QR code payments QR code is a square two-dimensional bar code. QR codes have been in use since 1994. Originally used to track products in warehouses, QR codes were designed to replace the older one-dimensional bar codes. The older bar codes just represent numbers, which can be looked up in a database and translated into something meaningful. QR, or "quick response", bar codes were designed to contain the meaningful information directly in the bar code. QR codes can be of two main categories: • The QR code is presented on the mobile device of the person paying and scanned by a POS or another mobile device of the payee • The QR code is presented by the payee, in a static or one time generated fashion and it is scanned by the person executing the payment Mobile self-checkout allows for one to scan a QR code or barcode of a product inside a brick-and-mortar establishment in order to purchase the product on the spot. This theoretically eliminates or reduces the incidence of long checkout lines, even at self-checkout kiosks.
Cloud-based mobile payments Google, PayPal, GlobalPay and
GoPago use a
cloud-based approach to in-store mobile payment. The cloud based approach places the mobile payment provider in the middle of the transaction, which involves two separate steps. First, a cloud-linked payment method is selected and payment is authorized via NFC or an alternative method. During this step, the payment provider automatically covers the cost of the purchase with issuer linked funds. Second, in a separate transaction, the payment provider charges the purchaser's selected, cloud-linked account in a card-not-present environment to recoup its losses on the first transaction.
Audio signal-based payments The audio channel of the mobile phone is another wireless interface that is used to make payments. Several companies have created technology to use the acoustic features of cell phones to support mobile payments and other applications that are not chip-based. The technologies like
near sound data transfer (NSDT), data over voice and
NFC 2.0 produce audio signatures that the microphone of the cell phone can pick up to enable electronic transactions.
Direct carrier and bank co-operation In the T-Cash model, the mobile phone and the phone carrier is the front-end interface to the consumers. The consumer can purchase goods, transfer money to a peer, cash out, and cash in. A 'mini wallet' account can be opened as simply as entering *700# on the mobile phone, presumably by depositing money at a participating local merchant and the mobile phone number. Presumably, other transactions are similarly accomplished by entering special codes and the phone number of the other party on the consumer's mobile phone. In Switzerland,
TWINT offers the same function.
Magnetic secure transmission In
magnetic secure transmission (MST), a smartphone emits a magnetic signal that resembles the one created by swiping a magnetic credit card through a traditional
credit card terminal. No changes to the terminal or a new terminal are required.
Bank transfer systems Swish is the name of a system established in
Sweden. It was established through a collaboration from major banks in 2012 and has been very successful, with 66 percent of the population as users in 2017. It is mainly used for
peer-to-peer payments between private people, but is also used by churches, street vendors, and small businesses. A person's account is tied to his or her phone number and the connection between the phone number and the actual bank account number is registered in the internet bank. The
electronic identification system
mobile BankID, issued by several Swedish banks, is used to verify the payment. Users with a simple phone or without the app can still receive money if the phone number is registered in the internet bank. Like many other mobile payment system, its main obstacle is getting people to register and download the app, but it has managed to reach a
critical mass and it has become part of everyday life for many Swedes. Swedish payments company
Trustly also enables mobile bank transfers, but is used mainly for business-to-consumer transactions that occur solely online. If an e-tailer integrates with Trustly, its customers can pay directly from their bank account. Unlike Swish, users don't need to register a Trustly account or download software to pay with it. The Danish
MobilePay and Norwegian
Vipps are also popular in their countries. They use direct and instant bank transfers, but also for users not connected to a participating bank, credit card billing. In India a new direct bank transfer system has emerged called as
Unified Payments Interface. This system enables users to transfer money to other users and businesses in real-time directly from their bank accounts. Users download UPI supporting app from app stores on their Android or iOS device, link and verify their mobile number with the bank account by sending one outgoing SMS to app provider, create a virtual payment address (VPA) which auto generates a QR code and then set a banking PIN by generating OTP for secure transactions. VPA and QR codes are to ensure easy to use & privacy which can help in
peer-to-peer (P2P) transactions without giving any user details. Fund transfer can then be initiated to other users or businesses. Settlement of funds happen in real-time, i.e. money is debited from payer's bank account and credited in recipient's bank account in real-time. UPI service works 24x7, including weekends and holidays. This is slowly becoming a very popular service in India and is processing monthly payments worth approximately $10 billion as in October 2018. In Poland the
Blik mobile payment system was established in February 2015 by the Polish Payment Standard (PSP) company. To pay with Blik, you need a smartphone, a personal account and a mobile application of one of the banks that cooperate with it. The principle of operation is to generate a 6-digit code in the bank's mobile application. The Blik code is used only to connect the parties to the transaction. It is an identifier that associates the user and a specific bank at a given moment. For two minutes, it points to a specific mobile application to which - through a string of numbers - a request to accept a transaction in a specific store or
ATM is sent. Blik allows you to pay in online and stationary stores. By the Blik, we can also make transfers to the phone or withdraw money from ATMs. == See also ==