Mobile phone micropayment

Mobile Payment ( Scheinanglizismus for mobile- based payment), mobile or m-payment belongs to the kind of micropayment systems and is the payment system, to which amounts may be paid via the mobile phone. Widespread is the payment of mobile- related services such as ringtones, pictures, etc., which are advertised especially on television.

The system is not only used for this purpose, but can be used as a central payment platform for any type of service, for example for paying parking tickets, or the transfer of money to other bank accounts. Since late 2009, the newspaper and magazine publishers increasingly use mobile payment for e-paper offerings. Who wants to read chargeable electronic newspaper articles, electronic journal articles or other paid content, this can be so only if he pays by phone payment.

Historical Development

See mobile payment # History

Operation

Technically all the respective mobile payment systems of different vendors work in a similar way. A program of the respective provider uses the payment interfaces that are operated by the respective mobile radio providers, and consolidates them into a unified process.

For the consumer, two steps are required to successfully complete a transaction: First, he gives his cell phone number in a designated field, and hereby certifies the request for an access code. The server of the shop operator registers the request of a customer for the access code and generates an activation that is sent via SMS to the terminal owner. The consumer receives that text message and can then enter this access code as verification and completion of purchase intention in the form on the Internet. The server of the shop operator verifies the legitimacy of the consumer, by matching the phone number and the code entered with the data, and then switches the access according to free or blocked this.

Due to the requirements of mobile operators, the maximum height of a transaction process is currently limited to different amounts per transaction, because this type of payment is to be primarily used for virtual content. The maximum amount per transaction process is currently (as of xxxx ) 29,99 Euro. With the ability to complete subscription, even daily withdrawals are possible.

Through the verification process of sending a text message with a limited valid transaction code to the respective mobile phone number the system against abuse is quite effectively protected. Although a mobile phone number can be entered as one's own in the respective forms, but as the recipient of this activation code can not know which side was this code requested, he will not be able to enter it. The sent transaction codes also require timely input. After a maximum of 30 minutes, the code is invalid and must be requested again. The reception of SMS is free for the consumer. The cost of sending the SMS the Shop will bear supplier to use the mobile payment system. After entering the transaction code of the purchase is made and charged to the respective amount of the telephone bill.

Motivation to use mobile payment

The high diffusion rate of mobile devices in Germany implies a very large potential target group for the mobile payment. Provider of value-added services on the Internet are keen to minimize any potential barriers that may discourage or deter a potential customer from purchasing. Such barriers can be, for example: the registry for a payment service, personal information, bank account information, credit card number etc.

Since the user is already registered by the Treaty at its respective mobile service provider to a trusted authority, it is the mobile payment no longer necessary to stand up to the dealer to legitimize again with his personal data. The only data that must make the users, the verification of his mobile phone number.

As the store owner, in most cases has no way due to the mobile phone number, to determine the identity of the customer, this system is considered largely anonymous. Exceptions are of course criminal procedures in which the personal information of a user can be yet requested from each mobile phone company by a court order. The merchant needs the identity of each customer not to know, because the billing is done directly between him and the respective mobile payment providers, which in turn settles directly with the mobile operators.

Latest Mobile Payment Systems

The market is highly fragmented and there is a variety of pure software or combined hardware solutions, such as Aperto move, billing, iZettle, GO4Q, Kesh, Mobuyle, Mpass, Paij, payleven, Square, Streetpay or SUMUP available.

Problems

After multiple tightening the legal position for billing of services via the dialer dubious or fraudulent use of mobile payment has increased dramatically during the year 2005. In September 2005, the Federal Network Agency indicated that 'll think about stronger controls for mobile payment.

If a mobile operator demands the money of an impostor, thus the objective offense of money laundering ( § 261 StGB) could possibly be realized. This question has not yet been decided in the case law (as 20xx ); terms of comparable problems dialer fraud investigation, there were already in prosecution offices.