Mobile for payment

Mobile technology is changing the way in which people and businesses buy and sell goods and services. In-store retail payments continue to be an innovative area and mobile is at the centre of these initiatives.

Mobile payment

Mobile can be used to pay for goods, services, digital content, transit and for person-to-person transfers at physical (point-of sale terminals) or remote (internet transactions) locations. Payments can be initiated via NFC chip, SMS, QR code and cloud technology and funded by credit or debit card, bank account, charged to mobile phone bill, or with a prepaid account.

Mobile contactless payment

Supported by all the major handset manufacturers, near field communications (NFC) is the most widely used mobile technology for payments at point-of-sale (POS) terminal, which are used in the same way as contactless cards. While for the past five years NFC payment services have been piloted and commercially launched around the world, it is now that the right conditions are in place for NFC services — significant smart phone penetration, the app store ecosystem, more than 240 NFC-enabled mobile device models, and the proliferation of contactless card payment terminals.

SIM secure element for secure mobile payment

The SIM secure element solution for mobile contactless payments is based on the provisioning of smart card payment applications, including the sensitive payment credentials, inside the SIM secure element. The payment app performs the contactless payment transaction with the NFC payment terminal, which acts like a contactless payment card with the terminal. A mobile app also resides on the handset (outside of the secure element) which provides the user interface to the consumer, while the transaction is managed by the application running in the SIM.

This type of mobile payment solution allows issuers and card schemes to work with mobile operators to install their payment app on the SIM through the mobile operator’s TSM. Once provisioned, the issuer uses their TSM to manage the payment credentials within their payment app. To simplify the provisioning of NFC payment applications, mobile network operators and third parties (such as the cards schemes or consortia of issuers) created TSM hubs and the common TSM for issuers to connect to all operators in a given market.

Resources and information

For further information on the GSMA’s work in mobile payment, please visit our Resources and Information page.

Contact us

For more information, please contact Digital Commerce at the GSMA. GSMA Members can visit the GSMA Infocentre to access information on the working groups involved.

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