Mobile Payment Magazine

Mobile Payment Service Provider Model

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The four potential mobile payment models:

  1. 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 by the lack of connection to existing payment networks. Mobile network operator should handle the interfacing with the banking network to provide advanced mobile payment service in banked and under banked environment. Pilots using this model have been launched in emerging countries but they did not cover most of the mobile payment service use cases. Payments were limited to remittance and airtime top up.
  2. Bank-Centric Model: A bank deploys mobile payment applications or devices to customers and ensures merchants have the required point-of-sale (POS) acceptance capability. Mobile network operator are used as a simple carrier, they bring their experience to provide Quality of service (QOS) assurance.
  3. Collaboration Model: This model involves collaboration among banks, mobile operators and a trusted third party.
  4. Peer-to-Peer Model: The mobile payment service provider acts independently from financial institutions and mobile network operators to provide mobile payment.

Cimbal

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Cimbal provides an electronic payment network that turns a smartphone into a replacement for cash, debit and credit cards and the interchange network needed to process them. Cimbal can be used for payments in stores, online and person to person—all in a consistent, simple user experience.

From the consumer side, no hardware is needed, and the customer never exchanges any personal information such as an account number, just a Cimbal transaction code. Cimbal can be used for payments in stores, online and person to person.
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Using Your Phone as a Credit Card

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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 billion worldwide by 2013. What do mobile payments mean in real terms and what options are already out there?

By 2013, according to Juniper Researchers, this type of payment in the global combined payments market could grow from its current $170 billion to over $600 billion. So what are mobile payments and what are the options? There are four primary methods for mobile payments :

Direct Mobile Billing is used as an option at checkout on e-commerce sites involving a PIN and a password. It is deemed secure, fast, convenient and much easier to use than online payment methods such as PayPal. This method is very popular in many parts of Asia and the preferred method of payment for purchases with digital content.

Mobile Web Payments (WAP) where the user has already downloaded applications onto their mobiles to enable payment to be made. Again this method is reportedly easy to use with high reported follow-on sales and good customer reviews.

Premium SMS based payments can be made when the user sends their payment request via SMS text message or they can use a short code and a premium charge is then added to their phone bill. The payment information is then relayed back to the retailer and the sale is completed. This type of payment can be time-consuming if the text messaging speed is slow to send and this method is a less popular option than mobile web payments and direct mobile billing.

Contactless Near Field Communication (NFC) is used by a consumer with a mobile equipped with smartcard waves near a reader module and can be used in actual stores or for transportation services. The payment can be then deducted from a pre-paid account, bank account or charged to the mobile bill. Whilst popular in Japan this method of mobile payment requires a complex supporting infrastructure. This is probably the least popular method in global terms.

Source: TXT2Get —
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