Obopay and PayPal are Leading Examples of Use of SMS for mobile P2P Payments, Claims Packaged Facts

03 Jan 2013 • by Natalie Aster

SMS technology allows mobile phone users to communicate with friends, family, and others by sending nonverbal text messages, of up to 160 characters, from handset to handset. This communication has evolved to provide a mechanism by which mobile cellular phone subscribers can communicate banking and payment instructions to providers of mobile financial services.

For example, a user could type a message in the standard format, or, more commonly, by using an application that generates the message from information that he enters.

Alternatively, the receiver can send a message to the sender, requesting payment, and the sender authorizes the payment by replying yes or no and possibly entering a password. Obopay and PayPal are leading examples of the use of SMS for mobile person-to-person (P2P) payments.

According to the report “Mobile and Alternative Payments in the U.S., 3rd Edition” by Packaged Facts, in addition to SMS, mobile phones allow users to access and browse the Internet using a form of wireless access that may include Wireless Application Protocol (WAP), a technical standard for accessing information over a mobile wireless network.

Report Details:

Mobile and Alternative Payments in the U.S., 3rd Edition
Published: November, 2012
Pages: 166
Price: US$ 3,995.00

Essentially, wireless markup language helps with information transfer, page navigation, and page presentation by reformatting pages intended for viewing on large screens (personal computers) so that they can be more easily viewed and navigated on the much smaller screens of mobile devices. For example, mobile cell phone users can visit WAP-enabled websites to, among other things, obtain sports scores, find maps, or conduct a search, all while the subscriber is on the go. This same technology is also a critical factor for many mobile financial services applications where the clear and convenient transfer of information is vital.

Additional applications using WAP can also be downloaded and installed on the mobile device. Similar to an Internet browser on a personal computer, a WAP browser on a mobile device can be used to make remote consumer-to-business payments and person-to-person transfers. Applications downloaded and installed on the mobile device can also be used to make POS payments.

More information can be found in the report “Mobile and Alternative Payments in the U.S., 3rd Edition” by Packaged Facts.

To order the report or ask for sample pages contact ps@marketpublishers.com


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