ead the following scenario.
“Quick—how much cash do you have on you right now? Check your wallet, purse, and pockets, and see what you have. Do you have enough to make change for a twenty-dollar bill? Not so long ago, you could ask a roomful of people that question, and most folks would have the cash on hand to make change. These days, it’s less common. Think about the last five or six purchases you made. Did you pay with cash? Chances are good that you used a debit card or a credit card instead. Consider the possibility that someday debit and credit cards will disappear, too. Technology has had a profound impact on our view of the necessity of cash. As we move towards a ‘cashless’ society, the banking system is also challenged to adapt its processes and the services it provides.”
Go beyond what you learned in the course learning unit, and research some of the forms of “virtual currency” or cash alternatives that are currently available to consumers. Some of these include digital currencies, iPay, Google Wallet, ePayments, and direct draft.
In a well-constructed initial response respond to the following questions:
Briefly explain the alternative form of payment that you researched and how it works as an alternative to traditional cash. Please cite your research.
What are the advantages of this form of payment?
Are there disadvantages or risks associated with the form of payment that you researched?
As a consumer yourself, do you use any forms of cash alternatives? Which ones? Do you have concerns about the security of this payment method, and if so, what can you do to mitigate these?
Post at least 150 words as your initial response and respond meaningfully to at the two classmates below.
Classmate 1: I currently do not have cash available to spend. All my money is held in a banking account. I also currently do not use any form of alternative payment options. After reading this module and doing research on cash alternatives I am more incline to try Apple pay. According to my research and apples website my personal data is protected. When a payment is made Apple pay uses a device specific code and a unique transaction code with each purchase. Your card number is also never stored on your device, Apples servers, or shared with merchants. The popularity has grown as apple pay is accepted in 85% of retailers in the US alone. The biggest benefit is not just safety but convenience. You can make purchases with your phone or apple watch. Forgot your wallet? No problem you have your phone. I don’t know about most of you, but my phone is the last thing I am ever without. My phone also has a password needed to open. After this research I think this option is more secure than using my debit card. I once had fraudulent charges after using a gas station here in Jacksonville. Scammers usually install devices to copy card information at gas stations. That is exactly what happened to me. I have now set up apple pay on my devices and will use moving forward as a savvier consumer.
Reference:
https://www.apple.com/apple-pay/
Classmate 2: Google wallet is a server-side wallet, and a mobile payment system app that stores the user debit banking information on Google’s system. The users can utilize Google wallet at their convenience by transferring money for any desired purchase from their cellphone. However, the user links his or her debit banking information to Google wallet which allows the user to make convenient purchases. Meanwhile, the user does not have to worry about inputting their banking information before every purchase, because the information is already stored. Also, Google wallet mimics a gift card because a user can set a particular amount that he or she wants to spend whereas if the user was using a debit or credit card, they cannot set a desired amount.
Some advantages of Google wallet the user is offered a debit MasterCard, so the user can use the debit MasterCard at any establishment that accepts debit payment. By choosing to use Google wallet it could help the user to not use his or her credit or debit bank card frequently for purchases. Furthermore, any user with an Android or Apple smartphone can utilize Google wallet. Moreover, a user can add any gift card balance to his or her Google wallet. On another note, a disadvantage is Google wallet charges a 1.5% debit transaction fee. In addition, Google wallet is not supported by all banks and not accepted at all stores. Still, the user must take in count how safe is his or her debit banking information on Google’s stored system while corporations’ system is accessible of being hacked.
On another note, I use my debit card predominantly to pay bills and to make purchases online and in the store. Yet, I do have concerns that a website I decide to make a purchase on their system may get hacked. I did have an incident with a clothing store online where my debit information was used, I don’t know by who, but my bank notified me immediately before the clothing company notified me by mail. I think the only way to handle being vulnerable is to use gift cards for online purchases and use cash when I can.
References
BigCommerce. (2021, December 7). What is Google Wallet and what does it mean for ecommerce? https://www.bigcommerce.com/ecommerce-answers/what-google-wallet-and-what-does-it-mean-ecommerce/Links to an external site.
CompareRemit. (2021, August 30). Google Pay Review: Pros And Cons. https://www.compareremit.com/money-transfer-guide/google-pay-review-pros-and-cons/
