Process of Mobile Payment

In this post, we outline the key entities involved in a mobile payment transaction and the steps necessary to complete the process. The steps below describe the sequence of events that take place during a mobile payment transaction:

Step 1: Customer Places Order The customer selects goods or services from a trader and places an order.

Step 2: Trader Transfers Order to Payment Service Provider Once the order is placed, the trader securely sends the order details to the chosen payment service provider via the Internet.

Step 3: Customer Authentication The customer authenticates their identity with the payment service provider to ensure secure processing of the transaction.

Step 4: Transaction Authorization Request The payment service provider formats the transaction details and securely routes the payment authorization request through its gateway to the customer’s bank. The bank then reviews the request and either approves or declines the transaction.

Step 5: Merchant Informed of Payment Status The merchant receives information on whether the payment was approved or declined by the bank.

Step 6: Funds Transfer for Successful Transaction If the payment is successful, the customer’s bank transfers the requested amount to the merchant’s bank account, completing the transaction.