(Q4)

Question 4: Describe the value chain of the business of using cell phones as a payment method.

Mobile payment is a part of the mobile transactions and is catching the imagination of a lot of people.In the last post,this is the consumer issues. Now I am going to talk about the emerging business models in the mobile payment space and the pros and cons of each of the model.

In any payment mechanism, the key entities of the value chain are 

   

1. Merchants – accept payments from the consumers by reading the card at the Point of Sale (PoS) machine
2. Acquirers – hold merchant accounts and manage merchant payments
3. Payment networks – Connect and switch transactions between merchants & issuing banks
4. Issuers – manage consumer accounts and also take the associated risk
5. M-Wallet/Stored Value Account  – Issue and provisioning of the mobile wallet (only if case mobile payments)