A Primer on Android Pay and Google Wallet

Description: Android Pay is essentially a digital payments system that consumers can use to buy things online or in stores from retailers and others who also use the service.

Source: www.nytimes.com

Date: May 28, 2015

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To use Android Pay, smartphone users with up-to-date versions of the Android operating system will be able to load Visa, MasterCard, American Express or Discover cards onto their phones. From there, they will be able to wave the phone over the terminals in more than 700,000 stores around the United States to pay for items. Android Pay will also work inside mobile apps from participating developers.

Google will use a technology called tokenization to provide merchants with a customer’s payment information without having to hand over their actual credit card number.

As with Apple Pay, Google will let customers verify their identity using their fingerprint, a technique which will be built into the next version of Android.    Read Rest of Story 

 Questions for discussion:

1.  Will this new payment system succeed “ANDROID PAY”  Why or Why Not?

2.  What is the business model of both android pay or or Apple Pay?  Is it sustainable?

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28 thoughts on “A Primer on Android Pay and Google Wallet

  1. Tamara First Charger

    week ago, Google confirmed the arrival of Android Pay and it will compete with Apple Pay. Both Android Pay and Apple Pay are mobile payment products. Android Pay will load credit cards. Digital payments can be made by waving the phone over terminals. The identity of customers will be done by fingerprints. Since Android will have loyalty programs, it may succeed Apple Pay. However, Apple Pay will deal with be looking at loyalty programs in the next month.
    Both Android Pay and Apple Pay will be sustainable. Android Pay will reduce customer payment information so that actual credit card numbers will not be given to merchants. This will lessen costs and increase profits.

    Reply
  2. Jennifer B

    With technology today it seem almost anything is possible and I do believe that Android Pay has a possibility of being successful. It allows for a convenience for people; physical cash has been slowly phasing out and people seem to have a larger amount of credit cards. I believe that the next thing could be payment on your phone. There are already systems like Paypal out there that allow you with a click of a mouse to buy stuff online and have it come directly out of your bank account. This doesn’t seem too far fetch off of that. However there are several security risks that would need to be tested. If this is going to be successful Android has to ensure complete security. There are already too many credit card scams out there. If Android is able to ensure complete security I believe that this payment technology can be very useful.

    However, like i mentioned above there are already many different competitors out on the market already. Such as PayPal that holds a large market share, and others that have tried and failed to take over enough of the market to be successful little own sustainable. But if Android did it right i believe they could be successful. For example Android implementing loyalty programs and giving their customers the opportunity to earn extra points and credit for their purchases, they will be able to separate themselves from their competition. That being said I think that if the customers are happy with Android Pay’s and satisfied with the quality of the services then Android’s success will grow with time.

    Reply
  3. Dakota Manson

    1. Will this new payment system succeed “ANDROID PAY” Why or Why Not?
    Android pay seems to be a very clever idea which does, however, pose a few risks. Since Android has already been unsuccessful in past mobile commerce efforts, consumers may be hesitant to even try out the new technology. Since Android takes up more market share, in term of number of phones sold, than Apple, this could be a very profitable aspect of the company. They could charge fees per transaction, which need not be high since the number of daily transactions could amount to millions. This idea is clever since it integrates all the items needed and a daily basis. I cannot count on my fingers how many times I have left my wallet at home on accident and had to starve over the lunch hour. This could be a very convenient technology. So I would myself like to try out the new Android pay. Another point worth discussing that is a competitive advantage for the company would be the loyalty program it offers. This might encourage consumers try out the new technology. One serious risk, however, would be the vulnerabilities of confidential information. I would need to know if my information is safe. With identity theft, theft in and of itself, and hackers going to new extremes to sell vulnerable information going through the roof, I’d definitely have a red flag in my head.

    Reply
  4. Taylor Lapierre

    I believe that Android Pay has a possibility of being successful. As physical cash has phased out and the amount of credit cards being used increases, I believe that the next thing could be payment on your phone. However there are several security risks that would need to be tested. If Android is able to ensure complete security I believe that this payment technology can be very useful.
    Other than any security threats there are other issues to be dealt with. Imagine, for example, you have adopted this method of payment and only carry your android as a method of payment. You spend the whole day shopping and after hours of charging all your expenses to your phone, it dies. What would you do then? Or what if you get lost on road trip and, after using google maps to find your way to the nearest town, your phone dies and you have no way of even paying for gas or a hotel. But, if Android thinks about an alternative “plan B” then I’m sure they would do well.

    Reply
  5. Jason Cousins

    I think Android Pay will be successful but they have to be careful to make sure its satisfying costumers needs because it has already gone under once. What is to say they wont again? Hopefully they have done their homework and learned from their previous mistakes. I can see how this technology will be very successful for our generation; the generation that grew up with intelligent technology. At least with my grandparents and parents, they would not be able to comprehend this system. But specifically for myself, I would definitely use this technology. I would, however, have some concerns about security if my phone was stolen or lost. I would want to make sure that if someone gained access to my phone, that they would not be able to access my personal financial information. I like the idea that is proposed by Apple Pay, where they require a fingerprint in order to use the credit card tap action. I feel that would be secure enough for me to be comfortable enough to use that application. It would also be very convenient because I would have less “plastic” to carry around in my pocket and less to worry about if I lose my wallet because I would not have the credit card anymore. It is insane to think that our functionality is all dependent on one tiny but very smart cellphone. They carry our lives and help us carry out our regular day activities.

    Reply
  6. Nidhi Patel

    Not all products become a success over night. I believe the same will be for Android Pay. It should take baby steps and it will gain popularity and success accordingly in the future. As technology continues to expand, people hope to do more with the coming-age smartphones. All smartphones can call, text, take photos and videos, send emails…etc. Something like Android Pay is different. Android Pay isn’t the most easiest and convenient thing to do but if learnt and taught it can be a success. Technology is expanding at a rapid pace. In order for businesses and consumer to keep up with the rapid growth, they need to quickly learn what is going on in the world around them. Unlike the old days, technology nowadays requires more personal information in order to make a consumer’s technological experience as comfortable and convenient as possible. At the same time, consumers are expecting technology to have more security and need to have a sense of trust in the new types of technology. PayPal, Square ad Apple Pay are a couple companies that Android Pay is in constant competition with. Android Pay is just making its mark in the world. It’s going to take some time for Android Pay to be as global as PayPal, Square and Apple Pay. Fully satisfying consumers is the biggest challenge a newly established, slowly advancing company faces. In order to gain satisfaction, Android Pay can try its best to offer full security against scams and other forms of harm while also advertising more in order to gain popularity. Over the years, Android Pay will succeed.

    Reply
  7. Fernanda Osegura

    Despite the question of it Android Pay will or not succeed, companies such as Android, Apple, and even more, Google seem to have a big enough capital to sustain even failed attempts.
    Nowadays, people are becoming increasable dependant of their smartphones. Calls, messages, internet and of course, a never ending list of applications.
    Google’s first attempt of an electronic wallet may have come too soon for its market, but today, smartphones are becoming smarter and people relay more on them each and every day. This being said, I believe that Android pay has a shot to success. If played right, this could be a new step in the way the world works towards a smarter, more technological era that has been forming for the past 30 years. People are tired of carrying stuff around. Why bother? If Android proposes a product to its market that promises -and delivers- a service that not only solves the inconvenience of dealing with physical cards but also earns you benefits, I believe that Android pay could be to this generations what debit cards where to money a few generations back.
    This service, although, may rise a few eyebrows. As convenient at it may sound, it is asking people to open their financial information and give control not to a second, but to a third party, and it would not be the first time that that goes wrong. Technology has come a long way, so Android needs to create a services that meets a necessity that until this day, still does not exist. And for that, this service needs to be risk free to all of those adventurous customers that want to jump on board.

    Reply
  8. Spencer Boles

    Android Pay may succeed. The idea of it is a good one but there are many problems with the idea. The first is phones are not secure. They have not yet made a phone for consumers that could not be hacked. The most recent to fall was apple. If phone can be hacked it would be easy to steal your info for Android pay or similar products. If they can get around these concerns then it is a great idea but until they do consumer will be sceptical about whether it is safe. Another big concern will be how businesses will use it. Will they have to buy machines or be able to use their existing machines? If businesses do not accept android pay as a form of payment the people will not bother with it.
    Their business model is only sustainable if the idea catches on. Just like iphones and others it has to become a trend. People need to see this idea as convenient and making a difference in people’s daily lives. Also it depends on how they plan to make money. Is it going to be a flat fee for a transaction or a percent or perhaps a subscription based service? All these things matter. I do think that if they overcome these problems with android pay then it will be successful. This is a unique and innovative idea that could be a very unique trend which could be profitable for android and apple especially for the one that gets a competitive advantage by gaining a large market share first.

    Reply
  9. Ben Lo

    I think android pay can be successful if they provide their customer base with confidence in their system. This is a new form of payment and will take users much time to develop the confidence to fully trust and use. With hackers and other cyber criminals around, I think it would be a risky was to pay for merchandise or other things without the leakage of private data or information. Even though credit cards are just as vulnerable at least the hacker or person stealing your information would be on camera while they use your card somewhere unauthorized. Hackers on the other hand can hide their physical appearance, their location and even can steal your information from the comfort of their homes. Android pay would be hard to be successful if they have a powerful and influential competitor like Apple pay. I think if these two payment alternatives cooperated to do a joint system it would provide customers with the confidence to uses a new and scary payment system. I think this system can be successful because this is the next step from the tap system we currently have is the newest. I personally really like this system, it is simple, convenient and saves me lots of time. If android pay provides me with the confidence that this system would not be compromised and my account, money and information will be safe. I think this payment system would be successful.

    Reply
  10. Nathan Watmough

    If android pay and apple pay don’t work, I think something similar will. We have seen the pattern that smartphones have created. They are slowly combining many devices and functions into one and it only seems natural that payment systems will be next. It will probably take a while for people to become sufficiently comfortable with it to trust it with their money but I’m sure people had the same barriers in order to trust plastic with their money. Same kind of thing.

    Reply
  11. Wancong Lu

    This new payment system “Android pay” will successful for sure. People can use that to pay any kind of payment include online, and in store. The method of pay in store is surprise me. People can just wave the phone over the terminals to pay their bills. it is actually very convenient for people, they do not need to bring any big wallet anymore, what they got do is just take their phone with them. Not only it is convenient, but also it become more safe for everyone. Also, they do not need to hand over their actual credit card number, which is super good for customer, because a lot of people worry about their credit card be used by someone else, and they are right, those things happens everyday, and some stores will charge you extra fee while you do not know. Thus, with this new payment system, people will shop safety.
    In the online payment, Android and google wallet are all same like Paypal, which is the most popular online payment system. However, with people use that in store shopping, more people will start to try Android and google wallet. this will hurt on the leader of online payment method-Paypal.
    Also, Android pay will organize retail partners points or credits, and automatically be added to any loyalty card a customer enter. this is very helpful for people check their credit, and make decision.
    With the development of the world’s economic, people will Android pay and google wallet will become one of the most famous payment in the world, and they well be used more often than credit card.

    Reply
  12. Gordon Entz

    It is difficult to say whether or not these new payment methods will work but I can’t be indecisive so I’ll say they will work. This is a new age where people use their phone for everything so this is just the next step. There will be a few problems initially that I can see but nothing that will be to big to overcome. These are major companies who are trying to make this happen and people will want to use this technology simply because of the convenience that it offers. There are two problems I can think of that right now would present some difficulties. Firstly security will be an issue and secondly most places do not support this payment method. Those are both problems that can be resolved and I am certain that they will be. When it comes to security the problem would be that local thieves would be able to steal someone’s phone with minimal effort and could take advantage by going on a shopping spree. I know that this is completely inappropriate but there are people who engage in these unauthorized activities. I would like to take this opportunity to say that i have never done anything like this and i do not condone it. This new payment system will succeed and I feel i should get some credit when it does for having faith and believing that it would. The other problem I identified was that this technology wasn’t supported by most locations but that would soon change if companies see the potential and if the demand is there which it will be.

    Reply
  13. Fangbo He

    I totally agree that Android Pay will be successed in the future. Google already offered a payments service. It was called Google Wallet, and like Android Pay, it was a way of using your smartphone to pay for stuff both in stores and online. Android Pay is an useful tool for streamlining Google Wallet in some ways, and Google will offer tools that lets online banking apps plug into its payments service. Payment technology is already a concern for small businesses that want to keep up with the latest payment trends and compete with big businesses. Google Wallet now runs the payments startup Poynt, this is the big thing Google Wallet was missing and the big thing that could make an Android-based payments service take off. Actually, the customers are no longer want smartphone with simple features of calling or texting. That’s wahy Google said Android Pay will be accepted by more than 700,000 physical stores and over 1,000 mobile apps. Those are nice numbers. Digital wallets like Android Pay won’t be more than a niche unless merchants get on board. No matter how long it will be take , Android Pay will give customer a satisfied answer.

    Reply
  14. Kim Sikhosana

    I believe that this new system will succeed. We are always being introduced to new ways of integrating our lives with technologies to make life simpler. Our phones now can help us different things such as, helping us track our health, keeping in touch with friends and families who are in different countries. It is only a matter of time before we start having our phones as debit/ credit cards. Also, i think that the security of using our phones as a form of payment will increase as the system develops and it becomes more popular. We already have apps with different banks that let us do online banking, transfer money to others and make payments.

    Reply
  15. Raman Sidhu

    Every new system or product release has a chance to have its downfalls. The usage of the Android Pay is just another system that will eventually become popular by demand. Many people today are reliant on their electronic devices, especially their smartphones to complete so many tasks on a day-to-day basis. System releases and upgrades are happening so often that these are easily becoming widely accepted; especially within the younger people.

    There are many pros and cons related to new systems. The android is a very popular system and because of its popularity, many users will give the Android Pay a try. As most people lean towards convenient and easy methods, this new way of using payment methods will become a common way of doing business. Negatively, as the marketplace is growing so quickly, it is difficult for all businesses to stay on track. If constant upgrades require businesses to invest more money into improving their technology systems, not many businesses will be profitable. New upgrades and systems usually require replacements of old devices with new ones. Also, as it is a new method to make purchases easier for buyers; it is entirely safe and secure? So many devices are being hacked nowadays that a lot of people may not feel comfortable to use the system. Now, if businesses were to upgrade their machines and spend all that money, they will be taking that chance to rely on the new ways of doing business.

    Reply
  16. Katrin Saballa

    Android Pay is an example of a “digital payments system” where an Android user with the up-to-date version(s) of its operating will be able to connect their Visa, MasterCard, American Express or Discover cards accounts onto their mobile phones. To pay for their purchase, the user or customer just need to wave their phone over the terminals or pin pads that support Android Pay. Google will now use “tokenization”, a technology that would provide merchants with the customer’s payment information without the customers having to give their actual credit card number.

    This new payment system’s success would depend on not only the consumers but also on the sellers. For us consumers, it is easy to switch over to digital payments systems such as Android Pay or Apple Pay because most, if not all, of us already have smartphones. We only need to download the service/app and enter our payment information. Sellers, however, need to invest money to get Android Pay compatible pin pads and not everyone is willing to do that unless they believe that it would help improve their business. It is convenient to use Android Pay because we will not have to carry cash and/or debit and credit cards with us but if not all businesses accept Android Pay payments, then we would still have to bring cash and/or debit and credit cards with us. Therefore, if everyone is willing to make the change to up-to-date Android phones and Android Pay compatible pin pads, Android Pay will be successful.

    Reply
  17. Brad Andrus

    In my opinion, I do not believe we have reached a period where using a phone to place transactions is sustainable. Firstly, the features that android pay and google wallet offers are, for the most part, trivially more convenient than apps on my smart phone, or my debit/credit card. The few main features that android pay and google wallet offer includes a loyalty program, quick-tap payment, and the ability to transfer money to others. However, these services have already been around for quite some time and already work swimmingly. I understand that this service offers all of these advantages in one convenient app, but, the apps on my phone that already utilize these services already do these things well. Which brings the question, Should I expect a company that started off as a search engine take control of my monetary transactions? I’m not quick so believe so. This is comparable to Apples ability to take on projects outside of its niche such as apple tv or itunes, Apple may offer a couple of trivially convenient features that differentiate it from competitors, but there’s some other company out there that focuses specifically on these systems and does it much better i.e. spotify and netflix.
    However – and this is a significant however – if this transaction system was able to replace the monthly fees that small businesses have to pay to use the services of visa, mastercard, and Amex – I would switch to using Android pay specifically for purchases at local and small businesses if it cut down on these costs for owners.

    Reply
  18. Bola Fowosere

    Rapid growth is a challenge that both large and small companies face. However, such growth tend to have greater impact on smaller companies then large firms that are more likely to afford the cost of change. As people are becoming increasesily dependent on smartphones, Android pay would transform the way business is done between Business to Business and Business to customers. Although the transition stage to the use of Android pay will be slow, as it will take time for business such as restaurants to catch up with this mode of payment, it is hard to say that it will be successful and accepted in the coming future. For customers, they no longer want smartphone with simple features of calling or texting. Personally, I would not have to carry so many cards in my wallet, when I can easily make payments with my phone. As interesting as this may sound, security and privacy issue becomes a great concern. In essence, Android pay would not only have to seek ways to address this issue, but also let customers know they have their best interests at heart and are capable of delivering such promises.

    Reply
  19. Ajuot Ajuot

    Although Android is under intense competition with those of Apple and Google, I think “the new system of payment” will work as long as Android makes its new system the most secured, simplest as well as cheapest compared to those already existed. When a new technology is introduced, people are likely to first consider three things that is the price, security and technical involvement that the new technology requires. So, if Android has put these three things into consideration, no doubt that people will be eager to use the new system. Of course, there would be so many challenges for new system, but it is up to Android to make the system more convenience and appealing to the customers so that those who initially test the system enjoy it and persuades their friends to try. In generally, I think the system would succeed after the while.

    Reply
  20. Kendra Bloomberg

    With the rising dependency on smartphones, I believe that Android Pay will grow to be very successful in the future. However, it may take a while for Android Pay to grow. The biggest issue, in my opinion, is that not every business or person will be able to access the current technology that is compatible with Android Pay right away. In order to support Android Pay, businesses need a certain type of pin pad that is able to process digital payment. However, it would be expensive for a business to replace all of their pin pads for new ones, especially if their current ones are in good working condition. Additionally, if they are not convinced that switching to new Android Pay compatible pin pads will benefit them and the majority of their customers’, or that Android Pay will be used by the majority of customers and other businesses in the future, they may not be in favour of the idea. For customers, they cannot use this new technology unless they have the up-to-date versions of the Android operating systems which may mean they would need to switch to a newer phone. This is another cost many may not feel is worth the switch. Another problem that Android Pay may face is the fact that until every business adopts the Android Pay system, customers will not be able to pay by card everywhere they go. This means that even if they have Android Pay they will still have to carry their cards with them which void the convenience purpose of the system.

    Reply
  21. Krysten Lumsden

    Android Pay may just be part of the wave that is transforming the way business is done. Like many new things, such technology hasn’t necessarily worked as well as hoped, at first. But what is it that is really happening here? In my view, small and big steps are being made that altogether propel us toward an inevitable future which forms part of the digital revolution we are experiencing. In the end these new technologies, perhaps not in their present form, will be adopted. This technology is part of other developments that are on the horizon, like the growing evolution and adoption of Bitcoin.

    Some say we are moving toward purely digital currency. Further, some say, we are moving towards a global currency. Applications like Android Pay, Google Wallet, ApplePay, and Paypal seem to be slowly yet swiftly bringing us closer and closer to that reality. A few days ago I was going to the bank to get some cash to order some books for my daughter, and it occurred to me that I barely carry any cash on me these days, not even for ‘emergencies’. And when I use my debit or credit cards to make everyday purchases it reminds me that we are becoming a cashless or near cashless society.

    Considering the developments in biometrics and smartphone technology the adoption of Android Pay and Apple Pay seems not only obvious but inevitable. I think this is future, staring us right in the face. It is just a matter of time. With all the high profile hackings that have been going on recently the thing is for the purveyors of such technology to convince consumers and the banks that secure financial information can be remain secure and adequately protected.

    Reply
  22. Arth Patel

    I believe that Android Pay system will succeed in the coming future. Most of the people now have smartphones and they are looking to get more things done other than just call and text. Technology is advancing at a much greater pace than consumers and business can handle. They will need to act fast to keep up with the situation. Technologies now a days need personal information in order to serve them better, but that information needs to secure and be trusted to be used in safe way. This reason alone can be timely process for the adoption of Android Pay. Android Pay is also competing with many other companies like Square, PayPal, and Apple Pay who already have a healthy market share in the globe. Satisfying customers is the biggest challenge of all; after doing that customers will not be hesitant in accepting this technology. Simply putting your smartphone over a payment machine is very easy and less time consuming. Since android system is more widely used around the globe more and more consumers are likely to try the technology and to keep using the technology Android Pay could offer some reward points or something that makes consumers wanting more.

    Reply
  23. kprusky

    With mobile technologies and advancements constantly being introduced into the marketplace I believe it is only a matter of time until these systems are widely accepted and standardized in daily transactions. Businesses and consumers will need to adapt and turn over their current systems to accept these newer payment methods. In order to adapt to these technologies, trust will have to be established. Before these new methods can be implemented, consumers and businesses need to know that they can trust these systems to protect their information, especially with the influx of cyber crimes and hackers stealing a substantial amount of credit card information. Aside from trust, these new systems will also have to compete with the electronic payment goliath “PayPal” which already has a considerable market share, as well as mobile app technology. Once the general masses see how convenient and easy it is to pay by swiping your virtual wallet, and feel they can trust the security of this technology, there will be wide acceptance. Businesses will likely continue their model based on taking a percentage or fee from every transaction processed. Which goes to say that these businesses will rely mainly on the volume of transactions taking place per day. As these systems are used more frequently over time, the number of consumer and businesses, and number of transactions being processed by Android Pay, Apple Pay, Google Wallet, and Square Cash will grow exponentially. While this model seems cut and dry simple, we know that in this age technology is ever changing, and that fact alone assumes that this technology is non-sustainable. There is bound to be another technological breakthrough with new and exciting ways to pay for good and services in the future.

    Reply
  24. Hongyu Xu

    In my opinion, whether the new payment system would be success is depends. There exists some reasons. First and the most important reason is there is a big and strong competitive market. Both Android payment and Apple payment are very successful. As the article has mentioned that Android has a big advantage because they will be able to wave the phone over the terminals in more than 700,000 stores around the United States to pay for items. Also, for the Google wallet, they will use a technology called tokenization to provide merchants with a customer’s payment information without having to hand over their actual credit card number. and also with the Apple pay, Google will let customers verify their identity using their fingerprint, which is very convenient. For the second reason is that it would take a long time for people to accept the new payment, because people have already used to use Android payment and Google Wallet. However, This new payment might be successful, people might feel curiosity about the new technology or the method to make a payment. Therefore, it can attract more people to use it, may be after customers use it, they found it is better than other payment.

    Reply
  25. Tolu Adepoju

    I believe that this new system “Google pay” will work it might just take bit of time. There are a lot of people that have android phones but Google will have to advertise this system and explain to people what it is how it works, benefits, security issues and such. Of course a lot question will arise around security because if people start using this system this gives Google more data base on people. This system will also attract more hackers wanting to gain this information. This system also puts pressure on Google to have a well secured system and they will need to explain to customers and also edits that their personal information is not being jeopardized.one this system gains ground a lot people will be open to it because nowadays people have their banking apps that they use for e-transfers paying bills and such. This will also affect credit card companies because now you don’t need to carry a card around just having your phone alone is quit sufficient but they will lose revenue on this area. I have an android phone myself and I think it quit a get idea because it creates my space in my purse and also for people that have children they don’t have to worry about carry much with them around.

    Reply
  26. Kayla Rothe

    With technology constantly changing and advancing, I believe that the newly developed payment system Android Pay could succeed; however, this may be a timely process. I think that it is extremely hard to get the word out about particular apps since there are constantly changing trends involved with technology. Customers are also often reluctant to actually go ahead and welcome or implement these new technologies into their daily lives. For example, before reading this Article, I had never heard of Apple Pay, Google Wallet or Square Cash. When introducing new technology, customers are often hesitant to try it out due to security reasons when dealing with financials. For Android Pay to become successful I believe that they will need to satisfy their new customers; furthermore, those satisfied customers would then promote their technology through word of mouth. Once an individual sees the ease that comes with their friend swiping their phone to purchase a product, I think this could become quite popular. Android Pay will also benefit and possibly see success from differentiating themselves from Apple Pay. By Android implementing loyalty programs and giving their customers the opportunity to earn extra points and credit for their purchases, they will be able to separate themselves from their competition. That being said I think that if Android Pay’s new customers are satisfied with the quality of the services Android is able to provide them with, their success will grow with time.

    Reply
  27. Glenn ZoBell

    I think that these new payment systems will succeed eventually; it may just take some time for them to be accepted and trusted by consumers. It seems like the biggest issue people have with these systems is privacy of information. It seems like these companies are doing all they can with finger print verification and other systems that will improve privacy. I’m sure over the next few years there will be failures and corrections with these systems. I already know many people who use banking apps with online banking to transfer money between peers. More and more people are using the tap feature on their debit and credit cards for payment as well. I’m sure it is just a matter of time before people will not even carry physical cards around anymore and just use their mobile devices for all payments.
    I would guess these systems are focusing on their volumes and not their margins. Customers would not use these applications if it cost them too much but if the companies were only charging a few cents for every transaction, with huge volume over time these systems could definitely be sustainable. Most of these companies are already sustainable without these applications so whether or not they are huge income providers, they can still add to the companies value.

    Reply
  28. Shea Josuttes

    It’s hard to say if these new payment systems will be well received or not. It really depends on if businesses are willing to adapt their current payment systems to the new ones and generally how quickly it can be done. Payment technology is already a concern for small businesses that want to keep up with the latest payment trends and compete with big businesses but realise the tremendous costs that come with constantly updating that technology and integrating it into their budgets. The transition stage will be the hardest for consumers because they won’t like having the inconvenience of only being able to pay on plastic at certain locations and with mobile devices at others. I would say that eventually everyone will be up to date with payment technology and everyone will being paying using their mobile devices but I do think it will take some time.
    It will be up to banks and the people that create payment technology to collaborate and introduce bug-free and low cost technology to the public so that everyone can feel comfortable getting on board with mobile payments at the same time. Businesses and consumers alike will have an easier time if the technology is integrate at once.

    Reply

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