The notion of mobile wallet is not new and can be provided through different payment processing models.
- Mobile-based billing– An individual generally receive/sends payment through their mobile service provider.
- SMS-based transactions– This involves initiating transactions by sending an SMS short code. The payment can be debited/credited from the configured bank account, mobile service or credit card.
- Mobile web payments– enable users to receive/send payments through a mobile app. Near-field communications (NFC) – In this case, a special hardware in the mobile device and a mobile app relate with a payment-processing terminal.
The article mentions that back " in 1997, the brand Coca Cola introduced a few vending machines in Helsinki that allowed consumers to buy their drink through text message. By 2003, about 95 million cell phone users had made a purchase using their mobile device. "
Nowadays, the two major players are Google and Apple with Android Pay and Apple Wallet that enable customers to make payments as well as storing their digital coupons, loyalty cards in their smartphone as a real wallet.