A short summary of trends and technology in mobile payments. A brief look into the past, present and future of mobile payments. We will have detailed sessions on each in the coming versions.

1. Mobile Based Payments A Short overview
Past, Present and Future
: Volgamatics
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2. Mobile Payments – Measured in a million scale
16 percent of US transactions took place via a mobile device — about 7 million mobile payments per week
$235.4bn global mobile payment transaction
volume
120.8m number of mobile payment
users in Asia/Pacific
$37bn mobile payment transaction value
in North America
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3. Mobile Payments – Which way to Pay?
Traditional mode of mobile payments
UUSD based
SMS/MMS based
Web payment from mobile
Customized Plastic cards
NFC Based + Mobile Wallet
Apply Pay, Google Wallet, Softcard , Isis, Paypal ,
PayPass….
QR Code based
CurrentC, LevelUp….
Mobile POS terminals
Square, Ingenico, mPowa….
Mobile Banking and mCommerce
All Banks, Stripe.com, Simple.com, IMPS, mPesa….
Others
Audio signal based, Loyalty Cards, GeoCard…
Missed out
Much more than mentioned above 
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4. Mobile Payments – Complex? Lets simplify
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5. Mobile Payments – Traditional Mode
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Traditional mode of mobile payments are those that existed for a long time before the real “smart” phones got the playing jersey
Unstructured Supplementary Services Data (USSD) is a GSM service which allows high speed interactive communication between the subscriber and application.
With the Short Messaging Service (SMS)
payment system purchasers send a text
message to pay for an item or service.
Using WAP billing, consumers can buy mobile content
without registering for a service or entering credentials.

6. Mobile Payments – NFC/Wallet – Hot?
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A new report from Juniper Research predicts that the number of consumers using NFC contactless payment services will jump to 516 million by the end of 2019, a more than five-fold increase from 101 million today.
Apple Pay - Apple's approach to the secure element is a physical
chip, which is only available in the iPhone 6 and 6 Plus.
Google Wallet - From Android 4.4, Host Card Emulation (HCE ) allows
NFC applications on Android devices to emulate smart cards and
financial institutions to host payment accounts in a virtual cloud.
 Softcard (formerly Isis Mobile Wallet) is a joint venture between AT&T, T-Mobile
and Verizon in the mobile payment space.
Samsung S3 and above, Nokia, iPhone 6 and above supports NFC.
Payments via NFC is almost as secure as with a plastic bank card
Isis is another NFC-enabled payment system with cash cards.

7. Mobile Payments – QR Code Based
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Rather than using NFC, payments can be initiated through QR Codes. The cashier will scan the QR code from the mobile app that the customer has. The mobile app will have the intelligence to conduct the payment in background.
QR code based payments are more open and doesn’t have
any dependency on the manufacturer hardware.
Eg: Apple Pay has a dependency on iPhone 6
 A consortium of retailers including CVS and Wal-Mart that has
agreed to next year (2015) implement a QR code-based app from Merchant Consumer Exchange (MCX) called CurrentC.
Various QR code solutions from banks – there are a number of banks that provide their own custom apps for QR based payment for their customers. These could be clearance of payments from their accounts or through loyalty cards.

8. Mobile Payments – POS terminals
@Volgamatics
•mPOS (Mobile Payment Terminal) has been in existence for quite long time now.
•An mPOS is enabling a Smartphone or tablet to perform the functions
of a cash register or traditional POS terminal with the help of a small
external hardware.
•Apart than in store purchases, mPOS is also used for on-field payment
assistance. Door delivery or service team, can use this mode of
payment in replacement to cash delivery
•There are many hardware manufacturers that provide card readers
easily pluggable into your smart phone audio jack, empowering the
phone to be a payment terminal
•SMBs are turning into mPOS as it helps them to establish business faster with lesser infrastructure and space constraints

9. Mobile Payments – Banking and Commerce
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•Mobile Commerce (mCommerce) is estimated to reach USD 700 billion in 2017.
•Wikipedia defines mCommerce – “the delivery of electronic commerce capabilities directly into the consumer’s hand, anywhere, via wireless technology”
•Mobile banking is a system that allows customers of a financial institution to conduct a number of financial transactions through a mobile device such as a mobile phone or tablet.
•Mobile Money Transfer in countries like Kenya powered by
M-PESA
•Mobile Ticketing - You book from your phone and the ticket
arrives as an SMS
•Mobile Banking allows you to link your phone securely with your
bank and do payments. You can could get your account statements,
initiate a funds transfer, pay for third party apps, apply coupons etc
•SMBs are utilizing a location-based services, barcode scanning,
and push notifications to improve the customer experience of
shopping in physical stores enhancing the use cased of
mCommerce.
•There are a lot of companies that provide payment infrastructure for mCommerce

10. Mobile Payments – We too!!!!
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•While payments are growing and are alternative mode of payments that does exist in small percentage in the market
•The audio channel of the mobile phone is another wireless interface that is used to make payments. Several companies have created technology to use the acoustic features of cell phones to support mobile payments and other applications that are not chip-based. The technologies Near sound data transfer (NSDT), Data Over Voice and NFC 2.0 produce audio signatures that the microphone of the cell phone can pick up to enable electronic transactions
•Mobile Apps integrate loyalty cards for the retailers which
enables discounts and increase in foot falls
•Bitcoin uses peer-to-peer technology to operate with no central
authority or banks; managing transactions and the issuing of
bitcoin is carried out collectively by the network.
Will mobility come into play in future for this as well?
Let us wait and watch!!

11. Mobile Payments – So simple, what’s next
@Volgamatics
•As end users, customers don’t care about manufacture or store-specific mobile payments.
•Retailers look for more customer data to harvest along with payments made.
•Banks looks at not compromising on
the percentage cut in the transaction
that they have been incurring.
•Hardware manufacturers look at innovating more to reduce the gap between the buy and spend
•Who will dominate this industry from now – the Smartphone manufacturer, retailer or the banks
•Overall, these players has to put customer interests ahead of their own to be a winner.

12. Mobile Payments Thanks Please share your comments through volgamatics
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