However, there are concerns regarding information and payment privacy when cards are used during online transactions. In addition, if the payment vendor can automatically and securely identify customers then card details can be recalled for future purchases turning credit card payments into simple single click-to-buy giving higher conversion rates for additional purchases. This process is familiar but any entry of details on a mobile phone is known to reduce the success rate (conversion) of payments. These systems can be integrated with directly or can be combined with operator and credit card payments through a unified mobile web payment platform.Ī simple mobile web payment system can also include a credit card payment flow allowing a consumer to enter their card details to make purchases. Requesting a PIN is known to lower the success rate ( conversion) for payments. The user re enters their PIN to authenticate and validates payment.User inputs their credit card info or another payment method if necessary (not necessary if the account has already been added) and validates payment.User enters the received PIN, authenticating the number.User registers, inputs their phone number, and the provider sends them an SMS with a PIN.įinancial institutions and credit card companies as well as Internet companies such as Google and a number of mobile communication companies, such as mobile network operators and major telecommunications infrastructure such as w-HA from Orange and smartphone multinationals such as Ericsson and BlackBerry have implemented mobile payment solutions.Ī mobile wallet is an app that contain your debit and credit card information so that users can pay for goods and services digitally by using their mobile devices. Operator /bank co-operation, emerging in Haiti.There can also be combinations of two models. Apple Pay or PayPal are the ISP the most frequently associated to this model in these last months. In ISP Model, a third party of confidence operates as an independent and “neutral” intermediary between financialĪgents and operators. In Collaborative Model, the financial intermediaries and telephonic operators collaborate in the managing tasks and share cooperatively the proprietary rights. In Bank- or Operator- Centric Model, a bank or the operator is the central node of the model, manages the transactions and distributes the property rights. Independent Service Provider (ISP) Model.There are four primary models for mobile payments: 7 Mobile payment service provider model.4.2 Remote payment by SMS and credit card tokenization.4.1 SMS/USSD-based transactional payments.
The EPC states that "new technology solutions provide a direct improvement to the operations efficiency, ultimately resulting in cost savings and in an increase in business volume". Mobile payments are becoming a key instrument for Payment Service Providers (PSPs) and other market participants, in order to achieve new growth opportunities, according to the European Payments Council (EPC). The use of mobile payments in developing countries has attracted public and private funding by organizations such as the Bill & Melinda Gates Foundation, United States Agency for International Development and Mercy Corps. These payment networks are often used for micropayments. In developing countries mobile payment solutions have been deployed as a means of extending financial services to the community known as the "unbanked" or "underbanked", which is estimated to be as much as 50% of the world's adult population, according to Financial Access' 2009 Report "Half the World is Unbanked". The first patent exclusively defined "Mobile Payment System" was filed in 2000. Mobile payment is being adopted all over the world in different ways. Although the concept of using non-coin-based currency systems has a long history, it is only in the 21st century that the technology to support such systems has become widely available. Instead of paying with cash, cheque, or credit cards, a consumer can use a mobile to pay for a wide range of services and digital or hard goods. Mobile payment (also referred to as mobile money, mobile money transfer, and mobile wallet) generally refer to payment services operated under financial regulation and performed from or via a mobile device.