The first question is, are you using the consumers’ phone or not. Is the consumer physically present and looking to pay with their phone? If no, then this is a mobile point of sale.
Mobile point of sale: best-known players in this market are square, iZettle and the suchlike. They take the card terminal, shrink it down and allow it to associate with your mobile phone (your mobile phone is really just a computer). The problem they were really solving with mobile point of sale is less around mobility, although that definitely helps for scale, and more around expanding access to credit card acceptance. Because accepting cards as a merchant is quite expensive. Terminals are expensive, and there are a lot of fixed and ongoing fees. So the mobile point of sale has solved this problem by making taking card payments accessible to anyone with a mobile phone, and it works anywhere you have a data connection.
If yes, it is the customer who is using their phone to engage in payment, then we need to look at how this payment is made secure. The first option is security comes from the phone itself. Taking the phone, tapping it against something and making a payment is called ’Contactless’ or NFC.Near field communication – like when you tap into the tube in London.
If the secure element is not in the phone then we’re in the cloud. The key question here is whether you’re buying a good or service. If the answer is no, then we’re talking about mobile banking. Mobile banking belongs in its own separate category but gets lumped into mobile payments. Particularly big in the developing world where people can bypass bank accounts and use mobile banking to transfer money from peer to peer. Let’s pop mobile banking to the side for now.
If you are buying a good or service, then we’re talking about m-commerce or mobile commerce. This is where Judopay really focusses.