This website uses cookies to ensure you have the best experience. Learn more

Obstacles To Implementation Of Mobile Payment

1212 words - 5 pages

Obstacles to Implementation of Mobile Payment

The unexpected attraction to mobile payments increasingly appears to be the catalyst to finally moving away from the magnetic card payments to a payment system that is more fitting to current digital economies. Despite the new, exciting technology introduced in the mobile payment market, there are still questions regarding whether mobile payments are necessary and worth the change. At least four important challenges for the implementation of mobile payment services with the breadth of impact are addressed as follows:

1. System Interdependency

Mobile payments represent a complex business model with several players, whose success ...view middle of the document...

Each entity wants to lead in the mobile payments ecosystem and have dominant role in the value chain. As a result, the market has remained stillborn.

2. Interoperability between all participants

The lack of standardization has been one of the principal challenges to slow down the development of mobile payments. Different forms of mobile payments from contactless and mobile card readers to mobile wallets and payment apps actually slow down the development process together with conflicting agendas of different players involved, including financial institutions, mobile network carriers, merchants and handset manufacturers. The unique quality of each of the technologies is the main reason that mobile payments have not yet been widely adopted by users and merchants. Merchants are not able to support multiple device options and users are not willing to use different device options/ mobile operating systems. The lack of interoperability is, therefore, preventing mobile payment adoption and making the required scalability unachievable.

If electronic payment services are to be adopted more broadly, cards or mobile phones must be usable not only with their own systems or mobile networks but also with other systems not covered by the “parent” system. Interoperability, which is the ability to make a payment from any bank, on any mobile phone, using any carrier, is very important for the success of mobile payments. The only way to extend mobile payment business across all the markets is to ensure that the mobile payment experience can be delivered across multiple mobile devices, manufacturers and cellular phone carriers to accommodate the personal preferences of the consumer.

3. Slow market adoption for contactless mobile payments

Main reasons for the slow market adoption for contactless mobile payments are as follows: (i) no incentive for consumers to use contactless mobile payments as compared to other payment modes; (ii) difficulty for consumers to figure out which merchants accept this mobile payment format; and (iii) no promotional/ educational support by financial institutions or banks for the new payment approach that they will be safer with contactless.

In order to speed up the adoption of this new technology, it is necessary to prove to all stakeholders that the new payment system would prove faster at checkout, cleaner to handle and therefore a good alternative to cash payments at the counter. The only payment options available so far are signature-based credit and/or debit, replacing cash transactions that typically cost less than 5 cents to process with a signature-card transaction that costs $.15 to $.75 or more. This has not created any incentive to get merchant support. Additionally, merchants prefer equipment that looks the same and does not require retraining staff. Mobile stakeholders must work harder to identify a compelling need for merchants to accept contactless payments.

4. Security of...

Other Papers Like Obstacles to Implementation of Mobile Payment

Creating Impact in India Through M Pesa

2640 words - 11 pages account, internet connection, or a payment card. ‘M’ is an acronym for ‘mobile’ and ‘Pesa’ is a Kiswahili word that translates to ‘money’; M-PESA therefore translates to ‘mobile money’. Within 4 years of its launch, M-PESA attained over 15 million service users thus enabling millions of unbanked Kenyans, the majority of whom reside in rural areas, to have access to a 24-hour financial service system. The exceptional growth of M-PESA mobile

M Commerce Essay

1453 words - 6 pages FreePaisa for the world q Home q About FreePaisa for the world Electronic Financial blog post Posts Comments NBAD to dial ‘R’ for remittance National Bank of Abu Dhabi (NBAD) has signed an agreement with MoneyGram International to allow customers to send money home using mobile phones. Recent Posts q NBAD to dial ‘R’ for remittance Worldwide Mobile Payment Users to Reach 108.6 Million in 2010 Mobile banking will

Term Paper: Students’ Self-Service Website for Mobile Devices

1887 words - 8 pages by the users are Blackboard, Payment making, keeping track of courses required towards the degree, and learning resources center. These should be the most important points of focus when starting the first build of the website for mobile devices. The design needs to focus on being simple, minimizing the use of plugins, memory friendly, and address the most important needs of the users. The website design for a mobile devices should follow the

Bank of America Case

1302 words - 6 pages Problem Statement Bank of America is struggling to position their mobile banking service in the continuously changing industry. The bank already has a mobile application but is evaluating if they should add more features to this app and how this will affect their clients. Situation Analysis Company • Bank of America is the largest U.S. bank holding company; it was founded in 1904 and expanded with several acquisitions. • By the end of

Gifting Emotion Paper

2371 words - 10 pages Mobilink Business Centers  30 WMBL Branches Page 4 of 13 2. Online payment solution Given our expanding portfolio of branchless banking products, an online payment solution is being offered to Gifting Emotions. Payment can be collected for Gifting Emotions directly from customers through a mobile account, over the counter and through debit/credit card. Mobile wallets can be opened by any customer holding a Mobilink SIM from selective

Digitial Wallet

886 words - 4 pages digital-wallet could potentially verify the age of the buyer to the store while purchasing alcohol. | Digital wallets are expected to be big business. By 2014, the market will reach a massive $245 billion. The shift is coming rapidly, as payment methods are moving away from credit cards, debit cards and cash to smartphones, tablets and other mobile devices.There are a lot of concerns rising about digital wallets lately. Many argue that digital

Research Proposal

1100 words - 5 pages 2011. Dutch Bangla Bank Ltd pioneered in mobile banking service in Bangladesh. Most of the people are informed about it but 52% of them are not interested to use it as they are happy in using traditional e-banking system. Purpose of the Research DBBL mobile banking is the online based payment system of Dutch Bangla Bank Ltd and is one of the leading mobile phone based payment switch in Bangladesh. There is many such phone based switch systems

Effectiveness of Fiscal Policy Under Both Fixed and Floating Exchange Rates Using Is-Lm-Bp Model

1117 words - 5 pages Mobile Capital The implementation of the fiscal development policy leads to the IS curve moving to the right from is1 to IS2 leaving the economy at point B. This would mean that there would be a balance of payment surplus as it is above the BP curve. The balance of payment surplus will result in an appreciation of the domestic currency, in turn this will lead to a fall in net exports due to the comparative strength of the domestic currency

Students’ Self-Service Website For Mobile Devices

451 words - 2 pages other mobile devices. Students are currently able to use the Internet Explorer, Chrome, Firefox, and other desktop browsers to perform self-service tasks. The university has asked you to provide a Human-Computer Interaction (HCI) guide that will help with the design and implementation of this service. Write a ten to fifteen (10-15) page term paper that can help the university achieve its objective. The paper must address the following topics

Mobile Wallet Technology

750 words - 3 pages Among today’s latest advances in technology, mobile banking could possibly be the biggest and fastest breakthrough yet. Mobile wallets work by using communication chips inside smart phones, tablets, and other devices to transmit payments. When making a purchase, you simply open your app on your device, enter your customized PIN, and choose your account you wish to use. By the simple touch of your finger, you have transmitted your payment

Evaluating The Declining Sales Of Myntra

4122 words - 17 pages including bankers/ merchants/etc. are still to optimize this on the mobile. Therefore, allowing small value transactions without 2FA if the customers are already logged into the merchant sites or apps might be a good way of removing obstacles in the completion of e-commerce transactions and help drive growth. App-in-app communication between PGs/Banks/Merchants or automated reading of PIN would enable futuristic technologies that can drive payment

Related Essays

Age Of The Mobile Wallet Essay

1317 words - 6 pages taken over society is the use of Mobile Wallets. This technology allows you to pay for a product or service, using an application from your mobile phone at a Near Field Communication (NFC) reader. When the phone is held to the NFC, it will vibrate or beep to confirm payment. Customers have no need to carry cash, checks, or credit cards when there are apps such as Apple Pay that link directly to your bank account. Sounds easy enough, right? Many

Global Mobile Payment Market Analysis, Applications, Trends, Opportunities, Growth And Forecast, 2014 2020

574 words - 3 pages Mobile payment is the purchase of a product/service using a Mobile phone or Money transfer from a mobile device to another mobile device. In Mobile payments the goods or services purchased may be physical, or virtual. Mobile payments use mobile phone as a payment method rather than an alternative channel to send payment instructions. A Mobile payment can be made in person, example: at the checkout counter in a retail store, or remotely, using

Mobile Kaolin Crushing Plant Essay

909 words - 4 pages Mobile Cone Crushing Plant is not limited to the locatiStone Crushers In Between Ajmer And Nagoreon of crushing operation, and it reduces the cost of material transportation. Mobile Crushing Plant - Manufacturers , Suppliers Mobile Impact Crushing Plant. Introduction: Star Trace crushers are a new design that produces an excellent cubical product. This impact crusher produces a high ratio Mobile Crusher,Mobile Crusher Plant,Mobile As a

Mobile Wallet Essay

1648 words - 7 pages to get a mobile payment enabled Google Nexus phone and promised himself that he would never pick up his wallet again. What’s more, Google even showcased a new vending machine, in San Francisco, where George purchased a Coke using his new Nexus phone. George was on top of the world and very excited. He actively started looking for the universal mobile payment symbol at retailers so that he could plan his wallet-free shopping. Unfortunately