Chapter 5: Mobile Payments
1. What are the three types of mobile payments, and how do they differ?
The three types of mobile payments are proximity payment systems, branded proximity payment systems, and payments among individuals. The proximity payments are from major companies such as Apple, Google, and Samsung, which can be used at participating merchants as a point-of-sale payment. Secondly, Branded proximity payments are different from proximity payments due to their limited use to single merchantís stores, such as Walmart Pay. Finally, payments between individuals, also called P2P payments, that can be used for things like paying a friend back or making a bet, such as Venmo.
2. Who are the largest adopters of mobile payment methods? Why?
Millennials and retailers such as Walmart, BestBuy, and Target are the largest adopters. Millennials are using P2P, proximity, and branded proximity in their day to day life and account for a large amount of mobile payment technology. The proximity point-of-sale payments has grown exponentially over the last decade and although it is currently a small part of the $5 trillion of transactions, this is slated to turn around in the next decade. An example of the adopters would be Walmart Pay that has allowed the company to access their customers and have a convenient way for them to check out. There are also major banks and credit card companies that are adopting mobile payments with the advantage of having established systems and security.
3. Why are digital wallets provided by Apple, Google, and Samsung not growing as fast as expected?
Major tech companies are evolving with the times and trying to implement mobile payments into their business plan. These companies are trying to come up with ways to make their product seem attractive like not storing money with the company, free to consumers, and a lower transaction fee. However, they are not growing as fast as expected because of reasons like lack of implementation with merchants using NFC, merchants want to keep relationships, which allows them to open store credit cards, loyalty rewards, product promotions, and gather customer data.
4. What is Zelle and why did it grow so fast in the last few years?
Zelle is the response of traditional banks to fintech. This is described as digital payment services that allows bank customers to make digital payments and transfer to other account holders or receive payments. The fast growth is due to instant transfers with no delays, inclusion of over 100 financial institutions, and the fact that the transfers and payments are free for existing accounts. There is also the fact that this system is integrated into ACH for direct debit and deposit transactions and therefore allows the access of banking services without physically going to a local branch.
Most ecommerce websites are not trying to let random people change their content and keep their site practical. Websites create security protocols that prevent these types of people from entering through the back door of their ecommerce website. However, there are these types of people that look for these back doors into websites and cause chaos for ecommerce websites. Some apparent changes include: strange content, website performance, broken code, unexplained user accounts, and suspicious activity in the service logs. These types of activities, whether it be a broken website or strange content, are some of the activities that need to be watched so that they do not alter the ecommerce website. The resulting damages that could occur are that consumers will not have access to the website, stolen data, lost sales, and liabilities to anyone that suffered from this hacker attack.
Three certification authorities include: Comodo Group, Symantec, and DigiCert. Comodo is a cloud based cyber security platform that provides active breach protection in a single platform. They use something that they call the Dragon Platform which has endpoint security, managed detection & response, and network security. Another authority is Symantec which is a private certification authority that provides security and management of private intranet certificates. They also avoid expiration, risks, errors, time and hidden costs. Finally, Digicert claims that it has all certifications in a single platform that makes it easy to protect your customers and guard your brand by automating every step of the certification life cycle.