Mobile Payments
A payment is the transference of a component of worth from one individual or enterprise to another in exchange for the delivery of products and services to accomplish a legitimate commitment. The most basic and earliest practice of payment is barter, the transaction of one product or service for another.
At present, the accepted mode of payments include cash, cheque, debit, credit, bank transference among others. According to legislation, the payer is the person delivering a payment while the payee is the person accepting the payment.
A payment method can be categorized as exchanging and provisioning. Exchanging refers to transference of currency, banknote in terms of the value. Provisioning is to transfer currency from a distinct account to one more. Credit card, debit card, money transfers are examples of computerized payment procedures.
A mobile is a modest movable radio handset. It can be used to converse with individuals located over long distances without connections.
Mobile payment also known as mobile money, mobile wallet denotes to payment services managed under monetary guideline and conducted through a mobile phone.
The consumer would not make a cash, cheque or credit card payment, but use the mobile phone to pay for a gamut of services and products. Mobile payment is feasible due to the existing technological advancements.
Mobile payment has been implemented globally on various methods. In emerging economies, mobile payment services have been used to provide financial assistance to the section of society called as the “unbanked”. Several international organizations have financed the use of mobile payments in emerging economies.
The key models for mobile payments are:
Prime SMS centered transferable payments
The consumer delivers a payment request through either an SMS or an Unstructured Supplementary Service Data (USSD) to a short number and a prime rate is enforced to the phone bill or wired wallet. The dealer concerned is apprised of the payment realization and could then deliver the paid for products.
Considering a reliable real address for delivery has not been provided, the products are usually digital with the dealer responding using a MMS service to provide the procured materials.
Some of the obstacles for prime SMS are:
• Ineffective dependability.
• Moderate agility.
• Safety.
• High Expenditure.
• Low pay-outs charges.
Normal mobile invoicing
The individual used the mobile billing choice at the time of checkout (online payment site) for the payment. Subsequent to two validation comprising a PIN and One Time Password (OTP), the individual’s mobile account is debited for the procurement. It is a perfect alternate payment process that does not need the utilization of credit/debit cards. This ensures banks and credit card firms are avoided.
The advantages of this method are:
• Safety.
• Accessibility.
• Simple.
• Quick.
• Reliable.
Mobile web payments
The individual uses web pages presented or supplementary applications installed on the mobile to ensure a payment is made. The technology used for the payment is WAP (Wireless Application Protocol).
The advantages of this method are:
• Subsequent transaction.
• Positive customer experience.
• User Friendly.
Contactless NFC (Near Field Communication)
It is used usually for purchases in retail outlets. A customer using a distinct mobile phone installed with a smart card moves the phone in front of a reader module. Transactions do not need verification.
Mobile payment process through NFC faces substantial obstacles for extensive and quick acceptance because of absence of efficient infrastructure, intricate network of stakeholders and principles.
Cloud Centred Method
Technology majors such as Google are spearheading the cloud-centred method for retail outlet mobile payment. A cloud connected payment process is chosen and payment is validated through NFC. In a distinct operation, the provider debits the consumer’s designated cloud-based account.
Three trends in Mobile Payment
Mobile payments interfaced with a robust platform
At present, prominent technology firms are spearheading internal payment solutions. They depend on various technologies to provide efficient service to the customers. The aim of integrating with the platforms is to facilitate continuous development of the platform.
Enhance customer experience
The focus is just not on the payment process, but on customer loyalty and transformation of the process of providing products to customers by retailers. The firms use the huge quantity of purchase related data that retailers have to develop customized offers for distinct customers.
The tactic enables an efficient experience between online and offline, thereby permitting consumers to purchase products through their phones and pay off the purchases offline.
According to Alain Falys, Co-founder & CEO of Yoyo Wallet, “We look at mobile payments and we take it as a given that this is the way the industry is moving. We are going to pay for things with our phones. What is more interesting for us, is the question of the relationship between the consumer and the retailer. A lot of the big players today have a narrow focus on payment, but they aren’t bringing added value beyond that. We are leveraging the untapped data from transactions to gain insights and create personalized marketing.”
Simplify the transaction process
There are several payments apps that permit users to simply transfer of money to other individuals.
Accessibility and closeness are the critical factors that would drive mobile payments business in the future. The way retailers sell their products would continue to transform. The digital process would ensure human resource could be used for other purposes. The efforts by stakeholders in the mobile payments business must be backed by government to ensure a robust growth in the long run.
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At present, the accepted mode of payments include cash, cheque, debit, credit, bank transference among others. According to legislation, the payer is the person delivering a payment while the payee is the person accepting the payment.
A payment method can be categorized as exchanging and provisioning. Exchanging refers to transference of currency, banknote in terms of the value. Provisioning is to transfer currency from a distinct account to one more. Credit card, debit card, money transfers are examples of computerized payment procedures.
A mobile is a modest movable radio handset. It can be used to converse with individuals located over long distances without connections.
Mobile payment also known as mobile money, mobile wallet denotes to payment services managed under monetary guideline and conducted through a mobile phone.
The consumer would not make a cash, cheque or credit card payment, but use the mobile phone to pay for a gamut of services and products. Mobile payment is feasible due to the existing technological advancements.
Mobile payment has been implemented globally on various methods. In emerging economies, mobile payment services have been used to provide financial assistance to the section of society called as the “unbanked”. Several international organizations have financed the use of mobile payments in emerging economies.
The key models for mobile payments are:
Prime SMS centered transferable payments
The consumer delivers a payment request through either an SMS or an Unstructured Supplementary Service Data (USSD) to a short number and a prime rate is enforced to the phone bill or wired wallet. The dealer concerned is apprised of the payment realization and could then deliver the paid for products.
Considering a reliable real address for delivery has not been provided, the products are usually digital with the dealer responding using a MMS service to provide the procured materials.
Some of the obstacles for prime SMS are:
• Ineffective dependability.
• Moderate agility.
• Safety.
• High Expenditure.
• Low pay-outs charges.
Normal mobile invoicing
The individual used the mobile billing choice at the time of checkout (online payment site) for the payment. Subsequent to two validation comprising a PIN and One Time Password (OTP), the individual’s mobile account is debited for the procurement. It is a perfect alternate payment process that does not need the utilization of credit/debit cards. This ensures banks and credit card firms are avoided.
The advantages of this method are:
• Safety.
• Accessibility.
• Simple.
• Quick.
• Reliable.
Mobile web payments
The individual uses web pages presented or supplementary applications installed on the mobile to ensure a payment is made. The technology used for the payment is WAP (Wireless Application Protocol).
The advantages of this method are:
• Subsequent transaction.
• Positive customer experience.
• User Friendly.
Contactless NFC (Near Field Communication)
It is used usually for purchases in retail outlets. A customer using a distinct mobile phone installed with a smart card moves the phone in front of a reader module. Transactions do not need verification.
Mobile payment process through NFC faces substantial obstacles for extensive and quick acceptance because of absence of efficient infrastructure, intricate network of stakeholders and principles.
Cloud Centred Method
Technology majors such as Google are spearheading the cloud-centred method for retail outlet mobile payment. A cloud connected payment process is chosen and payment is validated through NFC. In a distinct operation, the provider debits the consumer’s designated cloud-based account.
Three trends in Mobile Payment
Mobile payments interfaced with a robust platform
At present, prominent technology firms are spearheading internal payment solutions. They depend on various technologies to provide efficient service to the customers. The aim of integrating with the platforms is to facilitate continuous development of the platform.
Enhance customer experience
The focus is just not on the payment process, but on customer loyalty and transformation of the process of providing products to customers by retailers. The firms use the huge quantity of purchase related data that retailers have to develop customized offers for distinct customers.
The tactic enables an efficient experience between online and offline, thereby permitting consumers to purchase products through their phones and pay off the purchases offline.
According to Alain Falys, Co-founder & CEO of Yoyo Wallet, “We look at mobile payments and we take it as a given that this is the way the industry is moving. We are going to pay for things with our phones. What is more interesting for us, is the question of the relationship between the consumer and the retailer. A lot of the big players today have a narrow focus on payment, but they aren’t bringing added value beyond that. We are leveraging the untapped data from transactions to gain insights and create personalized marketing.”
Simplify the transaction process
There are several payments apps that permit users to simply transfer of money to other individuals.
Accessibility and closeness are the critical factors that would drive mobile payments business in the future. The way retailers sell their products would continue to transform. The digital process would ensure human resource could be used for other purposes. The efforts by stakeholders in the mobile payments business must be backed by government to ensure a robust growth in the long run.
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