M-payment is the name given to a real-time payment that is made by using a mobile device. It was formally known as a mobile payment, the m-payment involves submitting an electronic remittance for an outstanding bill. The means of making an m-payment are cell phones, smart phones, and personal digital assistants.
Wide area networks
By the creation of wide area networks the earliest generation of the m-payment was made possible. These wide area networks would use the Internet in order to connect the customer with the vendor. In early days in order to make a payment, normally a charge has to be paid by the customer to the service provider before using handheld devices to submit the payment.
Along with the charge, in order to complete the transaction it was often necessary to enter a long numerical code. Fortunately, as the time passes the process for conducting mobile payments was improved.
Enhancements to technology streamlined the process
The connection process has been streamlined by the enhancements to technology. The ability to submit real-time payments has become quicker as well as easier with more handheld devices carrying full Internet capability.
Obstacle to widespread acceptance of m-payment technology
There is a continuing obstacle to widespread acceptance of m-payment technology and that is the fee that is charged to the vendor when a customer uses a credit card to submit a payment. Credit card companies calculate the fee on the basis that whether the transaction is classified as a “card present” situation, or a “card not present” situation. Whenever the account is used over the Internet or a phone connection then a card not present situation applies, and so it carries a higher fee.
