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Micro Payment

Micro Payments are a payment system, primarily proposed for use over the internet whereby content or service providers accept small payments from customers in exchange for a correspondingly small product. It is an online transaction of a small denomination that can be used for digital content purchase such as games, music ,comics and electronic books.

Micro Payment System is an online payment system which supports charging small amounts for online content and services. Faster user response is essential if the user is to be encouraged to make a large number of purchases. It should also provide a high degree of protection against fraud making.

Mobile Payment Mobile payment offers Payment providers, aggregators, merchants and banks to offer an alternative way for their customers to make payments. For example Voda phone uks m-pay bill online payment solution enables mobile phone users to buy low-cost-items online and have them charged to their mobile phone accounts as part of VodaPhone live service. According to Voda Phone ,the motivation behind enabling mobile payments is to make the mobile phone central to the user’s life by delivering a wide range of mobile services that are easier to buy.

Benefits of Mobile Payment

Consumer Benefits

• The easiest way to pay
• Offer a fully electronic payment channel to customers.
• Avoid late fees-receive and pay bills anytime anywhere.

Merchant Benefits

• Reduce collection costs.
• Faster payment.
• Increase loyalty.

Detriment

• The fee is charged directly to the customer.

• For expensive commodities Credit cards or cards are preferred because the Credit card fee is charged to the seller, not to the customer.

• With Mobile Micro Payments, your credit is given by the Mobile Operator.

Near Field Communication(NFC) NFC is designed to operate over short distances-Usually between 4-10cms.This technology have more potential than Radio Frequency Identification (RFID).NFC is used by Network Operators, Financial institutions, Mobile Phone designers and Manufacturers as a key tool for over-the-air financial transactions.NFC provides end users with a quick and easy way to access services. Like Bluetooth, it doesn’t use a complex and unsuccessful Handshaking protocol. NFC has also been identified as a key sector for payment solutions by Amex, MasterCard and VISA. Demonstration deployments are already underway in Europe and similar contact less technology deployments are already widely used in public transport systems around the world. NFC has also been identified as a key sector for payment solutions by Amex, MasterCard and VISA. Demonstration deployments are already underway in Europe and similar contact less technology deployments are already widely used in public transport systems around the world. Mobile NFC is defined as the combination of contact less services with mobile telephony. A mobile phone with an integrated, a hardware-based secure identity token—the most likely candidate is the UICC or Universal Integrated Circuit Card— provides the ideal platform for NFC applications.

Technology

• NFC operates with an unregulated Radio frequency(RF) band of 13.56 MHz.

• The technology has two communication modes-Active and Passive. In passive mode, the initiator device provides a carrier field and the target device answers by modulating existing field. In this mode, the target draws operating power from the initiator's electromagnetic field. In active mode, both the initiator device and the target device communicate by generating their own field. In this mode, both devices typically need a power supply.The passive element's receiver is only required to acknowledge its presence when polled, confirm availability to enter communication, and acknowledge receipt of data. NFC's active mode on the other hand, requires both nodes to be engaged and negotiate the exchange.
• An NFC transaction always follows a straightforward sequence of Discovery, Authentication, Negotiation, Transfer, and Acknowledgment.

• NFC's link layer includes a secure authentication procedure and anti-collision mechanisms that preclude a third party from hacking the link.