Mobile payment gateway solutions have already been implemented internationally by BROKAT, in Europe and South East Asia. A payment gateway clears financial transactions between participants such as consumers, businesses and corporates on the one hand and institutions such as banks and credit card holders responsible for managing money and credit on the other hand. " In addition to the conventional modes of payments such as instructions for funds transfer and credit card payments that are supported by the payment gateway, a mobile payment gateway also enables payments that may be made from a number of different mobile systems or personal information devices", Mr Rajagopal said.

These are increasingly finding favour amongst people, for the convenience of use as computing and information devices that can be used anytime and anywhere, he said. A traditional payment gateway fulfills exacting requirements for confidentiality and privacy, by communicating with the different participants such as consumers and banks using encryption over dedicated links or digital certificates over public networks such as the Internet. Though the security arrangements remain the same, a mobile payment gateway must solve many practical problems to fulfill the same role for mobile stations and devices.

For example, the mobile gateway should be able to recognise and authenticate a roaming payment terminal such as a mobile phone and verify the user's identity. Again, the same consumer, who uses his Palmtop to make routine purchases may perform a large funds transfer by more conventional means. Therefore, the mobile payment gateway must encompass the recognition of a single customer for different modes of payment. Another scenario is possible, where the mobile phone operator, who is beginning to enjoy increasing proximity to the customer, can act as a clearing house for all payments.