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Published on August 14th, 2010 | by Arsalan Mir


Mobile Payment Schemes

We have time and again touched on Payments using mobile phones as a very potential mobile financial service opportunity. Recently I was going through white papers at Juniper Research on this topic. It defines mobile payments as “payment for goods or services with a mobile device such as a phone, Personal Digital Assistant (PDA), or other such device”. While talking about the mobile payment schemes it describes the two methods on basis of mobile user location and the merchant.

  1. A remote mobile payment is when the storefront or retailer is remote to the mobile phone user, e.g. paying for digital goods by PRSMS (premium rate SMS) or physical goods via a mobile web enabled retailer.
  2. A POS (Point of Sale) or proximity mobile payment is when the storefront or retailer is physical and the user is located at or near to the storefront or retailer.

The remote mobile payments can further be classified into two segments:

  • Remote Digital: this is defined as remote purchases of digital goods and services via a mobile device, which is also the point of delivery. Examples include music (ringtones), SMS/bar code tickets and games, with prices typically between a few cents and $20.
  • Remote Physical: this is defined as remote purchases of physical goods and services via a mobile device – examples could include almost any consumer items from clothing to electronics equipment to books and CDs. Payment is usually handled via credit card and basket sizes are typically much larger than for remote digital goods.

We do have examples of a few such operations in Pakistan but they still need to be evolved to their fullest. Lets take a look at the possibilities of various mobile payment schemes in these segments.

Can you can relate any of the above 8 schemes to the services offered in Pakistan. Leave you answer in comments.

[Referance: JR Whitepaper]

PTA has been directed by the Sindh High Court (SHC) to come up with comprehensive laws as soon as possible, for the guidance of service providers as to how to curb uploading of objectionable stuff on the internet.

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About the Author

is a Telecom enthusiast with engineering background based in Lahore. On professional front, he is the Director Operations at the Target Group. He can be reached at arsalan (at) telecompk (dot) net

7 Responses to Mobile Payment Schemes

  1. Naveed says:

    I am looking for same kind of solution to collect payments from mobile phones.
    I was doing some research for Premium SMS numbers but still couldn’t find one for myself.
    Can any one guide me if there is any service available for Paksitan.

  2. abid ali says:

    i am doing research on m-payment models and will conduct survey so anybody who have expertise in this arena should contact with me.

    Abid Ali

  3. waqar says:

    arslan i think this could be lobbyed to have it in Pakistan through mainstream media. and for my i can do a story on that wiht yuor expert opinion. you just need to send me your contact details.
    waqar hamza
    telecom reporter
    Pakistan Today

  4. Arsalan Mir says:

    Faisal, I believe you are talking about a mobile financial transaction switch similar to 1-link used for e-banking/ATMs.

    If so, yes, right now we do not have such switch in Pakistan. But, I guess the banks/financial solution providers are working on the idea and once the mobile banking penetration increases this has to come to surface.

  5. Faisal Khan says:

    You also have to consider that we don’t also have a financial services ‘router’ so to speak. Payment from Easy Paisa cannot be routed to say UBL Orion, or MCB Mobile to VISA’s network, of from PayPal to a Saving Account in Lahore, a financial settlement / routing switch is so very missing in Pakistan.

  6. Pingback: Tweets that mention Mobile Payment Schemes : TelecomPK --

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