Case Study 3 Answers

1. Who are the three major players in the mobile payment market?
Ans :- Some of the major players in the mobile payment market are :-
Technology companies are,
 Samsung
 Google
 Apple
 Paypal
Large banks which are,
 JP Morgan
 Wells Fargo
 Chase
 Citi
Credit card companies are,
 Visa
 Master Card
 American Express

2. Why Venmo is considered a social-mobile payment system?

Ans:- Venmo is considered a social-mobile payment app because it lets
users transfer money to one another. It can also be used to pay at a small
number of participating merchants.
Users sign up for a Venmo account and link their account to a bank account,
a debit card, or credit card. Users can also create a pre-paid Venmo balance
by sending money to their Venmo account, and then charge payments
against that balance.
Users have the option to keep all transactions private as well. When they
want to make a payment to another person, they enter the person’s e-mail
and the funds are transferred when the recipient, who must also have a
Venmo account, accepts the payment.

3. How does Apple Pay differ from Android Pay and Samsung Pay?
Ans :-
 Apple Pay is an app that comes with iPhone 6 phones and later. It
uses built-in NFC technology. Users set up an account, and enter their
banking credentials, using either their credit/debit card account
information, or their checking or savings account, as the source of
funds.
It has a chip that contains a unique device number and the ability to
generate a one-time 16-digit code. Together they form a digital
token. The token information is encrypted and sent to Apple servers
to verify the authenticity of the device and the person. Apple sends
the payment request to the credit card issuer. Credit card issuers
verify the account owner and available credit. In about one second,
the transaction is approved or denied.
Apple Pay is free to consumers, and the credit card companies charge
their usual fee of 3% for each transaction. Apple Pay can be used by
any consumer that has a credit card from a major issuer bank.

 Samsung Pay prioritizes the use of NFC technology when merchants

have the appropriate terminal, but when that is not available,
switches to a technology called Magnetic Secure Transmission that
sends the card data stored on the user’s device to traditional
magnetic stripe terminals.
Samsung Pay can be used by the millions of existing point-of-sale card
swiping terminals without upgrading to NFC terminals or installing
any apps. Samsung Pay also stores coupons and reward cards, but
does not store user funds and is not a prepaid card.

4. How does PayPal enable mobile payments?

Ans:- PayPal currently enables mobile payments in three ways, which are
 PayPal sells a device that allows merchants to swipe credit cards
using a smartphone or tablet, just like the Square device.
 The most common PayPal mobile payment occurs when customers
use their mobile device browser on a tablet or smartphone to make a
purchase or payment at a website.
 A third method is PayPal’s updated app for iOS and Android devices.
On entering a merchant’s store that accepts PayPal app payments,
the app establishes a link using Bluetooth with the merchant’s app
that is also running on an iOS or Android device. This step
authenticates the user’s PayPal account. On checkout, the customer
tells the merchant he or she will pay with PayPal. The merchant app
charges the customer’s PayPal account. After the payment is
authorized, a message is sent to the customer’s phone.
No credit card information is being transmitted or shared with the
merchant. Users do not have to enter a pin code or swipe their
phone at a special merchant device, so merchants are not required
to purchase an expensive NFC point of-sale device, but they must
have the PayPal merchant app stored on a desktop or mobile app,
which is really acting like a digital cash register