Online banking is continuing to increase. There has been at least a 10 percent increase since 2010. Online banking provide features where you could access and manage your account. You can check your balance, account activity, or search your statements and payment history from a desktop computer, laptop, tablet or smartphone. You can pay your bills through online banking and make transfers online between accounts from your home, school, office, or wherever you can connect to the internet. A couple years ago, I went to a grocery store and shop for what I need. Then I went to check-out. After I swiped my debit card, I was told that my card was declined due to insufficient funds. I did not have another card on hand. So, I had my smartphone and transfer money from another account. Then, I was able to purchase the item. This is an example of mobile banking. Online banking is getting a boost from mobile technology.
The advantages of online banking is that it is convenient, no lines, the availability, and the innovation itself. Some people regular work schedule is Monday-Friday from 9am-5pm. Banks often closed at 5pm on weekdays, shorter hours on Saturday, and closed on Sunday. Making a trip into town after work can be a hassle. By using online banking, you can avoid waiting in line.
The biggest concern of online banking is identity theft, but the Internet does offer potentials for safe and convenient online banking. For more information, visit FDIC: Safe Internet Banking.
Sources:
https://www.bankofamerica.com/onlinebanking/online-banking.go
http://www.fdic.gov/bank/individual/online/safe.html
http://www.accountnow.com/content/online-banking/4-advantages-of-online-banking-2/
http://media.ally.com/2013-12-04-Online-Banking-Continues-To-Increase-In-Popularity-According-To-Annual-Ally-Bank-Survey
http://www.bizjournals.com/sanantonio/blog/2013/05/survey-shows-online-banking-getting-a.html
Wednesday, April 16, 2014
PayPal Digital Wallet
PayPal is an international e-commerce allowing you to make payments and transfer money through the Internet. In 2013, $180 billion global dollars was processed by PayPal. It is a form of digital wallet. It is entering mobile payments via encrypted card reader that accepts debit and credit cards with the PayPal Here app. It is available for both iOS and Android.
PayPal developed an app that might be the most fully featured payment app to date. PayPal's vision of the future is "no wallet, no credit card, and no waiting for anything". The app enables you to store your credit cards, send and receive money, and could also open a credit line on your behalf. The only thing about this app is that it's not going to give you the simple and easy feeling of swiping your credit or debit card.
The way PayPal app works is that you use the 'Local' section of the app to find shops and restaurants nearby which accept PayPal payment. Then, you would choose one and you can ‘check in’ to the store. You can order food ahead of time, before you arrive.
I think the PayPal app is a brilliant innovation and have some good features to it, but it is still not quite as simple as carrying a credit card. The system is still quite slower than using a credit card. Shops accepting PayPal is severely limited at the moment. We also pay for things in many different ways. Meanwhile, we would have to buy things the old-fashion way until developers find a more simpler way to use the app and more shops accepting PayPal payment.
PayPal developed an app that might be the most fully featured payment app to date. PayPal's vision of the future is "no wallet, no credit card, and no waiting for anything". The app enables you to store your credit cards, send and receive money, and could also open a credit line on your behalf. The only thing about this app is that it's not going to give you the simple and easy feeling of swiping your credit or debit card.
The way PayPal app works is that you use the 'Local' section of the app to find shops and restaurants nearby which accept PayPal payment. Then, you would choose one and you can ‘check in’ to the store. You can order food ahead of time, before you arrive.
I think the PayPal app is a brilliant innovation and have some good features to it, but it is still not quite as simple as carrying a credit card. The system is still quite slower than using a credit card. Shops accepting PayPal is severely limited at the moment. We also pay for things in many different ways. Meanwhile, we would have to buy things the old-fashion way until developers find a more simpler way to use the app and more shops accepting PayPal payment.
Sources:
Mobile payments is on the rise
It seems like everything is going digital. Mobile payments
is growing and will continue to accelerate. More people are making purchases
online. During Black Friday in 2013, mobile commerce accounted for more than 20%
of U.S. spending.
In 2013, $15 trillion of retail transaction were made, and $1
trillion of that was via e-commerce. Smartphones and tablets are continuing to spread across the
market. By the end of the third quarter of 2013, 63% of U.S. consumers owned a
smartphone and 35% owned a tablet.
Another trend, the number of U.S. smartphone
users using e-coupons increased from 7.4 million in 2010 to 29.5 million in
2012. Coupons are being redeemed at
groceries stores, department stores, and clothes stores. This year, mobile commerce will account for a third of
holiday shopping.
Sources:
http://www.forbes.com/sites/stevenbertoni/2014/02/12/can-paypal-beat-apple-google-amazon-and-icahn-in-the-wallet-wars/
http://www.businessinsider.com/the-big-digital-payments-trends-in-2014-2014-1
http://www.businessinsider.com/mobile-retail-and-commerce-trends-2014-1
Sunday, April 13, 2014
The security concerns in digital payment system
Although all
different kinds of digital payments make our life much easier, there are still
many problems about it. The main drawbacks are concerns over privacy and the
possibility of identity theft. Cyber crime is a major threat to the US payments
systems. Online databases can be hacked and important information can be
stolen. And if that happens, it can be a very serous financial loss.
Over the past
few years, some people experienced a card cancellation due to a data breach.
15% consumers saw fraudulent charges to their account because of a stolen
account number. Such events have a significant impact on consumer attitudes.
They are caring their concerns into the emerging world of mobile payments.
Generally, emerging payment forms are less secure than traditional ones, and
research shows NFC payments are the least secure method.
The truth is
doubts about safety issues are the key barrier to all different kinds of
digital payments. According to the article Top Ten Payment Trends To Watch,
“63% of consumers said they believe that mobile phone signals are easily
intercepted by criminals, and 39% believe that payment cards can be read
through a wallet”.
To prevent
these crimes from happening, the credit card companies such as Visa and
MasterCard cooperated to develop the secure EMV chip, which is embedded in
credit cards. EMV chip card transactions improve security against fraud compared
to magnetic stripe card transactions that rely on the holder's signature and
visual inspection of the card to check for features. Further developments
include the Chip Authentication Program where banks give customers hand-held
card readers to perform online secure transactions.
Sources:
http://www.smartcardalliance.org/pages/publications-emv-faq
http://www.vantiv.com/Insights/Vantiv-Insights/Insights-Resources/Research-Papers/Vantiv-Insights-Top-10-Payment-Trends-to-Watch-In-2013
Wednesday, April 9, 2014
Credit Cards
Since I came to
America, I realize most of people use credit cards when they pay something. It takes
me a while to get used to it. Even if people use credit cards in my country,
they still use cash a lot. Because there are a lot of small shop that do not
take credit cards. Another reason is some people are worried their credit
information may stolon by somebody.
However, it still has some advantages for
using credit cards. First of all, people do not have brought a bunch of money
to go out. When they pay something, they just swipe their cards. Second, some
credit cards offer additional benefits such as discounts and cash back. Third,
using credit cards can build a good credit history. It is not only good for
applying credit cards, but also applying for things such as loan, rental
applications.
Picture source
Since I came to
America, I realize most of people use credit cards when they pay something. It takes
me a while to get used to it. Even if people use credit cards in my country,
they still use cash a lot. Because there are a lot of small shop that do not
take credit cards. Another reason is some people are worried their credit
information may stolon by somebody.
However, it still has some advantages for using credit cards. First of all, people do not have brought a bunch of money to go out. When they pay something, they just swipe their cards. Second, some credit cards offer additional benefits such as discounts and cash back. Third, using credit cards can build a good credit history. It is not only good for applying credit cards, but also applying for things such as loan, rental applications.
However, it still has some advantages for using credit cards. First of all, people do not have brought a bunch of money to go out. When they pay something, they just swipe their cards. Second, some credit cards offer additional benefits such as discounts and cash back. Third, using credit cards can build a good credit history. It is not only good for applying credit cards, but also applying for things such as loan, rental applications.
Picture source
Wednesday, April 2, 2014
Linden Dollars: Second Life.
Linden dollars in the virtual game of Second Life, (similar to Sims but is an online virtual world), are defined by the government as virtual currency. Through the game, you can purchase items in the game as well as locked premium features with Linden dollars and it even has a value in real currency because it can be bought or exchanged to virtual currency. You can earn Linden dollars through Second Life or you can easily purchase Linden dollars with real currency. There is an exchange system called Lindex for this type of transaction made by the game makers. You are not allowed to use real currency for the game. To use Lindex or to purchase Linden dollars, you just need a credit/debit card or a Paypal account. There are even ATM's in Second Life where you can withdraw your Linden dollars.There are many benefits to playing Second Life. You can get started with very little Linden money and earn your way up or spend five bucks to get some Linden dollars and go from there. Either way once you earn Linden dollars, you can then exchange them for virtual money. Why not have tons of fun AND earn money?
Would you like to give it a try and get started? Technology really is stepping it up. Even with games, there are lots of different virtual currency and ways to earn money even when you don't a job in real life. Hence, Second Life. Second Life can be anyone's second chance to living the life they always wanted if you play it right and dedicate your time to earning big. You can only live it up once you've earned and get a good job. But, you can also be anyone and if you're a bit into fantasy, Second Life is perfect for you.There are tons of ways to earn money in Second Life. You can practically sell anything you have in the game, play to win the lottery, play to win in the casinos, play skill games to earn coins, buy land and get money, buy stocks, play other games offered in Second Life like "The Second Farm" or simply get a job! Jobs are very realistic in this game.....you could even be an escort or a stripper if you' like to.
In 2009 when Second Life was first introduced, it was the most popular among PC games. It attracted a wider range of people to play the game. I have never heard of the game until recently researching digital currencies. But it's interesting that games now even have digital currency. Games have stepped it up and have become extremely realistic these days. Would you guys play the game and get involved? Comment below! Share your thoughts. Have you also heard of Linden dollars or played the game? If you have, tell me about it. I would like to know without playing the game.
http://secondlife.com/destinations/realms
http://www.hypergridbusiness.com/2013/04/could-linden-dollars-become-real-money/
http://personalweb.about.com/od/virtualworlds/a/sl_makemoney.htm
Tuesday, April 1, 2014
Can your Smartphone replace your wallet?
Nowadays, we
find ourselves carrying cash less and less because you can just as easily make
your purchase with cards. But do you ever feel there are too many cards in your
wallet, or it takes you forever at checkout counter to find the right card?
Perhaps it’s time to swap again, and this time, for something you have always
been carry around-your smartphone!
There are
different apps in your phone that can hold your payment and card information.
Google wallet and Iphone’s passbook are two of the most popular ones by now.
All you have to do with them is just scan your smartphone or tap it to make the
payment.
However, payments
in the real world are more complicated than online. There was someone named Steven Bertoni, he did an experiment
– left his wallet at home for one day to see how far he could get with a
smartphone. As a result, he found out mobile payments offer some pretty cool
perks, but there were very few options to choose from and it had no access to
public transportation or pharmacies. The gaps and shortcomings in mobile
payment system are still huge. So
basically Steven suggested to do not lose your wallet just yet.
Do you agree
with him? Tell us what do you think.
Purdy, K. (2011, 03 15). How to replace your wallet with
your phone. Retrieved from
http://lifehacker.com/5782017/replace-your-wallet-with-your-phone/all
Bertoni, S. (2014, 03 28). Mobile payment experiment.
Retrieved from http://www.forbes.com/sites/stevenbertoni/2014/03/28/mobile-payment-experiment-can-an-iphone-replace-your-wallet/
Tuesday, March 25, 2014
Electronic pickpocket apps
Thieves can steal your credit card information without ever touching you.
They use a device that can scan your credit card up to 25 feet away. Anyone can buy the scanner online for under $100. And now they're even a smartphone app that could be used to steal your credit card information. All it takes is about 30 seconds to download information from the card.
So what can you do to protect yourself from this? Well there is a new device called Signal Vault and basically it forms an electronic safety shield around all of the credit and debit cards in your wallet. You can buy it online for under $15 or if you prefer the cheaper method, just wrap your credit card in aluminum foil ^_^.
They use a device that can scan your credit card up to 25 feet away. Anyone can buy the scanner online for under $100. And now they're even a smartphone app that could be used to steal your credit card information. All it takes is about 30 seconds to download information from the card.
So what can you do to protect yourself from this? Well there is a new device called Signal Vault and basically it forms an electronic safety shield around all of the credit and debit cards in your wallet. You can buy it online for under $15 or if you prefer the cheaper method, just wrap your credit card in aluminum foil ^_^.
Source:
http://www.click2houston.com/news/thieves-easily-stealing-credit-card-info-by-electronic-pickpocketing/25026758
http://www.cbc.ca/news/canada/newfoundland-labrador/credit-card-data-can-be-stolen-with-a-wave-and-an-app-1.1386262
https://www.youtube.com/watch?v=J1NgCDYNhgA
https://www.youtube.com/watch?v=7fVuX7Pl4-Q
Friday, March 21, 2014
T2 systems
As we can see, we use digital payment technologies everywhere in the world. It is easier and more convenience than the traditional way to pay something. I found some articles talk about T2 system. T2 system is software for parking lots in pay stations.
Burnaby Company which developed software and hardware for pay parking found in 1977. It makes about 11,000 pay stations and installed it in North America.
I also found there is a company provides mobile parking payment that combine with T2 systems. This corporation allows implementing QP QuickPay mobile parking payment. Why T2 systems are popular to use in a lot of pay stations for parking lots? T2 systems give people easily to see and check the status of a space. The form of payment is not only all in one application but also on a single device.
Source
http://www.biv.com/article/20140130/BIV0112/140139994/-1/BIV/us-company-acquires-burnaby-8217-s-digital-payment-technologies
http://www.techvibes.com/blog/t2-systems-acquires-vancouvers-digital-payment-technologies-2014-01-08
http://www.t2systems.com/news-and-events/news-and-press-releases/25/t2-systems-and-quickpay-corp-integrate-for-easy-enforcement-of-mobile-parking-payments.aspx
Wednesday, March 19, 2014
Starbucks Squareup'd. Have you?
In 2012, Starbucks teamed up with Square, a merchant service company built in 2009 by twitter creators Jack Dorsey and Jim McKelvey. The idea of merging was to advertise the company services such as a digital wallet called "Square Wallet" as well as it's advanced technology to process all credit and debit card transactions. Over time, Square's vision is to build a cashless society. Starbucks teaming up with Square, will allow it's customers as well as Square users to take advantage of the Square technology, eliminating having to take your phone out of your pocket to pay by mobile or even signing a receipt. Square has a full GPS technology allowing the customer's phone to notify the store when a customer has entered the store and their name and photo will pop up on the cashier's screen. All the customer has to do is give the cashier his or her name and the payment will be complete once it is confirmed.
Of course, digital payments are still on the rise. It's not widely used yet but that's the obstacle that Square just has to tackle. Square was introduced in 2010 and the idea of it is related to how you may use Google (Google Wallet) and Paypal. Mobile payments of course are offered by more companies and services now. But because not every store, retailer or company are willing to cooperate or update with the technology, it's hard for Square to become more popular.
I feel that for this technology, I would love to try it out and hopefully more businesses will adopt the idea of digital payments. But, as the US is slow with technology as well, it can be very doubtful that the technology will be updated anytime soon. We'll just have to see, wont we? :)
What about you guys? Would you try out Square? What are your thoughts?
Be sure to check out the articles below as well as the website for Square to learn more.
http://www.nytimes.com/2012/08/08/technology/starbucks-and-square-to-team-up.html?_r=0
http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=83920810
https://squareup.com
Of course, digital payments are still on the rise. It's not widely used yet but that's the obstacle that Square just has to tackle. Square was introduced in 2010 and the idea of it is related to how you may use Google (Google Wallet) and Paypal. Mobile payments of course are offered by more companies and services now. But because not every store, retailer or company are willing to cooperate or update with the technology, it's hard for Square to become more popular.
I feel that for this technology, I would love to try it out and hopefully more businesses will adopt the idea of digital payments. But, as the US is slow with technology as well, it can be very doubtful that the technology will be updated anytime soon. We'll just have to see, wont we? :)
What about you guys? Would you try out Square? What are your thoughts?
Be sure to check out the articles below as well as the website for Square to learn more.
http://www.nytimes.com/2012/08/08/technology/starbucks-and-square-to-team-up.html?_r=0
http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=83920810
https://squareup.com
Saturday, March 15, 2014
Target hack is a wake-up call on privacy
Credit card thieves hacked a database of 70 million customers of Target is a wake-up call. Target (TGT, Fortune 500) said the greatest risk it faces is the negative impact on its reputation "and loss of confidence" of its customers.
The event has put pressure on Target to accelerate implementation of advanced chip-based credit card technology that is considered safer than the magnetic stripes common in the United States. Mulligan said Target will update its system by early next year.
Similar to Target's case, several other retailers have acknowledged breaches of their own, including Neiman Marcus and the arts and crafts store Michaels.
Neiman Marcus chief information officer Michael Kingston, who said hackers installed malware on the company's network and stole payment card data for 1.1 million customers from July until October at 77 of its 85 U.S. stores. It immediately notified customers individually, but didn't make a public announcement for another two weeks.
Card is easy to hack even it is kept in your purse. 2 weeks ago, I am very surprised when receiving the email of fraud alert from Bank of America that I spent USD700 at Walmart and USD600 at Bestbuy while I was sleeping. Funny! Every time going to shopping, restaurants, or pumping gas, I have been asked for my zip code when checking out. Can I refuse to give the stores my zip code and telephone number? Aren't those prerequisites of the transaction? Will they complete the transaction even without that information?
How about you? Should you start using prepaid cards to limited losses rather than debit or credit card for sure especially online?
Sources:
http://money.cnn.com/2014/01/11/technology/security/target-hack-privacy/index.html?iid=EL
http://money.cnn.com/2014/02/04/technology/security/target-senate/?iid=EL
http://money.cnn.com/2014/03/14/news/companies/target-breach/
http://www.nytimes.com/2014/03/14/business/target-missed-signs-of-a-data-breach.html?_r=0
http://www.cnbc.com/id/101496127
Wednesday, March 12, 2014
Bitcoins: Secure or Not?
Mt. Gox is one of the first bitcoin exchanges, and historically the most popular one. It was launched in 2010, and was handling 80% of the world Bitcoin transactions. Unfortunately, on Feb 24th 2014, the same day our group did the presentation about digital payments, Mt. Gox suspended trading and filed for a form of bankruptcy in both Japan and US. The company claimed that 850,000 Bitcoins had been lost or stolen from its exchange, including 750,000 belonging to customers. That amount is worth $477 million!
So how can half a billion dollars vanish into air in a flash? According to Mark Karpeles, founder of the Mt. Gox, saying the Bitcoins was lost "due to weaknesses in the system". The coins is missing because of a long-known security flaw called transaction malleability that can enable fraudulent withdrawals in some cases. Bitcoins transaction is really hard to trace. There is no identifying information attached to a bit coin address showing who is transferring the coins. Mt. Gox is facing some serious problems now and the long-term impact of its downfall on the Bitcoin industry remains to be seen.
The big question, what is the future for Bitcoins? Do you think Bitcoins will still have a future? What do you think about Mt. Gox or of Bitcoins?
Sources:
http://money.cnn.com/2014/02/25/technology/security/mtgox-bitcoin/
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