NAME :- M.

Shafay Enrollment No :- 02-235192-046

Assignment 03
Submission Due Date: 8th January 2023
Marks 5 percentile

Instructions

 Assignment must be submitted before 8th January 2023

 Your Assignment must not EXCEED 4-5 pages
 Use a proper FRONT PAGE WITH UNIVERSITY LOGO
 Write your Full Name along with Enrollment Number as HEADER
 Use Standard Font (Arial), with Line Spacing of 1.15
 Text Font Size = 12 Heading Font Size = 12 BOLD
 Page Margins Standard 1 INCH from all four sides & Text JUSTIFIED
 Do not copy-paste the material from internet, explain the subject in your
own words
 ONLY submission via LMS is acceptable
 Late assignment submission will not be marked
 Copied Assignment will be given ZERO and no resubmission is accepted

1. Review the case study titled: “Mobile Payment Marketplace” in the Miscellaneous section of the
LMS and then answer the following questions:
[CLO 1, PLO 2, BT 2]
a. Explain what is the value proposition that Apple Pay offers consumers? How about
merchants?
b. Explain what are some of the limitations of Apple Pay that might prevent its widespread
adoption?
c. Explain what advantages do the Square and PayPal mobile card-swiping solutions have in
the mobile payment market? What are their weaknesses?
d. Explain what strategies would you recommend that Apple pursue to assure widespread
consumer adoption of Apple Pay?
NAME :- M.Shafay Enrollment No :- 02-235192-046

1. Review the case study titled: “Mobile Payment Marketplace” in the Miscellaneous section of the
LMS and then answer the following questions:
[CLO 1, PLO 2, BT 2]
a. Explain what is the value proposition that Apple Pay offers consumers? How about merchants?

Answer:
Apple Pay relies on the Near Field Communication technology, which is popularly called NFC to
receive payments from a phone to the payment terminal. As the name of the technology suggests,
one has to be within a few centimeters of the payment terminal. Radio Frequency
Identification(RFID) is used to transfer the payment to the terminal from a phone.
Wearable/mobile devices such as Apple Watch can be utilized for the payment. It is quite easy
and simple as the payment is completely contactless! There are benefits of Apple Pay which we
will discuss in this blog.

Benefits Of Apple Pay For Consumers

1) Enhanced Security
With increasing credit/debit card fraud, identity theft, and data hacks, payment safety has become
a significant concern for customers. Apple Pay is an incredibly safe payment option built with a
great privacy policy. It has embedded security features in both the hardware & software
compatible devices. It helps to secure the transactions & financial data of the user. This involves
the utilization of biometrics like fingerprint readers & face recognition, to improve the
authentication process.

Furthermore, while Apple Pay stores the details of the user’s debit/credit card & bank
information, this data is never forwarded to the recipient or the merchant. This eliminates the
possibility of transactions being disrupted by cybercriminals.

2) Single-Click Payments
Payment with Apple Pay is fast. One does not need to enter the credit card details & other
required information manually— they are all stored safely inside the robust Apple Pay system.
This ensures that payments can be carried out with a single click and thus enhances the overall
user experience.

3) Recurring Payments
As more consumers favor periodic bill payments to reduce penalties associated with late
payments, Apple Pay allows the users to make these monthly payments in a hassle-free way
without any need for paperwork, alteration in the account settings, etc.
NAME :- M.Shafay Enrollment No :- 02-235192-046

4) Convenient
Using Apple Pay is simply convenient for people using iPhones. As smartphones have become
an integral part of our lives, making payments via mobile is easy. In the recent pandemic
situation, it makes more sense to make contactless transact than ever!

Benefits Of Apple Pay For Merchants :

As a merchant, you might wonder about the benefits you are going to get by incorporating Apple
Pay with your business. Well, there are a variety of Apple Pay benefits!

1. Attract The New-Age Customers

Apple Pay benefits merchants by attracting & retaining tech-savvy customers who prefer making
payments through mobile. These millennial & Gen Z users are the future of businesses.

By adapting their preferences, a business can improve their overall experience.

2. Faster Fund Transfer

Apple Pay delivers money from the customer to the retailer way faster than the conventional
payment methods. This incentive helps in alleviating cash flow problems, which is often a big
problem for many enterprises.

3. Lure New Customers

Remaining competitive is an integral part of any business strategy. It influences the way you
promote your business. Apple Pay is indeed a way to make your business more competitive.
Apple Pay has an impressive 30.3 million user-base in the United States. As you add Apple Pay
to the payment options, your business will improve its appeal to this vast pool of smartphone
customers.

Your competitors either have or do not have Apple Pay. By introducing Apple Pay, you can stay
in competition with your rivals who are offering it.
NAME :- M.Shafay Enrollment No :- 02-235192-046

b. Explain what are some of the limitations of Apple Pay that might prevent its widespread
adoption?

Answer:
Adoption
It may be difficult to get customers and retailers to use the app, as it requires customers to have
an iPhone 6 and NFC terminals to help retailers.

High Fees
The service is currently being released without any added costs. But is this going to continue?
Some analysts question if credit card firms would avoid splitting the payments with Apple, which
could lead to higher merchant fees, which could hurt adoption.

No Online Shopping Support

You can use Apple Pay to purchase apps and buy other app-based products, but online shopping
is not supported by the it. Since a huge fraction of iPhone 6 users are not likely to shop online,
the service is highly limited until Apple attempts to prioritize smartphone shopping or adds
online shopping in the immediate future.

c. Explain what advantages do the Square and PayPal mobile card-swiping solutions have in the
mobile payment market? What are their weaknesses?

Square:
Square is a payment processing service that provides credit card processing and POS terminals. It is a
particularly good option if you run a brick-and-mortar store, thanks to its variety of hardware options.

Advantages:
 Low, predictable fixed-rate at 2.6% + $0.10 per swipe
 No monthly or annual fee
 No contract
 User friendly interface
 Free swipe card reader
 Free POS app
 Feature-rich all-in-one system
 Can accept offline payments
 Quick deposits within 2 business days
NAME :- M.Shafay Enrollment No :- 02-235192-046

Disadvantages:
 Weak customer support
 Costly add-on services
 Risk of having funds on hold or account closure
 Flat-rate pricing can be expensive for larger businesses
 High-risk businesses may not be accepted

PayPal:
PayPal is known as one of the best online payment platforms available. It offers excellent online
credit card processing fees with no monthly charges, and it’s a great choice for retailers that need to
begin accepting online payments immediately.
Even though PayPal doesn’t offer as many POS or hardware solutions as Square, you can jump into
PayPal and start accepting online payments in just a few minutes using PayPal’s credit card reader.
The company also continues to expand its accepted payments to include cryptocurrencies – such as
Bitcoin, Litecoin and Ethereum.

Advantages:
 PayPal is easy to use – it’s very a straightforward way to send money to friends and family.
 Paying with PayPal gives you an extra level of security and fraud prevention. If you pay for
a purchase using PayPal that ends up being fraudulent, PayPal can help get your money
back.
 PayPal encrypts your bank or credit card information, keeping that information safe.
 No fees for sending money to friends and family.

Weakness:
 While it is free to use PayPal to send money to friends and family, if you are sending money
via PayPal as part of a business transaction, you’ll be charged fees.
 PayPal also charges a 1% fee if you want instant access to your money; a free bank transfer
takes several days.
 PayPal has a reputation for being very aggressive with account freezes. And if they decide
to freeze your account, they hold your money until you can prove that you have done
nothing wrong.
 Department of Computer Science
ITB-471: E-Commerce
Semester 7 Fall 2022

d. Explain what strategies would you recommend that Apple pursue to assure widespread
consumer adoption of Apple Pay?
Answer:
 I would suggest to Apple find a way to allow users to process payments without requiring
users to own an Apple device. Apple could develop an application that would run on
Android and Windows devices to allow them to increase their share of the mobile payment
market.
 In my opinion, integrating a service that leverages the trend of P2P payments would give
consumers a constant reason for coming back to Apple Pay. This is a strategic move that
would reinvigorate Apple Pay’s interest among consumers ensuring growth.
 Increase Penetration on ecommerce ,websites and app.
 Adjacent Payment Marketers