Mobile Payment Literature Review

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Chapter 2: Literature review In this chapter, the domain of payments is described and then there is a focus on mobile payment where I present the related stakeholders and give an overview of mobile payment ecosystem including the various players involved. A person willing to complete a payment transaction can choose among a number of different options, depending on the situation at payment transaction can choose among a number of different options, depending on the situation at hand. Solutions offered in the payments market can be divided in two distinct groups, depending on the means used by the parties executing the transaction, cash and non-cash payments (card payment, direct debit payment, standing order, credit transfer payment, cheque…show more content…
Coca Cola introduced a limited number of vending machines in Helsinki, Finland whereby customers could purchase their drink via text message. This innovation brought by Coca Cola is considered the first example of mobile payments. Subsequently, the idea of using mobile features for financial transactions has emerged. As a matter of fact, Merita Bank of Finland introduced the first mobile phone-based banking system using sms. Thereafter, mobiles phones were used to buy movie tickets (Ericsson & Telnor Mobil, 1999), to arrange travel (KLM, 2000), and also to order pizza for delivery (Domino’s Pizza, 2001). By 2003, 95 million cell phone users worldwide had made a purchase via their mobile device and the market is continuously growing from there. The advent of smartphones has also revolutionized the mobile payment service. Types of mobile payment and technologies Mobile payment can be categorized under 3 main types which…show more content…
Some wallets use NFC technology to transmit funds like the Google Wallet. Other mobile wallets use cloud-based apps that need to be first downloaded from an applications store like Apple iTunes. Once downloaded, the app can be opened with a secure PIN or passcode to pay a store or service providers from the previously set-up bank account or credit card associated. Mobile Web Payment/WAP The Mobile Web refers to access to the internet from a handheld mobile device, such as a smartphone, or a tablet connected to a mobile network or wifi network. WAP Payment simply means using the Wireless Application Protocol (WAP) facility on your Smart phone to connect to the internet and then using an online payment method such as PayPal or simply entering your credit card details into the payment box on a company’s website. This is simple for the business to collect payments because they do not need to develop a payment application, however, they must ensure that their website is mobile web optimized to take

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