Apple 's Concept Of Paying Directly From Your Telephone Device

Have you ever drove home from work, having a feeling you were forgetting to do something important? It’s 7 o’clock in the evening, you just realized that you were supposed to pay a bill before the bank closed. The money is there in the account but, how is the bank supposed to receive it? Well, luckily you pull out an iphone 6 to transfer the money into the account to pay the bill by using e-banking. Simple as that, you go home with a clear conscience knowing only that your bill is paid. Of course, people only care for the end results of a situation, but it’s sometimes good to consider what goes on in the transition. Crucial data such as financial record and pin number need to be under tight security. Only highly advanced technology that was

The future of payments is current shifting to another path with how technology is changing and is currently modifying how we process our payments and how we store data. It is going away from low-tech and paper based tools, expensive and bulky registers, and physical card swipes. And it is introducing and renovating online commerce and online payment. This is happening due to the decrease of money supply and checks in the current market because people are starting to pay more and more there bills online. As the economy improces and corporations and business gets larger they have started a large-scale implementation of processors in electronic payment technology in their business ands services. Also, credit and debit are growing amongst consumers and it has been the highest that it has even been in history.

You can get a electronic deposit and save yourself time from being wasted. Let’s not start with ApplePay and things of those nature; being able to pay for goods with your phone if its connect to your bank account and the cashier at the registration has the system that allows you to pay your transaction as so. It's easy, it's very flexible and that’s why I don’t think America will become a checkless society. People like the ability to be flexible, not everyone likes to use there phone to pay for goods, or use cash. They might prefer to write a check or use cash to pay for something or to be paid in cash. The original definition is that ‘all’ financial transactions will be done electronically. I don’t believe so keep documents of checks and receipts is very vital. Not to mention that there’s no feeling like the feeling of a cash in your

Although major retailers have had credit card breaches, which devastated consumer trust in credit, Mobile payment systems stay efficient, but risk personal and financial data fraud similar to plastic credit card usage theft. Patrons fear merchants can track your shopping habits, location and financial records using a mobile GPS signal. Nevertheless, worries that someone can steal their information when sent wirelessly therefore consumer confidence remains low. Thorough safety measures will help give customers composure and regain assurance. (Busby, 2014) (Sapienza, 2013)

An example of this would be the Apple Pay technology. Apple Pay is a mobile payments service and digital wallet application that utilizes Near Field Communication (NFC) to initiate secure payment transactions between contactless payment terminals and devices like the iPhone 6, iPhone 6 Plus and Apple Watch (Webopedia). Apple Pay allows owners of Apple devices the opportunity to add multiple credit or debit cards onto that device and instantly pay at a location by simply placing their device over the scanner. This technology could be implemented into Howard University’s Bison One Card by adding Dining Dollars or Bison Bucks into the application software, thus eliminating the need to always swipe your card at various locations around campus. This would also eliminate the struggle some students encounter of not being able to eat or swipe into the café because they have lost or misplaced their card. The biggest problem Howard University faces with implementing this new technology is the substantial cost. Blue Pay breaks down the Apple Pay implementation costs with prices of the NFC terminals in range from $300 to $500, excluding the cost of additional software upgrades if needed. Depending on which locations, if not all, across campus will support this technology, this cost will surely add up. Merchants must also weigh in the cost of employee training. Employees must understand how to properly use NFC contactless readers to process payments. The training should also include refunds, chargebacks, and cancellations. This cost can vary, depending on the size of the staff. Blue Pay ultimately estimates the total cost ranging anywhere from $1000 to $2000 per unit after factoring in hardware, software and wages (Blue

According to the most recent Federal Reserve study; most of us haven’t set foot in a banking hall in ages. It is a lost battle to banks that opt to use traditional methods to conduct their banking transactions (Gup 2003). By December of last year, close to half of all smartphone users in the United States had transacted some or all of their banking on their phones and iPhones. In the United Kingdom alone, rates of mobile banking transactions doubled over the course of a single year (Scn Education 2001). A banking business that invests in this type of technology gets assured of increasing their customer base.

Apple Inc. has hardware and software products which provide omnichannel devices for other retailers. Apple Inc (2015) shows that the company developed Apple pay which allows

Pay by tap credit cards: This is a permanent physical data storage mean where all credential data is on it, it’s kind of like a black box container where you can use the information store on this piece of object, since this kind of object is easy to steal by an entity, therefore it should be considered as a threat.

. Mobile payment users >190 MM in2012, which is over3 % of total mobile users worldwide a level considered as "mainstream”

Today many companies do their business directly from the iPhones. Business people and non-business people alike are using the iPhone in order to achieve

Apple Pay connects to credit card terminals using near field communication. In order for near field communication to work, both devices must contain a near field communication enabled chip which allows data to be wirelessly transferred between devices. There are two methods of near field communication. The first is two way communication in which data is exchanged between devices in which near field communication chips are installed. The second is one way communication in which data is only modified on only one of the devices. Apple Pay uses one way communication because it utilizes the sensors on credit card terminals, which modify the data on the near field communication chip located in the iPhone6 or Apple Watch. Near field communication enabled devices, like the name suggests, can only communicate with devices that are very close to them and are no more than a

You know consumers want the convenience of using digital wallets. More and more people are turning to mobile payment options. Nearly three out of four people trust their “traditional card” providers over other options, according to Accenture Research. Their

In 2009, that was a total of 16.2 billion dollars in fees. (Collins, 2011). Consumers are currently using their debit cards more and more, with many of them using the cards almost exclusively as their primary means of payment. Apple Pay is Apple Inc.’s way of getting in on some of those billions of dollars of moving money, as well as trying to provide a service that is potentially more secure than a debit card could ever be. The company 's mobile payment system works in the Passbook app on Apple 's iPhones and Apple Watches, which already allows consumers to store loyalty cards, coupons and airline tickets. Customers will now be able to store their credit card information in Passbook, then be able to touch or wave the phone or watch over a pay terminal in participating stores. The phone uses a near-field communications chip to broadcast through radio waves to the pay terminal all the necessary information to complete the transaction. (Hardekopf, 2014).

At least 130 countries have replaced this dated technology, most of them opting to switch to chip and pin cards, otherwise known as smart cards. While smart chips contain the same financial information required to complete transactions that magnetic stripe cards have, they do not share this information with the point of sale. Instead, the register asks for a verification code to use the account, and the smart chip provides this code. Since the code is randomly generated for each transaction, even if someone were to replicate a card with someone’s information on it, they could not generate the passcode contained on the smart chip to utilize that information, making it much more secure to use than magnetic stripe cards.

Almost everyone has a smartphone, so engineers invented a way to let merchant charge customers through a device that can be attached to any mobile phone. This device, or credit card terminal, is the future of credit card terminal technology, where merchants can charge customers anywhere and anytime [3]. This report will present the market analysis, theory of operation, and the device performance of Square.INC credit card reader [3].