Payment System Model in Retail Stores Through POS Terminal Using Mobile Banking

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Addis Ababa University


The development of electronic payment system enables faster pay-outs and reduced time use. Mobile technology is revolutionizing the financial industry. Mobile banking is one of the approaches to the provision payment for goods and services. In most country all over the world POS payment machine is widely used with the retailing firms especially supermarkets. Customers spend a lot of time in the queue without doing anything when purchasing a product from the supermarket especially during holidays or peak times. Many researchers have been introduced solutions which can improve electronic payments on retail store such as contactless card, contactless connection on mobile payment technology like RFID stickers, NFC, remote mobile payment systems (SMS or USSD), 2D barcodes with mobile (smart) phone, mobile Point of Sale (mPOS) and security but no research has been done using mobile banking to improve the efficiency of retail payment system; limited for retail sales service. The aim of this research was to design a system model for a card payment with a POS terminal using mobile banking used in a retail store for saving service time. The literature review forms a comprehensive overview of payment system in retail store, mobile banking and POS payment machine technologies. Data were collected by observations of checkout processes at Shoa Shopping Centers in the Addis Ababa area and the system model developed with Java programming language and MySQL. The solution has done main modification on the supermarket and mobile banking applications. The model has eight components and out of them five components namely Mob-Pop, Mobile Banking, Supermarket POS, POS Payment Machine and Payment Switch have a significant role to yield an efficient payment system that can caused an optimized service time saving on checkout process in a retail store. An Expert review and a prototype have used during the evaluation. Results showed that the speed of checkout process increased more than 50% fast, if proper functioning is ensured by the banks and supermarkets, although customers also want to learn how to use the new payment technology.



Mobile Banking, Pos Payment Machine, Otp, Mob-Pop, Payment Switch, Supermarket Pos, Payment Model