Mobile pay 202236710107

Case Study Questions

1. What is the value proposition that Apple Pay offers consumers? How about mer-chants?
2. What are some of the limitations of Apple Pay that might prevent its widespread adoption?
3. What advantages do the Square and PayPal mobile card-swiping solutions have in the mobile
payment market? What are their weaknesses?
4. What strategies would you recommend that Apple pursue to assure widespread consumer
adoption of Apple Pay?
answer
Q1) Apple Pay is a mobile payment system introduced by Apple Inc. to leverage its
software and hardware technology to make digital payments at various points of
purchase using mobile phones.

Value proposition to consumers - Cashless and hassle free digital payment system
with ability to shop at most of the outlets, provide security to transactions and ensure
faster checkout from the stores.

Value proposition to merchants - Cashless payment systems that directly credit the
amount into the bank account of the merchant thus increasing the security and volume
of transactions.

Q2) Limitations of Apple Pay -

 Adoption - With the limitation of using an Apple iPhone and that too fewer versions, it becomes
difficult for all the consumers and merchants to adopt the technology
 Lack of online shopping support - The service supports using and purchasing other apps but doesn't
support online shopping and direct payment
 Lack of consumer awareness of the technonology is another setback
Q3) Advantages of Square and PayPal -

 Free service for buyers and online shoppers

 Can be used for most of the online payments
 Easy transfer of money using mobile number or email
 Ability to track each transaction
Weaknesses -

 Incompatibility with few devices and technologies

 Less regulation on the payments and transactions
 Practice of holding funds in accounts without notice
Q4) Below are the strategies that Apple should pursue to assure widespread consumer
adoption of Apple Pay -

i) Increase in merchant adoption by educating them and offering the devices for low
costs
ii) Increase in cross platform support to ensure users of other devices are able to use
Apple Pay services

iii) Increase presence by partnering with more e-commerce sites and applications