Highest professional education programme«E-Business»

  

Author Student Rihards Veters

Lecturer A. Rubene

RIGA2015

Online Payment Systems

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Introduction

In June, Gartner estimated that mobile payment transaction values would reach $235.4 billion in 2014. By 2017, Gartner expects the value to swell to $721 billion.

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Google Wallet

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Google Wallet•Google Wallet is one of the most hyped mobile payment systems on the market.

•The app allows users to store loyalty cards from various retailers, send money to family and friends, and buy items instantly on mobile websites.

•Those are nice features, but Google Wallet's main draw is that it allows users to store credit cards in their phone, creating a virtual "wallet."

•Hundreds of thousands of merchants are supported, but Google Wallet has a long way to go before every consumer can use it at every location.

•Google Wallet users receive 24/7 fraud monitoring, as well as purchase protection that covers 100 percent of all eligible unauthorized transactions.

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Paypal

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PayPal•PayPal is a massive force in e-commerce, so it's no surprise that its mobile payment solution is catching on with consumers.

•The company offers a familiar set of features for mobile users, who can link their bank account or debit/credit cards to their PayPal account. From there, users can shop with a single tap at participating merchants.

•One of the more unique PayPal features is that it allows users to pay ahead at select retailers.

•The best feature has more to do with security than transactional convenience, however.

•David Kennedy, founder of TrustedSec (an information security firm), recently explained why virtual wallets are such a cool concept. He told Fox News that PayPal offers a "one-time credit card number where basically you use a credit card once and then it changes the number again."

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Apple Pay

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Apple Pay•Apple Pay, is Apple's new mobile payments service. Like the new Apple Watch Apple has adopted the Apple symbol followed by "Pay" for the service's name, though the company also refers to it as "Apple Pay".

•Apple Pay is designed to allow iPhone 6 and 6 Plus users in the United States to make payments for goods and services with their iPhones, both in stores and within participating apps, using an NFC chip built into the iPhone 6, the iPhone 6 Plus, and the upcoming Apple Watch.

•Apple Pay also lets users make one-tap purchases within apps that have adopted the Apple Pay API. Devices capable of using Apple Pay within iOS apps include the iPhone 6, the iPhone 6 Plus, the iPad Air 2, and the iPad mini 3. All of these devices contain an NFC controller where the "Secure Element" of Apple Pay is located, keeping customer information secure.

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ApplePay, Security and Info•To keep transactions secure, Apple uses a method known as "tokenization," preventing actual credit card numbers from being sent over the air. Apple also secures payments using Touch ID in the iPhone 6 and skin contact with the Apple Watch.

•Apple is aiming to replace the wallet with Apple Pay, and the one-step process prevents people from needing to dig through a purse or wallet to find credit cards. As it is built on existing NFC technology, Apple Pay will work anywhere NFC-based contactless payments are accepted.

•According to Apple CEO Tim Cook, Apple Pay will "forever change the way all of us buy things," and thus far, Apple Pay has seen some early success, garnering more than 1 million credit and debit card activations during the first 72 hours after it was released. In November of 2014, Apple Pay was responsible for 1 percent of total digital payment dollars, and was most popular at Whole Foods, McDonald's, and Walgreens.

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Thank you for your attention!