Mobile Payment Processing Systems and Analytics - Research Paper Example

These standards provide the retailers and other merchants with a clear guidance on the payment process. Kaletunc (45) asserts that this kind of payment is very complex; hence, it is plausible for an entity to indulge in it when this technology is inevitably required. In addition, there are risks associated with the interlinking of card payments through mobile devices. The Mobile payment processing entails the use of credit cards on the mobile devices to effect payments with regard to various business transactions.

Poor and Lang (37) posit that in this form of payment processing, any consumer handheld devices like the tablets and iPads can be used to effect payments. These devices can only serve as mobile payment processing devices when they get text data clearly. In fact, the consumers have the choice of providing their own mobile devices to effect payment. This has created efficiency and effectiveness in the payment processing due to the fact that the consumer traffic is eliminated and there is personal responsibility in case of any hitch in the payment processing.

However, the scenario of the consumer bringing his own device for payment processing at the merchant business location has got its challenges. For instance, the merchant cannot manage to take control of the configuration of the client device. This compromises the retailer’s service delivery and it can culminate in craftiness and fraud among clients. The ‘payment card industry data security standards’ help in guiding the payment processes when the merchant has his own mobile device to serve customers.

The standards ought to be complied with in order to avoid any inconvenience and probable fraud in the course of effecting of payment processing. This implies that the standards do not cover any eventuality pertaining to the mobile device ownership by the customers. In this regard, merchants must be very cautious and diligent while affecting the payment processing .This entails analyzing the payment processes and verifying identity of various cards presented by the clients. The point of sale payment processing is the only scenario which applies with regard to the ‘payment card industry data security standards’.

Sparck and Galliers (28) claim that square's mobile card reader technology is covered by the data security standards. The application of the mobile payment processing technology can only be successful when there is transaction security, application security and the mobile device security. There must be prevention of the customer account data from interception during the processing of payment. There must be prevention of data from interception while it is being transmitted from the mobile payment device.

This is usually ensured through the use of strong encryption codes for the effecting of payment transactions. The merchants usually protect the customer’s account data through limitation of physical access to the device during transacting time. In fact, this is affected through the use of one-on-one service delivery at the point-of-sale (MobileReference, 37). This technological application should be protected from viruses, which destroy the customer payment data. For instance, the creation of malware, spams, Trojan and recycler computer viruses have led to massive destruction of vital documents online.

This has also resulted in a total breakdown of some systems where no backup of documents