Mobile payments (also referred to as mobile money , mobile money transfers , and mobile wallets ) generally refer to service payments operated under financial regulation and carried on or through mobile devices. Instead of paying with cash, checks, or credit cards, consumers can use the phone to pay for various services and digital or hard goods. Although the concept of using a non-coin currency system has a long history, recent technologies that support such systems have become widely available.
Mobile payments are being adopted worldwide in various ways. The first patent exclusively defined as the "Mobile Payment System" was filed in 2000. In 2008, the combined market for all types of mobile payments is projected to reach more than $ 600 billion globally by 2013, which will double the number in February 2011. The mobile payment market for goods and services, excluding non-touch payments using near field communication (NFC) and money transfers, is expected to exceed $ 300 billion globally by 2013. Investment in movable money services is expected to grow by 22.2% during the next two years. years around the world. This will result in revenue sharing from mobile money reaching up to 9% by 2018. Asia and Africa will observe significant growth for mobile money with technological innovation and focus on interoperability that emerges as a leading trend by 2018.
In developing countries, mobile payment solutions have been used as a means of extending financial services to people known as "no bank accounts" or "underbanked," which is estimated to reach 50% of the world's adult population, according to Financial Access. '2009 Unlimited World News Report' This payment network is often used for micro payments.The use of mobile payments in developing countries has attracted public and private funding by organizations such as the Bill & Melinda Gates Foundation, the International Development Agency and Mercy Corps of the United States.
Mobile payments are key instruments for PSPs and other market participants, to achieve new growth opportunities, according to the European Payments Council (EPC). The EPC states that "new technological solutions provide a direct increase in operating efficiency, ultimately resulting in cost savings and increased business volumes".
Video Mobile payment
Model
There are five main models for mobile payments:
- Mobile wallet
- Card-based payments
- Carrier billing (Premium SMS or direct carrier billing)
- Non-contact NFC (Near Field Communication) Payment
- Direct transfers between payer and payee bank accounts in the near future (bank-led, intra/bank inter-bank/inbound bank/inbound bank/inbound/inbound bank transfer/payment model)
There can be a combination:
- Direct operator/bank cooperation, emerged in Haiti.
- Bank and card accounts, such as Vipps and MobilePay (users with the right bank account can debit their account, while other users can debit their card)
Financial institutions and credit card companies as well as Internet companies like Google and a number of mobile communications companies, such as mobile network operators and large telecommunications infrastructure such as W-HA from Orange and multinational companies like Ericsson and BlackBerry have implemented mobile payment solutions.
Maps Mobile payment
Mobile wallet
Online companies like PayPal, Amazon Payments, and Google Wallet also have mobile options.
Generally, this is the process:
First payment:
- Users register, enter their phone number, and the provider sends an SMS to them with
- The user entered the PIN received, authenticates the number
- Users enter their credit card information or other payment methods if necessary (unnecessary if account has been added) and validate payment
Next payment:
- Users enter their PIN to authenticate and validate payments
Requesting a PIN is known to decrease success rate (conversion) for payment. The system can be integrated directly or can be combined with operator and credit card payments via integrated mobile web payment platform.
Credit card
Simple mobile web payment systems can also include a stream of credit card payments that allow consumers to enter their card details to make a purchase. This process is common but every detail entry on the phone is known to reduce the success rate (conversion) of payments.
Additionally, if payment vendors can automatically and securely identify customers, then card details may be withdrawn for future purchases that convert credit card payments into simple click-to-buy that provide higher conversion rates for additional purchases.
Carrier bill
Consumers use mobile billing options during checkout on e-commerce sites - such as online gaming sites - to make payments. After two-factor authentication involving PIN and One-Time-Password (often abbreviated as OTP ), the consumer's mobile account is charged for purchase. This is a true alternative payment method that does not require the use of a credit/debit card or pre-registration on an online payment solution such as PayPal, thereby passing the bank and credit card company altogether. This type of mobile payment method, which is very prevalent and popular in Asia, provides the following benefits:
- Security - Two-factor authentication and risk management machines prevent fraud.
- Convenience - There is no pre-registration and no new mobile software is required.
- Easy - This is just another option during the payment process.
- Fast - Most transactions are completed in less than 10 seconds.
- Proven - 70% of all digital content purchased online in some parts of Asia using the Direct Mobile Billing method
SMS -FASSD-based_transactional_payments "> SMS/USSD-based transactional transactions
SMS Premium/MMS Premium
In the dominant model for SMS payments, consumers send payment requests via SMS or USSD text messages to short codes and premium charges applied to their phone bill or their online wallet. The involved trader is notified of the success of the payment and can then release the paid goods.
Because trusted physical delivery addresses are usually not provided, these items are most often digital with merchants replying using Multimedia Messaging Service to send purchased music, ringtones, wallpapers etc.
The Multimedia Messaging service can also send barcodes that can then be scanned for payment confirmation by merchants. It is used as an electronic ticket for access to cinemas and events or to collect hard items.
Transactional payments via SMS have been popular in Asia and Europe and are now accompanied by other mobile payment methods, such as mobile web payments (WAP), mobile payment clients (Java ME, Android...) and Direct Cell Billing.
Premium SMS inhibiting factors include:
- Poor reliability - transactional premium SMS payments can easily fail because messages get lost.
- Slow speed - sending messages can be slow and can take hours for merchants to receive payouts. Consumers do not want to keep waiting for more than a few seconds.
- Security - SMS/USSD encryption ends in the radio interface, then the message is plaintext.
- High costs - There are many high costs associated with this payment method. The cost of setting up short codes and payments for media delivery via the Multimedia Messaging Service and the resulting customer support costs to take into account the number of missing or pending messages.
- Low payment rate - the operator also sees high costs in running and supports transactional payments that result in a payout rate to merchants to be as low as 30%. Usually about 50%
- Lower secondary sales - once the payment message is sent and the items received are few that the customer can do. It's hard for them to remember where something was bought or how to buy it again. It also makes it difficult to tell a friend.
Some mobile payment services receive "premium SMS payments." Here is a typical end user payment process:
- Users send SMS with unique keywords and numbers to premium short codes.
- User receives a PIN (User is charged via short code when receiving PIN)
- Users use PIN to access content or services.
Remote Payments via SMS and Tokenisasi Kartu Kredit
Even when Premium SMS transaction volumes are flattening, many cloud-based payment systems continue to use SMS for presentation, authorization and authentication, while the payments themselves are processed through existing payment networks such as credit and debit card networks. This solution combines the ubiquitous SMS channels, with the security and reliability of existing payment infrastructure. Because SMS does not have end-to-end encryption, the solution uses a higher level security strategy known as 'tokenization' and 'goal deletion' where payments occur without transmitting account details, usernames, passwords or sensitive PINs.
Until now, point-of-sales mobile payment solutions have not relied on SMS-based authentication as a payment mechanism, but long-distance payments such as bill payments, seats in flight, and membership or subscription renewal are common.
Compared to premium short coded programs that often exist in isolation, relationship marketing and payment systems are often integrated with CRM, ERP, marketing automation platforms, and reservation systems. Many of the issues inherent with premium SMS have been addressed by solution providers. Remembering keywords is not necessary because the session is started by the company to establish the transaction-specific context. The reply message is linked to the appropriate session and authenticated simultaneously through a very short period of expiration (each is assumed to be the last message sent) or by a tracking session according to various reply addresses and/or reply options.
Mobile web payments (WAP)
Consumers use the displayed web page or additional apps downloaded and installed on their phone to make payments. It uses WAP (Wireless Application Protocol) as the underlying technology and inherits all the advantages and disadvantages of WAP. Benefits include:
- Advanced sales where mobile web payments can lead back to stores or other items consumers might like. These pages have URLs and can be bookmarked so they are easy to revisit or share.
- High customer satisfaction of fast and predictable payments
- Ease of use from a collection of known online payment pages
However, unless mobile accounts are charged directly through mobile network operators, the use of credit/debit or pre-registration cards in online payment solutions such as PayPal is still required just like in desktop environments.
Mobile web payment methods are now being mandated by a number of mobile network operators.
Direct carrier billing
Direct carrier billing, also known as mobile content billing, WAP billing, and carrier billing, requires integration with mobile network operators. This provides certain benefits:
- Mobile network operators already have a billing relationship with consumers, payments will be added to their bills.
- Provide instant payment
- Protect payment details and consumer identity
- Conversion rate is better
- Reduce customer support costs for merchants
- Alternative monetization options in countries where credit card usage is low
One disadvantage is that the payment rate will be much lower than other mobile payment options. Examples from popular providers:
- 92% with PayPal
- 85 to 86% with Credit Card
- 45 to 91.7% with carrier billing in the US, UK and some smaller European countries, but typically around 60%
Recently, direct carrier billing is applied in an in-app environment, where mobile app developers take advantage of the one-click payment option provided by direct carrier billing to monetize mobile apps. This is a logical alternative to credit card and Premium SMS billing.
In 2012, Ericsson and Western Union are partnering to expand the direct carrier billing market, making it possible for mobile operators to include Western Union Mobile Money Transfer as part of their mobile financial services offerings. Given the international reach of the two companies, this partnership is intended to accelerate the interconnection between the m-commerce market and the existing financial world.
Near Range Communications Near Medan
Near Field Communication (NFC) is used primarily in paying for purchases made at physical stores or transportation services. A consumer uses a special phone equipped with a wave of smartcards on his phone near the reader module. Most transactions do not require authentication, but some require authentication using a PIN, before the transaction is complete. Payments can be deducted from a prepaid account or charged to a mobile or bank account directly.
Mobile payment methods through the NFC face significant challenges for widespread and rapid adoption, due to the lack of supporting infrastructure, complex stakeholder ecosystems, and standards. However, some phone and bank manufacturers are very enthusiastic. Ericsson and Aconite are examples of businesses that make it possible for banks to create consumer mobile payment applications that utilize NFC technology.
NFC vendors in Japan are closely linked to mass-transit networks, such as the Suica Mobile phone used on the JR East rail network. The Osaifu-Keitai system, used for Mobile Suica and many others including Edy and nanaco, has become the de facto standard method for mobile payments in Japan. Its core technology, Mobile FeliCa IC, is partly owned by Sony, NTT DoCoMo and JR East. FeliCa Mobile utilizes Sony FeliCa technology, which is the de facto standard for contactless smart cards in the country.
Most other NFC vendors in Europe use unattended payments via cell phones to pay for off-street and off-street parking in restricted special areas. The parking attendant can enforce parkings by plates, transponder tags or barcode stickers. First conceptualized in the 1990s, technology has seen commercial use in this century in Scandinavia and Estonia. End users benefit from the convenience of being able to pay for parking from the comfort of their cars with their cell phones, and parking operators are not obligated to invest in existing or new road parking infrastructure. The parking attendant keeps the order in this system with plates, transponder tags or barcode stickers or they read digital displays in the same way while reading payment receipts and views.
Other vendors using NFC and barcode combinations on mobile devices for mobile payments, for example, Cimbal or DigiMo, make this technique appealing at the point of sale because many mobile devices in the market do not yet support NFC.
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Payment QR code
QR Codes 2D barcode is square box code. QR codes have been in use since 1994. Originally used to track products in warehouses, QR codes were designed to replace traditional (1D bar codes). Traditional bar codes represent only numbers, which can be searched in the database and translated into something meaningful. The QR barcode, or "Quick Response" is designed to contain meaningful information right in the barcode.
QR codes can consist of two main categories:
- The QR code is displayed on mobile devices from people who pay and are scanned by POS or other mobile devices from the payee
- The QR code is displayed by the payee, in static mode or once generated and scanned by the person making the payment
Mobile self-check allows one to scan the QR code or product bar code in a brick-and-mortar establishment to purchase the product in place. This theoretically eliminates reducing the incidence of long checkout lines, even in self-checkout kiosks.
Cloud-based mobile payment
Google, PayPal, GlobalPay, and GoPago use a cloud-based approach to mobile payments in stores. A cloud-based approach places a mobile payment provider in the middle of a transaction, which involves two separate steps. First, the cloud-linked payment method is selected and payments are authorized through NFC or alternative methods. During this step, the payment provider automatically closes the purchase cost with the publisher-related funds. Second, in a separate transaction, the payment provider bills the selected account, cloud-linked buyers in a non-present card environment to cover the loss on the first transaction.
Audio signal-based payment
The phone's audio channel is another wireless interface used to make payments. Some companies have created technology to use mobile acoustic features to support mobile payments and other applications that are not chip-based. Near sound data transfer (NSDT) technology, Data Over Voice, and NFC 2.0 produce audio signatures that can be traced by the phone's microphone to enable electronic transactions.
Cooperation of direct carrier/bank
In the T-Cash model, mobile phones and phone operators are the front-end interface to consumers. Consumers can buy goods, transfer money to colleagues, cash, and cash. A mini wallet account can be opened simply by entering * 700 # on the phone, possibly by depositing money to participating local merchants and mobile phone numbers. Presumably, other transactions are similarly done by entering a special code and phone number from another party on a consumer mobile phone.
Bank transfer system
Swish is the name of a system established in Sweden. It was established through the collaboration of the big banks in 2012 and has been very successful, with 66 percent of the population as users by 2017. It is mainly used for the payment of inter-peers among private persons but also used by church gathering. , street vendors and small businesses. A person's account is associated with his phone number and the connection between a phone number and a bank account number that is actually registered with an internet bank. The electronic identification system of BankID phone , issued by Swedish banks, is used to verify payments. Users with a simple mobile phone or no fixed app can receive money if the phone number is registered with the internet bank. Like many other mobile payment systems, the main obstacle is getting people to sign up and download apps, but has managed to reach critical mass and has become a part of everyday life for many Swedes.
Swedish payment company Trustly also enables the transfer of mobile banks, but is used primarily for business-to-consumer transactions that occur only online. If the e-tailer is integrated with Trustly, its customers can pay directly from their bank account. Unlike Swish, users do not need to register a Trust account or download the software to pay for it.
Mobile payment service provider model
There are four potential mobile payment models:
- Operator-Centric Model : Mobile carriers act independently to implement mobile payment services. The operator may provide a mobile wallet independent of the user's mobile account (airtime). The large dispersion of the Centric-Operator Model is strongly challenged by the lack of connection to existing payment networks. Mobile network operators must handle the interface with the banking network to provide advanced mobile payment services within the bank environment and under the bank environment. Pilots using this model have been launched in developing countries but they do not cover most cases of using mobile payment services. Payments are limited to remittances and credit.
- Bank-Centric Model : Banks deploy mobile apps or mobile payment devices to customers and ensure that merchants have the required point of sale (POS) capability. Mobile network operators are used as simple operators, they bring their experience to provide quality of service (QOS) guarantees.
- Collaboration Model : This model involves collaboration between banks, mobile operators, and trusted third parties.
- Peer-to-Peer Model : Mobile payment service providers act independently from financial institutions and mobile network operators to provide mobile payments. For example, the MHITS SMS payment service uses a peer-to-peer model.
See also
- Comparison of payment system
- Electronic money
- Financial cryptography
- Mobile Payments Using USSD
- Mobile ticket
- Place of sale
- Sales malware
- Secure Mobile Payments Service
- SMS banking
- Universal card
References
Source of the article : Wikipedia
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