Mobile payment, also referred to as mobile money, mobile money transfer and mobile wallet, is any of various

payment A payment is the tender of something of value, such as money or its equivalent, by one party (such as a person or company) to another in exchange for goods or services provided by them, or to fulfill a legal obligation or philanthropy desir ...

processing services operated under

financial regulation Financial regulation is a broad set of policies that apply to the financial sector in most jurisdictions, justified by two main features of finance: systemic risk, which implies that the failure of financial firms involves public interest consi ...

s and performed from or via a mobile device. Instead of paying with

cash In economics, cash is money in the physical form of currency, such as banknotes and coins. In book-keeping and financial accounting, cash is current assets comprising currency or currency equivalents that can be accessed immediately or near-i ...

cheque A cheque (or check in American English) is a document that orders a bank, building society, or credit union, to pay a specific amount of money from a person's account to the person in whose name the cheque has been issued. The person writing ...

, or credit card, a consumer can use a payment app on a mobile device to pay for a wide range of services and digital or hard goods. 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. Mobile payments began adoption in

Japan Japan is an island country in East Asia. Located in the Pacific Ocean off the northeast coast of the Asia, Asian mainland, it is bordered on the west by the Sea of Japan and extends from the Sea of Okhotsk in the north to the East China Sea ...

in the 2000s and later all over the world in different ways. The first

patent A patent is a type of intellectual property that gives its owner the legal right to exclude others from making, using, or selling an invention for a limited period of time in exchange for publishing an sufficiency of disclosure, enabling discl ...

exclusively defined "Mobile Payment System" was filed in 2000. In a

developing country A developing country is a sovereign state with a less-developed industrial base and a lower Human Development Index (HDI) relative to developed countries. However, this definition is not universally agreed upon. There is also no clear agreeme ...

, mobile payment solutions can be deployed as a means of extending services of

financial institution A financial institution, sometimes called a banking institution, is a business entity that provides service as an intermediary for different types of financial monetary transactions. Broadly speaking, there are three major types of financial ins ...

s to the community known as the "

unbanked The unbanked are adults who do not have their own bank accounts. Along with the underbanked, they may rely on alternative financial services for their financial needs, where these are available. Causes Some reasons a person might not have a ban ...

" or "

underbanked The underbanked is a characteristic describing people or organizations who do not (or volunteer to not) have sufficient access to mainstream financial services and products typically offered by retail banks and thus often deprived of banking serv ...

", which is estimated to be as much as 50 percent of the world's adult population, according to the Financial Access 2009 Report "Half the World is Unbanked". Such payment networks are often used for

micropayment A micropayment is a financial transaction involving a very small sum of money and usually one that occurs online. A number of micropayment systems were proposed and developed in the mid-to-late 1990s, all of which were ultimately unsuccessful. A s ...

s. The use of mobile payments in developing countries has attracted public and private funding by organizations such as the

Bill & Melinda Gates Foundation The Gates Foundation is an American private foundation founded by Bill Gates and Melinda French Gates. Based in Seattle, Washington, it was launched in 2000 and is reported to be the third largest charitable foundation in the world, holding $ ...

, the

United States Agency for International Development The United States Agency for International Development (USAID) is an agency of the United States government that has been responsible for administering civilian foreign aid and development assistance. Established in 1961 and reorganized in 1998 ...

, and

Mercy Corps Mercy Corps is a global non-governmental, humanitarian aid organization operating in transitional contexts that have undergone, or have been undergoing, various forms of economic, environmental, social and political instabilities. The organizati ...

. Mobile payments are becoming a key instrument for

payment service provider A payment service provider (PSP) is a third-party company that allows businesses to accept electronic payments, such as credit card and debit card payments. PSPs act as intermediaries between those who make payments, i.e. consumers, and those who ...

s (PSPs) and other market participants, in order to achieve new growth opportunities, according to the

European Payments Council The Single Euro Payments Area (SEPA) is a payment integration initiative of the European Union for simplification of bank transfers denominated in euros. , there were 41 members in SEPA, consisting of the 27 member states of the European Union ...

(EPC). 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".

Models

There are four primary models for mobile payments: * Bank-centric model * Operator-centric model * Collaborative model * Independent service provider (ISP) model In models connected to a bank or operator, a

bank A bank is a financial institution that accepts Deposit account, deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital m ...

/operator is the central node of the model, manages the transactions and distributes the property rights. In collaborative model, the financial intermediaries and telephonic operators collaborate in the managing tasks and share cooperatively the proprietary rights. In ISP model, a third party of confidence operates as an independent and "neutral" intermediary between financial agents and operators.

Apple Pay Apple Pay is a mobile payment service by Apple Inc. that allows users to make payments in person, in iOS apps, and on the web. Supported on iPhone, Apple Watch, iPad, Mac, and Vision Pro, Apple Pay digitizes and can replace a credit or debi ...

PayPal PayPal Holdings, Inc. is an American multinational financial technology company operating an online payments system in the majority of countries that support E-commerce payment system, online money transfers; it serves as an electronic alter ...

are the providers the most frequently associated to this model. There can also be combinations of two models. * Operator/bank co-operation, emerging in Haiti.

Financial institution A financial institution, sometimes called a banking institution, is a business entity that provides service as an intermediary for different types of financial monetary transactions. Broadly speaking, there are three major types of financial ins ...

s and credit card companies as well as Internet companies such as

Google Google LLC (, ) is an American multinational corporation and technology company focusing on online advertising, search engine technology, cloud computing, computer software, quantum computing, e-commerce, consumer electronics, and artificial ...

and a number of

mobile communication Mobile telephony is the provision of wireless telephone services to mobile phones, distinguishing it from fixed-location telephony provided via landline phones. Traditionally, telephony specifically refers to voice communication, though th ...

companies, such as

mobile network operators A mobile network operator (MNO), also known as a mobile network provider, mobile network carrier, mobile , wireless service provider, wireless carrier, wireless operator, wireless telco, or cellular company, is a telecommunications provider of se ...

and major

telecommunications infrastructure Telecommunication, often used in its plural form or abbreviated as telecom, is the transmission of information over a distance using electronic means, typically through cables, radio waves, or other communication technologies. These means of ...

such as w-HA from Orange and smartphone multinationals such as

Ericsson (), commonly known as Ericsson (), is a Swedish multinational networking and telecommunications company headquartered in Stockholm, Sweden. Ericsson has been a major contributor to the development of the telecommunications industry and is one ...

and

BlackBerry BlackBerry is a discontinued brand of handheld devices and related mobile services, originally developed and maintained by the Canadian company Research In Motion (RIM, later known as BlackBerry Limited) until 2016. The first BlackBerry device ...

have implemented mobile payment solutions.

Mobile wallets

A mobile wallet is an app that contains the user's debit and credit card information, letting the user pay for goods and services digitally with a mobile device. Notable mobile wallets include: *

Alipay Alipay () is a third-party mobile and online payment platform, established in Hangzhou, China in February 2004 by Alibaba Group and its founder Jack Ma. In 2015, Alipay moved its headquarters to Pudong, Shanghai, although its parent company ...

Amazon Pay Amazon Pay is an online payments processing service owned by Amazon. Launched in 2007, Amazon Pay uses the consumer base of Amazon.com and focuses on giving users the option to pay with their Amazon accounts on external merchant websites. As of ...

Apple Wallet Apple Wallet (or simply Wallet, known as Passbook prior to iOS 9) is a digital wallet developed by Apple Inc. and included with iOS and watchOS that allows users to store Wallet passes such as coupons, boarding passes, Campus card, student ID c ...

BHIM BHIM (Bharat Interface for Money) is an Indian state-owned mobile payment app developed by the National Payments Corporation of India (NPCI), based on the Unified Payments Interface (UPI). Launched on 30 December 2016, it is intended to fa ...

* Cloud QuickPass *

GCash GCash is a Philippine mobile payments service owned by Globe Fintech Innovations, Inc. (doing business as Mynt), and operated by its wholly-owned subsidiary, G-Xchange, Inc. Mynt is a joint venture between Ant Group, an affiliate company of th ...

Google Wallet Google Wallet (or simply Wallet) is a digital wallet platform developed by Google. It is available for the Android, Wear OS, and Fitbit OS operating systems, and was announced on May 11, 2022, at the 2022 Google I/O keynote. It began rollin ...

* Gyft * LG Pay * Line Pay * Mi Pay *

Mir Pay Mir (, ; ) is a Russian Payment card industry, card payment system for electronic fund transfers established by the Central Bank of Russia under a law adopted on 1 May 2017. Russian National Card Payment System, a wholly-owned subsidiary of the Ce ...

Paytm Paytm (an acronym for "Pay Through Mobile") is an Indian Multinational corporation, multinational Fintech, financial technology company, that specializes in digital wallet, digital payments and financial services, based in Noida, India. Paytm ...

PhonePe PhonePe is an Indian digital payments and financial services company headquartered in Bengaluru, Karnataka, India. It was founded in December 2015, by Sameer Nigam, Rahul Chari and Burzin Engineer. The PhonePe app, based on the Unified Paymen ...

Samsung Wallet Samsung Wallet (, or simply Wallet) is a digital wallet platform developed by Samsung. It is available for the Samsung Galaxy-exclusive One UI Android operating system, and was announced on February 9, 2022, at the February 2022 Samsung Unpa ...

* Touch 'n Go eWallet *

Venmo Venmo is an American mobile payment service founded in 2009 and owned by PayPal since 2013. Venmo is aimed at users who wish to split their bills. Account holders can transfer funds to others via a mobile phone app; both the sender and receiver ...

WeChat Pay WeChat Pay, officially referred to as Weixin Pay ( zh, c=微信支付, p=Wēixìn Zhīfù) in China, is a mobile payment and digital wallet service by WeChat based in China that allows users to make mobile payments and online transactions. As ...

Credit card

A simple mobile web payment system can also include a credit card payment flow allowing a consumer to enter their card details to make purchases. This process is familiar but any entry of details on a mobile phone is known to reduce the success rate (conversion) of payments. 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. However, there are concerns regarding information and payment privacy when cards are used during online transactions. If a website is not secure, for example, then personal credit card info can leak online.

Carrier 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 Multi-factor authentication (MFA; two-factor authentication, or 2FA) is an electronic authentication method in which a user is granted access to a website or Application software, application only after successfully presenting two or more distin ...

involving the consumer's mobile number and a PIN or

one-time password A one-time password (OTP), also known as a one-time PIN, one-time passcode, one-time authorization code (OTAC) or dynamic password, is a password that is valid for only one login session or transaction, on a computer system or other digital dev ...

(often abbreviated as ''OTP''), the consumer's mobile account is charged for the purchase. It is a true alternative payment method that does not require the use of credit/debit cards or pre-registration at an

online payment An e-commerce payment system (or an electronic payment system) facilitates the acceptance of electronic payment for offline transfer, also known as a subcomponent of electronic data interchange (EDI), e-commerce payment systems have become increa ...

solution such as

, thus bypassing banks and credit card companies altogether. This type of mobile payment method, which is prevalent in Asia, provides the following benefits: *''Security'' – two-factor authentication and a risk management engine prevents fraud. *''Convenience'' – no pre-registration and no new mobile software is required. *''Easy'' – It is just another option during the checkout process. *''Fast'' – most transactions are completed in less than 10 seconds. *''Proven'' – 70% of all digital content purchased online in some parts of Asia uses the direct mobile billing method

Remote payment by SMS and credit card tokenization

Even as the volume of Premium SMS transactions have flattened, many cloud-based payment systems continue to use SMS for presentment, authorization, and authentication, while the payment itself is processed through existing payment networks such as credit and debit card networks. These solutions combine the ubiquity of the SMS channel, with the security and reliability of existing payment infrastructure. Since SMS lacks

end-to-end encryption End-to-end encryption (E2EE) is a method of implementing a secure communication system where only communicating users can participate. No one else, including the system provider, telecom providers, Internet providers or malicious actors, can ...

, such solutions employ a higher-level security strategies known as 'tokenization' and 'target removal' whereby payment occurs without transmitting any sensitive account details, username, password, or PIN. Point-of-sales mobile payment solutions have not relied on SMS-based authentication as a payment mechanism, but remote payments such as bill payments, seat upgrades on flights, and membership or subscription renewals are commonplace. In comparison to premium short code programs which often exist in isolation,

relationship marketing Relationship marketing is a form of marketing developed from direct response marketing campaigns that emphasizes customer retention and satisfaction rather than sales transactions. It differentiates from other forms of marketing in that it ...

and payment systems are often integrated with CRM, ERP, marketing-automation platforms, and reservation systems. Many of the problems inherent with premium SMS have been addressed by solution providers. Remembering keywords is not required since sessions are initiated by the enterprise to establish a transaction specific context. Reply messages are linked to the proper session and authenticated either synchronously through a very short expiry period (every reply is assumed to be to the last message sent) or by tracking session according to varying reply addresses and/or reply options.

Direct operator billing

Direct operator billing, also known as mobile content billing, WAP billing, and carrier billing, requires integration with the mobile network operator. It provides certain benefits: *Mobile network operators already have a billing relationship with consumers, the payment will be added to their bill. *Provides instantaneous payment *Protects payment details and consumer identity *Better conversion rates *Reduced customer support costs'' for merchants *Alternative monetization option in countries where credit card usage is low One of the drawbacks is that the payout rate will often be much lower than with other mobile payments options. Examples from a popular provider: * 92 percent with PayPal * 85 to 86 percent with credit card * 45 to 91.7 percent with operator billing in the US, UK and some smaller European countries, but usually around 60% More recently, direct operator billing is being deployed in an in-app environment, where mobile application developers are taking advantage of the one-click payment option that direct operator billing provides for monetising mobile applications. This is a logical alternative to credit card and Premium SMS billing. In 2012 Ericsson and

Western Union The Western Union Company is an American multinational financial services corporation headquartered in Denver, Denver, Colorado. Founded in 1851 as the New York and Mississippi Valley Printing Telegraph Company in Rochester, New York, the co ...

partnered to expand the direct operator billing market, making it possible for mobile operators to include Western Union mobile money transfers as part of their mobile financial service offerings. Given the international reach of both companies, the partnership is meant to accelerate the interconnection between the m-commerce market and the existing financial world.

Contactless near-field communication

Near-field communication Near-field communication (NFC) is a set of communication protocols that enables communication between two electronic devices over a distance of or less. NFC offers a low-speed connection through a simple setup that can be used for the boots ...

(NFC) 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 their phone near a reader module. Most transactions do not require authentication, but some require authentication using PIN, before transaction is completed. The payment could be deducted from a pre-paid account or charged to a mobile or bank account directly. Mobile payment method via NFC faces significant challenges for wide and fast adoption, due to lack of supporting infrastructure, complex ecosystem of stakeholders, and standards. Some phone manufacturers and banks, however, are enthusiastic. Ericsson and Aconite are examples of businesses that make it possible for banks to create consumer mobile payment applications that take advantage of NFC technology. NFC vendors in Japan are closely related to mass-transit networks, like the Mobile Suica used since 28 January 2006 on the

JR East The is a major passenger railway company in Japan and the largest of the seven Japan Railways Group companies. The company name is officially abbreviated as JR-EAST or JR East in English, and as in Japanese. The company's headquarters are in ...

rail network. The mobile wallet Osaifu-Keitai system, used since 2004 for Mobile Suica and many others including Edy and nanaco, has become the ''de facto'' standard method for mobile payments in

. Its core technology, Mobile FeliCa IC, is partially owned by

Sony is a Japanese multinational conglomerate (company), conglomerate headquartered at Sony City in Minato, Tokyo, Japan. The Sony Group encompasses various businesses, including Sony Corporation (electronics), Sony Semiconductor Solutions (i ...

, NTT DoCoMo and JR East. Mobile FeliCa utilize Sony's

FeliCa FeliCa is a contactless RFID smart card system from Sony in Japan, primarily used in electronic money cards. The name stands for ''Felicity Card''. First utilized in the Octopus card system in Hong Kong, the technology is used in a variety of cards ...

technology, which itself is the de facto standard for

contactless smart card A contactless smart card is a contactless credential whose dimensions are credit card size. Its embedded integrated circuits can store (and sometimes process) data and communicate with a terminal via NFC. Commonplace uses include transit ticket ...

s in the country. NFC was used in transports for the first time in the world by

China Unicom China United Network Communications Group (China Unicom) is a Chinese state-owned telecommunications operator. Originally founded (on January 6 2009) as a wireless paging and GSM mobile operator, it currently provides a range of services inclu ...

and Yucheng Transportation Card in the tramways and bus of

Chongqing ChongqingPostal Romanization, Previously romanized as Chungking ();. is a direct-administered municipality in Southwestern China. Chongqing is one of the four direct-administered municipalities under the State Council of the People's Republi ...

on 19 January 2009, in those of

Nice Nice ( ; ) is a city in and the prefecture of the Alpes-Maritimes department in France. The Nice agglomeration extends far beyond the administrative city limits, with a population of nearly one million then in

Seoul Seoul, officially Seoul Special Metropolitan City, is the capital city, capital and largest city of South Korea. The broader Seoul Metropolitan Area, encompassing Seoul, Gyeonggi Province and Incheon, emerged as the world's List of cities b ...

after its introduction in Korea by the discount retailer Homeplus in March 2010 and it was tested then adopted or added to the existing systems in

Tokyo Tokyo, officially the Tokyo Metropolis, is the capital of Japan, capital and List of cities in Japan, most populous city in Japan. With a population of over 14 million in the city proper in 2023, it is List of largest cities, one of the most ...

from May 2010 to end of 2012. After an experimentation in the metro of

Rennes Rennes (; ; Gallo language, Gallo: ''Resnn''; ) is a city in the east of Brittany in Northwestern France at the confluence of the rivers Ille and Vilaine. Rennes is the prefecture of the Brittany (administrative region), Brittany Regions of F ...

in 2007, the NFC standard was implemented for the first time in a metro network, by China Unicom in

Beijing Beijing, Chinese postal romanization, previously romanized as Peking, is the capital city of China. With more than 22 million residents, it is the world's List of national capitals by population, most populous national capital city as well as ...

on 31 December 2010. Other NFC vendors mostly in Europe use

contactless payment Contactless payment systems are credit cards and debit cards, key fobs, smart cards, or other devices, including smartphones and other mobile devices, that use radio-frequency identification (RFID) or near-field communication (NFC) for making sec ...

over mobile phones to pay for on- and off-street parking in specially demarcated areas. Parking wardens may enforce the parking by license plate, transponder tags, or

barcode A barcode or bar code is a method of representing data in a visual, Machine-readable data, machine-readable form. Initially, barcodes represented data by varying the widths, spacings and sizes of parallel lines. These barcodes, now commonly ref ...

stickers. In Europe, the first experimentations of mobile payment took place in Germany during 6 months, from May 2005, with a deferred payment at the end of each month on the tramways and bus of

Hanau Hanau () is a city in the Main-Kinzig-Kreis, in Hesse, Germany. It is 25 km east of Frankfurt, Frankfurt am Main and part of the Frankfurt Rhine-Main, Frankfurt Rhine-Main Metropolitan Region. Its railway Hanau Hauptbahnhof, station is a ma ...

with the

Nokia Nokia Corporation is a Finnish multinational corporation, multinational telecommunications industry, telecommunications, technology company, information technology, and consumer electronics corporation, originally established as a pulp mill in 1 ...

3220 using the NFC standard of

Philips Koninklijke Philips N.V. (), simply branded Philips, is a Dutch multinational health technology company that was founded in Eindhoven in 1891. Since 1997, its world headquarters have been situated in Amsterdam, though the Benelux headquarter ...

and

. In France the immediate contactless payment was experimented during 6 months, from October 2005, in some Cofinoga shops (

Galeries Lafayette Galeries Lafayette () is an upmarket French department store chain, the biggest in Europe. Its flagship store is on Boulevard Haussmann in the 9th arrondissement of Paris but it now operates a number of locations in France and other countries ...

Monoprix Monoprix S.A. () is a major French retail chain with its headquarters in Clichy, Hauts-de-Seine, France, near Paris. The company's stores combine food retailing with fashion, beauty and home products. History The company was founded in 19 ...

) and Vinci parkings of

Caen Caen (; ; ) is a Communes of France, commune inland from the northwestern coast of France. It is the Prefectures in France, prefecture of the Departments of France, department of Calvados (department), Calvados. The city proper has 105,512 inha ...

with a

Samsung Samsung Group (; stylised as SΛMSUNG) is a South Korean Multinational corporation, multinational manufacturing Conglomerate (company), conglomerate headquartered in the Samsung Town office complex in Seoul. The group consists of numerous a ...

NFC

smartphone A smartphone is a mobile phone with advanced computing capabilities. It typically has a touchscreen interface, allowing users to access a wide range of applications and services, such as web browsing, email, and social media, as well as multi ...

provided by

Orange Orange most often refers to: *Orange (fruit), the fruit of the tree species '' Citrus'' × ''sinensis'' ** Orange blossom, its fragrant flower ** Orange juice *Orange (colour), the color of an orange fruit, occurs between red and yellow in the vi ...

in collaboration with Philips Semiconductors (for the first time, thanks to "Fly Tag", the system allowed to receive as well audiovisual informations, like bus timetables or cinema trailers from the concerned services). From 19 November 2007 to 2009, this experimentation was extended in Caen to more services and three additional

mobile phone operator A mobile phone operator, wireless provider, or carrier is a mobile telecommunications company that provides wireless Internet GSM services for mobile device users. The operator gives a SIM card to the customer who inserts it into the mobile devi ...

s (

Bouygues Telecom Bouygues Telecom S.A. () is a French mobile phone, Internet service provider and IPTV company, part of the Bouygues group. It is the third oldest mobile network operator in France, after Orange and SFR, and before Free Mobile, and provides 2 ...

, SFR and NRJ Mobile) and in

Strasbourg Strasbourg ( , ; ; ) is the Prefectures in France, prefecture and largest city of the Grand Est Regions of France, region of Geography of France, eastern France, in the historic region of Alsace. It is the prefecture of the Bas-Rhin Departmen ...

and on 5 November 2007, Orange and the transport societies

SNCF The Société nationale des chemins de fer français (, , SNCF ) is France's national State-owned enterprise, state-owned railway company. Founded in 1938, it operates the Rail transport in France, country's national rail traffic along with th ...

and

Keolis Keolis is a French transportation company that operates public transport systems all over the world. It manages bus, rapid transit, tram, coach networks, rental bikes, car parks, water taxi, cable car, trolleybus, and funicular services. B ...

associated themselves for a 2 months experimentation on smartphones in the metro, bus and TER trains in

. After a test conducted from October 2005 to November 2006 with 27 users, on 21 May 2010, the transport authority of

bank card A bank card is typically a plastic card issued by a bank to its clients that performs one or more of a number of services that relate to giving the client access to a bank account. Physically, a bank card will usually have the client's name, th ...

application notably on

Player One (with the same mobile phone operators than in Caen and Strasbourg), as well as the validation aboard with them of the transport titles and the loading of these titles onto the smartphone, in addition to the season tickets contactless card. This service was as well experimented then respectively implemented for NFC smartphones on 18 and 25 June 2013 in the tramways and bus of

and Strasbourg. In

Paris Paris () is the Capital city, capital and List of communes in France with over 20,000 inhabitants, largest city of France. With an estimated population of 2,048,472 residents in January 2025 in an area of more than , Paris is the List of ci ...

transport network, after a 4 months testing from November 2006 with Bouygues Telecom and 43 persons and finally with users from July 2018, the contactless mobile payment and direct validation on the turnstile readers with a smartphone was adopted on 25 September 2019 in collaboration with the societies Orange, Samsung, Wizway Solutions, Worldline and Conduent. Other vendors use a combination of both NFC and a barcode on the mobile device for mobile payment, because many mobile devices in the market do not yet support NFC.

Other mobile payment methods

QR code payments

QR code is a square two-dimensional bar code. QR codes have been in use since 1994. Originally used to track products in warehouses, QR codes were designed to replace the older one-dimensional bar codes. The older bar codes just represent numbers, which can be looked up in a database and translated into something meaningful. QR, or "quick response", bar codes were designed to contain the meaningful information directly in the bar code. QR codes can be of two main categories: * The QR code is presented on the mobile device of the person paying and scanned by a POS or another mobile device of the payee * The QR code is presented by the payee, in a static or one time generated fashion and it is scanned by the person executing the payment Mobile self-checkout allows for one to scan a QR code or barcode of a product inside a brick-and-mortar establishment in order to purchase the product on the spot. This theoretically eliminates or reduces the incidence of long checkout lines, even at self-checkout kiosks.

Cloud-based mobile payments

Google, PayPal, GlobalPay and GoPago use a

cloud-based Cloud computing is "a paradigm for enabling network access to a scalable and elastic pool of shareable physical or virtual resources with self-service provisioning and administration on-demand," according to International Organization for ...

approach to in-store mobile payment. The cloud based approach places the mobile payment provider in the middle of the transaction, which involves two separate steps. First, a cloud-linked payment method is selected and payment is authorized via NFC or an alternative method. During this step, the payment provider automatically covers the cost of the purchase with issuer linked funds. Second, in a separate transaction, the payment provider charges the purchaser's selected, cloud-linked account in a card-not-present environment to recoup its losses on the first transaction.

Audio signal-based payments

The audio channel of the mobile phone is another wireless interface that is used to make payments. Several companies have created technology to use the acoustic features of cell phones to support mobile payments and other applications that are not chip-based. The technologies like 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.

Direct carrier and bank co-operation

In the T-Cash model, the mobile phone and the phone carrier is the front-end interface to the consumers. The consumer can purchase goods, transfer money to a peer, cash out, and cash in. A 'mini wallet' account can be opened as simply as entering *700# on the mobile phone, presumably by depositing money at a participating local merchant and the mobile phone number. Presumably, other transactions are similarly accomplished by entering special codes and the phone number of the other party on the consumer's mobile phone. In Switzerland,

TWINT Twint is a Swiss mobile payment system rolled out nation-wide in 2017. As of 2024, Twint has become ubiquitous in Switzerland, with practically all stores accepting Twint payments and nearly all banks taking part in the payment system. The app w ...

offers the same function.

Magnetic secure transmission

magnetic secure transmission Magnetic secure transmission (MST) is the name for mobile payment technology in which devices such as smartphones emit a signal that mimics the magnetic stripe on a traditional payment card. Overview MST sends a magnetic signal from the device to ...

(MST), a smartphone emits a magnetic signal that resembles the one created by swiping a magnetic credit card through a traditional

credit card terminal A payment terminal, also known as a point of sale (POS) terminal, credit card machine, card reader, PIN pad, EFTPOS terminal (or by the older term as PDQ terminal which stands for "Process Data Quickly"), is a device which interfaces with payme ...

. No changes to the terminal or a new terminal are required.

Bank transfer systems

Swish is the name of a system established in

Sweden Sweden, formally the Kingdom of Sweden, is a Nordic countries, Nordic country located on the Scandinavian Peninsula in Northern Europe. It borders Norway to the west and north, and Finland to the east. At , Sweden is the largest Nordic count ...

. It was established through a collaboration from major banks in 2012 and has been very successful, with 66 percent of the population as users in 2017. It is mainly used for

peer-to-peer Peer-to-peer (P2P) computing or networking is a distributed application architecture that partitions tasks or workloads between peers. Peers are equally privileged, equipotent participants in the network, forming a peer-to-peer network of Node ...

payments between private people, but is also used by churches, street vendors, and small businesses. A person's account is tied to his or her phone number and the connection between the phone number and the actual bank account number is registered in the internet bank. The

electronic identification An electronic identification ("eID") is a digital solution for proof of identity of citizens or organizations. They can be used to view to access benefits or services provided by government authorities, banks or other companies, for mobile paymen ...

system ''mobile BankID'', issued by several Swedish banks, is used to verify the payment. Users with a simple phone or without the app can still receive money if the phone number is registered in the internet bank. Like many other mobile payment system, its main obstacle is getting people to register and download the app, but it has managed to reach a

critical mass In nuclear engineering, critical mass is the minimum mass of the fissile material needed for a sustained nuclear chain reaction in a particular setup. The critical mass of a fissionable material depends upon its nuclear properties (specific ...

and it has become part of everyday life for many Swedes. Swedish payments company Trustly also enables mobile bank transfers, but is used mainly for business-to-consumer transactions that occur solely online. If an e-tailer integrates with Trustly, its customers can pay directly from their bank account. Unlike Swish, users don't need to register a Trustly account or download software to pay with it. The Danish

MobilePay MobilePay is a mobile payment application used in Denmark and Finland. The service allows payments by means of a smartphone application and was first introduced in 2013 by Danske Bank. It was introduced to Finland later in the same year and sinc ...

and Norwegian

Vipps Vipps is a Norwegian mobile payment application designed for smartphones developed by DNB ASA, DNB. Vipps was released May 30, 2015 and, having reached 1 million users by November 5, 2015, Vipps became Norway's largest payment application. Altho ...

are also popular in their countries. They use direct and instant bank transfers, but also for users not connected to a participating bank, credit card billing. In India a new direct bank transfer system has emerged called as

Unified Payments Interface Unified Payments Interface, commonly known as UPI is an Indian instant payment system as well as protocol developed by the National Payments Corporation of India (NPCI) in 2016. The interface facilitates inter-bank peer-to-peer (P2P) and pe ...

. This system enables users to transfer money to other users and businesses in real-time directly from their bank accounts. Users download UPI supporting app from app stores on their Android or iOS device, link and verify their mobile number with the bank account by sending one outgoing SMS to app provider, create a virtual payment address (VPA) which auto generates a QR code and then set a banking PIN by generating OTP for secure transactions. VPA and QR codes are to ensure easy to use & privacy which can help in

(P2P) transactions without giving any user details. Fund transfer can then be initiated to other users or businesses. Settlement of funds happen in real-time, i.e. money is debited from payer's bank account and credited in recipient's bank account in real-time. UPI service works 24x7, including weekends and holidays. This is slowly becoming a very popular service in India and is processing monthly payments worth approximately $10 billion as in October 2018. In Poland the Blik mobile payment system was established in February 2015 by the Polish Payment Standard (PSP) company. To pay with Blik, you need a smartphone, a personal account and a mobile application of one of the banks that cooperate with it. The principle of operation is to generate a 6-digit code in the bank's mobile application. The Blik code is used only to connect the parties to the transaction. It is an identifier that associates the user and a specific bank at a given moment. For two minutes, it points to a specific mobile application to which - through a string of numbers - a request to accept a transaction in a specific store or ATM is sent. Blik allows you to pay in online and stationary stores. By the Blik, we can also make transfers to the phone or withdraw money from ATMs.

References

{{DEFAULTSORT:Mobile Payment Financial technology ja:非接触型決済