Mobile Payment is a rapidly growing alternative to traditional financial payments like cash, cheques, bank transfer and payment cards (credit, debit and prepaid). Also known as mobile money and mobile money transfer these new payment methods are set to transform how people pay and send money with the increasing adoption of mobile phones and smart devices. Mobile payments are commonly associated with mobile wallets to allow users to manage their money and transmit payments securely between people, merchants and companies. As mobile payment evolves there are several key areas that are rapidly developing new technologies A wide variety of mobile payment offerings are being adopted by users globally due to differing market conditions, consumer needs and technology adoption. There is a large focus on developing countries with a view to expanding financial services to the “unbanked” or “underbanked”. Most people are able to find a use for mobile payments as we embrace mobile and smart devices more and more, every day.
Common uses are buying music, software, social games, virtual gifts, mobile applications, e-tickets these payment types are usually small transaction values and the ability to reach non cardholders is allowing some very innovative solutions.
• Virtual currencies
• Mobile Phone Carrier Billing
• Micro Payments
• Mobile web payments (WAP)
These are normally your physical goods and services, currency transfer and traditional financial services. The payment types below benefit from an existing secure and regulated framework but encourage a simplified user experience and creates pressure to reduce transaction costs.
• Mobile Wallets / e-Wallets
• Prepaid cards
• Bank transfer services
Allowing domestic and international money transfer and assisting small merchant payments. These help the financially excluded reduce the need for cash and cheques and are primarily associated with mobile network operators.
• Mobile Money Transfer
• Account Based Services
• Multichannel international Remittance
Commonly low-value physical goods and services and transport payment. They must provide convenience, fast transaction times and help reduce the need to use and carry cash.
• Contactless cards
• Mobile NFC
• Mobile Barcode
• QR Code
• Mobile based PoS (Point of Sale) Terminal