In theory, the concept of mobile payments has a strong business case, given the high market penetration rates of mobile devices, such as cellular phones and PDA?s, in many parts of the world. In addition, mobile operators and financial institutions, through the use of these devices, envision an attractive way to enable their customers to make payments. On the consumer side, users can reap the benefits of convenience, permitting them to buy goods and services from any location.
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Imagine you are on travel and suddenly you remember that it is the last day for paying your insurance premium. Well it not a problem for you because you have got mobile payment facilities in your phone. Mobile payment facilities are all about making payments from your mobile phones or PDA devices. The payments are made using different technologies such as Bluetooth, WiFi, Infrared data transmission and RFiD. Technologies such as Bluetooth and Infrared are tested but a lot needs to be done when it comes to using these technologies for use in mobile payments. Mobile payments have already started picking up in North America, Europe and the tech savvy counties in Asia.

One of the most important factors in mobile payments is the security. It is possible that hackers may try to hack your passwords when you are transmitting it from your device to the merchant’s payment processor. It can happen at different layers so the PKI or public Key Infrastructure encryption is necessary to be implemented in digital wireless networks which facilitate mobile payments. Mobile payments are charged at a higher rate by Credit Card companies to the merchants who are giving this facility to customers. One of the reasons is the high risk involved in these transactions. Inspite of the constraints involved mobile payments are here to stay. With people becoming more and more pressed on time mobile payments will give them the facility to make payments while on the move. It is only advisable that you acquaint yourself fully with the usage options before starting transactions.