using android. 

1.3   Purpose of Study

The purpose of this study is to develop a mobile wallet with merchant payment using android. The study aims to build a mobile application that will enable anyone that has a phone or tablet make payments and also receive payment on their phones. This application will solely make and receive payments using a mobile device.

1.4   Aim and Objectives of the Study

This paper seeks to develop a mobile wallet with merchant payment using android. It seeks to promote mobile phone use as a means of expanding access to financial services. The core objectives which have been designated as fundamental to this project are:

·                    To design and evaluate a novel secure mobile wallet payment transaction system using QR code technology.

·                    To consider the existing mobile transaction payment models in order to understand the limitations which have been raised regarding the adoption of this technology.

·                    To develop a payment model based on the results and limitations obtained from consideration of the existing models.

1.5 Scope and Limitation of the Study

This Project centers on the development of a mobile application software that can serve as an efficient alternative to the physical wallet using mobile wallet technology.

Limitation

The application that will be built will only run on android operating system. This implies that only mobile phones with android operating system can use the application.

1.6   Project Motivation

The emergence of cashless economy initiative by the central bank of Nigeria has created the need for a secured mobile payment platform that can process financial transactions efficiently. This is a source of motivation to me.

1.7   Significance of Study

This study is of significance in the following ways:

1.  It will enable anyone to make financial transactions using their mobile phones.

2.  It will enhance the cashless policy of the Central Bank of Nigeria.

3.  It will eliminate the risks involved in handling physical cash.

4.  It will enhance economic activities in Nigeria if implemented.

5.  It will help researchers in the field.

6.  It will provide a common platform for everyone with a mobile phone or communication device to get connected financially.

7.  It will add to existing knowledge in the field.