Electronic Payment : A Long Time Since We Adopted Electronic Payments

1269 Words Mar 3rd, 2015 6 Pages
It has been a long time since we adopted electronic payments. Currently the most common form of an electronic payment is the use of EMV (Europay, MasterCard, VISA) cards with a magnetic stripe. These include credit cards, debit cards, prepaid cards, and now smart cards. In these processes the card or card number is swiped or entered into the merchant’s computer through a terminal. The terminal transmits data to the acquirer (a bank, for example), and then the acquirer transmits data through a card association to the card issuer who makes a decision on the transaction and relays it back to the merchant. Then, the merchant gives the goods or services to the cardholder. Funds flow later for settlement with credit cards and are debited immediately for debit or prepaid cards.
However, with rapid development of mobile technologies and communication mobile payment quickly gains its popularity. People seek faster, safer and more convenient way to pay their bills. And mobile payment gives customers all of that. Even though the buzz around mobile payments coinside in time with Apple Pay introduction, momentum for mobile payment technologies was building even before Apple Pay debuted last fall. Some 17 percent of all smartphone users reported making a point-of-sale payment with their phone in 2013, up from 6 percent in 2012, according to a U.S. Federal Reserve survey. In-person mobile payments in the United States more than doubled in 2014, to $3.7 billion. (Hof, 2015)
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