mobile payments service

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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 ?
mobile proximity payments are ready to grow significantly over the next few years, according to eMarketer.
Summary: Despite developers' massive investments, the popularity of mobile proximity payments among consumers has been lacklustre at best, says Gilles Ubaghs, Senior Analyst of Financial Services at Ovum
Mobile proximity payments have to date proven lacklustre and despite hundreds of millions spent on developing these platforms, consumer take-up remains virtually nonexistent.
Will mobile proximity payments disrupt the current POS payments ecosystem, or will consumer adoption of this emerging payments option remain scant?
In addition to supporting the development of mobile payment solutions, such as mobile proximity payments, mobile remote payments and mobile money transfers, the platform also supports the development of payment-related services, such as account management and security alerts to enable consumers to monitor account activity through a mobile device, and mobile offers that can be redeemed at the point of sale.
Javelin identifies the need for networks and issuers to motivate wireless carriers to support mobile proximity payments, in order to conveniently bring advanced payments capabilities into the mainstream.

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