Literature Review on Mobile Payment Technologies and Trends

This literature review provides an overview of mobile payment systems. It defines mobile payment as the use of electronic devices like smartphones and tablets for transactions, including the use of apps such as PayPal and Venmo. The review highlights the benefits of mobile payment, such as eliminating the need for physical wallets, enhanced security through methods like fingerprint scans, and improved cash flow. It also discusses the cost reductions associated with mobile payment, such as the elimination of expensive point-of-sale equipment and reduced use of paper. The review then delves into the technologies behind mobile payments, including blockchain and digital wallets utilizing NFC. It identifies gaps in mobile payment, such as customer concerns about sharing confidential information and the lack of a seamless payment experience. Recommendations include enhancing customer data privacy, adopting biometric and touch ID for security, using encryption, and tokenization. The provided assignment is a comprehensive analysis of the current state of mobile payment technologies and trends.

MOBILE PAYMENT
A literature review on mobile payment

WHAT IS MOBILE PAYMENT?
• Mobile payment is payment of money that is made for a given product or
a particular service through the use of an electronic device.
• Such devices include smartphones, tablets and iPad.
• This technology can also be used to send money with the aid of
applications such as the PayPal and the Venmo.

WHAT ARE THE BENEFITS OF
MOBILE PAYMENT?
• The mobile payment technology is beneficial because;
• It eliminates the requirement of a physical wallet making it safer
• It is more secure as it involves the use of fingerprint scan or an PIN as
compared to a physical credit card.
• It also improves the cash flow as the customers will choose to pay with
the credit or debit cards.

WHAT ARE THE BENEFITS OF
MOBILE PAYMENT?
• There is also the reduction of expenses because;
• This approach of mobile payment eliminates the need to purchase
equipment that have an expensive point of sale.
• There is minimized use of paper and ink as one text receipts or send
emails to the customers avoiding the process of printing receipts.
• Mobile devices use certain app to make the payment successful.

HOW DOES MOBILE PAYMENT
WORK?
• There are several technologies behind the mobile payments.
• The first technology is blockchain technology.
• Most companies are continually adopting this technology to ensure that
their services are modernized and swift.
• Mobile payments largely use this technology because of its decentralized
nature.

HOW DOES MOBILE PAYMENT
WORK?
• This feature provides a very strong and almost impossible to crack
protection layer for all transactions.
• Blockchain technology incorporate the use of encryption and distribution
of ledgers
• The other technology is the use of digital wallets and POS technologies.
• Money is therefore stored in digital wallets and to make any transactions,
the phone’s access controls are used.

HOW DOES MOBILE PAYMENT
WORK?
• This mobile wallet uses the technology known as, Near Field
Communication (NFC).
• This technology allows communication of mobile phones and the mobile
payment terminal.
• Communication using NFC uses radio waves
• For security purposes, this data transfer can only happen within a range
of two inches.
• Some of the popular NFC payments are Apple Pay, Android Pay and
Samsung Pay.

WHAT ARE THE GAPS IN MOBILE
PAYMENT
• Customers have always had issues with sharing confidential information.
• Mobile payments require a lot of financial and personal information to
get started with them.
• This is one of the main reason why customers opt not to enroll for mobile
payments.
• Most people feel that their private information is at stake and hence they
choose not to share it.

WHAT ARE THE GAPS IN MOBILE
PAYMENT
• The ideal payment experience is considered to be determined by
convenience, speed and the freedom to act on your own terms.
• Mobile wallet companies have not been able to provide that entirely.
• Consumers are required to carry their identity card or driver’s license so
as to identify themselves before checking out at a store.
• There is also a number of cross platform solutions that make it difficult to
settle for the most appropriate payment.
• It becomes hard to read the terms and conditions raising unknown ideas
when the invoices are being accessed.

RECOMMENDATIONS
• Find a way to keep the customer information private and confidential.
• To make safer the front end, adoption of biometric and touch ID is very
key.
• Encryption of data is also another way to ensure the safety of
information.
• Adopting tokenization.
• Digital identification can be used to authenticate and unlock access to
many critical systems.

THE END