| There are entities involved in the mobile | | | | in the mobile payment process. |
| payments process | | | | |
| | | | Taking it one step further, an entity that is |
| | | | both a PSP and TTP can also offer goods or |
| | | | services for sale as a merchant. In this case |
| 1. Merchants that sell products or services | | | | there are 2 entities involved in the mobile |
| and allow customers to pay by cell phone | | | | payment process. An example of this would be |
| | | | a cell phone company that sells goods or |
| 2. Customers who buy from the merchants using | | | | services to its customers and allows them to |
| their cell phone as payment. | | | | pay using their cell phones. |
| | | | |
| 3. Payment Service Providers (PSPs) that are | | | | The customer buys the goods or service and |
| responsible for the payment process. The PSP | | | | authorizes payment via the cell phone. The |
| controls the flow of payment transactions. | | | | customer is registered with the PSP which |
| Banks, credit card companies, network | | | | authorizes payment. For example, a customer |
| operators or independent payment vendors act | | | | is that received their cell phone service is |
| as a PSPs | | | | already registered with their mobile network |
| | | | provider. |
| 4. Trusted third party (TTPs) authorize the | | | | |
| transactions and settle the payment. | | | | The merchant sells to the customers. The |
| | | | merchant sends the purchase requests to the |
| A PSP and a TTP can be the same entity. For | | | | PSP and relays authorization requests to the |
| example, a bank or mobile network operator | | | | customer. When the sale is authorized, the |
| can function as both PSP and TTP. In this | | | | merchant provides the goods or services to |
| case, there would be only 3 entities involved | | | | the customer. |