What is M-Payment?
M-payment is a real-time payment that is made with the use of a mobile device. Formally known as a mobile payment, the m-payment involves submitting an electronic remittance for an outstanding bill. Cell phones, smartphones, and personal digital assistants are all utilized as the means of making an m-payment. The earliest generation of the m-payment was made possible by the creation of wide area networks that would make use of the Internet to connect the customer with the vendor. However, making m-payments in the early days was a rather cumbersome process. In order to make a payment, the customer normally had to pay a charge to the service provider before using handheld devices to submit the payment. Along with the charge, it was often necessary to enter a long numerical code in order to complete the transaction. At this juncture, the process did not hold much in the way of convenience for the consumer, although the ability to make a payment by way of a cell phone or similar device was
How does it work? Does it already exist in other countries? How can money launderers, criminals, and terrorists exploit this technology to hide their illicit activities? Most importantly, what steps can the United States and other countries take to curtail the potential abuses of m-payment? “Some of the most innovative are electronic payment products which include mobile payments or m-payments … Driven by a remarkable convergence of the financial and telecommunications sectors, the rapid global growth of m-payments demands particular attention. M-payments can take many forms but are commonly point of sale payments made through a mobile device such as a cellular phone, a smart phone, or a personal digital assistant (PDA).” -INCSR, March, 2008 The Virtual Wallet M-payment (mobile payment) is synonymous with the terms m-commerce, m-accounts, m-wallet, m-banking, e-money, or digital cash. For the sake of this article, the more widely accepted term “m-payment” will be used. The best way to
