Mobile Payments is money paid for a product or service through a portable electronic device such as a tablet or cell phone. Mobile payment technology can also be used to send money to friends or family members. it refers to payment services operated under financial regulation and performed from or via a mobile device. Payment information is encrypted during transmission, so it is thought of as being a safer payment method than paying with a debit or credit card.
Types of Mobile Payments
Premium SMS services are information or entertainment services or downloads for your mobile phone or mobile-enabled device.providers and carried over the mobile network by your mobile phone carrier. The premium service provider charges you a fee for the premium SMS/MMS which is then billed on your mobile phone bill.
Direct Mobile Billing is a method of paying for merchandise by charging the purchase to a cellular telephone mobile phone account. At the time of checkout, the customer selects the mobile billing option on a smartphone and follows a two-factor authentication procedure. his has been the telephone company’s method for charging additional services, such as long distance and pay-per-minute 900 numbers.
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.
QR code payments is a contactless payment method where payment is performed by scanning a QR code from a mobile app. This is an alternative to doing electronic funds transfer at point of sale using the payment terminal.o use a QR code payment the consumers scan the QR code displayed by the merchant with their phones to pay for their goods. They enter the amount they have to pay and finally submit. This is a more secure card-not-present method than others.
Contactless Near Field Communication(NFC) is the technology that allows two devices like your phone and a payments terminal to talk to each other when they’re close together. NFC is the technology that enables contactless payments. Some suppliers claim that transactions can be almost twice as fast as conventional cash, credit, or debit card purchase. Because no signature or PIN verification is typically required, contactless purchases are typically limited to small value sales. Lack of authentication provides a window during which fraudulent purchases can be made while the card owner is unaware of the card’s loss.
Cloud-Based Mobile Payment facilitating car fueling. Service providers like Shell have rushed to embrace cloud-based mobile payment. This mobile payment service has been designed to offer speedy and secure payment through Apple Pay, Android Pay and PayPal for customers to pay for their fuel. it places the mobile payment provider in the middle of the transaction that is itself broken into two separate steps.
Audio Signal Mobile Payments (NSDT) The audio channel of the mobile phone is another wireless interface that is used to make payments. The technologies Near sound data transfer (NSDT), Data Over Voice and NFC 2.0 produce audio signatures that the microphone of the cell phone can pick up to enable electronic transactions.