Literature review

1.1 Contactless mobile payment ( CMP) and its characteristics

Contactless mobile payment (CMP) is now recognized as the most common electronic payment
channel across service business sectors. Gannamaneni et al (2015) defines CMP as a quick
transaction that takes place between consumers 'mobile devices and merchant ‘s point of sale (POS)
gadgets made possible by contactless technology. To be more specific, contactless mobile payment
integrates radio- frequency identification (RFID ) technology with mobile communication
technologies (De Reuver et al. 2015, Lee et al. 2015). Having followed the successful integration of
RFID contactless credit card standards into the near- field communication (NFC ) standard, users can
pay for their purchases by holding an NFC smartphone next to contactless readers in various
locations such as stores or petrol stations, rather than using their 'tap and pay' credit cards (NFC
World Forum 2015). To utilize contactless mobile payment system, users must first obtain a
contactless RFID credit card from their bank, then obtain an NFC-enabled smartphone and download
a mobile payment application to their phone. An NFC-enabled smartphone has a specific chip and an
antenna for short-range radio communication. Information regarding the owner's contactless credit
cards will be encrypted and kept in a safe region of the phone's memory. In general, CMP is simple to
use, convenient, and effective, with secure processes that are supported by uniform standards and
operational frameworks (Ruijun et al., 2010). Furthermore, it provides transparent communication
setup, mobility, and low-power energy consumption (Egger, 2013; Teh et al., 2014). As a result, it
reduces merchant and financial institution operational expenses while enhancing corporate
marketing capabilities and customer expenditure (Olsen, 2008).