Mobile payment also known as ‘m-payment’ is the way of performing payment for goods or services through a mobile device (i.e. a cell phone, a tablet, a PDA, etc.). This means that the initiation, authorization and confirmation of payment are done by means of a mobile device. Another functionality m-payment has to offer is that it also allows sending money to relatives or friends.
How does m-payment work?
There are three ways in which mobile payment can be sent:
- Text message: the mobile device user simply sends a text message to pay for his purchases.
- Barcode: a special barcode displayed in the costumer’s smartphone is placed under a barcode reader in an establishment to pay for products and services.
- Photo: the costumer takes a photo of a bill or check and sends it. A special app that automatically excerpts relevant information from this type of documents sends the costumer a confirmation of the transaction, and the payee receives an email or text message where the instructions to claim the money are detailed.
Hence, the expenses generated for any purchases done via mobile payment are either paid by credit or debit card or charged to the costumer’s telephone bill.