Discussion giant and its customers settle on more powerful

Discussion 1MasterCard’s data warehouse has emerged to play an important role in thecompany’s competitive strategy.

  Thisglobal data has turned into a business knowledge (BI) motor that enables thecredit card giant and its customers settle on more powerful business choices. Withthe help of data warehouse master card can create very detailed records for thecustomers. Something bought at electronic store could reveal that the person ismore into electronics or if a person is make more frequent payments at therestaurant may reveal that the person enjoys dinning and going out.MasterCard’sexecutives quickly got hands on the data warehouse concept suggested by the ITdivision as a potential distinct advantage.

MasterCard administrators normallyrequired a detailed business case legitimizing IT venture suggestions, yet forthis situation, the officials right away perceived the proposed informationdistribution center as a vital move to give MasterCard a focused edge.MasterCard needed to enhance piece of the overall industry. At the time,MasterCard represented just around 25% of charges for products sold overallutilizing MasterCard, with Visa representing half.

Since the production of theinformation stockroom, MasterCard’s piece of the overall industry expanded to31%. Even though Visa keeps on being the business pioneer, MasterCard’s part asa worldwide pioneer in charge card preparing has reinforced.Financial institutions that use MasterCard depend on the historical backdrop ofVisa exchanges to give data to focused advertising and business arranging. Forinstance, a bank that issues MasterCard may see an expansive volume of chargesfor flights on a specific airline. The bank can utilize this data to arrange anarrangement with the aircraft to give extraordinary offers and motivations tocardholders. Comparative limited time openings could be offered to an innnetwork that would give extra impetuses, to use MasterCard to hold and pay fora room.Discussion 2MasterCard runs a combination of homegrown and off-the-rack investigativedevices to distinguish purchasing patterns, charge card misrepresentation, andother valuable data.

The organization can connect and break down exchanges todecide a buyer’s advantage or recognize irregularities that recommend a cardhas been stolen. MasterCard offers bank customers access to these tools, andcustom reports. Among the signature applications gave by MasterCard is itsPortfolio Analytics suite of BI and announcing instruments. This suiteincorporates an extensive variety of standard reports that let individualsbreak down exchanges each day, week, or month and contrast the outcomes withvarious parts of the nation, different parts of the world, or predefinedgatherings of comparable banks. The objective is to incorporate each exchangedealt with by individuals over a three-year time span, catching the dollar sum,the card number, the area, and the vendor in each occasion.

In any case, it isthe arrangement of utilizations gave to individuals that is pivotal inincreasing aggressive edge. MasterCard means to pick up support with portfoliodirectors and part banks, who choose whether to push Visa or MasterCard. If theonline tools enable managers to examine the productivity of the cards in theirportfolio better or acquire clients and exchange volume quicker, at that pointMasterCard benefits.Ithink larger and smaller clients equally will get benefits from master cardanalytic tool because BI tool will help both larger and smaller clients togather a greater volume of data which will help both the clients identifyingtrends of the customer.Discussion 3Tap & Go payments are being made via traditional plasticcards but also with new payment devices such as mobile phones, watches, orstickers – the method of choice of the individual consumer. Transit, frompublic buses to highway tollways, also continues to offer some of the greatestopportunities for contactless.

MasterCard Pay Pass is being tested and used atsome of the world’s busiest commuter hubs to improve the speed, convenience,security and reliability of transit systems by displaying cash and outdatedsystems. Mobile phones are at the center of a fundamental shift in consumer’s everydaylives. MasterCard is helping consumers use their phones in day-to-dayactivities, allowing them to leave their wallet at home and rely on theirmobile phone: (a) Tapping the phone to pay with Near Field Communication (NFC) – enabledhandsets.

(b) Having greater control of their card accounts through MasterCard in controland text messages, with important purchase and account information directthrough to their mobile phone. (c) Using a convenient, secure platform for all kinds of payment-related activitiesfrom their mobile phones. (d) Using the phone to authenticate purchases, helping to secure their card-not-presenttransactions.

However, contactless cards are accepted at far fewer locations than mag-stripe.Consumers cannot leave home with only their NFC-capable phone, because theywill inevitably need a mag stripe to pay. If you have multiple cards in yourwallet and you pay without removing them, the winner is random luck.

Sometimes,this can cause real issues. Only information that has been exchanged at thatpoint of time is randomly generated 16-digit number. So according to me the tapand go payments technology has no limits and will be very helpful to users.Discussion 4ADVANTAGES OF DIGITAL WALLET: 1.

Lower Cost: Employing the use ofdigital wallets removes the need for intermediaries, in a variety of forms.Purchases in-store may no longer require a cashier because the purchasing processbecomes a tap or scan of a mobile device. 2. Competitive Advantage: Digitalwallet applications provide a more convenient transaction processing method forcustomers, giving businesses that employ this technology a competitive edge inthe market. It redefines the user experience of paying and incorporates anovelty aspect to each purchase. 3.Modern: Digital wallet opens  up an entirely new aspect to payment method inlarge market which will increase greater potential revenue4.

Convenience: Users can getthrough a purchase in mere seconds with a simple tap or scan of their mobiledevice. The experience of purchasing items becomes quicker and easier-leadingto a greater sense of satisfaction. Also, with faster transactions, checkoutlines within stores become much stronger. DISADVANTAGES OF DIGITAL WALLET1. Investment: The initial monetaryinvestment for building a functionaldigital wallet application is quite large. It requires the initial developmentof the software as well as the continual maintenance, updates and fixesassociated with it. Upon acquiring software, the business would also need toinstall the corresponding hardware in their stores, which leads to a furtherincrease in costs.

2. Support Technology: There are fewsupporting technologies to choose from now, with NFC terminals and phonereaders being the most prevalent. In the case of digital wallets, they can onlyfunction with a corresponding hardware device for each application. NFCterminals and specialize scanners are the only devices created now that willsupport the processing of digital wallet payments; thus, it is very limitedbecause the technology is still new.3.  System Outages: Information for digital wallets are storedon the cloud of business servers; therefore, the risk of a system malfunctionor shut down is always present.

As a result, businesses will not be able toprocess payments or they will become increasingly slow due to high traffic inthe servers.4.  Security: Companies mustensure that their customers’ information is encrypted and well protected.

They must develop security systemsthat are as safe and full proof as possible to avoid potential security issues.Pay Pass Wallet Services is an attempt to expand it to online stores and mobilephone users. Merchants want flexibility to easily accept digital payments sothey can convert more browsers to buyers. MasterCard plans to allow banks, merchantsand other partners to use its own technology to create their own digitalwallets.

It will also distribute developer tools to allow other digital walletsto connect to the Pay Pass acceptance network, allowing their customers to makepurchases online or in stores that accept Pay Pass.Discussion 5A mobile payment process works by providing two parties in atransaction with a single touch point, such as bank or credit card service or apayment-service provider. Mobile payment technologies are defining the nextgeneration of commerce. Retailers face several challenges in adopting these newtechnologies. The retail payment transactions have been initiated by anin-store point-of-sale system that reaches out to the payment processor forauthorization.

With the emergence of mobile payments, customers can nowinitiate payments through cloud-based mobile applications that don’t require aPOS transaction. Given this, store locations are faced with real obstacles insuccessfully managing the coming influx of cloud-initiated transactions. Onesignificant problem individual stores will face is how to account revenue from,and cost of, cloud-purchased goods sourced locally from their store site.

Thereare few solutions that connect the cloud transaction to the specific store sitewhere the goods are bought, therefore, the reduced inventory cannot bereconciled with revenue generated at the specific store site. Unless this issueis resolved, there will be little adoption of mobile cloud to local POS paymentapplications. The stores will lose potential sales and payment providers willfail to expand their market opportunity.Inmy opinion, the second problem will be very difficult to address becausesecurity is the most important factor that governs the financial world and candrastically increase or decrease the customer base. As with the rapid increasein the customer data base will create a new security threads and can have asevere effect on user experience.