# 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