Mobile payment (also referred to as mobile money, mobile money transfer, and mobile wallet) normally refer to payment services operated under financial legislation and performed from or by using a cellular device. Instead of paying with cash, cheque, or credit cards, a consumer can use a mobile to pay for a large vary of offerings and digital or hard goods. Although the idea of using non-coin-based currency structures has a lengthy history, it is only in the twenty first century that the technology to support such systems has grown to be extensively available.

Mobile payment is being adopted all over the world in extraordinary ways. The first patent solely described “Mobile Payment System” was filed in 2000.

In developing countries mobile payment solutions have been deployed as a capability of extending financial services to the community known as the “unbanked” or “underbanked”, which is estimated to be as a great deal as 50% of the world’s adult population, in accordance to Financial Access’ 2009 Report “Half the World is Unbanked”. These payment networks are frequently used for micropayments. The use of mobile payments in developing nations has attracted public and private funding by corporations such as the Bill & Melinda Gates Foundation, United States Agency for International Development and Mercy Corps.

Mobile payments are becoming a key instrument for PSPs and different market participants, in order to attain new increase opportunities, according to the European Payments Council (EPC). The EPC states that “new technology options grant a direct enchancment to the operations efficiency, in the end ensuing in cost savings and in an increase in commercial enterprise volume”.