North American merchants are just beginning to consider mobile payment systems, a technology that has reached relative maturity in European markets. Pay close attention to lessons learned by European front-runners to select the safest business model in which to invest.
Mobile Payments Defined
Mobile payments (m-payments) are monetary transactions that involve a mobile device at some stage in their execution. Transactions can be between a consumer and a real-world retail outlet, a WAP (Wireless Access Protocol) site, a vending machine, or even a peer-to-peer transfer between individuals. Certain transaction types are prime for this next big development in consumer payment technology, and the mobile phone is a leading candidate.