Mobile payments
have made a strong case for themselves in the past few years what with the
stunning growth of mobile phone users around the world particular in developing
countries. So, the lure has been alluring for the customer who can now buy
products and services from any location.
Mobile as a POS
Mobile devices have long begun to be used as POS (point of sale) tools. This has reached the next stage with NFC payment of which we’ll look at later. Mobile devices have become the go to option for consumers, as an instrument that supplements cash, cheque, and credit and debit cards.
Now, today many new devices have been rolled out that have wireless POS capabilities and they in turn, are competing with the mobile phone. Wireless POST terminals send instructions to the merchant payment server using the wireless network of mobile operators.
Mobile Payments as an Extension of Traditional Payments
Wireless and mobile POST can be said to be an extension of traditional mobile payment services as they use the wireless network of mobile payment operators. It is not difficult for merchant locations to offer POST terminals as payment as they do envisage them to take up a large pie of the payment market.
The Necessity of Interoperability
Mobile payment service provider’s role here is to make these wireless payments available to a majority of users. Well, that needs interoperability. You need to coordinate with banks, merchants and credit card providers to build a system that is secure, easy to use and foolproof. And of course, you need to convince the end user that your system can be trusted.
As of now, payment instruments are being stored in mWallets on the mobile device where the customer enters his or her financial details. It is in how these mWallets evolve into the next generation that holds the key to the adoption of mobile payments.
Mobile as a POS
Mobile devices have long begun to be used as POS (point of sale) tools. This has reached the next stage with NFC payment of which we’ll look at later. Mobile devices have become the go to option for consumers, as an instrument that supplements cash, cheque, and credit and debit cards.
Now, today many new devices have been rolled out that have wireless POS capabilities and they in turn, are competing with the mobile phone. Wireless POST terminals send instructions to the merchant payment server using the wireless network of mobile operators.
Mobile Payments as an Extension of Traditional Payments
Wireless and mobile POST can be said to be an extension of traditional mobile payment services as they use the wireless network of mobile payment operators. It is not difficult for merchant locations to offer POST terminals as payment as they do envisage them to take up a large pie of the payment market.
The Necessity of Interoperability
Mobile payment service provider’s role here is to make these wireless payments available to a majority of users. Well, that needs interoperability. You need to coordinate with banks, merchants and credit card providers to build a system that is secure, easy to use and foolproof. And of course, you need to convince the end user that your system can be trusted.
As of now, payment instruments are being stored in mWallets on the mobile device where the customer enters his or her financial details. It is in how these mWallets evolve into the next generation that holds the key to the adoption of mobile payments.
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