Mobile payments generally involve three participants: the mobile device
, the merchant, and a financial service provider or trusted third party.
That trusted third party, or TTP, is an established, reputable fiduciary entity accepted by all parties to an agreement, deal, or transaction. A TTP authenticates and authorizes users in order to secure a payment transaction, and acts as an impartial intermediary for the settlement of payments and any problems that arise after the transaction has occurred.
There are various mobile payment delivery options. Near Field Communication
s is a contactless delivery system, involving a chip that is either built into the phone itself, into a card within the phone, or a sticker attached to the phone. There are also new applications that facilitate mobile payments, most of which involve a barcode that the user scans at the register.
The statistics for mobile payment are impressive. The U.S. mobile payment industry encompasses a number of categories, including mobile bill payment, mobile point of sale, m-commerce, and mobile contactless. Mobile bill payment, in which consumers pay bills via mobile phone, currently makes up the bulk of the U.S.’s mobile payment industry. Mobile point of sale, in which a consumer’s phone is used as a point of sale device, accounts for just over 5%, but is expected to grow by 127% in the next five years, to $54 billion in transactions. Mobile contactless is expected to grow 1,077% by 2015. The gross dollar volume of mobile payments overall is expected to grow 68% by 2015.
This is all very exciting, but the Payment Card Industry Standards Council is not yet granting approval to any mobile payment applications. With the explosive growth of the mobile payment industry, they are holding off and waiting to see which technologies rise to the top. This shouldn’t be a concern for mobile phone users, though, since the merchant, rather than the customer, undertakes the bulk of the risk.
Meanwhile, as you increasingly use your phone for mobile payments, be aware that the phone correspondingly increases in value to thieves and hackers. So keep track of your cell phone. You wouldn’t leave your wallet on a bar and walk away, and you shouldn’t do that with your phone, either. And be cautious when visiting websites on your phone’s browser, clicking on links, or responding to text messages.
ROBERT SICILIANO, CEO of IDTheftSecurity.com is fiercely committed to informing, educating, and empowering Americans so they can be protected from violence and crime in the physical and virtual worlds. His "tell it like it is" style is sought after by major media outlets, executives in the C-Suite of leading corporations, meeting planners, and community leaders to get the straight talk they need to stay safe in a world in which physical and virtual crime is commonplace. Siciliano is accessible, real, professional, and ready to weigh in and comment at a moment's notice on breaking news.
- 5 Things To Know About Contactless Payment
Contactless payment, also known as NFC or near field communication, is a technology that allows electronic devices to communicate wirelessly. In the case of a mobile wallet application, those devices would typically be a mobile phone and a point of sale terminal at a checkout counter. (NFC has other uses beyond credit card transactions: it
- Mobile Payment is Coming
Near Field Communications, or NFC, is the exchange of information between two devices via wireless signal. For example, a wireless signal emitting from your cell phone can act as a credit card when making a purchase. This year, over 70 million mobile phones will be manufactured and sold with NFC built in. NFC can be used in
- Making a Case for Mobile Payment
Mobile payment can transform your shopping experience, making it more convenient and easy—and it’s secure, too! Forbes reports, “Shopping has become very impersonal. Few people have a relationship with a salesperson who knows their style and preferences and can direct them to the right items at the right prices as soon as they walk in the
- Contactless Challenge Revisited: Final Thoughts
The Gemalto Contactless Challenge kicked off in the United States June 10th, with two bloggers from Austin, Texas and Salt Lake City, Utah, respectively, putting contactless payment infrastructure to the test. The Isis Consortium of AT&T, T-Mobile and Verizon Wireless chose Austin and Salt Lake City to pilot its mobile wallet using near field communication (NFC)
- NFC at the Summer Games Could Be Exploited
NFC is an acronym for near field communication, a wireless technology that allows devices to talk to each other. In the case of a mobile wallet application, those devices would be a mobile phone and a point of sale device at a checkout counter. Visa is testing out its NFC service PayWave contactless payment service at
Leave a Comment
You must be logged in to post a comment.