Datasheet

Chapter 1  Internet Era: E-Commerce 15
and M-Commerce (mobile payment and commerce respectively). In short, mobile
payment uses the mobile phone (or other mobile device) as a conduit to access an
account (the purchasing account). A purchasing account could be the credit line
(that is, the spending limit for a certain period of time such as $20 per month) that
is made available to the mobile subscriber by the phone carrier (called carrier-
billing), it could be a stored-value account (such as PayPal), or it could be the
credit card or even a regular bankcard or bank account that is settled through
ACH. There are different flavors of mobile payment and the field enjoys a plethora
of new ideas that are emerging as a result of smart phones and mobile devices
that are capable of running third-party applications. Mobile payment solutions
potentially provide consumers with enhanced levels of safety and security of
their financial information, as well as convenience. For merchants, on the other
hand, mobile payments can mean lower fees, an increase in sales, and a higher
financial bottom-line. The carrier-billing model can be an additional source of
revenue for mobile network operators with great potential for realizing profits.
Mobile payment is a very promising emerging field in financial industry and
all the figures indicate a tremendous growth in its adoption. Because some of
its models do not require the user to have a bank account, mobile payment is
considered one of the most prominent solutions to penetrate regions in the
world where banking infrastructure is weak or non-existent.
One of the issues with mobile payments in the market today is the lack of a clear
and shared definition across the industry. There is often confusion and overlap
between a mobile payment, mobile banking, and the use of the mobile phone to
simply order goods or receive delivery (while paying by other means).
There are five main methods for using mobile phone financial transactions.
These are:
Mobile order:

Transactions where the mobile phone is used simply to
initiate the order, but not to make the payment.
Mobile payment:

A payment (transfer of funds in return for a good or
service) where the mobile phone is involved in the initiation and confirma-
tion of the payment. The location of the payer is not important: he may or
may not be “mobile” or “on the move” or at a Point of Sale (PoS).
Mobile delivery:

Transactions where the mobile phone is used simply
to receive delivery of goods or services (for example, an event ticket) but
not to make the payment.
Mobile authentication:

Use of the mobile device to authenticate the user
either as part of a payment transaction or to give access to some informa-
tion or functionality.
Mobile banking:

Access to banking functionality (query and transaction)
via the mobile phone. This means that the same (or a subset of) banking
functionality that is available on the Internet is now available via mobile
phones.
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