Mobile payment: Difference between revisions

Latest revision as of 16:48, 29 December 2024

Mobile Payment

Type	Payment method
Inventor
Inception
Manufacturer
Available
Discontinued
Website	[ Official website]
Related articles

Mobile payment refers to payment services operated under financial regulation and performed from or via a mobile device, such as a smartphone or tablet computer. Instead of paying with cash, cheque, or credit card, a consumer can use a mobile to pay for a wide range of services and digital or hard goods.

History[edit]

The concept of mobile payment has been around since the late 1990s, with the first mobile payment systems being introduced in Finland and Sweden. The technology has evolved significantly since then, with the introduction of Near Field Communication (NFC) and QR code payments.

Technologies[edit]

Mobile payments can be made in a variety of ways, including:

Near Field Communication (NFC): A technology that allows two devices to communicate when they are within a few centimeters of each other. NFC is commonly used in contactless payment systems.
QR code payments: A method where the consumer scans a QR code displayed by the merchant to make a payment.
Mobile wallets: Digital wallets that store payment information on a mobile device, allowing users to make payments without carrying physical cards.
SMS payments: Payments made by sending a text message to a service provider.

Security[edit]

Security is a major concern for mobile payments. Technologies such as tokenization, encryption, and biometric authentication are used to protect sensitive information and prevent fraud.

Advantages[edit]

Mobile payments offer several advantages, including:

Convenience: Users can make payments quickly and easily without carrying cash or cards.
Speed: Transactions are processed faster than traditional payment methods.
Accessibility: Mobile payments can be made anywhere with a mobile signal, making them ideal for remote or underserved areas.

Challenges[edit]

Despite their advantages, mobile payments face several challenges:

Security concerns: Users may be wary of the security of their financial information.
Adoption rates: Not all consumers or merchants are equipped to handle mobile payments.
Regulatory issues: Different countries have varying regulations regarding mobile payments.

Future[edit]

The future of mobile payments looks promising, with continued advancements in technology and increasing consumer acceptance. Innovations such as blockchain and cryptocurrency may further transform the landscape of mobile payments.

References[edit]

External links[edit]

Mobile Payment on WikiMD

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-[[File:NFC-payment.png|left|NFC-payment|thumb]] '''Mobile payment''' refers to the payment for goods or services or transfer of money through mobile devices such as [[smartphones]] and [[tablet computers]]. Mobile payment technology can include [[mobile wallets]], [[contactless payment]] systems like [[NFC]] (Near Field Communication), and other mobile payment apps. This method of payment has become increasingly popular due to its convenience, speed, and the widespread adoption of mobile devices.
-==Overview==
+{{Infobox technology
-Mobile payment systems allow users to make payments or transfer money without the need for physical cash or credit cards. This is achieved through various technologies and platforms, including but not limited to, [[SMS]]-based transaction services, QR code payments, and digital wallets (e.g., [[Apple Pay]], [[Google Wallet]], [[Samsung Pay]]). These platforms securely store users' payment information and facilitate transactions directly from the user's device.
+| name = Mobile Payment
+| image =
+| caption =
+| type = Payment method
+| industry = Financial services
+}}
-==Types of Mobile Payment==
+'''Mobile payment''' refers to payment services operated under financial regulation and performed from or via a [[mobile device]], such as a [[smartphone]] or [[tablet computer]]. Instead of paying with cash, [[cheque]], or [[credit card]], a consumer can use a mobile to pay for a wide range of services and digital or hard goods.
-There are several types of mobile payment methods, each with its unique mechanism and use case:
-===NFC Payments===
+== History ==
-NFC payments involve close-range communication between a mobile device and a payment terminal. This technology is used in contactless credit cards and mobile wallet apps, allowing users to tap their device against a terminal to complete a transaction.
+The concept of mobile payment has been around since the late 1990s, with the first mobile payment systems being introduced in [[Finland]] and [[Sweden]]. The technology has evolved significantly since then, with the introduction of [[Near Field Communication]] (NFC) and [[QR code]] payments.
-===QR Code Payments===
+== Technologies ==
-QR code payments require users to scan a QR code displayed by the merchant with their mobile device to process a payment. This method is widely used in various countries and by different payment systems for its simplicity and efficiency.
+Mobile payments can be made in a variety of ways, including:
-===SMS Payments===
+* '''[[Near Field Communication]] (NFC)''': A technology that allows two devices to communicate when they are within a few centimeters of each other. NFC is commonly used in contactless payment systems.
-SMS payments enable transactions through text messages, where the payment amount is charged to the user's phone bill or deducted from their prepaid balance. This method is particularly useful in regions with limited access to banking services.
+* '''[[QR code]] payments''': A method where the consumer scans a QR code displayed by the merchant to make a payment.
+* '''[[Mobile wallet]]s''': Digital wallets that store payment information on a mobile device, allowing users to make payments without carrying physical cards.
+* '''[[SMS]] payments''': Payments made by sending a text message to a service provider.
-===Direct Mobile Billing===
+== Security ==
-Direct mobile billing involves charging purchases directly to the user's mobile phone bill. This method is often used for digital goods and services, such as app purchases or streaming subscriptions.
+Security is a major concern for mobile payments. Technologies such as [[tokenization]], [[encryption]], and [[biometric authentication]] are used to protect sensitive information and prevent [[fraud]].
-==Advantages and Challenges==
+== Advantages ==
-Mobile payment systems offer several advantages, including convenience, reduced transaction times, and the ability to make payments or transfer money from virtually anywhere. However, they also face challenges such as security concerns, the need for widespread adoption among merchants, and the requirement for compatible technology on both the consumer and merchant sides.
+Mobile payments offer several advantages, including:
-==Security==
+* '''Convenience''': Users can make payments quickly and easily without carrying cash or cards.
-Security in mobile payments is paramount, with technologies like [[encryption]], tokenization, and biometric authentication (e.g., fingerprint and facial recognition) being employed to protect users' information. Despite these measures, concerns over data breaches and fraud continue to pose challenges to the widespread acceptance of mobile payments.
+* '''Speed''': Transactions are processed faster than traditional payment methods.
+* '''Accessibility''': Mobile payments can be made anywhere with a mobile signal, making them ideal for remote or underserved areas.
-==Future of Mobile Payments==
+== Challenges ==
-The future of mobile payments looks promising, with advancements in technology and increasing global adoption. Innovations such as [[blockchain]] technology and the integration of artificial intelligence for fraud detection are expected to further enhance the security and efficiency of mobile payments. Additionally, the growing trend of financial inclusion is likely to drive the expansion of mobile payment services to underserved populations around the world.
+Despite their advantages, mobile payments face several challenges:
-[[Category:Mobile payments]]
+* '''Security concerns''': Users may be wary of the security of their financial information.
+* '''Adoption rates''': Not all consumers or merchants are equipped to handle mobile payments.
+* '''Regulatory issues''': Different countries have varying regulations regarding mobile payments.
+== Future ==
+The future of mobile payments looks promising, with continued advancements in technology and increasing consumer acceptance. Innovations such as [[blockchain]] and [[cryptocurrency]] may further transform the landscape of mobile payments.
+== See also ==
+* [[Digital currency]]
+* [[Electronic commerce]]
+* [[Contactless payment]]
+== References ==
+<references />
+== External links ==
+* [https://www.wikimd.com/wiki/Mobile_payment Mobile Payment on WikiMD]
+{{Technology}}
+{{Finance}}
 [[Category:Payment systems]]
+[[Category:Mobile technology]]
 [[Category:Financial technology]]
-{{finance-stub}}