Gartner defines mobile payment as transactions conducted using a mobile phone and payment instruments that include:
- Banking instruments such as cash, bank account or debit/credit card, and
- Stored value accounts (SVAs) such as transport card, gift card, Paypal or mobile wallet
and exclude transactions that use:
- Carrier billing using the telecom’s billing system with no integration of the bank’s payment infrastructure, or
- Telebanking by using the mobile phone to call the service center via an interactive voice response (IVR) system. However, IVR used in combination with other mobile channels such as Short Message Service (SMS) or Unstructured Structured Service Data (USSD) is included. (1)
Mobile Payment Example – Apple Pay
Apple Pay is a mobile payment and digital wallet service by Apple Inc. that lets users make payments using the iPhone 6, 6 Plus, iPhone SE, and later, Apple Watch-compatible devices (iPhone 5 and later models), iPad Air 2, iPad Pro and iPad Mini 3 and later.
The service does not require Apple Pay-specific contactless payment terminals, so it can work with existing contactless terminals. (2)
Apple Wallet (referred to as simply Wallet) is an application in Apple’s iOS (previously known as Passbook in iOS 6 to iOS 8) that allows users to store coupons, boarding passes, event tickets, store cards and, starting with iOS 8.1, credit cards, loyalty cards, and debit cards via Apple Pay.
The technology is designed by Apple Inc. and was presented at the 2012 Apple Worldwide Developers Conference (WWDC) on June 11, 2012 under the name Passbook (now Wallet, as of iOS 9). The application was released as a built-in app for iPhones and iPod Touch devices alongside iOS 6 on September 19, 2012. (3)
- Mobile Payment, http://www.gartner.com/it-glossary/mobile-payment
- Apple Pay, https://en.wikipedia.org/wiki/Apple_Pay
- Wallet (application), https://en.wikipedia.org/wiki/Wallet_(application)