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In addition, if the payment vendor can automatically and securely identify customers then card details can be recalled for future purchases turning credit card payments into simple single click-to-buy giving higher conversion rates for additional purchases.

The consumer uses the mobile billing option during checkout at an e-commerce site—such as an online gaming site—to make a payment.

Although the concept of using non-coin-based currency systems has a long history, Investment on mobile money services is expected to grow by 22.2% during the next two years across the globe.

It will result in revenue share of mobile money reaching up to 9% by 2018.

It uses WAP (Wireless Application Protocol) as underlying technology and thus inherits all the advantages and disadvantages of WAP.

Mobile payment (also referred to as mobile money, mobile money transfer, and mobile wallet) generally refer to payment services operated under financial regulation and performed from or via a mobile device.

Instead of paying with cash, cheque, or credit cards, a consumer can use a mobile to pay for a wide range of services and digital or hard goods.

A simple mobile web payment system can also include a credit card payment flow allowing a consumer to enter their card details to make purchases.

This process is familiar but any entry of details on a mobile phone is known to reduce the success rate (conversion) of payments.Since SMS lacks end-to-end encryption, such solutions employ a higher-level security strategies known as 'tokenization' and 'target removal' whereby payment occurs without transmitting any sensitive account details, username, password, or PIN.To date, point-of-sales mobile payment solutions have not relied on SMS-based authentication as a payment mechanism, but remote payments such as bill payments, and membership or subscription renewals are commonplace.Most transactions do not require authentication, but some require authentication using PIN, before transaction is completed.

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