Chad Nordean


Chapter 5


-         E-commerce Security and Payment Systems-



Case Study Questions:


1.     What are the three types of mobile payments, how do they differ?


-          There are three types of mobile payment-

§  Proximity payments-

·         Apple, Google, and Samsung are examples of this. It can be used at participating merchants as a point of sale payment.

§  Branded Proximity Payment Systems -  

·         Branded proximity payment systems use the same technology as proximity payments but can only be used at single merchant stores, such as Walmart, Target, and other large name companies.

§  P2P Payment Systems-

·         P2P payments can be used to transfer funds among users who have installed a proprietary app, such as Venmo or Zelle Quick pay.



    Overall, these are the three different mobile payment methods and how they differ from one another!


2.     Who are the largest adopters of mobile payment methods? Why?


-          The largest adopters are millennials. Millennials have grown up with technology and feel really comfortable with it. Millennials also have stopped using other forms of payment such as checks. Millennials are very comfortable with handling their transactions over the phone and are also very comfortable with having their phone remember all of their information. Overall, Millennials have are the largest adopters of mobile payment methods and are the largest adopters due to being comfortable with technology as well as the fact that they don’t use checks anymore.



3.     Why are digital wallets provided by Apple, Google, and Samsung not growing as fast as expected?


-Digital wallets provided by Apple, Google, and Samsung are not growing as fast as expected due to a few reasons. Even though it has a high adoption rate, the adopters are not using them as frequently as they should. It is proven that only 30% use it frequently. Most of the reason why users are not using the wallet is because stores are slow to adopt the new NFC equipment. Users are finding regular debit and credit cards to still be more convenient and this is causing the slow growth of the digital wallet that is provided by Apple, Google, and Samsung.


4.     What is Zelle and why did it grow so fast in the last few years?


-          Zelle is a digital payment service that allows bank customers to make digital payments and transfers to other account holders using an app and to receive payments from other. Zella allows the bank customers to easily manage their money. Zelle has grown fast in the last few years due to the fact that the payments are instantaneously. This has attracted millions to the platform. Unlike Venmo and PayPal, Zella was the only one with “quick pay”.  Zella was also adopted by many banks nationwide and is widely available. These factors contributed to Zelle’s success.


Project Questions:

1.     Imagine you are the owner of an e-commerce Web site. What are some of the signs that your site has been hacked? Discuss the major types of attacks you could expect to experience and the resulting damage to your site. Prepare a brief summary presentation.

-The owner of an e-commerce website can see signs to determine if the website was compromised. A couple key statistics you would be able to look at include the number of users, the location of the users, and if content is missing. One other really common sign of a website being compromised would be if URL’s do not work, or if information on products or services seem to be changed. If I had my own site I could be attack by a couple of major things. 1. Viruses, 2. Trojans, 3. Other forms of malware.

Malware is able to crash websites, delete data from the website, change files, and steal customer information. Other things malware can do it create spam and make fake purchases.

If your website is attacked it could be devastating for the company. It will ruin the trust with your customers and also tarnish your name. You also may be sued and it will affect reliability and review ratings.

2.     Given the shift toward m-commerce, do a search on m-commerce (or mobile commerce) crime. Identify and discuss the security threats this type of technology creates.


-          M-commerce, mobile online shopping, has seen a dramatic increase over the last few years. As technology becomes more efficient and more large companies start to focus on it, the ability to buy online has increased. With all of the shift towards m-commerce there are some very serious security threats that come along with it. Some of these security threats include cellular and wireless mobile devices being stolen and mobile applications lacking the proper authentication methods.

Things to be careful of:

-          Risky access codes

-          Unsecured WIFI

-          Viruses and malware

-          And encryption hacking.

Overall, just be careful, dont trust every website or WIFI connections and add as many authentication codes as the mobile device will allow!