The proliferation of mobile phones and the increasing use of high-speed mobile data networks are acting as a catalyst for the development of mobile payments. Financial institutions, as well as merchants looking to capitalize on this new channel for commerce, should act now and start thinking of 'mobile' as a viable payment method.
What Are Mobile Payments?
Mobile payments, (or m-payments) are transactions that can be made using a mobile device, such as a cell phone, PDA, or mobile computer. There are two types of m-payments:
- Virtual transactions. Buyers and sellers are in different locations and the mobile device acts as the payment instrument, as well as the means by which product information is exchanged e.g. buying flowers virtually while in the car on the way home from work.
- Proximity or point-of-sale. Both parties are face-to-face, and the mobile phone is simply a substitute for any...