Question

According to the Trends in IT feature in Chapter 4, mobile commerce, or m-commerce, is using applications on smartphones and tablets to buy and sell products. The use of mobile payments is one of the ways this can be accomplished, but people fear the security of buying and selling online. Write a paper describing two mobile payment apps, being sure to discuss their ease of use, security, cost, and any other relevant information. Follow your instructor’s directions for proper formatting of your research.

Format:

2-3 pages in length

double-spaced

APA format

Answer 1

Mobile commerce, also known as m-commerce or mcommerce, is the use of wireless handheld devices like cellphones and tablets to conduct commercial transactions online, including the purchase and sale of products, online banking, and paying bills. The use of m-commerce activity is on the rise.

Mobile commerce is an increasingly large subset of electronic commerce, a model where firms or individuals conduct business over the internet. The rapid growth of mobile commerce has been driven by a number of factors, including increased wireless handheld device computing power, a proliferation of m-commerce applications, and the broad resolution of security issues.

Mobile payment applications

• Google pay

It is formerly called Android Pay. Google Pay is an NFC-based mobile payment app that allows users to make payments via their Android-compatible devices.

It also stores gift cards, loyalty programs, e-tickets, and boarding passes.

The “Google Pay Send” lets you easily send money to friends, but it is a separate platform.

Steps for using Google Pay

Using Google Pay is very easy. Follow the steps given below for getting started.

1. Download Google Pay from Google Play Store.
2. After installation first step is setting up screen lock. You can use your existing lock pattern or PIN.
3. Click on Add Bank Account and select bank from the list. If your bank account is linked with current mobile number linkage is easy without passing much information else you need to provide your Bank account number, IFSC code etc.
4. Once your bank account is linked you can tap on circle to send and receive money.

Benefits

1. Quick and Easy way to send and receive money.
2. Secured with UPI Pin and a screenlock
3. Multiple cashback and rewards benefits.
4. Encryption and multiple layers of security by Google to secure transaction.
5. Pay Utility bills, recharge your mobile and do online shopping using this app.
6. No additional cost of usage.
7. This app can also be used for business purpose. Integration is very easy by API and no fee is involved.

Limitations

1. There is a need for a smart phone and stable internet connection
2. The given phone number should be linked to your bank account
3. It is limited only to NFC technology

• PayPal One Touch

PayPal offers its One Touch Mobile Cash Money App & Virtual Wallet app. One of the major advantages with the PayPal app is that it works with the basic PayPal account, which is a well- established payment system with a number of widely accepted features.

You can get access to mobile payments by taking a picture of your bank, debit or credit card and upload it to your digital wallet. PayPal works with nearly every bank in the country.

The app offers the following features:

Operating System Support: iOS/Android

The app is supported for iOS and Android devices. iOS requires iOS 10.0 or later, and can be downloaded on the App Store. It’s compatible with iPhone, iPad, and iPod Touch.

The app is available for Android devices on Google Play. It requires Android 4.4 and up.

Payment Fees

Transfers to and from a linked bank account are free. Instant transfers to or from an unlinked bank account require a fee of $0.25 per transfer. There are no fees when you make purchases either online or in-store.

There is also no charge to send or receive payments to or from family and friends in the U.S. if the funds are from either your PayPal account, or a linked bank account. If sending funds, the receiving party must also have a PayPal account.

If funds are sent to family or friends in other countries who also have a PayPal account, the fee is as follows:

• Under $50 – $0.99
• $50 and up – $2.99
• $100 and up (other than Canada and Europe) – $4.99

Sending money using a credit card, debit card or PayPal Credit comes with a fee of 2.9% + $0.30 in the U.S.

If you send money internationally using a credit card, debit card or PayPal Credit, the transaction fee structure is as follows:

• Under $50 – 2.9% + $0.99 + a currency fee from the schedule below
• $50 and up – 2.9% + $2.99 + a currency fee from the schedule below
• $100 and up (other than Canada and Europe) – 2.9% + $4.99 + a currency fee from the schedule below

Payment Amount Limits

• Up to $5,000 per transaction
• Up to $5,000 per day
• Up to $5,000 per week
• Up to $15,000 per month

Security

The PayPal app comes with 24/7 transaction monitoring, secure encryption technology, fraud protection, and fingerprint and two-factor authentication.

When you make purchases, you’re also eligible for PayPal Purchase Protection.

Conclusion

To say that there are a lot of mobile wallets offered in the market is an understatement. In fact, some online media have used the term "mobile wallet war" to highlight the current fight between financial service providers as each is intent on capturing the biggest share of the market.