Carrier billing Mobile payment

1 carrier billing

1.1 sms/ussd-based transactional payments
1.2 mobile web payments (wap)
1.3 direct operator billing

carrier billing

the consumer uses mobile billing option during checkout @ e-commerce site—such online gaming site—to make payment. after two-factor authentication involving pin , one-time-password (often abbreviated otp), consumer s mobile account charged purchase. true alternative payment method not require use of credit/debit cards or pre-registration @ online payment solution such paypal, bypassing banks , credit card companies altogether. type of mobile payment method, extremely prevalent , popular in asia, provides following benefits:

sms/ussd-based transactional payments

premium sms / premium mms

in predominant model sms payments, consumer sends payment request via sms text message or ussd short code , premium charge applied phone bill or online wallet. merchant involved informed of payment success , can release paid goods.

since trusted physical delivery address has typically not been given, these goods digital merchant replying using multimedia messaging service deliver purchased music, ringtones, wallpapers etc.

a multimedia messaging service can deliver barcodes can scanned confirmation of payment merchant. used electronic ticket access cinemas , events or collect hard goods.

transactional payments sms have been popular in asia , europe , accompanied other mobile payment methods, such mobile web payments (wap), mobile payment client (java me, android...) , direct mobile billing.

inhibiting factors of premium sms include:

some mobile payment services accept premium sms payments. here typical end user payment process:

remote payment sms , credit card tokenization

even volume of premium sms transactions have flattened, many cloud-based payment systems continue use sms presentment, authorization, , authentication, while payment processed through existing payment networks such credit , debit card networks. these solutions combine ubiquity of sms channel, security , reliability of existing payment infrastructure. since sms lacks end-to-end encryption, such solutions employ higher-level security strategies known tokenization , target removal whereby payment occurs without transmitting sensitive account details, username, password, or pin.

to date, point-of-sales mobile payment solutions have not relied on sms-based authentication payment mechanism, remote payments such bill payments, seat upgrades on flights, , membership or subscription renewals commonplace.

in comparison premium short code programs exist in isolation, relationship marketing , payment systems integrated crm, erp, marketing-automation platforms, , reservation systems. many of problems inherent premium sms have been addressed solution providers. remembering keywords not required since sessions initiated enterprise establish transaction specific context. reply messages linked proper session , authenticated either synchronously through short expiry period (every reply assumed to last message sent) or tracking session according varying reply addresses and/or reply options.

mobile web payments (wap)


mobile payment system in norway.

the consumer uses web pages displayed or additional applications downloaded , installed on mobile phone make payment. uses wap (wireless application protocol) underlying technology , inherits advantages , disadvantages of wap. benefits include:

however, unless mobile account directly charged through mobile network operator, use of credit/debit card or pre-registration @ online payment solution such paypal still required in desktop environment.

mobile web payment methods being mandated number of mobile network operators.

direct operator billing

direct operator billing, known mobile content billing, wap billing, , carrier billing, requires integration mobile network operator. provides benefits:

one of drawbacks payout rate lower other mobile payments options. examples popular provider:

92% paypal
85 86% credit card
45 91.7% operator billing in us, uk , smaller european countries, around 60%

more recently, direct operator billing being deployed in in-app environment, mobile application developers taking advantage of one-click payment option direct operator billing provides monetising mobile applications. logical alternative credit card , premium sms billing.

in 2012, ericsson , western union partnered expand direct operator billing market, making possible mobile operators include western union mobile money transfers part of mobile financial service offerings. given international reach of both companies, partnership meant accelerate interconnection between m-commerce market , existing financial world.