Benefits Of Using Mobile Phone

1176 Words Dec 5th, 2015 5 Pages
Payment solutions have changed drastically over time, going from bartering goods in ancient times, using gold and silver, paying with cash and coins, using credit cards, and now mobile devices. There are five main types of mobile payments: mobile at the point of sale, mobile as the point of sale, mobile payment platform, direct mobile billing, and closed loop mobile payments (1). However, this paper will focus on the three most familiar to college students and young adults.
First is mobile at the point of sale, which is also known as a mobile wallet. With this system, a user adds money to their virtual wallet from their credit card and then taps their mobile device at the point of sale using Near Field Communication (NFC) technology (1). Money is transferred without directly employing user’s credit card information and payments are verified by fingerprint or secure pin; two popular examples of this are ApplePay and Google Wallet.
The second type of system is mobile payment platform. With this payment system, users are able to wirelessly transfer money and/or charge a payment to an account using Wireless Application Protocol (WAP) technology (2). Paypal is an example of the mobile payment platform. It also has the ‘tap and go’ feature of the mobile wallet (1).
Closed loop mobile payments are when companies create their own type of mobile payment system with their own mobile wallet and payment platform. It is practically a mobile version of the store credit card and a…
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