Mobile payment is simply the capability to pay for a product or service using your mobile phone. Mobile payments can take place over the Web or can be completed in the offline world through contactless payment options such as Near Field Communication (NFC) and Radio Frequency Identification (RFID).
All mobile payments fall into one of two camps, micropayments or macropay-ments, depending on the size of the transaction and how the payment is processed. As in nonmobile commerce, processing credit card payments (especially macropay-ments) usually requires that the merchant pay the credit card company a fee for each transaction, usually between 20i and 50i. Credit card processing thus cuts into the margins of many mobile commerce solutions and must be figured into your business plan. You should also balance the potential revenue from mobile commerce with the credit card processing fees, as well as other hard costs and overhead that will be required to complete the transactions.
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