Discussion 3: Financial
organizations always look for new ways to increase the volume of transactions.
MasterCard worldwide cardholders are approximately 1.7 billion and purchases
are at more than 33 million locations. Tap & go payment cards are the new
implementation which will be a major innovation. These cards speed up the
transaction and purchasing process by avoiding the need of swiping the card. Different types of tap & go applications
Android Pay – The Company
behind the operating system Android is Google which owns the Android pay.
Customers can add credit or debit cards of their banks and then make purchases
using a virtual version of those cards. After unlocking the device, hold the
phone against the NFC reader and after a moment, indicator with received
notification will be shown up. Receipt can be viewed in email.
Apple Pay – This is
exclusive to Apple products like iPhone, Apple watch. The funding process will
be same for these kinds of payment methods like adding cards from bank and
using virtual version of cards to make the purchases. Even Apple Pay uses NFC
while making purchases. Holding the phone up to receiver and confirming the
payment using thumbprint or PIN, thus transaction will be processed. Almost all the national retailers accept
Samsung Pay – This is
owned by Electronics Samsung and available only to the users of some GalaxyS5
and S6 models. Similar to other payment methods, Samsung also uses the same
funding method for processing the transaction and use the NFC. There is no need to physically slide the card.
There are several other
tap & go applications which are almost similar in processing the
transactions PayPal, Walmart Pay, Microsoft Wallet, Current C. This payment
method serves as a fasted and easiest way of purchases. At the same time it is
safe and convenient. In any of these payment methods, no personal information
or credit/debit card information is being transferred to third party. Randomly
generated 16 digit number will be exchanged. There are no limitations in this type
of payment methods.
Discussion 4: PayPass digital
wallet is one of the new digital service to speed up the payment process for
purchases in online. Digital wallet is an electronic device which allows an
individual to make electronic transactions either online or at a store. For
that an individual should link their bank account to the digital wallet. Payment information and passwords are securely
stored for payment methods in the digital wallet. Loyalty card information and
digital coupons can also be stored in a digital wallet. MasterPass is the MasterCard
PayPass wallet service which not only allows users to store their payment information
but also provide support access at the time of sale.
Advantages of PayPass
Time saver: Every time
when we shop online we wouldn’t even like to enter credit card details. Then
the digital wallet helps saving time and makes payments easier.
Security: Wallets will
not transfer the payment card details or personal information to any websites.
Online payment gateway feature increases the transaction security and proves
that wallets are safer than using credit/debit cards.
Low costs: Using digital
wallets eliminates the use for intermediaries (like paper, shipping costs) in
different forms. Purchases no longer require cash or cards, we can just use the
tap or scan for purchases.
Convenience: Easy to
carry and more convenient. It saves space in the pocket/bag. Can also store any
other loyalty cards or coupons. It can also track device location capabilities and
can receive offers and promotions based on location.
Modern technology: This
is a new way of payment method in the huge outstanding market which increases
the potential revenue of any business.
Easy budgeting: Budgeting
has been digitized with the rise of digital wallets. We don’t need to record
transactions by calculating, saving the receipts and entering the expenses and
calculating incomes. We can just directly link the wallet to the budgeting app
and that performs all the digital budgeting.
Disadvantages of PayPass
Battery: We can’t make
purchases or transactions using digital wallet when we run out of battery. It’s
like same thing when we lose or forget our phones. Usually the traditional
wallets do not run out of battery. But using the digital wallets would be a
problem when we are out of battery. Device compatibility, for using digital
wallets, users need to have smart phones, computers or tablets.
Internet issues: The
biggest impediment will be the network connection. For the functioning of
digital wallets, we need fast and reliable internet connection. This serves as
a disadvantage in using digital wallets.
Security: Yes, we still
have security concerns. It’s still not clear on how purchases are being made in
some stores like brick motor. Even after data is encrypted, digital wallets seems
to be responsible for losses, which made traditional cards with fraud protection
a more better choice. Hacking has been the biggest security concern. Since data
is being transmitted wireless, there may be chance of getting hold of the
customer information with NFC. We have these kind of security issues even while
using credit/debit cards.
wallets can be used only online with devices like smart phones or tablets. This
shows the dependency of digital wallets on devices. Wallets are not safe as
cards because banks proved 3D secure passwords and that works for concerned
individual. We may lose phone or tablets and then someone can use the wallet
with those secure passwords. For these
reasons digital wallets still can’t beat credit and debit cards.
Discussion 5: MasterCard
has a new smart phone payment system which helps banks and clients use mobile
devices to monitor credit pattern usages. New payment system enables customers
to use facial or finger print recognition for online purchases. There are few
challenges and concerns for any advanced payment methods.
Security for mobile
payment apps: The major concern for any customer or vendor will be the
security. One tap mobile apps store users credit information, financial data to
make convenient payments for buyers. Some big organizations are trying to find
their own solutions like digital tokenization, facial recognition, fingerprint
readers and other secure options for users.
Functioning across different operating systems, mobiles devices and networks
will be another biggest challenge. Technology solutions for this cross platform
are, Direct mobile billing options which has features like speed, convenience,
high security and track record. NFC no touch mobile payments enable user to
scan or tap NFC enabled phone facing an NFC reader.
payment methods are being widely used but still people found convenience in
using credit cards and cash. Few consider smart phones as insecure and are not
reliable payment methods as other methods like cash transfer or credit cards.
Marketing the products and services can improve the use adaptability for new technologies.
Technology: Even in this
advanced generation there are few places where we don’t have internet
connection, network may be minimal or poor connectivity. There is an ever-increasing
demand for digital development and new mobile payment applications. MasterCard
should make use of its partners like mobile payment providers to remove the
gaps between old and new innovations. Still after having many challenged, they
are achieving growth through educating, planning and marketing strategies.