Apple Pay, Android Pay and Samsung Pay Paper Example

Who are the three major players in the mobile payment market?

PayPal, credit card companies and startup tech companies are the major players in the mobile payment market. The credit card includes visa and MasterCard, Google, Apple, and Samsung (Gannamaneni et al., 2015). The startup has increased in the market and includes Venmo and Square. Although these are the major players, large retailers like Walmart' and banks have also ventured in the mobile payment market. The mobile payment market is experiencing rapid change, although not as the expected rate, the rate is individuals changing from the bank services to mobile is large. PayPal is growing daily with it buying the startup companies like Venmo.

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The three players occupy almost every part of the world and each is almost utilizing it in some ways. Although currently, PayPal has the highest population the rate of startup companies is growing and its expected they will grow to occupy almost every part of the universe. Credit card companies are most useful where technology is still growing and the NFC technology has not reached there. This mostly is in the remote areas or the developing countries. Mobile payment market is most suitable to the millennial as they have been brought up with technology (Koenig-Lewis et al., 2015). The generation before the millennials find it hard to catch up with every technology thus they are changing slowly at their own pace. Money center banks are also among the major players of the mobile payment market. They include banks like JP Morgan Chase, Wells Fargo, and Citi. To some extent, the population benefitting from this is also substantial. There have been significant changes lately to cater to the needs of the clients. This is most applicable to the already developed organizations and firms which can stand on their own.

Most organizations and firms are working towards making sure they are sustainable on their own. By this, it means they are developing mobile payment market for their customers. This is mostly applicable to big industries and firms like Walmart. To firms serving more states than one and high population then these mobile payments are essential to them. The three major players are also working towards this to dominate the market and offer the best services. So there is competition constant that makes the development more and best appropriate.

Why is Venmo considered a social-mobile payment system?

Venmo is considered a social-mobile payment system due to the following reasons. One, when it was launched its main focus was peer-to-peer mobile payments. As it was started by two college students what they had in mind was a platform they would interact with friends easily regarding money payments. Just like any social media where one can get the history of the activities involved, when the app is activated among the users of Venmo then the same history can be found. For most mobile payment systems one cannot easily follow the history of peers or friends but with Venmo this is possible. All the users have also an option to keep everything private. It is up to an individual to choose what to go public and what to remain private. Payments are made by the entry of one's e-mail by the user and transfer of funds is completed when Venmo account holder recipient accepts the payment. Two, the college students wanted an instant mobile payment among the friends. They wanted a platform that works the same as the standard messaging system, where people communicate directly without delays. Checks and cash had their hassles and the students wanted to move beyond this. Since they were student's only small transactions like restaurants bills, debts are what they had to pay. With such small transactions, there is no need for lengthy procedures like writing checks.

Three, in Venmo, when a user has a balance or is using a debit card there is no charge for the service. Only a 3% charge imposed for using a credit card. Venmo can be termed as a free service. Just like online social media platform where one is not charged anything for their entry is the same as Venmo (Slagmulder et al., 2015). Venmo combined the social media and payment services. Compared to the services it gives the 3% for the credit is a small amount. PayPal bought this company and since it's a free service it does not contribute much to PayPal gross revenues. Four, Venmo is an online person-to-person payment application where sending, receiving, or spending money can be monitored by a friend. In Venmo one can store their money or transfer it to their linked bank. With this, the users are free to whatever they want and their privacy is also maintained. The network of friends who can see the history and other transactions are the approved one thus one can monitor their account accordingly just like any other social media platform.

In the past few years after PayPal purchased Venmo, it has undergone different changes. It is expected Venmo will expand in usage and not only to serve the peer-to-peer association or small transactions but to enlarge to accommodate more services. As the mobile payments are improving daily so is expected for Venmo. As more people are enlightened on the advantages of such mobile payments especially the earlier generation since the millennials have already adopted this, Venmo will grow and they will provide more and efficient services.

How does Apple Pay differ from Android Pay and Samsung Pay?

Apple Pay Android Pay Samsung Pay

Only compatible with iPhone 6 phones and later Unlike Apple Pay it is compatible with most smartphones in the world. Compatible with Samsung smartphones

It uses built-in NFC technology It's a Google app that provides an NFC-based payment system Utilizes NFC technology plus Magnetic secure in areas merchants lack appropriate terminals.

Users set up an account, using either their credit/debit card account information, or their checking or savings account, as the source of funds. User's sign up for an Android Pay account by entering their existing bank credit or debit card account information, or by depositing a prepaid balance of funds in their Android Pay account. Users create an account, and submit their bank credit or debit card information.

The users normally, press the iPhone Touch ID button, which reads the customer's fingerprint and ensures the phone does indeed belong to the person. To use Android Pay, customers hold their phone near the merchant's NFC terminal at checkout. Users are asked to enter their PIN and then choose to pay with either the credit or debit card on file with Android Pay or with their cash balance. Samsung Pay operates the same as the android pay. Customers have their pin which is used to secure information and validate the person to transact.

The iPhone 6 and later comes with a hardware-defined secure area on a chip that contains a unique device number and the ability to generate a one-time 16-digit code If the user chooses to pay with a bank card, the app creates a unique digital token and sends this as an encrypted message to Android servers, which then communicate with the issuing bank, for approval. There is no direct payment using bank cards, one must transact to their account then link it to the respective bank.

It takes about a second for the transaction to be approved or denied. The payment services are instant It takes a few seconds for transactions to be approved

All credit cards stored on Apple's iTunes servers are encrypted for security purposes Encryption and one time pin is the security measure taken. For security purposes encryption of all data in all servers acts as a solution

Apple Pay is a technology-based intermediary between banks and consumers hence not liable to federal regulations.

Google Pay is a prepaid digital card where users transfer funds to their Android Pay account, hence liable to federal regulations. Samsung Pay also stores coupons and reward cards, but does not store user funds and is not a prepaid card. Therefore, it most likely will not be subject to U.S. federal regulations.

How does PayPal enable mobile payments?

PayPal is a financial service software platform firm which utilizes the current technology. It is currently one of the most successful online payment systems. It was formally used mostly on desktops and tablets, but currently, it's used as a mobile payment. PayPal is a non-credit card online payment service, with at least 197 million subscribers. Annually, PayPal is growing at a 25% rate (Teo et al., 2015).

PayPal enables mobile payments in three different ways, one, just like a Square device, PayPal has a similar device used by small-scale merchants to swipe credit cards using a smartphone or a tablet. Two, for large transactions clients their mobile device browser on a smartphone or tablet to make a purchase or payment at a website. This usually works for organizations that are ready to share their information to be keyed in the smartphones. This payment procedure does not work for a firm that prefer direct purchase from their stores or malls. Using the account to purchase is the most common usage of PayPal to its users. As long as the two parties have their PayPal account then the transaction will be done. Three, this mainly occurs with the updated PayPal app for both IOS and Android devices. During the purchase, the store and the customer establishes a link using Bluetooth then transacts directly. The customer gets the message without any credit card information being transferred. Merchants do not need expensive NFC point-of-sale device since clients do not have to enter any pin or code to the device. There is no swapping necessary. A mobile PayPal app or a desktop one acts as the digital cash register. After a considerable population was attracted to Venmo, in 2015 PayPal launched the PayPal.me, this is a peer-to-peer mobile payment service that allows payments between friends just like Venmo. PayPal.me is a free service and the main competitor with Venmo. The third way is only applicable to the slow stores as the fast one cannot accommodate them due to the high population they encounter daily.

The most recent mobile payments in PayPal is the PayPal Beacon. This is after the improvement of PayPal.me and the PayPal services. Merchants who have PayPal beacon technology uses hands-free in stores for purchasing commodities. The Beacon provides alternative measures to the struggling NFC-enabled technologies. The PayPal beacon is used to simplify the services and also to reach out where NFC has no chance. PayPal is growing daily and experiencing growth rapidly. As a financial service platform, the mobile market has to change to fit the demands of the population.

Conclusion

Mobile market payments are improving daily. The significant bodies merging and forming coalitions to serve the population in better ways. Although more population was expected to embrace this technology, the earlier generation is taking more time to adapt to the changes. Individuals who are confused not sure which service to use should check what type of payments they are likely to make. Where significant transactions are large scale then there is a platform that best suits them, the vice versa is right about small scales. One can inquire from the platforms if their needs will be satisfied. The traditional methods of swiping are also in use, meaning there should be developed in this aspect, with small changes daily which eventually will have tremendous changes. For the change to be felt completely, it will take more time and the developers must be ready for the pace and eventually embrace the outcome.

References

Gannamaneni, A., Ondrus, J., & Lyytinen, K. (2015, January). A post-failure analysis of mobile payment platforms. In System Sciences (HICSS), 2015 48th Hawaii International Conference on (pp. 1159-1168). IEEE.

Koenig-Lewis, N.,...