Question

Describe the Topic Mobile Payment Technologies

What are the benefits & concerns in E-Commerce for Mobile Payment Technologies

Does Mobile Payment Technologies have any Tradeoff’s with its use in E-Commerce

What controls are or should there be with Mobile Payment Technologies

How does Mobile Payment Technologies benefit society

Answer 1

Mobile Payment Systems' Advantages For Consumers:

• Convenience: They make the payment process easier and less complicated. Now customers can make payment anywhere at anytime with their mobile devices connected with Internet. They allow customers to seamlessly purchase products or services without having to physically handover cash or swipe a card. Consumers are eager for quick, in-and-out shopping experiences.
• Security: By using mobile payment, consumers no longer have to assume the security risks associated with cash or worry whether they have enough cash in their bulky physical wallets so that mobile payments reduce theft risks of having cash on hand. Moreover, mobile payment is a secure way to pay. Credit card information are not stored on smartphones directly but in the cloud. So no thief could extract your credit card details just by stealing your phone. By the way, iTunes has the world’s biggest credit card database.

Mobile Payment Systems' Advantages for retailers:

• Cost: One valid advantage is the lower cost of using a mobile card reader or barcode scanner than having a credit card terminal from a bank, which charges merchants with monthly fees plus transaction fees.
• Engagement: Offering mobile payment options to customers both online and offline simply makes the purchase process easier for them. This can increase conversion rates and the number of returning customers. Moreover, businesses are able to speed up the checkout process and capture the business of impulse buyers who may have been less able to buy something if a traditional transaction were required.

Disadvantages:

1. Hardware Incompatibility

Most of the old and low-end smartphones have some compatibility issues. There is a need of NFC reader (Near Field Communication) which is lack in old device.

2. Cost

For accepting payments via mobile devices require some POS hardware which are extremely high in cost.

3. Device Failure

For using mobile in performing every activity make it your slave. For making call, checking social media, emails and transactions all will need mobile device. Device failure could be an issue in case of battery drain. You will not be able to do any transaction until your phone is charged

4. Phone is prone to be theft

Since mobile payments gives you the ability to make the transaction in your convenience. Mobile devices are prone to theft which may subject to lose their card and personal account information. 5. Difficult to read terms and conditions

5. With the small size of mobile device you can easily carry it all the way. Before making any payment it is always recommended to go through the terms and condition thoroughly but because of the small physical appearance it can often too difficult to read terms and conditions. It may also possible to make payments without reading invoices.