...The Adoption of Mobile Payments in America Introduction As an essential factor of the development of commerce, transaction methods have been innovated constantly from the earliest bartering mode to advanced electronic modes. Among those, mobile payments are one of the most efficient and promising patterns, matching the requirements of the rapid progress of business fields. With cell phones equipped with the Near-field Communications (NFC) chip, users are capable of completing transactions by simply waving them in front of a NFC-enabled reader (Crowe, Rysman & Stavins, 2010). Generally, in global markets, the value of this type of trade reached approximately $250 billion in 2012 and was forecasted to expand 68% annually. In particular, this carrier has been heavily adopted in Japan and several European countries for years. However, according to a recent survey, the adoption of this technology in the United States has been hindered (Fonte, 2013). The sales of this approach only has less than half of one percent of the market, and the majority of payments are implemented by credit and debit cards. It is confusing that, as the economic center worldwide, America has not dominated the leading position of mobile payments acceptance. Therefore, this report focuses on analyzing the obstacles in the process of spreading and proposing practical solutions. Barriers The obstacles of the popularization mainly originate from the aspects of markets, consumers, and retailers. Referring...
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...Mobile Payments: Problem or Solution? Implications for financial inclusion Mike George, Linda Lennard and Kate Scribbins Foundation Further information This report and a summary version are available as a pdf from www.friendsprovidentfoundation.org. The summary is also available in print from Friends Provident Foundation, Pixham End, Dorking, Surrey, RH4 1QA (foundation.enquiries@friendsprovident.co.uk and www.friendsprovidentfoundation.org). Published 2013 by Friends Provident Foundation Pixham End Dorking Surrey RH4 1QA © AnKa 2013 ISBN 978-1-908769-08-4 (pdf ) All rights reserved. Reproduction of this report by photocopying or electronic means for non-commercial purposes is permitted. Otherwise, no part of this report may be reproduced, adapted, stored in a retrieval system or transmitted by any means, electronic, mechanical, photocopying, or otherwise without the prior written permission of Friends Provident Foundation. Friends Provident Foundation Friends Provident Foundation is a grant-making charity working to create the conditions throughout the UK for improved access to appropriate financial services for those who are currently excluded, particularly those on low incomes or otherwise vulnerable to market failure. It particularly wants to encourage thinking that deals with the causes of the problem. Established as part of the demutualisation of Friends Provident Life Office in 2001 and the flotation of Friends Provident plc, it is independent and has its own board...
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...high technology, traditional payments struggle to endure the competition with electronic money or what we call “mobile payment” because more and more people prefer to have virtual wallets. Since mobile payment systems are relatively inexpensive and affordable, many small businesses have been quick to adopt the new technology. In many ways, it is easier for small businesses to implement the mobile payment programs because they don’t have a large infrastructure to work through, so small businesses can jump right in. Other than that, when customers come to the register to pay for their meal or purchases, many people can now easily hold up their mobile phones instead of handing over dollar bills or pulling out a credit or debit cards, plus it does not require a sophisticated technical knowledge to implement. One of the biggest benefits of using a mobile payment option is the ability to integrate with their incentive and loyalty programs into the mobile payment applications. Instead of customers having to keep up with punch cards or key ring tags, all of their information is stored in the application each time they make a purchase with their mobile device. Essentially mobile payments are more secure than the traditional credit or debit cards. The retailer’s system never has direct access to the cardholder’s account number, so current point-of-sale malware doesn’t work against it. In addition most mobile payments are fast. Customers simply pass their mobile device over a near-field communication...
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...Obstacles to Implementation of Mobile Payment The unexpected attraction to mobile payments increasingly appears to be the catalyst to finally moving away from the magnetic card payments to a payment system that is more fitting to current digital economies. Despite the new, exciting technology introduced in the mobile payment market, there are still questions regarding whether mobile payments are necessary and worth the change. At least four important challenges for the implementation of mobile payment services with the breadth of impact are addressed as follows: 1. System Interdependency Mobile payments represent a complex business model with several players, whose success depends on joint actions of all the players together. For a successful mobile payment deployment, it is necessary to engage a wide range of stakeholders, including mobile network operators, operators, handset manufacturers, financial institutions including major banks and credit card issuers, commercial retailers and merchant stores, public transit authorities, government agencies, and the customer in the business model. Mobile payments are characterized by a system interdependency challenge. For consumers to demand cell phones with embedded electronic wallets and for the mobile network operators to require this feature from the handset manufacturers, the consumers must know that there exist sufficient merchants’ POS terminals with mobile payments infrastructure. It is, however, unlikely for...
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...2015 U.K. Consumer Mobile Payment Study “Do you think someday we can open a bank account or ask for a loan without physically having to come to the bank?” — Bill Gates TSYS® is excited to publish its first research report exploring mobile payments (m-payments) in the U.K. The report includes information regarding U.K. consumer payment preferences and other insights. The aim of this report is to provide valuable information to help our clients and other stakeholders in navigating the current market trends for m-payments and related topics like mobile banking, communication and retailer apps. In line with our belief in keeping payments people-centred, this primary research is based on the end-user of the technologies explored. The goal of this research is two-fold: 1) to investigate consumers’ current behaviour; and 2) to understand how their attitudes and concerns could help predict future behaviour. With the increase of choices among consumers, mobile payments is approaching a critical mass, if not maturity. In 2013, worldwide mobile payments reached $154 billion, and it has been predicted that this figure will reach $721 billion by 20171. In the U.K., mobile payments are expected to reach £53.6 billion in the next ten years, and 75 percent of the U.K. population is expected to have a smartphone by 20192. According to The Financial Times3, U.K. consumers are increasingly using mobile phones and tablets to make purchases — with mobile spending reaching £9.7 billion...
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...Wireless Payment – Wallet Share Introduction George would do anything to get rid of his wallet. It is heavy and creates an ugly bulge in his pocket. George has been to Japan where he saw locals using phones to seamlessly pay for everything including tolls, fares, groceries, and other expenses. So when Google announced their new Nexus 4 phone with the ability to touch and pay, George got really excited. George was one of the first people to get a mobile payment enabled Google Nexus phone and promised himself that he would never pick up his wallet again. What’s more, Google even showcased a new vending machine, in San Francisco, where George purchased a Coke using his new Nexus phone. George was on top of the world and very excited. He actively started looking for the universal mobile payment symbol at retailers so that he could plan his wallet-free shopping. Unfortunately even after owning his phone for a whole year, George is still carrying his wallet. Mobile payments are a subset of a larger electronic payments ecosystem, where payments are initiated using a mobile device. The history of mobile payments dates back to 1997, when Coke introduced the first touchless vending machines based on Simple Messaging Service (SMS) payments. Initially the system was used for simple tasks like downloading ring tones and buying movie tickets; payments were billed directly to the customer’s mobile account. The big push came from Asian countries like Japan and the Philippines...
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...the new mobile payment market started mainly with the advancements in wireless connectivity. The availability of cheap and readily available cellular and WiFi connectivity gave merchants an option to move from the restrictive and geographically limited wired point of sales. The major contributors to this shift were the four payment services using mobile payments that sprung up, namely, 1. 2. 3. 4. Premium Mobile SMS Based payments Direct Mobile Billing Mobile web payments NFC based payments Premium Mobile SMS Based payments: This service allowed for the payments of a purchase to be made via an SMS based service. The charges from the same were added in the users monthly bill or deducted from the prepaid account balance. Direct Mobile Billing: Similar to SMS based billing, this was an utility used on smartphones. This involved a two step authentication procedure to securely authorize payments from the smart phone.This did not require and credit card or bank accounts and the charges were levied on the customers mobile account again. Mobile web payments: Consumers made payments using internet based application or internet browser. Similar to Paypal this required credit cards/debit cards NFC based payments: This technology relied on RFID enabled chips or NFC enabled smartphones to communicate with the radio frequency enabled receiver. The payment information was wirelessly communicated between the receiver and payers device using RFID and payments were...
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...chosen because its Airtel Money segment offers the same service as Obopay in Obopay’s primary market of India. The analysis presented in this paper is as of May 2012. Part I: Company Background History of Obopay Obopay is one of the first companies to provide mobile payment solutions, integrating mobile technology with money services. The concept behind Obopay and the mobile wallet came to Carol Realini while traveling to Africa where she saw how many people despite not having access to basic banking services did own mobile phones (“TLP SV Speakers for Nov 4: Obopay and Venrock”). Founded by Carol Realini in 2005, Obopay was designed to make banking services as pervasive as mobile phones by partnering with financial institutions and mobile service providers. In the last seven years, Obopay has established partnerships with organizations such as Nokia, MasterCard, AT&T, Verizon, Essar, Union Bank of India, Yes Bank in India, Citibank and Société Générale (“Obopay Overview”). Today, Obopay has between 150 – 200 employees, the majority of which are located in Bangalore, India (O’Brien). Mission Statement Obopay’s mission statement is, “To provide a broad range of services including money transfer, mobile and online commerce, top up, bill pay, and disbursements,” (“Obopay...
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...Introduction The purpose of this report is to give an overview of how Paypal manages their online base system. Founded in December1998, Paypal became one of the world’s largest internet based payment system. It is an online electronic payment system where consumers can use to buy and sell goods and services online and making payments. Users can set up an account with just an email address. With this, a user is able to transfer cash from peer to peer without using any credit cards; just bank transfer. A notification will be issued once transaction is done. Firm Infrastructure As part of global expansion, Paypal entered NASDAQ to attract investors priced at $13 per share. With this, it had attracted bigger companies and soon a giant company, Ebay, acquired Paypal for $1.5 billion in 2002. This move increases the level of confidence where Ebay consumers could use Paypal for making their transaction. Soon after, it acquire Verisign in 2005 and generated a revenue close to $1.8 billion. However, Paypal can be a threat to banks. Although Paypal does not function like a bank, users can store their cash in Paypal with a minimum balance of $70 (Meola, 2016) Technology Development Database Management System As the world keeps on changing their technology, Paypal ensures that their own technology is also up to date. Being one of the first and largest company to use the Cloud technology, it has created multi layers of applications to ensure that the system is compatible to suit...
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...FEES MANAGEMENT SYSTEM COUPLED WITH E-MAIL AND MOBILE MESSAGING TECHNOLOGY Case Project: Maryhill High School BY MUZOORA SAVIOR MASTER OF SCIENCE IN INFORMATION SYSTEMS FACULTY OF SCIENCE DEPARTMENT OF INFORMATION SYSTEMS Email:lunsavioz@hotmail.com Tel: 0753404044 / 0774922487 A Concept Paper Leading to a Project Proposal Submitted to the Office of Graduate Studies in Partial Fulfillment for the Award of the Degree of Master of Science in Information Systems of Uganda Martyrs University August 2013 Introduction The domain of this project is Information Systems and the sub domain is Management Information Systems (MIS). Laudon (2012) defines MIS as the study of computer-based information systems in business and management. MIS provide reports on the organization’s performance. This project will result into a Fees Management System (FMS), coupled with E-mail and mobile messaging technology. FMS for Maryhill High School will serve administrators with reports about students’ fees collection. It will also provide parents and guardians with reports about students’ invoices, payments and balances through E-mail and mobile messages. Background Maryhill High School is located at Nyamitanga hill, Mbarara district. At present, the school’s enrollment is at about 1500 students. The school generates revenue from students’ fees, therefore all students are required to pay school fees. Students pay for Tuition, PTA...
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...Starbucks Video Case 1. There are many benefits of mobile payment systems in terms of situational influences and level of involvement. By substantially reducing the amount of time and effort required to pay for the goods, the system can increase the rate at which customers are served, shortening lines and reducing the number of employee hours spent running cards and making change. Mobile payment systems make the physical presence of cash and credit cards unnecessary, allowing for more impulse purchases and reducing the likelihood that an otherwise loyal customer will pass up the opportunity to make a purchase just because they forgot their wallet. These systems also reduce the cost of fees imposed by credit card companies on consumers and merchants, by reducing the number of small transactions (where the fee required to use a card may exceed the actual price of the item). 2. With their purchase of Evolution Fresh, Starbucks is addressing increased consumer demand for products that are viewed as being part of a “healthier lifestyle” (text). Consumers are looking for fresher, all-natural foods and are willing to pay a higher price for them, satisfying their esteem needs by getting a product that is viewed as superior to basic fast food. Also, by tying itself to the makers of a premium product, Starbucks is solidifying consumers’ perception of it as a retailer of premium food and juice, allowing it to move beyond its original coffee-centered business. 3. Starbucks...
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...operates in the mobile payment market primarily in the US. The participants in the market are trying to provide their customers with an easy way to make payments in store with the use of credit cards or mobile phones or any other means. Previously, it was the financial institutions that determined which technology to use, however nowadays the competition within the market is high and many different approaches to mobile payments have emerged leaving a high uncertainty on which of the market players will survive in the long run. Consumer demand for easy access to their money through electronic wallets has grown exponentially, and consumers will soon expect mobile money to be accepted almost everywhere. Competition in the market is based on practicality, convenience and fee structure. Many of the current payment systems require stores and merchants to pay high fees in order to allow their customers to pay by credit card or other non-cash payment options. Many of the small organizations cannot afford these kinds of fees and don’t offer mobile payment systems yet. I believe Square should heavily focus on that segment of the market. As the competition is immense and competitors like Paypal and Google have more potential to attract the big corporate players, specializing in small businesses allows Square to avoid the high level of competition and to survive in the long run. There is a big market, up to 26 million American small businesses, that are not benefiting of mobile payment yet, allowing...
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...Bitcoin is a software-based online payment system described by Satoshi Nakamotoin 2008 and introduced as open-source software in 2009.Payments are recorded in a public ledger using its own unit of account,which is also called bitcoin.Payments work peer-to-peer without a central repository or single administrator, which has led the US Treasury to call bitcoin a decentralized virtual currency.Although its status as a currency is disputed, media reports often refer to bitcoin as a cryptocurrency or digital currency Bitcoins are created as a reward for payment processing work in which users offer their computing power to verify and record payments into the public ledger. Called mining, individuals or companies engage in this activity in exchange for transaction fees and newly created bitcoins.Besides mining, bitcoins can be obtained in exchange for fiat money, products, and services. Users can send and receive bitcoins electronically for an optional transaction fee using wallet software on a personal computer, mobile device, or a web application. Bitcoin as a form of payment for products and services has seen growth,and merchants have an incentive to accept the digital currency because fees are lower than the 2–3% typically imposed by credit card processors. The European Banking Authority has warned that bitcoin lacks consumer protections.Unlike credit cards, any fees are paid by the purchaser not the vendor. Bitcoins can be stolen and chargebacks are impossible. Commercial...
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...Google has rolled out Android Pay, which will work the same way as Apple Pay. With Android Pay, shoppers can make purchases at more than million retail locations that are located in the United States. Android Pay also stores loyalty cards, gift cards, and it will provide special offers directly to the shoppers’ mobile device. All NFC enabled android devices are compatible with Android Pay but should be running on KitKat 4.4 and later and it also works across all carriers. Android Pay supports the four major payment networks: Discover, American Express, Visa and MasterCard. Android Pay also accommodates cards that are issued by many popular credit unions and popular U.S. banks. It is anticipated that Capital One, Wells Fargo, and Citi will join the program in the coming months. Android Pay and Google Wallet are built on the same technology. In fact, it is expected that Google Wallet will change into Android Pay through an over the air update. Google wallet has a new version of the application that has been introduced by google. Google Wallet will work as a cash swap service that will work much like Square Cash or PayPal. Android Pay works as an extension of a debit or a credit card, but with an additional layer of security. For users to be able to use Android Pay, they are expected to load debit, credit, and gift card data onto their compatible Android device. Android Pay users can use their handset and leave their cards at home and it works at participating merchants. The introduction...
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...Country Male Female (if outside Australia) Postcode Gender Date of Birth (DDMMYYYY) Home Phone Work Phone Mobile Phone Email Have you activated your student account? All correspondence sent to students by CDU will be sent to the student’s official CDU email address. CONDITIONS OF REFUND Please read the following Conditions carefully before applying for a student refund. A B Once the cashiers have received correctly completed documents your refund will be processed within 30 days. Refunds are processed in the same method of payment that they were originally received in. Refund cost and payment methods: • • • • • • Electronic Funds reansfer (EFT). Once the university has processed the refund, access to these funds will show within three (3) business days. Chq only change 3 business days. Credit cards 7-10 working days Cheque refunds in Australian Dollars are only processed on Thursdays and may take at least three (3) business days before you can access the funds once you have deposited the cheque into your bank account. Credit card refunds are only processed back on to a card if the original payment was made by credit card. Once the University has processed the refund, it may take up to seven (7) working days before the credit appears on your account due to bank processing practices. Under banking regulations, if a student has made a payment with a credit card any refund must be credited to the original card. Charles Darwin University will refund to the original...
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