There are many different forms of mobile payment ranging from the purchase of ringtones or games using a premium SMS (a higher priced message on your phone bill) to mobile contactless payment where you wave your phone in front of a retail terminal or subway turnstile to pay.

Mobile payment and mobile banking work like Internet banking/payment but instead of using your PC, you use your cell phone. You get 24/7 access to mobile banking, mobile payment, mobile wallet, mobile money transfer and other financial services, from anywhere via SMS or mobile browsing. This is made safe by storing the security part of the payment service on the SIM card which is based on the same technology as the latest bank cards and therefore adheres to the highest security standards.

The latest type of mobile payment which is already widely used in Japan combines a contactless payment credit card with your cell phone. You pay by bringing your mobile phone close to the reader at the register. It is based on Near Field Communication (NFC), a wireless standard for communicating over short distances of less than 10 centimeters. Even though you are using your cell phone to pay at the register instead of your physical credit card, you are still using the credit card account. The bill would appear on your credit card statement.

See also, What is contactless payment? and What is mobile payment?