Editing Mobile payment (section)

=== Remote payment by SMS and credit card tokenization ===

Even as the volume of Premium SMS transactions have flattened, many cloud-based payment systems continue to use SMS for presentment, authorization, and authentication,<ref>{{cite web |url=http://www.federalreserve.gov/econresdata/mobile-devices/2012-current-use-mobile-banking-payments.htm |title=FRB: Current Use of Mobile Banking and Payments |website=Federalreserve.gov |date=2013-08-02 |access-date=2017-01-07 |archive-date=17 March 2014 |archive-url=https://web.archive.org/web/20140317085131/http://www.federalreserve.gov/econresdata/mobile-devices/2012-current-use-mobile-banking-payments.htm |url-status=live }}</ref> while the payment itself is processed through existing payment networks such as credit and debit card networks.  These solutions combine the ubiquity of the SMS channel,<ref>{{cite web |url=https://techcrunch.com/2012/05/29/gartner-over-172b-in-mobile-payments-in-2012-with-212m-users-sms-web-most-popular-transaction-methods/ |title=Gartner: Over $172B In Mobile Payments In 2012; SMS, Web Most Popular Routes |website=TechCrunch.com |date=2012-05-29 |access-date=2017-01-07 |archive-date=5 July 2017 |archive-url=https://web.archive.org/web/20170705015406/https://techcrunch.com/2012/05/29/gartner-over-172b-in-mobile-payments-in-2012-with-212m-users-sms-web-most-popular-transaction-methods/ |url-status=live }}</ref> with the security and reliability of existing payment infrastructure. Since SMS lacks [[end-to-end encryption]], such solutions employ a higher-level security strategies known as 'tokenization' and 'target removal' <ref>{{cite web |url=http://indiamicrofinance.com/wp-content/uploads/2008/09/Tokenization-Whats-next-after-PCI.pdf |title=Tokenisation : What's next after PCI? |website=indiamicrofinance.com |access-date=2017-01-07 |archive-date=18 January 2017 |archive-url=https://web.archive.org/web/20170118043340/http://indiamicrofinance.com/wp-content/uploads/2008/09/Tokenization-Whats-next-after-PCI.pdf |url-status=live }}</ref> whereby payment occurs without transmitting any sensitive account details, username, password, or PIN.

Point-of-sales mobile payment solutions have not relied on SMS-based authentication as a payment mechanism, but remote payments such as bill payments,<ref>{{cite web |url=http://www.insurancetech.com/architecture-infrastructure/cure-insurance-coo-eric-poe-dishes-on-te/232301336 |title=CURE Insurance COO Eric Poe Dishes on Text-to-Pay &#124; Insurance & Technology |website=Insurancetech.com |access-date=2017-01-07 |archive-date=17 March 2014 |archive-url=https://web.archive.org/web/20140317212040/http://www.insurancetech.com/architecture-infrastructure/cure-insurance-coo-eric-poe-dishes-on-te/232301336 |url-status=live }}</ref> seat upgrades on flights,<ref>{{cite web|author=Jukka Salonen |url=http://www.hightechfinland.com/direct.aspx?area=htf&prm1=794&prm2=article |title=High Technology Finland &#124; Innovation in Finland |website=Hightechfinland.com |access-date=2017-01-07 |archive-url=https://web.archive.org/web/20140317213342/http://www.hightechfinland.com/direct.aspx?area=htf&prm1=794&prm2=article|archive-date=2014-03-17}}</ref> and membership or subscription renewals are commonplace.

In comparison to premium short code programs which often exist in isolation, [[relationship marketing]] and payment systems are often integrated with [[Customer relationship management|CRM]], [[Enterprise resource planning|ERP]], [[marketing automation|marketing-automation platforms]], and [[reservation systems]]. Many of the problems inherent with premium SMS have been addressed by solution providers. Remembering keywords is not required since [[session management|sessions]] are initiated by the enterprise to establish a transaction specific context. Reply messages are linked to the proper session and authenticated either synchronously through a very short expiry period (every reply is assumed to be to the last message sent) or by tracking session according to varying reply addresses and/or reply options.<ref>{{Cite web|url=http://www.google.sr/patents/US20150356630|title=Method and system for managing spam|last=Hussain|first=Atif|access-date=10 November 2017|archive-date=11 November 2017|archive-url=https://web.archive.org/web/20171111044252/http://www.google.sr/patents/US20150356630|url-status=live}}</ref>