The Evolution Of Mobile Payment Essay

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)

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

The online payment marketplace is experiencing an explosion of innovative ideas, plans, and announcements, which one commentator has likened to a “goat rodeo”, a chaotic situation in which powerful players with different agendas compete with one another for public acceptance, and above all, huge potential revenues. Others liken the payment marketplace to a battle among the four platform titans Apple, Google, Facebook, and Amazon. Each of these titans have their own versions of a future payment system that challenges the other players. And let’s not forget PayPal, the reigning power in alternative online payment, or the credit card companies who process over 70% of online payments, or the

Apple Pay is the future of mobile payments and has grown a lot since it was first released. There are other competitors that have tried recreate Apple 's version of online payments. Apple Pay is not only a way to make purchases online but it also can be used in place of a credit card. Instead of being swiped at checkout shoppers wave their device over the Apple Pay terminal to complete a purchase. The use of Apple Pay has been growing according to Michael Krey in his article titled, “Apple Pay reportedly giving users headaches” he states, Apple Pay “makes up more than $2 out $3 spent on purchase using contactless payment across the three major U.S. card networks” (Krey). Although currently, “Baird Equity Research found that nearly 40% of iPhone 6 series handset owners have used Apple Pay” (Krey). I will go into depth discussing the current use, security, future uses, ethical and social implications, and cons to Apple Pay.

Smart Card Marketing Solutions is a company established in 2003 that provides prepaid card services to customers seeking an alternative to credit cards and as a form of electronic records for merchants in regards to recording a customer buying behavior. Smart Card Marketing Solutions (referred to in this paper as SMKG going forward) offered four types on services: GoSmartCard, Velocity money, Velocity Merchant, and prepaid wireless. Each of the services, in addition to the audience, back ground on the market, strengths and weaknesses of the company, and marketing strategies.

There had been a lot of improvements in the field of payments at stores and through Internet. New innovative systems have achieved a high level of use and they have become very helpful for consumers in their daily lives. Appendix 1 outlines the framework of factors impacting the mobile payment services market (Dahlberg et al., 2008).

P2P mode which allows the NFC device to send and receive data to and from other NFC peers which has been used for several years as the Android Beam file transfer feature

Digital payments allow for services to be delivered at lower costs, afford greater scalability and greater ease of access. This

Mobile payments are considered the future of retail; but consumers seem to have their own set of concerns. This survey highlights these concerns:

Apple is not the first company that came up with the idea of mobile payment, but the company has developed the mobile payment system into more than a just concept but a product that can be incorporated into our daily lives to modify our current system of payment. Apple has convinced numerous individuals to trade in their wallets in exchange for their smartphones. There are other companies such as Google Wallet, and Isis Mobile Wallet (Bergen, 2014), but it did take some time for consumers to dip their toes in the water. With the help of Apple’s contagious popularity, the usage of Apple Pay is slowly but steadily growing. According to Hof (2015), “Now merchants have people walking in saying, 'Why can 't I use Apple Pay? '” Years before Apple Pay became available to the public, consumers have been making in-person purchases with their smart phones. According to a U.S. Federal Reserve survey, 17 percent of all smartphone users have made purchases with their phones (Hof, 2015). This may not seem like a large number, but it’s a start to a new rising revolution of tech-savvy young adults who are eager to embrace advances in technology. Now Apple Pay is available with the new Apple Watches and customers have the convenience of

Businesses see a future for mobile payments soon. More and more industries are being presented with the profits of mobile payments and those industries are viewing them as opportunities in the modern day world. The competition is on for who is the biggest and most bad. Now, the millennials are the ones to decide that. “According to new surveys, 72 percent of business executives believe that smartphone payments on a large scale, are inevitable and 58 percent of businesses have already implemented a mobile payment system.” (Big Think Editors, 2012) In late 2011, Google came up with Google Wallet in business with Citibank and MasterCard. Google Wallet allows its users to store payment information in the cloud and pay for things at industries

As technology grows, so do the consumers. Consumers rely so much on easy shopping and simplified checking out possibilities that application developers have started to develop more mobile payment applications. These mobile payments are the technology of the future and yet the United States is still lagging behind in the rush to simplify shopping from a plastic card to a mobile app. However, with such developers from Apple and Google, there are applications where the mobile phone can stand as a wallet, but retailors do not necessarily choose a universal application to use. With Apple Pay and Google Wallet actively used, many retailors have opted to convert their merchandise to be payable with such applications .

According to Borio and van den Bergh (1993:8), a payment system may be defined as the set of arrangements for the discharge of the obligations assumed by economic agents whenever they acquire real or financial resources. The history of payment systems has been driven by the pressure to facilitate the execution of transactions. Although payments systems differ considerably from country to country, the major participants, as well as the key features of the settlement media and mechanisms, are quite similar.

Mobile telephone call: A mobile device initiates a call by sending the number of the called device on the preselected setup channel. In this process, the the mobile device firstly checks whether the setup channel is idle by examining information that comes from the BS channel. If it finds that the setup channel is idle, the mobile device may transmit the information of number to the BS. The BS then sends the request to the MTSO.

Money is a massive part of everyone’s life. Without it, we couldn’t get anywhere. That 's why we have coins, dollars, and credit cards – a currency. The way we use money is simple – you provide the right amount of money based on the cost or productivity of the product you are purchasing. But there is a new way to actually make a transaction that is different than money. But there is a new way on how you can actually transact that money. Now, with all things being simplified with technology, there is a new way for everything… even for purchasing things. Digital wallets: the more simple way to purchase anything, anytime.