Just as the magnetic strip revolutionized payment by plastic credit card, near-field communication and other fast-evolving technologies will facilitate the move to payment using mobile technologies. NFC chips inside most mobile phones can transmit banking and payment data when placed near readers. And, instead of the credit card application process of filling out paperwork and waiting for the mail, using a mobile phone to pay requires only the download of an app and linking to bank details. PayPal president, David Marcus, calls it Money 3.0. – (Source Forbes magazine)
Mobile payment system is an integrated payment system using a mobile device to pay for bills, purchase retail or use for vacations just as using a credit card. This is the future of commerce. A successful product must cover a whole echo system. This means that a mobile payment system must be integrated with a number of other systems and processes that make up a complete transaction. At the front-end of the mobile commerce exists the merchant environment. This is where a consumer makes a decision to purchase a product or service. The payment can be initiated through a payment gateway, a POS terminal, or a remote payment engine. The payment must then goes through a number of sub-processes that include User Management, Offers and Loyalty Programs, Transaction Processing and Servicing. Each one of these has an external interface with which the system must interact, authenticate the customer and update the customer’s records.
Tecnomics has studied and researched this sector in depth. Although the adoption rate is low in the USA, but it is picking up gradually and will be a huge industry in the coming years, as rewards are tremendous.
According to Forrester Research report Mobile Payments in the United States, should reach $90 billion by 2017 and extend to $142 billion by 2019.