mobile payments service

(redirected from proximity payments)

mobile payments service

Paying for merchandise or services in a store via mobile phone. A smartphone wallet app either holds prepaid funds or works like a credit card, and various authentication methods may be employed. As of late 2015, Apple Pay, Android Pay, CurrentC and Samsung Pay are emerging payments services in the U.S. See Apple Pay, Android Pay, CurrentC and Samsung Pay.

The "Next Big Thing"
When the Internet exploded in the 1990s, a variety of Web-based payments systems were developed; however, except for PayPal, most were abandoned. The distinct advantage of smartphones is that people generally have them while shopping, and built-in fingerprint readers add a significant level of security.

The primary technology used in mobile payments is near field communication (NFC), which allows a person to pass the phone over a terminal to quickly pay for merchandise. Many Android phones included NFC, and Apple finally added it with the iPhone 6. Barcodes can also be displayed on the phone and scanned by the merchant's terminal or vice versa. See NFC and barcode.

Like any "next big thing," mobile payments have to overcome the chicken-egg conundrum. The more retailers adopt a system, the more people use it, and the more people use it, the more merchants come on board. To fully embrace mobile payments, physical stores will have to support multiple systems. See mobile check deposit, Web payments service, digital wallet and smartphone wallet.
References in periodicals archive ?
This Tractica report analyzes the market opportunity for proximity payments or transactions made physically at POS terminals utilizing wearable devices such as smart watches, fitness trackers, and payment wristbands.
About SimplyTapp Founded in 2011 in Austin, TX, SimplyTapp's mobile NFC payment technology enables credit card issuers and developers to leverage mobile devices for proximity payments and other real-world transactions.
For example, during a point of sale purchase, its proximity payments and geolocation functionality can verify the wearable device is in the same location as the owner's mobile phone, helping to prevent fraudulent payments.
Lime, in addition to its shopping and ticketing features, has been equipped with payment functionalities so that users can be facilitated to accomplish proximity payments at offline merchants via mobile and sound using the NearPay aspect.
The Mobile Wallet system which will include person to person payments and a number of pilot retailers participating in the purchasing system, as well as proximity payments across all participating retail outlets, and integration with retailers' loyalty programmes.
25) See McTaggart & Freese, supra note 9, at 488 (noting one distinction between remote payments and proximity payments as the proximity payments requirement of a POS terminal); Rajan, supra note 6, at 452-53 (pointing to the ease of waving the device to make a payment as being "incredibly attractive"); Jun, supra note 5, at 6-14 (listing in descending order of consumer risk the different m-payment models).
For more details please see the Ovum report Mobile Proximity Payments and the Prospects for NFC.
NFC is also the technology that will make proximity payments done with the use of a mobile phone possible.
The Project which is set to run over a period of four months, will provide customers with easy, secure and convenient access to basic financial services which has previously been enjoyed only by a small percentage of the population and access to NFC proximity payments for purchasing anywhere at anytime.
Proximity payments using the mobile (at a point of sale)
Mobile phones are no longer merely devices for making and receiving calls, instead continuous investment in innovation has meant that mobile phones are increasingly becoming a platform for new technology such as proximity payments," he added.
A complete portfolio of mobile financial services ranging from on-line to proximity payments with NFC applications and TSM services, with easy user access all done from a single mobile wallet