A Battle Emerging in Mobile Payments
Questions and Answers
- Advantages and disadvantages of mobile payment systems in developed countries and developing countries.
In the contemporary world, mobile technology is on the rise. It is for this technology that a lot of transactions are done via mobile. Thus the introduction of mobile money, which makes it possible to transfer funds, pay bills, save or even borrow via mobile. These possibilities among others are the advantages of mobile money systems. However, the significance of mobile payment systems varies from developed to developing countries. In the developed countries mobile payments services have the following advantages: Mobile payments systems get a direct link to the banks and incorporation of Near Field Communication (NFC) in smart devices, which is a principle making people make their payments for products and services on site (Kshetri & Acharya, 2012). However, in the developed countries many companies are providing this payment system thus raising the issue of compatibility across the system.
Additionally, in developing countries, mobile payment systems have the following advantages, one of them is the use of short message services eliminating the problem of compatibility among devices. Also, the system allows its users to transfer money to friends and families regardless of the distance. However, the system is characterized by a couple of limitations, one being that onsite payment is not implemented yet and the complicated procedures that are used on the registration on these systems.
- What are the key factors that differentiate the different mobile payment systems? Which factors do consumers care most about? Which factors do merchants care most about?
Various payment systems have existed all along, but of late following the invention of mobile phones and mobile money forms transactions have changed. Using the United States as our example and study case, before the introduction of mobile payment systems financial transactions were performed by merchant banks and credit cards such as Visa and MasterCard, where transactions were completed without contact. In addition, using PayPal customers could finish their transactions by entering phone numbers and PINs or use magnetic stripe cards (Sinha et al., 2019). With mobile phones, payment systems individuals are in a position to carry on the transaction even with or without bank accounts via the short message service (SMS). This has made customers ensure contact in transactions and enjoy convenience advantage, which is an aspect that merchants care much about.
- Are there forces that are likely to encourage one of the mobile payment systems to emerge as dominant? If so, what do you think will determine which becomes dominant?
Some forces encourage the adoption of the mobile payments system. One of the major factors or dimensions that greatly encourage the use of this system is convenience. It is via this system that consumers simply type on their devices their location codes, and products and services get delivered everywhere. This system has also an advantage as it supports peer-to-peer transactions.
- Is there anything the mobile payment systems could do to increase the likelihood of them becoming dominant?
However, to increase the likelihood of adoption and making this system dominant it is important to assure clients' security. This is a concern as for merchants, fraud has been an area of concern, where transactions are not guaranteed by a third party. Addressing the issue of fraud in the mobile payment system would lure many people to the system and thus becoming dominant.
- Importantly, apply as many of the COs (Course Objectives) as you can to the case.
In this case study, some major objectives have been presented. The objectives are to understand the impacts of the mobile phone around the world. The concern is to point out the advantages and disadvantages of using the mobile payments system both in developing and developed countries. In the same effort, examining how the adoption of the new system can dominate over the existing modes of payments such as PayPal that have been by merchants in the purchase of products and services.
References
https://www.alacriti.com/battle-for-mobile-payments
Kshetri, N., & Acharya, S. (2012). Mobile payments in emerging markets. IT Professional, 14(4), 9-13.
Sinha, M., Majra, H., Hutchins, J., & Saxena, R. (2019). Mobile payments in India: the privacy factor. International Journal of Bank Marketing.
