Editing Mobile payment

{{short description|Payment services via a mobile device}}
{{hatnote|"Mobile money" redirects here. For the payment platform, see [[Mobile Money]]}}
{{use dmy dates|date=November 2022}}
{{Ecommerce}}
{{Banking|transfer}}

'''Mobile payment''', also referred to as '''mobile money''', '''mobile money transfer''' and '''mobile wallet''', is any of various [[payment]] processing services operated under [[financial regulation]]s and performed from or via a mobile device. Instead of paying with [[cash]], [[cheque]], or [[credit card]], a consumer can use a '''payment app''' on a mobile device to pay for a wide range of services and digital or hard goods. Although the concept of using non-coin-based currency systems has a long history,<ref>{{cite web |date=20 August 2012 |title=Pre-1900 Utopian Visions of the 'Cashless Society' |url=https://mpra.ub.uni-muenchen.de/40780/ |publisher=MPRA |access-date=22 September 2012 |archive-date=8 June 2019|archive-url=https://web.archive.org/web/20190608215833/https://mpra.ub.uni-muenchen.de/40780/|url-status=live}}</ref> it is only in the 21st century that the technology to support such systems has become widely available.

Mobile payments began adoption in [[Japan]] in the 2000s and later all over the world in different ways.<ref>{{cite web |title=GSMA Mobile Money Deployment Tracker |url=http://www.wirelessintelligence.com/mobile-money |publisher=Wireless Intelligence |url-status=dead|archive-url=https://web.archive.org/web/20111123155552/http://www.wirelessintelligence.com/mobile-money|archive-date=23 November 2011|access-date=23 June 2012}}</ref><ref>{{cite web |date=12 November 2010 |title=Japanese Drive Mobile Payment Market |url=http://www.ericsson.com/ericsson/corpinfo/publications/telecomreport/archive/2006/january/valista.shtml |url-status=dead|archive-url=https://web.archive.org/web/20060315011029/http://www.ericsson.com/ericsson/corpinfo/publications/telecomreport/archive/2006/january/valista.shtml|archive-date=15 March 2006 |publisher=Ericsson|access-date=19 September 2011}}</ref> The first [[patent]] exclusively defined "Mobile Payment System" was filed in 2000.<ref>{{Cite web |title=Mobile payment system |date=11 December 2000 |url=https://patents.google.com/patent/US20020073027A1/en |access-date=8 June 2018|archive-date=23 March 2019|archive-url=https://web.archive.org/web/20190323232840/https://patents.google.com/patent/US20020073027A1/en|url-status=live}}</ref>

In a [[developing country]], mobile payment solutions can be deployed as a means of extending services of [[financial institution]]s to the community known as the "[[unbanked]]" or "[[underbanked]]", which is estimated to be as much as 50 percent of the world's adult population, according to the Financial Access 2009 Report "Half the World is Unbanked".<ref>{{cite web |title=Half the World is Unbanked |url=http://www.financialaccess.org/sites/default/files/publications/Half-the-World-is-Unbanked.pdf |year=2009 |publisher=Financial Access Organization |url-status=dead|archive-url=https://web.archive.org/web/20141222020037/http://www.financialaccess.org/sites/default/files/publications/Half-the-World-is-Unbanked.pdf|archive-date=22 December 2014}}</ref> Such payment networks are often used for [[micropayment]]s.<ref>[http://www.infodev.org/files/3014_file_infoDev.Report_m_Commerce_January.2006.pdf ''Micro-payment systems and their application to mobile networks'', InfoDev report]</ref> The use of mobile payments in developing countries has attracted public and private funding by organizations such as the [[Bill & Melinda Gates Foundation]], the [[United States Agency for International Development]], and [[Mercy Corps]].{{citation needed|date=March 2024}}

Mobile payments are becoming a key instrument for [[payment service provider]]s (PSPs) and other market participants, in order to achieve new growth opportunities, according to the [[European Payments Council]] (EPC).<ref>{{cite web |date=2016 |title=White Paper on Mobile Payments |url=http://www.europeanpaymentscouncil.eu/?LinkServID=0D2E976F-5056-B741-DBA164AA7689AAE9 |publisher=European Payments Council |access-date=2 February 2017|archive-date=5 August 2019|archive-url=https://web.archive.org/web/20190805130536/https://www.europeanpaymentscouncil.eu/?LinkServID=0D2E976F-5056-B741-DBA164AA7689AAE9|url-status=live}}</ref> The EPC states that "new technology solutions provide a direct improvement to the operations efficiency, ultimately resulting in cost savings and in an increase in business volume".

== Models ==
There are four primary models for mobile payments:<ref>{{cite journal|first1=Laetitia|last1=Chaix|first2=Dominique|last2=Torre|title=Four models for mobile payments|url=https://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.460.10|url-status=dead|archive-url=https://web.archive.org/web/20220319081623/https://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.460.10|archive-date=19 March 2022|publisher=[[Pennsylvania State University]]|citeseerx=10.1.1.460.10|access-date=11 January 2011}}</ref>

* Bank-centric model
* Operator-centric model
* Collaborative model
* Independent service provider (ISP) model

In models connected to a bank or operator, a [[bank]]/operator is the central node of the model, manages the transactions and distributes the property rights. In collaborative model, the financial intermediaries and telephonic operators collaborate in the managing tasks and share cooperatively the proprietary rights. In ISP model, a third party of confidence operates as an independent and "neutral" intermediary between financial
agents and operators. [[Apple Pay]] or [[PayPal]] are the providers the most frequently associated to this model.{{citation needed|date=March 2024}}

There can also be combinations of two models.

* Operator/bank co-operation, emerging in Haiti.<ref>{{Cite web|url=https://www.gsma.com/mobilefordevelopment/wp-content/uploads/2012/05/Haiti-Mobile-Money.pdf|title=HAITI MOBILE MONEY|date=2012|website=GSMA|access-date=15 June 2023|archive-date=2 March 2023|archive-url=https://web.archive.org/web/20230302171831/https://www.gsma.com/mobilefordevelopment/wp-content/uploads/2012/05/Haiti-Mobile-Money.pdf|url-status=live}}</ref>

[[Financial institution]]s and [[credit card]] companies<ref>{{cite web|url=http://papers.duckdns.org/files/2004_COMSOC-SURVEYS.pdf |title=Stamatis Karnouskos, IEEE Communications Surveys & Tutorials, Vol. 6, No. 4, pp. 44–66, 2004. }}</ref> as well as Internet companies such as [[Google]]<ref>{{cite web|url=http://www.thinslices.com/blog/mobile-payment-apps-a-fresh-perspective-on-online-finances/|archive-url=https://web.archive.org/web/20140228012331/http://www.thinslices.com/blog/mobile-payment-apps-a-fresh-perspective-on-online-finances/|url-status=dead|archive-date=2014-02-28|title=Mobile payment apps – a fresh perspective on online finances|date=February 2014}}</ref> and a number of [[mobile communication]] companies, such as [[mobile network operators]] and major [[Telecommunications network|telecommunications infrastructure]] such as w-HA from Orange and smartphone [[Multinational corporation|multinationals]] such as [[Ericsson]]<ref>{{cite web |url=https://www.reuters.com/article/ericsson-idUKLDE71128320110202 |title=Ericsson launches mobile phone banking services |publisher=Reuters.com |access-date=2012-12-16 |archive-date=18 June 2022 |archive-url=https://web.archive.org/web/20220618205419/https://www.reuters.com/article/ericsson-idUKLDE71128320110202 |url-status=live }}</ref><ref>{{cite web |url=http://www.ericsson.com/news/110608_money_244188810_c |title=Ericsson Money Services brings connected mobile money to Europe |publisher=Ericsson.com |access-date=2012-12-16 |archive-date=15 March 2017 |archive-url=https://web.archive.org/web/20170315175549/https://www.ericsson.com/news/110608_money_244188810_c |url-status=live }}</ref> and [[BlackBerry Limited|BlackBerry]] have implemented mobile payment solutions.

== Mobile wallets ==
{{Main|Online wallet}}
A mobile wallet is an [[Mobile app|app]] that contains the user's debit and credit card information, letting the user pay for goods and services digitally with a mobile device.<ref>{{Cite web|url=https://www.investopedia.com/terms/m/mobile-wallet.asp|title=Mobile Wallet|website=[[Investopedia]]|language=en|access-date=6 March 2019|archive-date=6 March 2019|archive-url=https://web.archive.org/web/20190306111533/https://www.investopedia.com/terms/m/mobile-wallet.asp|url-status=live}}</ref> Notable mobile wallets include:
{{div col|colwidth=15em}}
*[[Alipay]]
*[[Amazon Pay]]
*[[Apple Wallet]]
*[[BHIM]]
*[[Cloud QuickPass]]
*[[GCash]]
*[[Google Wallet]]
*[[Gyft (app)|Gyft]]
*[[LG Pay]]
*[[Line Pay]]
*[[Mi-Pay|Mi Pay]]
*[[Mir Pay]]
*[[Paytm]]
*[[PhonePe]]
*[[Samsung Wallet]]
*[[Touch 'n Go eWallet]]
*[[Venmo]]
*[[WeChat Pay]]
{{div col end}}

== Credit card ==
A simple mobile web payment system can also include a [[credit card]] payment flow allowing a consumer to enter their card details to make purchases. This process is familiar but any entry of details on a mobile phone is known to reduce the success rate (conversion) of payments.

In addition, if the payment vendor can automatically and securely identify customers then card details can be recalled for future purchases turning credit card payments into simple single click-to-buy giving higher conversion rates for additional purchases.

However, there are concerns regarding information and payment privacy when cards are used during online transactions. If a website is not secure, for example, then personal credit card info can leak online.

== Carrier billing ==
The consumer uses the mobile billing option during checkout at an e-commerce site—such as an online gaming site—to make a payment. After [[two-factor authentication]] involving the consumer's mobile number and a PIN or [[one-time password]] (often abbreviated as ''OTP''), the consumer's mobile account is charged for the purchase. It is a true alternative payment method that does not require the use of credit/debit cards or pre-registration at an [[online payment]] solution such as [[PayPal]], thus bypassing banks and credit card companies altogether. This type of mobile payment method, which is prevalent in Asia,{{Citation needed|date=July 2019}} provides the following benefits: 
*''Security'' – two-factor authentication and a risk management engine prevents fraud.
*''Convenience'' – no pre-registration and no new mobile software is required.
*''Easy'' – It is just another option during the checkout process.
*''Fast'' – most transactions are completed in less than 10 seconds.
*''Proven'' – 70% of all digital content purchased online in some parts of Asia uses the direct mobile billing method<ref>{{cite web |last=Feig |first=Nancy |url=http://www.banktech.com/channels/mobile-payments-look-to-korea/d/d-id/1291396 |title=Mobile Payments: Look to Korea |publisher=Banktech.com |date=2007-06-25 |access-date=2011-09-19 |archive-url=https://web.archive.org/web/20171117022158/http://www.banktech.com/channels/mobile-payments-look-to-korea/d/d-id/1291396 |archive-date=2017-11-17 |url-status=dead }}</ref>

=== 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>

=== Direct operator billing ===
Direct operator billing, also known as mobile content billing, [[WAP billing]], and carrier billing, 
requires integration with the mobile network operator. It provides certain benefits:
*Mobile network operators already have a billing relationship with consumers, the payment will be added to their bill.
*Provides instantaneous payment
*Protects payment details and consumer identity
*Better conversion rates
*Reduced customer support costs'' for merchants
*Alternative monetization option in countries where credit card usage is low

One of the drawbacks is that the payout rate will often be much lower than with other mobile payments options. Examples from a popular provider:
* 92 percent with PayPal
* 85 to 86 percent with credit card
* 45 to 91.7 percent with operator billing in the US, UK and some smaller European countries, but usually around 60%<ref>{{cite web |url=http://bango.com/mobilebilling/payment_network.aspx |title=Payout rates from one of the major billing aggregator, Bango |publisher=Bango.com |access-date=2011-09-19 |url-status=dead |archive-url=https://web.archive.org/web/20100917211707/http://bango.com/mobilebilling/payment_network.aspx |archive-date=2010-09-17 }}</ref>

More recently, direct operator billing is being deployed in an in-app environment, where mobile application developers are taking advantage of the one-click payment option that direct operator billing provides for monetising mobile applications. This is a logical alternative to credit card and Premium SMS billing.

In 2012 Ericsson and [[Western Union]] partnered to expand the direct operator billing market, making it possible for mobile operators to include Western Union mobile money transfers as part of their mobile financial service offerings.<ref>{{cite web |url=http://www.mobilepaymentstoday.com/article/191065/Ericsson-Western-Union-partner-to-push-mobile-financial-services |title=Ericsson, Western Union partner to push mobile financial services |work=Mobile Payments Today |date=February 28, 2012 |access-date=2013-01-25 |archive-url=https://archive.today/20130216113727/http://www.mobilepaymentstoday.com/article/191065/Ericsson-Western-Union-partner-to-push-mobile-financial-services |archive-date=February 16, 2013 |url-status=dead }}</ref> Given the international reach of both companies, the partnership is meant to accelerate the interconnection between the m-commerce market and the existing financial world.<ref>{{cite web |url=http://www.lightreading.com/document.asp?doc_id=218000 |title=Ericsson Teams with Western Union |work=Light Reading |date=February 27, 2012 |access-date=2013-01-25}}</ref>

== Contactless near-field communication ==
{{Update|section|reason=missing contemporary adoption status |date=May 2024}}

[[Near-field communication]] (NFC) is used mostly in paying for purchases made in physical stores or transportation services. A consumer using a special mobile phone equipped with a smartcard waves their phone near a reader module. Most transactions do not require authentication, but some require authentication using PIN, before transaction is completed. The payment could be deducted from a pre-paid account or charged to a mobile or bank account directly.

Mobile payment method via NFC faces significant challenges for wide and fast adoption, due to lack of supporting infrastructure, complex ecosystem of stakeholders, and standards.<ref>{{cite web |url=http://www.rfidjournal.com/article/view/6930 |title=VDC: NFC Adoption Will Be Slower Than Expected |publisher=RFID Journal |date=2008-03-03 |access-date=2011-09-19 |archive-date=15 October 2012 |archive-url=https://web.archive.org/web/20121015000307/http://www.rfidjournal.com/article/view/6930 |url-status=dead }}</ref> Some phone manufacturers and banks, however, are enthusiastic. Ericsson and Aconite are examples of businesses that make it possible for banks to create consumer mobile payment applications that take advantage of NFC technology.<ref>{{cite web |url=http://www.mobilepaymentstoday.com/article/195615/Ericsson-and-Aconite-collaborate-on-mobile-contactless-payments |title=Ericsson and Aconite collaborate on mobile contactless payments |work=Mobile Payments Today |url-status=dead |access-date=2013-01-25 |archive-url=https://archive.today/20130216112508/http://www.mobilepaymentstoday.com/article/195615/Ericsson-and-Aconite-collaborate-on-mobile-contactless-payments |archive-date=2013-02-16 }}</ref>

NFC vendors in Japan are closely related to mass-transit networks, like the [[Suica|Mobile Suica]] used since 28 January 2006 on the [[East Japan Railway Company|JR East]] rail network. The mobile wallet [[Osaifu-Keitai]] system, used since 2004 for Mobile Suica and many others including [[Edy]] and [[nanaco]], has become the ''de facto'' standard method for mobile payments in [[Japan]]. Its core technology, Mobile FeliCa IC, is partially owned by [[Sony]], [[NTT DoCoMo]] and JR East. Mobile FeliCa utilize Sony's [[FeliCa]] technology, which itself is the de facto standard for [[contactless smart card]]s in the country. NFC was used in transports for the first time in the world by [[China Unicom]] and Yucheng Transportation Card in the tramways and bus of [[Chongqing]] on 19 January 2009,<ref>{{cite web |publisher=nfcw.com |title=Mobile and transit operators launch NFC payments system in Chongqing |url=https://www.nfcw.com/2009/01/19/3577/mobile-and-transit-operators-launch-nfc-payments-system-in-chongqing/ |date=19 January 2019 |access-date=2 August 2020 |archive-date=3 March 2021 |archive-url=https://web.archive.org/web/20210303174513/https://www.nfcw.com/2009/01/19/3577/mobile-and-transit-operators-launch-nfc-payments-system-in-chongqing/ |url-status=live }}</ref> in those of [[Nice]] on 21 May 2010,<ref name="Nice2010">{{cite web |publisher=nfcw.com |title=NFC city pilot to go live in Nice on 21 May under 'Cityzi' banner |url=https://www.nfcw.com/2010/05/14/33638/nfc-city-pilot-to-go-live-in-nice-on-21-may-under-cityzi-banner/ |date=14 May 2010 |access-date=2 August 2020 |archive-date=19 July 2020 |archive-url=https://web.archive.org/web/20200719165044/https://www.nfcw.com/2010/05/14/33638/nfc-city-pilot-to-go-live-in-nice-on-21-may-under-cityzi-banner/ |url-status=live }}</ref> then in [[Seoul]]<ref>{{cite web |publisher=nfcw.com |title=KDDI, Softbank Mobile and SK Telecom to introduce NFC standard services in Japan and Korea |url=https://www.nfcw.com/2010/07/15/34145/kddi-softbank-mobile-and-sk-telecom-to-introduce-nfc-standard-services-in-japan-and-korea/ |date=15 July 2010 |access-date=2 August 2020 |archive-date=25 October 2020 |archive-url=https://web.archive.org/web/20201025143231/https://www.nfcw.com/2010/07/15/34145/kddi-softbank-mobile-and-sk-telecom-to-introduce-nfc-standard-services-in-japan-and-korea/ |url-status=live }}</ref> after its introduction in Korea by the discount retailer [[Homeplus]] in March 2010<ref>{{cite web |publisher=nfcw.com |title=SK Telecom and Hana launch SIM-based mobile contactless payments and promotions service |url=https://www.nfcw.com/2010/03/25/33318/sk-telecom-and-hana-launch-sim-based-mobile-contactless-payments-and-promotions-service/ |date=25 March 2010 |access-date=2 August 2020 |archive-date=1 October 2020 |archive-url=https://web.archive.org/web/20201001201516/https://www.nfcw.com/2010/03/25/33318/sk-telecom-and-hana-launch-sim-based-mobile-contactless-payments-and-promotions-service/ |url-status=live }}</ref> and it was tested then adopted or added to the existing systems in [[Tokyo]] from May 2010 to end of 2012.<ref>{{cite web |publisher=nfcw.com |title=Gemalto provides KDDI with end-to-end NFC security solution |url=https://www.nfcw.com/2010/06/14/33923/gemalto-provides-kddi-with-end-to-end-nfc-security-solution/ |date=14 June 2010 |access-date=2 August 2020 |archive-date=23 January 2021 |archive-url=https://web.archive.org/web/20210123161326/https://www.nfcw.com/2010/06/14/33923/gemalto-provides-kddi-with-end-to-end-nfc-security-solution/ |url-status=live }}</ref><ref>{{cite web |publisher=nfcw.com |title=NTT Docomo partners with Korea's KT to switch to NFC at end of 2012 |url=https://www.nfcw.com/2011/02/09/35835/ntt-docomo-partners-with-koreas-kt-to-switch-to-nfc-at-end-of-2012/ |date=9 February 2011 |access-date=2 August 2020 |archive-date=5 August 2020 |archive-url=https://web.archive.org/web/20200805231302/https://www.nfcw.com/2011/02/09/35835/ntt-docomo-partners-with-koreas-kt-to-switch-to-nfc-at-end-of-2012/ |url-status=live }}</ref> After an experimentation in the metro of [[Rennes]] in 2007, the NFC standard was implemented for the first time in a metro network, by China Unicom in [[Beijing]] on 31 December 2010.<ref>{{cite web |publisher=nfcw.com |title=China Unicom launches commercial NFC service in Beijing |url=https://www.nfcw.com/2011/01/05/35551/china-unicom-launches-commercial-nfc-service-in-beijing/ |date=5 January 2011 |access-date=2 August 2020 |archive-date=9 August 2020 |archive-url=https://web.archive.org/web/20200809202513/https://www.nfcw.com/2011/01/05/35551/china-unicom-launches-commercial-nfc-service-in-beijing/ |url-status=live }}</ref>

Other NFC vendors mostly in Europe use [[contactless payment]] over mobile phones to pay for on- and off-street parking in specially demarcated areas. Parking wardens may enforce the parking by license plate, transponder tags, or [[barcode]] stickers.

In Europe, the first experimentations of mobile payment took place in Germany during 6 months, from May 2005, with a deferred payment at the end of each month on the tramways and bus of [[Hanau]] with the [[Nokia]] 3220 using the NFC standard of [[Philips]] and [[Sony]].<ref>{{cite web |language=fr-FR |publisher=01net.com |title=A Hanau, le portable-ticket de bus joue au juste prix |url=https://www.01net.com/actualites/a-hanau-le-portable-ticket-de-bus-joue-au-juste-prix-276000.html |date=2 May 2005 |access-date=28 June 2020 |archive-date=29 June 2020 |archive-url=https://web.archive.org/web/20200629113035/https://www.01net.com/actualites/a-hanau-le-portable-ticket-de-bus-joue-au-juste-prix-276000.html |url-status=live }}</ref>

In France the immediate contactless payment was experimented during 6 months, from October 2005, in some Cofinoga shops ([[Galeries Lafayette]], [[Monoprix]]) and [[Vinci SA|Vinci]] parkings of [[Caen]] with a [[Samsung]] NFC [[smartphone]] provided by [[Orange S.A.|Orange]] in collaboration with [[Philips Semiconductors]] (for the first time, thanks to "Fly Tag", the system allowed to receive as well audiovisual informations, like bus timetables or cinema trailers from the concerned services).<ref name="Caen">{{cite web |language=fr-FR |publisher=01net.com |title=Caen, la ville où l'on paye et s'informe en sortant son portable |url=https://www.01net.com/actualites/caen-la-ville-ou-lon-paye-et-sinforme-en-sortant-son-portable-292660.html |date=20 October 2005 |access-date=28 June 2020 |archive-date=27 June 2020 |archive-url=https://web.archive.org/web/20200627220830/https://www.01net.com/actualites/caen-la-ville-ou-lon-paye-et-sinforme-en-sortant-son-portable-292660.html |url-status=live }}</ref><ref name="Nice"/> From 19 November 2007 to 2009, this experimentation was extended in Caen to more services and three additional [[mobile phone operator]]s ([[Bouygues Telecom]], [[SFR]] and [[NRJ Mobile]]) and in [[Strasbourg]]<ref name="Nice">{{cite web |language=fr-FR |publisher=01net.com |title=Les transports en commun niçois se mettent au paiement sans contact |url=https://www.01net.com/actualites/les-transports-en-commun-nicois-se-mettent-au-paiement-sans-contact-502462.html |date=24 May 2009 |access-date=27 June 2020 |archive-date=29 June 2020 |archive-url=https://web.archive.org/web/20200629125050/https://www.01net.com/actualites/les-transports-en-commun-nicois-se-mettent-au-paiement-sans-contact-502462.html |url-status=live }}</ref> and on 5 November 2007, Orange and the transport societies [[SNCF]] and [[Keolis]] associated themselves for a 2 months experimentation on smartphones in the metro, bus and TER trains in [[Rennes]].<ref>{{cite web |language=fr-FR |publisher=01net.com |title=Les transports rennais payés par mobile 'sans contact' |url=https://www.01net.com/actualites/les-transports-rennais-payes-par-mobile-sans-contact-363993.html |date=7 November 2007 |access-date=28 June 2020 |archive-date=29 June 2020 |archive-url=https://web.archive.org/web/20200629075443/https://www.01net.com/actualites/les-transports-rennais-payes-par-mobile-sans-contact-363993.html |url-status=live }}</ref><ref name="Nice"/> After a test conducted from October 2005 to November 2006 with 27 users,<ref name="tests">{{cite web |language=fr-FR |publisher=banquedesterritoires.fr |title=Télécoms - La révolution mobile sans contact arrive en 2008 |url=https://www.banquedesterritoires.fr/la-revolution-mobile-sans-contact-arrive-en-2008 |date=21 December 2007 |access-date=27 June 2020 |archive-date=30 June 2020 |archive-url=https://web.archive.org/web/20200630023310/https://www.banquedesterritoires.fr/la-revolution-mobile-sans-contact-arrive-en-2008 |url-status=live }}</ref> on 21 May 2010, the transport authority of [[Nice]] ''Régie Lignes d'Azur'' was the first public transport provider in Europe to add definitely to its own offer a contactless payment on its tramways and bus network either with a [[Near-field communication|NFC]] [[bank card]] or [[smartphone]] application notably on [[Samsung]] Player One (with the same mobile phone operators than in Caen and Strasbourg), as well as the validation aboard with them of the transport titles and the loading of these titles onto the smartphone, in addition to the season tickets contactless card.<ref>{{cite web |language=fr-FR |publisher=01net.com |title=Nice, première ville à passer au paiement sans contact |url=https://www.01net.com/actualites/nice-premiere-ville-a-passer-au-paiement-sans-contact-516923.html |date=21 May 2010 |access-date=26 June 2020 |archive-date=28 July 2020 |archive-url=https://web.archive.org/web/20200728200804/https://www.01net.com/actualites/nice-premiere-ville-a-passer-au-paiement-sans-contact-516923.html |url-status=live }}</ref><ref name="Nice2010"/> This service was as well experimented then respectively implemented for NFC smartphones on 18 and 25 June 2013 in the tramways and bus of [[Caen]]<ref>{{cite web |language=fr-FR |publisher=01net.com |title=A Caen, avec un mobile sans contact, on valide dans les bus et trams |url=https://www.01net.com/actualites/a-caen-avec-un-mobile-sans-contact-on-valide-dans-les-bus-et-trams-597907.html |date=18 June 2013 |access-date=27 June 2020 |archive-date=29 June 2020 |archive-url=https://web.archive.org/web/20200629012154/https://www.01net.com/actualites/a-caen-avec-un-mobile-sans-contact-on-valide-dans-les-bus-et-trams-597907.html |url-status=live }}</ref><ref>{{cite web |publisher=nfcw.com |title=NFC transit ticketing service goes live in French city of Caen |url=https://www.nfcw.com/2013/06/18/324659/nfc-transit-ticketing-service-goes-live-in-french-city-of-caen/ |date=18 June 2013 |access-date=3 August 2020 |archive-date=14 August 2020 |archive-url=https://web.archive.org/web/20200814101922/https://www.nfcw.com/2013/06/18/324659/nfc-transit-ticketing-service-goes-live-in-french-city-of-caen/ |url-status=live }}</ref> and Strasbourg.<ref>{{cite web |language=fr-FR |publisher=01net.com |title=A Strasbourg, on voyage en bus et en tram grâce à un mobile sans contact |url=https://www.01net.com/actualites/a-strasbourg-on-voyage-en-bus-et-en-tram-grace-a-un-mobile-sans-contact-598603.html |date=27 June 2013 |access-date=27 June 2020 |archive-date=26 June 2020 |archive-url=https://web.archive.org/web/20200626032936/https://www.01net.com/actualites/a-strasbourg-on-voyage-en-bus-et-en-tram-grace-a-un-mobile-sans-contact-598603.html |url-status=live }}</ref><ref>{{cite web |publisher=nfcw.com |title=Strasbourg NFC ticketing moves to commercial launch |url=https://www.nfcw.com/2013/07/05/324901/strasbourg-nfc-ticketing-moves-to-commercial-launch/ |date=5 July 2013 |access-date=3 August 2020 |archive-date=24 February 2021 |archive-url=https://web.archive.org/web/20210224143539/https://www.nfcw.com/2013/07/05/324901/strasbourg-nfc-ticketing-moves-to-commercial-launch/ |url-status=live }}</ref> In [[Paris]] transport network, after a 4 months testing from November 2006 with Bouygues Telecom and 43 persons<ref name="tests"/> and finally with {{formatnum:8000}} users from July 2018, the contactless mobile payment and direct validation on the turnstile readers with a smartphone was adopted on 25 September 2019<ref>{{cite web |language=fr-FR |publisher=Twitter |title=Ça y est, certains smartphones Samsung peuvent servir de titres de transport en Île-de-France ! |url=https://twitter.com/Frandroid/status/1115265584210567170 |date=8 April 2019 |access-date=26 June 2020 |archive-date=6 September 2020 |archive-url=https://web.archive.org/web/20200906193710/https://twitter.com/Frandroid/status/1115265584210567170 |url-status=live }}</ref><ref>Archived at [https://ghostarchive.org/varchive/youtube/20211211/O4q8aCps0kQ Ghostarchive]{{cbignore}} and the [https://web.archive.org/web/20200731164419/https://www.youtube.com/watch?v=O4q8aCps0kQ Wayback Machine]{{cbignore}}: {{cite web|language=fr-FR |publisher=YouTube |title=Le dernier (ticket de) métro, at 2:10 and 2:38 |url=https://www.youtube.com/watch?v=O4q8aCps0kQ |date=24 September 2018 |access-date=21 June 2020}}{{cbignore}}</ref><ref>{{cite web |language=fr-FR |publisher=RATP |title=Et si vous achetiez vos titres de transport depuis votre appli RATP ? |url=https://www.ratp.fr/en/achetez-vos-titres-de-transports-par-telephone |date=12 November 2019 |access-date=28 June 2020 |archive-date=28 June 2020 |archive-url=https://web.archive.org/web/20200628172545/https://www.ratp.fr/en/achetez-vos-titres-de-transports-par-telephone |url-status=live }}</ref> in collaboration with the societies Orange, Samsung, Wizway Solutions, Worldline and Conduent.

Other vendors use a combination of both NFC and a barcode on the mobile device for mobile payment, because many mobile devices in the market do not yet support NFC.<ref>{{cite web |url=http://www.nearfieldcommunicationsworld.com/2010/10/15/34696/israel-bank-launch-nfc-mobile-barcode-payments/ |title=Digimo Group NFC Dual two phase commit |publisher=Nearfieldcommunicationsworld.com |date=2010-10-15 |access-date=2011-09-19 |archive-date=9 August 2011 |archive-url=https://web.archive.org/web/20110809144531/http://www.nearfieldcommunicationsworld.com/2010/10/15/34696/israel-bank-launch-nfc-mobile-barcode-payments/ |url-status=live }}</ref>

== Other mobile payment methods ==
=== QR code payments ===
{{Main|QR code payment}}
[[QR code]] is a square two-dimensional bar code. QR codes have been in use since 1994.<ref>{{cite web |url=http://www.qrcode.com/en/history/ |title=History of QR Code |publisher=qrcode.com |access-date=2015-10-16 |archive-date=15 October 2015 |archive-url=https://web.archive.org/web/20151015022901/http://www.qrcode.com/en/history/ |url-status=live }}</ref> Originally used to track products in warehouses, QR codes were designed to replace the older one-dimensional bar codes. The older bar codes just represent numbers, which can be looked up in a database and translated into something meaningful. QR, or "quick response", bar codes were designed to contain the meaningful information directly in the bar code.

QR codes can be of two main categories:<ref>{{cite web|url=http://www.pbc.gov.cn/tiaofasi/144941/3581332/3589728/2018073015043218970.pdf|title=中国人民银行关于印发《条码支付业务规范（试行）》的通知（银发〔2017〕296号）|publisher=[[People's Bank of China]]|language=zh|date=2017-12-29|accessdate=2025-04-11}}</ref><ref>{{Cite web|url=http://www.infrasofttech.com/payment-solutions/QRys|title=QR Code Mobile Payment System {{!}}Qrys {{!}} QR Code Payment – InfrasoftTech|website=www.infrasofttech.com|access-date=2017-03-22|archive-url=https://web.archive.org/web/20180809022017/http://www.infrasofttech.com/payment-solutions/QRys|archive-date=2018-08-09|url-status=dead}}</ref>{{citation needed|date=July 2015|reason=QR code payments: What are they, their types, how they work, benefits, and how to accept them}}
* The QR code is presented on the mobile device of the person paying and scanned by a POS or another mobile device of the payee
* The QR code is presented by the payee, in a static or one time generated fashion and it is scanned by the person executing the payment

Mobile self-checkout allows for one to scan a QR code or barcode of a product inside a brick-and-mortar establishment in order to purchase the product on the spot. This theoretically eliminates or reduces the incidence of long checkout lines, even at self-checkout kiosks.

=== Cloud-based mobile payments ===
Google, PayPal, GlobalPay and [[GoPago]] use a [[cloud computing|cloud-based]] approach to in-store mobile payment. The cloud based approach places the mobile payment provider in the middle of the transaction, which involves two separate steps. First, a cloud-linked payment method is selected and payment is authorized via NFC or an alternative method.  During this step, the payment provider automatically covers the cost of the purchase with issuer linked funds.  Second, in a separate transaction, the payment provider charges the purchaser's selected, cloud-linked account in a card-not-present environment to recoup its losses on the first transaction.<ref>{{cite web|url=https://www.engadget.com/2012/08/01/google-wallet-moves-to-the-cloud-opens-up-to-all-credit-and-deb/|title=Google Wallet moves to the cloud, opens up to all credit and debit cards|author=Terrence O'Brien|publisher=[[Engadget]]|date=August 1, 2012|access-date=2012-11-05|archive-date=15 March 2017|archive-url=https://web.archive.org/web/20170315091051/https://www.engadget.com/2012/08/01/google-wallet-moves-to-the-cloud-opens-up-to-all-credit-and-deb/|url-status=live}}</ref><ref>{{cite web|url=http://proteanpayment.org/?p=451|title=Google has a Card up its Sleeve|date=November 5, 2012|access-date=2012-11-05|archive-url=https://web.archive.org/web/20121115103255/http://proteanpayment.org/?p=451|archive-date=November 15, 2012|url-status=dead}}</ref><ref>{{cite web|last=Kim|first=Ryan|title=GoPago's line-skipping mobile payment system launches in San Francisco|url=http://gigaom.com/2012/04/03/gopagos-line-skipping-mobile-payment-system-launches-in-san-francisco/|publisher=Gigaom|access-date=2012-11-09|archive-date=23 April 2021|archive-url=https://web.archive.org/web/20210423111153/https://gigaom.com/2012/04/03/gopagos-line-skipping-mobile-payment-system-launches-in-san-francisco/|url-status=dead}}</ref>

=== Audio signal-based payments ===
The audio channel of the mobile phone is another wireless interface that is used to make payments. Several companies have created technology to use the acoustic features of cell phones to support mobile payments and other applications that are not chip-based. The technologies like [[near sound data transfer]] (NSDT), data over voice and [[Near-field communication|NFC 2.0]] produce audio signatures that the microphone of the cell phone can pick up to enable electronic transactions.<ref>{{cite web|url=http://nilsonreport.com/issues/2011/985.htm|title=Audio Signal Mobile Payments and Loyalty|publisher=nilsonreport.com|date=December 2011|access-date=2012-07-09|archive-url=https://web.archive.org/web/20120325225522/http://nilsonreport.com/issues/2011/985.htm|archive-date=2012-03-25|url-status=dead}}</ref>

=== Direct carrier and bank co-operation ===
In the T-Cash<ref>[http://www.voilafoundation.com/t-cash.htm T-Cash] from VoilàFoundation.com {{webarchive |url=https://web.archive.org/web/20110226032146/http://www.voilafoundation.com/t-cash.htm |date=February 26, 2011 }}</ref> model, the mobile phone and the phone carrier is the front-end interface to the consumers. The consumer can purchase goods, transfer money to a peer, cash out, and cash in.<ref>{{cite web |url=http://www.mercycorps.org/koko%C3%A9visossouvi/blog/22345 |title=Testing out mobile money in Haiti |publisher=MercyCorps |date=2010-11-30 |access-date=2011-09-19 |archive-url=https://web.archive.org/web/20101208213630/http://www.mercycorps.org/koko%C3%A9visossouvi/blog/22345 |archive-date=2010-12-08 |url-status=dead }}</ref> A 'mini wallet' account can be opened as simply as entering *700# on the mobile phone,<ref>{{cite web |url=http://indiamicrofinance.com/wp-content/uploads/2012/10/Commercial-Launch-Of-Haitis-First-Mobile-Money-Service.pdf |title=Commercial Launch Of Haiti's First Mobile Money Service |website=indiamicrofinance.com |access-date=2017-01-12 |archive-date=18 January 2017 |archive-url=https://web.archive.org/web/20170118043744/http://indiamicrofinance.com/wp-content/uploads/2012/10/Commercial-Launch-Of-Haitis-First-Mobile-Money-Service.pdf |url-status=live }}</ref> presumably by depositing money at a participating local merchant and the mobile phone number. Presumably, other transactions are similarly accomplished by entering special codes and the phone number of the other party on the consumer's mobile phone.

In Switzerland, [[TWINT]] offers the same function.<ref>{{Cite web |url=https://www.twint.ch/en/private-customers/functions/ |title=Website of Twint |access-date=17 April 2023 |archive-date=17 April 2023 |archive-url=https://web.archive.org/web/20230417134019/https://www.twint.ch/en/private-customers/functions/ |url-status=live }}</ref>

=== Magnetic secure transmission ===
{{Main|Magnetic secure transmission}}
In [[magnetic secure transmission]] (MST), a smartphone emits a magnetic signal that resembles the one created by swiping a magnetic credit card through a traditional [[credit card terminal]]. No changes to the terminal or a new terminal are required.

=== Bank transfer systems ===
[[Swish (payment)|Swish]] is the name of a system established in [[Sweden]].<ref>{{cite web |url=https://www.getswish.se/ |title=Swish |website=Getswish.se |access-date=2017-01-07 |archive-date=28 August 2019 |archive-url=https://web.archive.org/web/20190828222933/https://www.getswish.se/ |url-status=dead }}</ref> It was established through a collaboration from major banks in 2012 and has been very successful, with 66 percent of the population as users in 2017.<ref name=Sweden2017>{{Cite web |url=http://www.soi2017.se/the-swedes-and-the-internet-2017-summary/ |title=The Swedes and the Internet 2017 summary (See the Swedish version for correct statistics) |access-date=2 June 2018 |archive-date=28 June 2018 |archive-url=https://web.archive.org/web/20180628170303/http://www.soi2017.se/the-swedes-and-the-internet-2017-summary/ |url-status=live }}</ref>  It is mainly used for [[peer-to-peer]] payments between private people, but is also used by churches, street vendors, and small businesses. A person's account is tied to his or her phone number and the connection between the phone number and the actual bank account number is registered in the internet bank. The [[electronic identification]] system ''mobile BankID'', issued by several Swedish banks, is used to verify the payment. Users with a simple phone or without the app can still receive money if the phone number is registered in the internet bank. Like many other mobile payment system, its main obstacle is getting people to register and download the app, but it has managed to reach a [[Critical mass (sociodynamics)|critical mass]] and it has become part of everyday life for many Swedes.

Swedish payments company [[Trustly]] also enables mobile bank transfers, but is used mainly for business-to-consumer transactions that occur solely online. If an e-tailer integrates with Trustly, its customers can pay directly from their bank account. Unlike Swish, users don't need to register a Trustly account or download software to pay with it.

The Danish [[MobilePay]] and Norwegian [[Vipps]] are also popular in their countries. They use direct and instant bank transfers, but also for users not connected to a participating bank, credit card billing.

In India a new direct bank transfer system has emerged called as [[Unified Payments Interface]]. This system enables users to transfer money to other users and businesses in real-time directly from their bank accounts. Users download UPI supporting app from app stores on their Android or iOS device, link and verify their mobile number with the bank account by sending one outgoing SMS to app provider, create a virtual payment address (VPA) which auto generates a QR code and then set a banking PIN by generating OTP for secure transactions. VPA and QR codes are to ensure easy to use & privacy which can help in [[peer-to-peer]] (P2P) transactions without giving any user details. Fund transfer can then be initiated to other users or businesses. Settlement of funds happen in real-time, i.e. money is debited from payer's bank account and credited in recipient's bank account in real-time. UPI service works 24x7, including weekends and holidays. This is slowly becoming a very popular service in India and is processing monthly payments worth approximately $10 billion as in October 2018.<ref>{{Cite news|url=https://www.npci.org.in/product-statistics/upi-product-statistics|title=UPI Product Statistics|date=2017-03-31|work=NPCI|access-date=2018-11-16|language=en|archive-date=16 November 2018|archive-url=https://web.archive.org/web/20181116131710/https://www.npci.org.in/product-statistics/upi-product-statistics|url-status=live}}</ref>

In Poland the [[Blik (payment)|Blik]] mobile payment system was established in February 2015 by the Polish Payment Standard (PSP) company. To pay with Blik, you need a smartphone, a personal account and a mobile application of one of the banks that cooperate with it. The principle of operation is to generate a 6-digit code in the bank's mobile application. The Blik code is used only to connect the parties to the transaction. It is an identifier that associates the user and a specific bank at a given moment. For two minutes, it points to a specific mobile application to which - through a string of numbers - a request to accept a transaction in a specific store or [[Automated teller machine|ATM]] is sent. Blik allows you to pay in online and stationary stores. By the Blik, we can also make transfers to the phone or withdraw money from ATMs.<ref>{{Cite news|url=https://finanteq.com/why-blik-is-so-popular-and-how-we-deployed-it-in-mobile-banking/|title=Why BLIK is so popular and how we deployed it in mobile banking?|date=2020-01-31|work=Finanteq|access-date=2021-03-25|language=en|archive-date=9 January 2021|archive-url=https://web.archive.org/web/20210109135904/https://finanteq.com/why-blik-is-so-popular-and-how-we-deployed-it-in-mobile-banking/|url-status=live}}</ref>

== See also ==
* [[Contactless payment]]
* [[Cryptocurrency wallet]]
* [[Diem (digital currency)]]
* [[Digital wallet]]
* [[Digital currency]]
* [[Financial cryptography]]
* [[Mobile ticketing]]
* [[Point of sale]]
* [[Point-of-sale malware]]
* [[SMS banking]]
* [[Universal credit card]]
* [[Payment service providers]]

==References==
{{Reflist|30em}}

{{Mobile phones}}
{{Digital payment providers}}

{{DEFAULTSORT:Mobile Payment}}
[[Category:Mobile payments| ]]
[[Category:Financial technology]]

[[ja:非接触型決済]]