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Q 1. Mobile Wallet e-payment

  1. Google Wallet

Google wallet uses near-field communication (NFC) chips which are integrated into NFC enabled smart phone such as Nexus 4 and Samsung galaxy S3 that enables an individual to store payment information. The virtual wallet allows one to purchase products in-store where Master Card, is accepted and online stores where Google wallet payment is accepted. Such sites include Rockport, Five Guys: Burger and Fries, Google’s own sites such as Google Play, and Chrome Web Store (“Google Wallet”). Google wallet does not charge interchange fees but will instead make profits from advertisements. Abraham argues that Google might not have the incentive to enter the European market since mobile operators there charge fees to mobile network operators and banks for transactions via NFC applications (14). Therefore, they can refuse to adopt Google wallet on their phones. Google intends to freely lease space to banks so as to have an upper hand on their competitors and also allow lure banks towards allowing their customers to use the payment option (Abraham 13). Google in a competitive move also offers users an open platform where they can exchange and use information so as to appease more partners (Abraham 14).

ISIS is a virtual mobile wallet initiated by mobile network operators AT &T, Verizon, and T-Mobile. It also uses an NFC chip integrated into SIM cards for smart phones. Through an ISIS app, users can not only make purchase payments but also gain loyalty cards that they can use to redeem products at ISIS accepted stores (“ISIS”). In contrast to Google wallet that relies on the brand Google, ISIS depends on the consumer numbers using the network operators to market the product (Abraham 16). In addition new users get a pre-loaded $10 ISIS card and once their account is activated they are further added $15. ISIS has partnered with Capital One, American Express, and Chase cards to diversify payment options (“ISIS”). ISIS intends to diversify the NFC chip option to include other phones that lack the NFC chip through their partnership with DeviceFidelity and also enable payment via barcodes or quick response codes for merchants that lack contactless point of sales (Abraham 17). Unlike Google Wallet, ISIS intends to charge banks for use of the application.

Q. 2 Privacy

Google wallet protects the privacy of its user transactions by storing user information on secure servers and by using secure socket layer encryption during transactions. In addition, advertisers and sellers are barred from information disclosure. Google only shares email address information with sellers who you have made purchase in their store via the app to foster efficient customer service. Through this, an individual can get optional product updates. Users who do not want to store their purchase data can delete it post-purchase. Users are however asked to report a case where purchases are made without their consent within 180 days and Google covers such loses by 100% (“Google wallet”). ISIS protects the privacy of its users through a PIN number authentication process. ISIS reserves the right to share private information to third parties and only shares with merchants that the user purchased from. However, it restricts the use of such information for purchases and content development or improvement. Card data is stored in a secure element chip integrated into the phone that changes security codes constantly to prevent fraud. Users can also suspend their accounts remotely by visiting their ISIS website (“ISIS”).

Works Cited

Abraham, Cherian. Mobile Payments: A Study of the Emerging Payments Ecosystem and its

Inhabitants While Building a Business Case. Federal Trade Commission, 2013. Web. 16 . 2013.

Google Wallet. Google, 2013. Web. 16 May. 2013.

Home Page. ISIS. ISIS, 2 July 2012. Web. 16 May. 2013.