Mobile Payments: Introduction

Mobile payment is a new and rapidly-adopting alternative payment method – especially in Asia and Europe. Instead of paying with cash, cheque or credit cards, a consumer can use a mobile phone to pay for a wide range of services and digital or hard goods such as: Music, videos, ringtones, online game...

SMS, USSD Based Mobile Payments

The consumer sends a payment request via an SMS text message or an USSD to a short code and a premium charge is applied to their phone bill or their mobile wallet. The merchant involved is informed of the payment success and can then release the paid for goods. Since a trusted delivery address has typically...

Direct Mobile Billing

The consumer uses the mobile billing option during checkout at an e-commerce site—such as an online gaming site—to make a payment. After two-factor authentication involving a PIN and One-Time-Password, the consumer’s mobile account is charged for the purchase. It is a true alternative payment...

Mobile Web Payments (WAP)

The consumer uses web pages displayed or additional applications downloaded and installed on the mobile phone to make a payment. It uses WAP (Wireless Application Protocol) as underlying technology and thus inherits all the advantages and disadvantages of WAP. However, using a familiar web payment model...

Near Field Communication (NFC)

Near field communication or NFC, is a short-range high frequency wireless communication technology which enables the exchange of data between devices over about a 10 centimeters (3.9 in) distance. The technology is a simple extension of the ISO/IEC 14443 proximity-card standard (proximity card, RFID) ...

Consumer Versus Merchant Initiated Mobile Payment

Payments can be initiated by both the consumer or the merchant, although consumer payment is becoming the most common since it suits the personal nature of mobile devices. Consumer focused – The consumer chooses to make a mobile payment. They interact with the payment server using their mobile...

Mobile Payment Service Provider Model

The four potential mobile payment models: Operator-Centric Model: The mobile operator acts independently to deploy mobile payment service. The operator could provide an independent mobile wallet from the user mobile account(airtime). A large deployment of the Operator-Centric Model is severely challenged...

Using Your Phone as a Credit Card

Mobile payments – simply using your mobile to pay for something – is relatively new but already one of the fast growing alternative payment methods catching on in Europe and Asia.  Juniper Researchers estimate that mobile payments in the combined global market is forecast to reach over $600...