After two-factor authentication involving a PIN and One-Time-Password (often abbreviated as OTP), the consumer's mobile account is charged for the purchase.
A Multimedia Messaging Service can also deliver barcodes which can then be scanned for confirmation of payment by a merchant.
The consumer uses web pages displayed or additional applications downloaded and installed on the mobile phone to make a payment.
It uses WAP (Wireless Application Protocol) as underlying technology and thus inherits all the advantages and disadvantages of WAP.
The use of mobile payments in developing countries has attracted public and private funding by organizations such as the Bill & Melinda Gates Foundation, United States Agency for International Development and Mercy Corps.
Mobile payments are becoming a key instrument for PSPs and other market participants, in order to achieve new growth opportunities, according to the European Payments Council (EPC).