Mobile purchasing
Mobile Purchasing[1][2][3] refers to payments made from mobile phones, through network operator, without involving credit or debit card transactions.
Processing of payments
The processing of payments in Mobile Purchasing is through traditional mobile payment techniques. The customer can buy products through WAP from a mobile website by clicking on a specific link, or may donate money by sending an SMS to a specified common short code. The payment is then made through the mobile network operator, who will add the payment made, along with a processing fee, to the buyer's phone bill.[1][4]
Advantages
Mobile purchasing extends purchasing opportunities to even those who do not have a credit or a debit card. Some customers may even prefer mobile purchasing over credit or debit card transactions, as it can be quicker and simpler compared to the latter.
Disadvantages
One of the main disadvantages of mobile purchases is their lower payout rates compared to credit card based payments, because of VAT and other taxes:[5][6]
- Credit cards / PayPal: Between 80% and 90%
- Premium SMS: Between 45% and 60%
- Payforit: Between 45% and 89%
References
- 1 2 http://www.mxtelecom.com/uk/payforit Mobile Purchasing with Payforit
- ↑ "Consumers are becoming more confortable with mobile purchasing". YouTube. 2010-08-25. Retrieved 2013-09-15.
- ↑ Wed, 09/01/2010 - 1:15pm. "Universal Mobile Payments in a Fragmented App Market". Wirelessweek.com. Retrieved 2013-09-15.
- ↑ Texting in your campaign donation?
- ↑ "Why are the payout rates lower than expected on some operators? : Bango Customer Services". Support.bango.com. Retrieved 2013-09-15.
- ↑ Payout rates from one of the major billing aggregator, Bango Archived September 17, 2010 at the Wayback Machine