Mobile transaction refers to paying a wide range of goods and services though a mobile phone. It is also referred to a mobile money transfer, mobile money or mobile wallet. The idea of using a non-coin-based currency system has been in use in the past. But it is only now that technology supporting this system has been made available in the market.
In developing countries, mobile transaction solutions have been used as a means of extending financial services to communities. It was known as “underbanked” or “unbanked.” This kind of merchant account transaction are often used for micropayments or for financial transaction that involved a small amount of money and done online.
Types of Mobile Transactions
- SMS Payment – This is one of the most known methods of paying goods and service through mobile phones. The nature of this transaction is so simple because all that is needed is a phone with SMS capability. The consumer sends a payment request through an SMS text message to a short code and the merchant involved is informed of the payment success and can now release the paid goods.
- NFC Payment – Near Field Communication refers to a set of communication protocols that allow two electronic devices, one of which is a portable device like a smartphone, to establish communication by bringing them within 4 inches of each other. NFC-enabled devices act like smart cards that allow users to do transactions like payment of goods or services or for ticketing. It can also read information stored in less expensive tags embedded in smart posters and labels. In some countries NFC payments are accepted as payments for purchases in almost any good or service, on public transportation and to provide identity card information. Near Field Communication involves instantaneous transfer of data between phones or between phones and point of sale devices.
- WPA Payments – This is a method of transaction using Wireless Application Protocol facility on a Smart phone to connect to the Internet and them making an online payment method like Google Wallet, Yahoo Wallet and Paypal. User can also make payments by entering his credit card details into the payment box found on the website of the company. Most mobile network operators allow users to pay for WAP Payments directly from mobile phone bill like a standard SMS payment. Companies who are interested in accepting WAP payments have to get a WAP payment gateway on their site.
