E-commerce Security and Payment System
Case Study Question
1. What are the three types of mobile payments, and how do they differ?
A. Mobile wallets
††††† Because of mobile wallets, we can leave our physical, thick and big wallets in our home. As long as we create our mobile wallet and register the form that we are guaranteed to keep it safe and use those, we can just use application on the smartphone to use the mobile wallet.
B. Mobile payments with a credit card
††††† In terms of swiping/ inputting credit card when customers pay for their purchase, this will be the most familiar way to pay. Dongle is a machine that let us pay physically on mobile device. Once Dongle is plugged in the headphone jack, customer is able to swipe or input the card physically. It will be cost-efficient for not only small business owner but also just one individual who is not familiar with online payment. Because fees tend to be nominal and flexible based on the transaction frequency of business.
††††† It is really simple to use. Moreover, it is no needed to invest for sale terminals that a business has a complicated and sophisticated foundation. Payment Card Industry (PCI) is their method to manage the risk from handling sensitive customer data. Therefore, they can guarantee safety by encoding during transaction process.
††††† The mobile payment allows for customers to pay conveniently with their physical credit card or manage events such as trade shows, festivals at other farther and random places. However, customers have to carry their credit card all the time whenever they make a payment.
C. Digital wallets
This is a same type of payment with mobile wallet. Digital wallets however, is differentiated from mobile payment because it does not require for customers to bring their wallet or credit card all the time. For instance, Paypal is a good example of this digital wallets. Unlike a mobile payment transaction, customers need to initiate the transaction first, then they can decide the payment process. When seller use mobile or wallet to get paid, they are no needed to handle any processing.
Even though mobile payment technologies offer the convenience in points of businesses and customers, there are slightly different based on the purpose and capability. Identifying the different types of mobile payment will help customer and merchants for their businesses.†
2. Who are the largest adopters of mobile payment methods? Why?
A. ††† According to the survey in the United Kingdom, United States and Australia, the members of ETA in terms of Transaction Network Services called TNS, they responded that 59 percent of American prefer to use mobile payment apps and 52 percent of British and Australian consumers responded that they prefer mobile payment apps.
The answer was differentiated based on age. For consumers aged between 16 to 24, 70 percent of them responded that they are likely to use mobile payment application on their mobile devices. For consumers aged between 25 to 34, 73 percent of them respond same as aged between 16 to 24 group. On the other hand, only 28 percent of surveyed consumers aged between 55 to 64 group preferred to use mobile payment app. 80 percent of young American aged between 25 to 34 showed the highest adoption of mobile payment.
††† There is another payment method was popular which is wearable contactless payment types. Approximately 44 percent of people in United States, United Kingdom and Australia have potential to make a payment by using wearable contactless payment such as a ring, bracelet and smartwatch. However, 64 percent of American consumer responded that they do not prefer to use contactless payments by using wearable contactless payment.
††† In conclusion, the usage of wearable contactless payment method less than usage of wearable contactless payment in United Kingdom and Australia. They would prefer to use mobile payments. According to the survey, 60 percent of American consumers make at least one wearable contactless payment each week. On the other hand, 79 percent of British and 75 percent of Australians make at least one wearable contactless payment each week. Both the UK and Australia show higher adoption of dual-interface contactless bankcards. However, majority of American use banks including JP Morgan Chase, Bank of America and American Express.
3. Why are digital wallets provided by Apple, Google, and Samsung not growing as fast as expected?
A. Inconsistent experience of Modern mobile payment
These days, consumers have so many choices to choose their mobile payment such as Samsung Pay, PayPal, Visa Checkout, Apple Pay, bank-branded mobile wallets from the banks and etc. It is good that we have many different choices to choose, however, due to the fact that it is so diverse, consumers feel overwhelmed to use rather than they are happy about it. What consumers are looking for is that something is easy, convenient and ubiquitous. According to Karen L. Webster, CEO of PYMNTS.com, there are so many websites that is covered with E-commerce and digital payments. He said that consumers want an account that is smart enough to apply every promo code or any discount and even memberships and automatically check out by itself.
4. What is Zelle and why did it grow so fast in the last few years?
A. Zelle is person-to-person mobile payments that is offered by bank that the customer use. More than 30 major banks in United States offer this mobile payment. Users can use this payment methods by downloading bank app on your smart devices. However, Zelle is little different from Venmo. Using Venmo to transfer money from one account to another account, it requires account numbers for the first transaction, and these transactions need several business days. However, Zelle does not require any account number or information. Furthermore, it just takes few minutes to transfer money from one account to another. To transfer money from one account to another for the first time, users are just required to know phone number or email address of the person whom he or she is sending money to. Once a person transfer money, then the recipient will receive a text or email that notify the recipient that he or she has something to receive along with link to accept the money. If the recipientís bank is linked as partnership with Zelle, the user is simply needed to register for using the service through their bankís website or mobile app including usersí email address or phone number. Once the information registered, recipients can receive the payment right away. Except the first time using, it will be taken just few minutes; the first time using might cause three days of business days. Even if recipientsí bank is not participating member, they are still able to receive the payment by downloading the Zelle mobile app by registering with their email address or phone number and a debit card number to receive the payment. Zelle offers significant advantages to both banks and customers. However, the key of success for banks is depends on not only in where millennials make payment but also where they are spending their time. Zelle falls short as a solution that be able to capture and also firmly hold onto the engagement of the millennial market into Facebook, Snapchat and their own financial services.
††††††††††† If there is any activity that shows some message on the website that cannot be from the local area means that it has been hacked, or if there are references to some other websites than all these manes that the site has been hacked. There are various and different types of online attacks. Some attacks are designed for system down or some attacks are designed to steal information from rival companies. For example, SQL injection attacks, the hackers can change or modify the websites whenever they want and how they want to change. Moreover, there is no notification about the payment. Another example is XSS scripting. What it does such as rejection of access controls, modifying the administrator rights, modification of the information on website and so on.
††††††††††† An increase in online shopping through many different mobile apps and payment gateway, however, it also showed increase online payment crimes. These crimes have dramatically increased. Some serious security threats have been occurred because of emergence of M-Commerce culture. For instance, simply Viruses and malware. Since we have used internet. We are all way exposed to be infected cyber viruses. Since we are using wi-fi, we are also exposed to unsecured wi-fi.† Theft of Digital certificates is that sending personal and private information to another person by hacking. Furthermore, it is possible that some who knows their password and ID pretend that he or she is the user and get information or money from the bank.