BATTLE FOR DOMINANCE IN MOBILE PAYMENTS -v2.pptx

1. GROUP 3
• FAUZAN RUSLAN
• FAREZ OTHMAN
• NAZREEN MAYADDIN
• SHAHRUL AZRIN
• NUR AKMAL
BATTLE FOR DOMINANCE IN MOBILE PAYMENTS
- MGT785 -
BY : DR HADIJAH IBERAHIM & DR MEGAT

2. • Smartphones spread worldwide.
• The rise of mobile payment systems enormously beneficial social and economic
consequences by helping the unbanked become banked.
• In 2018, there was no dominant mobile payment system standard, and a battle among
competing mobile payment mechanisms and standards was unfolding.
• Many of the large mobile payment systems such as Apple Pay, Samsung Pay, or Android
Pay, use Near Field Communication (NFC) chips in smartphones.
• In emerging markets such as Asia-Pacific and Latin America, where NFC-enabled
smartphones are less common, mobile payment systems are more likely to use QR codes.
• The World Bank estimates that roughly two billion people worldwide do not have access to
financial services, and 31 percent of adults have no bank account.
• it was clear that mobile payments represented a game-changing opportunity that could
accelerate e-commerce, smartphone adoption, and the global reach of financial services.
SUMMARY

3. Question 1
What are some of the advantages and disadvantages of mobile payment systems in
Developed countries ?
Answer:
The following are the advantages of mobile payment systems in developed countries:
• customers own bank accounts and have credit cards which can be linked to mobile payment
systems.
• people have access to large mobile payment systems that use near field communication
chips which makes transactions faster and secured.
The following are the disadvantages of mobile payment systems in developed countries:
•There is no dominant mobile payment system provider which created a number of providers
to choose from.
•The existing mobile payment systems are not compatible with each other and this creates
confusion among users.

4. The following are the advantages of mobile payment systems in developing
countries:
People can use mobile payment systems for small-scale transactions such
as transferring payments from person to person.
The growth of mobile payments system is high in developing countries
compared to developed countries.
The following are the disadvantages of mobile payment systems in
developing countries:
People do not have access to banks or credit cards which can be the source
of funds for mobile payment systems.
Near Field Communication (NFC) chips are not widely used. Instead, mobile
payment systems use QR code which has to be generated from the app.
This process is relatively slower than using NFCs.
Question 1
What are some of the advantages and disadvantages of mobile payment systems in
Developing Countries?

5. Question 2
What are the key factors that differentiate the mobile payment systems? Which factors do
consumers care most about? Which factors do merchants care most about?
Answer:
The following are the key factors that differentiate the mobile payment systems:
• It uses technology to aid circulation of money in the market
• It promotes reliable cashless transactions
• The system does not rely on banks or credit card companies to facilitate a transaction. They
even support these businesses.
The following are the factors that consumers care more about:
• The mobile payment system can be linked to personal bank accounts or credit cards which
can be the source of funds.
• It gives consumers the freedom to do online transactions anytime and in real time.
• It provides convenience to mobile payment system users through the use of mobile phones.

6. The following are the factors that merchants care most about:
• Payments made through mobile payment systems can easily be transferred to the
merchant's bank account.
• Merchants do not have to worry about keeping too much cash in their possession.
• Reliability and convenience of using the system in day-to-day business transactions.
Question 2
What are the key factors that differentiate the mobile payment systems? Which factors do
consumers care most about? Which factors do merchants care most about?

7. Question 3
Are there forces that are likely to encourage one mobile payment system to emerge as
dominant? If so, what do you think will determine which becomes dominant?
Answer
The mobile payment system industry is composed of several players in
both developed and developing countries. Some are big industry
players but there is no dominant company yet.
The following are the factors which can determine a dominant player
in the industry:
• Number of partner-merchants using the mobile payment system
technology
• Compatibility of the mobile payment system with mobile phones
and other payment channels.
• Ease of use by both consumers and merchants.

8. Question 4
Is there anything the mobile payment systems could do to increase the likelihood of
them becoming dominant?
1. Design matters
 The designers should pay attention to the “small stuff.” For example, setting the app to
show only numbers when only numbers are required in an entry field saves both time
and confusion.
 A well-designed app will show the security features on the “submit” page. Not having
those leads to a lack of trust from the user even though the security features are there.
2. Offer Loyalty Programs
 Loyalty programs are one of the ways that companies attract customers. Flexible
programs that generate points from lots of different activities or purchases in a variety of
ways are the most popular. The newest thing in loyalty programs is to be able to collect
points just based on online payments or through mobile apps.

9. Question 4
Is there anything the mobile payment systems could do to increase the likelihood of
them becoming dominant?
3. Email Receipts
With some people who enjoy shopping, the number of receipts could climb into the
thousands. Email receipts are an easy way to circumvent this blizzard of paper.
An emailed receipt takes up no physical space. By using email receipts, we can easily
categorize the receipt by month, retailer, amount, or any of a dozen other categories with
just a few swipes and other gestures.
4. Simplify the process
People like to have all of their payment methods on their phone, such as debit and credit
cards, PayPal, and bank transfer. They’re should all encrypted, so if the phone is lost, not only
will someone else have to crack the password, that person will also have to break the
encryption. That’s a whole lot safer than carrying a boatload of cash that someone can just
pick up and use.

10. Question 5
How do these different mobile systems increase or decrease the power of (a) banks and (b)
credit cards?
Answer:
A) Banks
The different mobile payment systems increase the power of banks by:
• requiring consumers or merchants to link a bank account that will serve as source of
funds or destination accounts for the mobile payment systems
• partially using the bank's system to complete a transaction or verify information of
the consumers or merchants
The different mobile payment systems decrease the power of banks by:
• allowing consumers or merchants to use the mobile payment systems even without
a linked bank account
• using a system that is entirely independent of the system used by banks. Some
mobile payment systems use the system of the banks to verify consumer or
merchant account information.

11. Question 5
How do these different mobile systems increase or decrease the power of (a) banks and (b)
credit cards?
Answer:
B) Credit Cards
The different mobile payment systems increase the power of credit cards by:
• requiring consumers to link a credit card account to the mobile payment system
• using the credit card's system to complete a transaction or verify information of the
users
The different mobile payment systems decrease the power of credit cards by:
• allowing consumers to use other ways to cash in or put funds in their mobile payment
system accounts
• creating a mobile payment system's own credit facility that is not dependent on existing
credit card companies

12. THANK YOU