this is the case with provider payment, too. Whenever I was prompted to enter my cellphone number to make a payment, I felt uncomfortable. Admittedly, the feeling was a subjective one, but when I asked round, my friends said they felt the same. The main argument against paying by cellphone number is the fact that the cellphone number is considered part of one’s private sphere, and one fears that unauthorized payments could be made with that number. This is a problem in general for this payment method. This fear is not entirely unfounded, as amendments to the German Telecommunications Act show. These are to protect consumers from unauthorized transactions by means of the so-called third party supplier stop. Once activated, no payments can be made anymore via the cellphone bill until the consumer activates it again. If no such stop is activated, purchases are billed with the cellphone bill. If the mobile service provider does not provide access to the connection log, one has to wait until the end of the transaction to see if the amount was correctly billed via the cellphone bill. The advantage of provider payment is its simplicity and anytime-anywhere availability. Whether you are using a smartphone or a Nokia dinosaur, provider payment works regardless of QR codes or NFC. But payment is about more than just technology.Trust plays an essential role. The established payment provider suppliers have built up this trust over years, some more and some less. Compared with this, provider payment is like a black hole. There is no communication whatsoever, no contact person, no consistent image or information about even where one can use provider payment. A common interface to the customer is missing. Every other payment method is easily recognizable, even if it’s just a logo. It is a bit puzzling why there is nothing similar for provider payment. Similarly, there is no customer portal in which all purchases are itemized, no telephone number to call to stop provider payment or to fix a limit. With an app for the smartphone equivalent to a customer portal. A single, superordinated wallet, not another new insular solution. Considering that provider payment does not appear in a favorable light where trust is concerned, this is a grave omission. Conclusion Provider payment, or cellphone payment, is technically flawless, fast and easy to use. However, it lacks a brand, it lacks „one face.“ There is no visible support service, no one to call, no customer platform. Payments are made – the money is gone – and the payment transactor moves invisibly behind the curtain. This „secret personality“ is what makes provider payment appear difficult. Provider payment suppliers should also try to protect users from possible abuse and advertise the advantages of this method. Provider Payment suppliers should also set up a unified standard and a single communication channel to protect consumers from abuse and to demonstrate the advantages of this payment method.
“Global non-cash payments volumes are expected to top 333 billion transactions in 2012 after transactions grew by 8.8 percent in 2011, according to the latest available data from the World Payments Report 20131 published by Capgemini and RBS.”
“The unabated rise of non-cash payments is a sign of the interconnected lives we live today. With estimates showing 8.5 percent growth in 2012 non-cash payment transactions, that’s nearly 47 transactions per year for every man, woman and child on the planet. In the developing markets, mobile payments are giving more
people access to financial transactions, while customer-centric innovation has helped prepaid cards and virtual currency gain traction in the more developed markets,” said Kevin Brown, Managing Director, Global Head of Transaction Services, RBS International Banking.
Portio research says: “Mobile payments is clearly a fast growing space, and in the next two years there will be 1 billion consumers worldwide engaging in making mobile payments. The “Mobile payments 2013 – 2017” report covers mobile e-commerce, the purchase of digital goods through in-app purchase, mobile banking and mobile remittance. Source: Portio Research
According to the market
research company “portio research” the worldwide mobile payment volumes reached 81.3 billion USD in 2011 and 202 billion USD in 2012. For this year the company forecasts growth up to 410 billion USD for the comprehensive mobile payment market, also including mobile wallet, NFC, mobile banking and remittance services. Source: Portio Research, Market & Research