MOBILE PAYMENTS SYSTEMS

Mobile Payments Systems

Abstract

In this paper, we have examined the concept of mobile payments systems. Although the study has focussed on the mobile payments systems in a broad context, however, we have also examined the hindrances in the implementation of the mobile payments systems, risks involved in the implementation of the mobile payments systems, and the current usage of mobile payments systems in different countries. In this way, the study has investigated the concept of mobile payments systems in a detailed manner. The study concludes with some of the recommendations for the mobile payments systems.

Mobile Payments Systems

Introduction

Today billions of people around the world live a mobile lifestyle active, relying on their mobile phones for everything from calls to e-mail, entertainment and shopping. Thanks to its versatility, functionality and its increasing adoption by the general public, the phone is going to replace the PC as the primary device to be connected to Internet. According to 'International Telecommunications Union, 4.6 billion people have subscribed to a mobile phone subscription.

The evolution of mobile phones has rapidly taken place - the "bricks" of the 90s until coated with the powerful technological tools of today who play a growing number of tasks previously performed by other devices (Debbai 2005, p. 233). We saw our phones function as cameras, music players, browsers to navigate and manage e-mail, so it is inevitable to expect that a number of industries are looking for other options to convert to their mobile products and services.

Basic Architecture of a Proximity M-Payment System

The phone is ubiquitous to consumers, as much as their wallets. It is, therefore, logical that the phone industry and the one that takes care of the payments come together to give life to the next step in the evolution of the mobile. Over the last twelve months, there have been significant developments towards the effective implementation of mobile payments, the manufacturers have standardized the technological standard, many experimental tests have been completed successfully and mobile payments start having mass acceptance.

Discussion

Why Then Has It Apparently, Not Seen Widespread Implementation? Along with the advantages of the mobile payment system, there are a number of issues and problems associated with this system. These might be called risks associated with the mobile payment system. (Valcourt, Robert & Beaulieu 2005, p. 32).

Risks for Consumers

The consumer also receives personal information (e.g. Phone number). For its part, the seller could use the telephone number so found to send SMS advertising, thus exacerbating the phenomenon known as mobile spam and the problems associated with it. As the client cannot generally know what information the service provider and clearing house passed to the seller of personal data, (such as phone number) may be received by the seller, unbeknownst to the client. The seller, in turn, could use the telephone number obtained for the sending of SMS advertising, which would increase the phenomenon of "spam" on mobile phones and the problems it generates. Unlike what happens to email addresses, a client usually has a single mobile number to use ...