Mobile payment

Mobile payment (also referred to as mobile money, mobile money transfer, and mobile wallet) generally refer to payment services operated under financial regulation and performed from or via a mobile device. Instead of paying with cash, cheque, or credit cards, a consumer can use a mobile to pay for a wide range of services and digital or hard goods. Although the concept of using non-coin-based currency systems has a long history,[1] it is only in the 21st century that the technology to support such systems has become widely available.

Mobile payment is being adopted all over the world in different ways.[2][3] The first patent exclusively defined "Mobile Payment System" was filed in 2000.[4]

In developing countries mobile payment solutions have been deployed as a means of extending financial services to the community known as the "unbanked" or "underbanked", which is estimated to be as much as 50% of the world's adult population, according to Financial Access' 2009 Report "Half the World is Unbanked".[5] These payment networks are often used for micropayments.[6] The use of mobile payments in developing countries has attracted public and private funding by organizations such as the Bill & Melinda Gates Foundation, United States Agency for International Development and Mercy Corps.

Mobile payments are becoming a key instrument for Payment Service Providers (PSPs) and other market participants, in order to achieve new growth opportunities, according to the European Payments Council (EPC).[7] The EPC states that "new technology solutions provide a direct improvement to the operations efficiency, ultimately resulting in cost savings and in an increase in business volume".

  1. ^ "Pre-1900 Utopian Visions of the 'Cashless Society'". MPRA. 2012.
  2. ^ GSMA Mobile Money Deployment Tracker from wirelessintelligence.com Archived November 23, 2011, at the Wayback Machine
  3. ^ "Japanese Drive Mobile Payment Market". Ericsson.com. 2010-11-02. Retrieved 2011-09-19.
  4. ^ Mobile payment system, 2000-12-11, retrieved 2018-06-08
  5. ^ "Half the World is Unbanked" (PDF). FinancialAccess.org. 2009. Archived from the original (PDF) on 2014-12-22.
  6. ^ Micro-payment systems and their application to mobile networks, InfoDev report, Jan 2006 accessed at [1] Archived September 26, 2007, at the Wayback Machine
  7. ^ "White Paper on Mobile Payments". European Payments Council. European Payments Council. 2016. Retrieved 2 February 2017.