Merchant services: Pay by Mobile Phone

Applications that allow you to safely pay by mobile phone are fast, easy and convenient. Using your mobile phone for payments means you have round the clock access to reliable payment facilities for any online or in-store purchases. Mobile systems also offer good security and payments from anywhere there is a cell phone signal.

How Can Customers Pay by Mobile Phone?

Customers who pay by mobile phone number billions and include those using contactless Near Field Communication payments. In developing countries as many as 50% of the world's adult population does not have access to regular banking services. Credit card companies, banks and companies like Google as well as mobile communication companies, network operators and moguls like Ericsson and BlackBerry have implemented solutions for clients who wish to pay by mobile phone. There are four different ways in which customers can pay by mobile phone.

Methods of Mobile Phone Payment

1. Premium SMS-Based Transactional Payments

Customers can pay by mobile phone using an SMS. In this type of payment a text message is used or a USSD is sent to a short code. A service fee is then rendered to an online wallet facility or phone bill. The retailer is then informed and the goods may be released to the customer.

2. Direct Mobile Billing

Direct billing does away with the need for a credit or debit card and is generally used when checking out of an e-commerce site such as an online gaming site or online casino. After the customer has been verified as authentic by PIN and one-time-password, a mobile account is charged for the purchase. It is not necessary to register with an online payment facility to pay by mobile phone in this way. Credit card companies, banks or facilities like Paypal are not required for direct mobile billing.

3. Mobile web payments (WAP)

Mobile web payments also allow customers to pay by mobile phone. In this type of mobile phone payment a customer uses a web page or downloaded application to make a payment. Combining WAP with online payment facilities like Paypal, or a credit/debit card facility means a customer can pay by mobile phone, quickly and easily. In some cases the amount may be directly charged through the mobile operator.

4. Contactless NFC (Near Field Communication)

This is a method which is used to pay by mobile phone for goods in-store, transportation or services. Special phones which are fitted with a smartcard are used to make a mobile payment which uses a reader module. The phone is waved in the direction of the module to make a payment. In some cases this method requires PIN authentication and funds are deducted from a pre-paid account, mobile bank or ordinary bank account depending on the service. Mobile money transfer makes use of financially regulated services, so you can pay by mobile phone, rather than using credit cards, cash or cheque. Far more flexible than either of these methods, payments made using your mobile device can be used to pay for goods, services or digital applications.