Models of mobile payments

Abstract

Mobile phones are already approaching penetration rates of close to 80 per cent in some parts of the world. Mobile payments, or “m-payments”, are expected to become an important part of retail payments. M-payments are defined as payments that are carried out via mobile phone. M-commerce as a wide area could be divided into mobile E-commerce and M-trade area. Different models of mobile payments are proposed considering the physical disposition. Financial service provider is essential mediator among customers, merchants and banks. The iMS specification proposed in this paper enables mobile payments with one click of a button. Different levels of security have to be implemented for small, medium and large transaction of funds.