# Mobile payment is a new and rapidly-adopting alternative payment method.
# Instead of paying with cash, cheque or credit cards, a consumer can use a mobile phone to pay for a wide range of services and digital or hard goods
# There are four primary models for mobile payments:

  • Premium SMS based transactional payments
  • Direct Mobile Billing
  • Mobile web payments (WAP)
  • Contactless NFC (Near Field Communication)

# Premium SMS based transactional payments- The consumer sends a payment request via an SMS text message or an USSD to a short code and a premium charge is applied to their phone bill or their online wallet. The merchant involved is informed of the payment success and can then release the paid for goods.
# Direct Mobile Billing– The consumer uses the mobile billing option during checkout at an e-commerce site—such as an online gaming site—to make a payment. After two-factor authentication involving a PIN and One-Time-Password, the consumer’s mobile account is charged for the purchase.
# Mobile web payments (WAP)-The consumer uses web pages displayed or additional applications downloaded and installed on the mobile phone to make a payment.
# Contactless Near Field Communication-– is used mostly in paying for purchases made in physical stores or transportation services. A consumer using a special mobile phone equipped with a smartcard waves his/her phone near a reader module.

Why You Should Care
# Worldwide shipments of mobile phones will reach 220.1 million units in 2014 compared with 52.6 million in 2010 for units with built-in near field communications (NFC) capability.
# 45% Of Active Mobile Users Are Ready For Mobile Payment Solutions
# The worldwide market for mobile payments will grow to $633.4 billion by 2014 up from $68.7 billion in 2009
# Mobile payment users will grow 600 percent, to 490 million in 2014 from 81.3 million last year.
# Square Launched last year is now processing $1 Million in mobile payments per day
# In Japan mobile web shopping exceeded US$10 billion in 2009.
# Mobile retail will exceed US$12 billion by 2014
# In the last twelve months, customers around the world have ordered more than US $1 billion of products from Amazon using a mobile device
# The m-coupon service of McDonald’s Japan is used by 4.5 million users, according to Infinita
# More than 1 in 10 mobile subscribers will use m-ticketing in 2014

Info courtesy , Generator Research, Wikipedia, , Computerweekly and Mobithinking,

Thinking about starting or growing your own business?  Our business and productivity books address the diverse challenges at all stages of business. Preview all our books on Amazon.

Founder @Alltopstartups. Blogger. Entrepreneur. Author. Contributor at Entrepreneur Magazine. Curator at Postanly (a free weekly newsletter that delivers the most insightful long-form posts from top publishers)