Mobile Payment Model Analysis

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Mobile Payment Models

Although several mobile payment efforts exist, still today there is no dominating mobile payment model in the market. Karnouskos and Fokus (2004) presented a number of models. Some of the models they described included:
Acquirer-Centric vs. Issuer-Centric: Where the merchant and his agent are in charge of handling the interactions with the mobile device. Such approaches usually depend on a mobile-specific protocol and require specific capabilities from the user (mobile device) and merchant side. Systems based on dual chip or dual slot fall within this category. In issuer-centric models the customer and his agent are in charge of handling the interaction with the mobile device while the merchant may be totally unaware
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MNO-Centric: Banks have been in control of financial transactions for a long time, acting as issuing banks (owning customers‟ accounts), acquiring banks (owning merchants‟ accounts), and clearing houses (clearing and settling transactions between the issuing and acquiring banks). Mobile network operators (MNO) are quite new to this business. Their billing systems have been used until today for billing customers solely for the mobile services they offer within their network. That has been changing lately with pre-paid accounts and emerging data services, where content is produced and provided by third…show more content…
Although new mobile payment systems have been increasingly introduced in Asia, Europe and the United States, their adoption has remained modest. Little research has been conducted to examine and explain adopters‟ views on the new payment technology. In this article, we explore merchant adoption of mobile payment systems empirically and discuss factors that drive and inhibit their adoption.
Our results suggest that the main adoption drivers are related to the means of increasing sales or reducing the costs of payment processing, whereas the barriers to adoption include complexity of the systems, unfavorable revenue sharing models, lack of critical mass, and lack of standardization. Based on our findings, we propose a conceptual framework of adoption enablers, drivers and barriers with propositions to guide future research in this emerging area. Implications for practice and means to overcome the barriers are suggested.
Mobile Payments in Kenya According to Mbogo (2010) Micro-business enterprises in the developing world are increasingly deploying the use of mobile payments to enhance the quality of their services and increase growth. The pace of transformation in the micro business sector has speeded up with more micro businesses realizing the potential of using the mobile payments in their service

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