The Better Business Through Writing Solution:
Are the United States and Europe destined to be economic also-rans to countries that
have learned to use cellular telephones in place of cash or credit cards? Commonly
known as mobile payment or m-payment, mobile phone-based payment systems have evolved
in recent years. Initially, a voice connection or a text message was required to initiate
and settle a transaction, but today's m-payment customers simply wave their phones over
a sensor to complete a purchase on the spot.
M-payments are big, popular businesses in Japan and Korea, used for millions of transactions
a month. Everything from restaurant bills to convenience-store goods to cinema tickets are
purchased with this technology. M-payments have a lot to offer consumers and companies:
easier and faster checkout, lower transaction and operational costs, and built-in passwords
that ensure a customer's security.
But although they have features that could transform the purchasing experience, these systems
have so far failed to spark much interest in the U.S. and Europe. The reasons reveal a great
deal about the prospects for innovative financial services, and about the underlying nature
of telecommunications evolution. |
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Old copy:
For most of the world, turning the dream of mobile payments into reality has long met with
frustration. M-payment - shorthand for using a cell phone to pay for goods and services -
has morphed over the years. In its early form, it involved using a voice or SMS connection
to initiate and settle a transaction; lately it has evolved into a far more convenient
process that turns cell phones into one-step instant payment devices. Customers simply wave
their phones over a sensor and the transaction is completed on the spot.
For consumers, mobile payments mean no more fishing for credit cards or cash, and, with
prepaid services, no more monthly bills to worry about. M-payments are catching fire in
Japan and Korea, but have so far failed to spark much interest in Europe and the U.S. The
efforts in those two regions have faltered mainly for two reasons: The technology wasn't
in place, and the stakeholders - banks, credit card issuers, handset makers, and
telecommunications companies - have worked at cross purposes.
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