Pavel Mikhasenok

ITS 380

CH 5 E-commerce Security and Payment Systems


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

There are three types of mobile payment. First, proximity payment systems like Apple Pay, Google Pay, and Samsung Pay Ė they can be used as point-of-sale payment at participating merchants. Second, are branded proximity payment systems that also use proximity technology but only can be used at single merchantís store like Walmart Pay. Third, is a P2P payment that uses mobile apps like Venmo or Zelle Quick Pay.

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

From a user perspective, the largest adopters of mobile payments are millennials. Millennials are more comfortable using their smartphones to handle their financial transactions, rather than using checks. Millennials are three times more likely to use mobile payment methods.

From a retailer or merchant perspective, the largest adopters are retailers like Starbucks, Walmart and BestBuy. These stores have adopted the branded proximity payments systems in order to keep relationship with customers. They use rewards programs or offer in-store credit by using their own apps that allow proximity payments.

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

Although, proximity payment systems are more convenient to use, it is not used by everyone. People use debit or credit cards because they feel safer using them, and they donít trust the technology yet. The large technology curve was very unexpected and older people had hard time following it. Fewer than 30% of people that adopt proximity payments actually use it on regular basis. Another reason for the slow growth is because merchants are slower at adopting the NFC equipment.

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 others; the transfers are instantaneous. Zelle includes over 100 financial institutions like banks, credit unions, as well as MasterCard and Visa to support P2P payments. Zelle is great for a P2P transaction but is has not adopted the proximity payment systems like Apple or Samsung.


Projects p. 337-338


Question 1: Imagine you are the owner of an e-commerce website. 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.

Question 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. Prepare a presentation outlining your vision of the new opportunities for cybercrime that m-commerce may provide.