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