Paypal

1. What is the value proposition that Square offers consumers? How about merchants? What are some of the weaknesses of Square’s system?

a. Merchants, no matter their location, are able to give a consumer the ability to pay them with their credit card. Merchants are only charged 2.75% of every transaction. The weakness here is that Square loses money on transactions less than $10 because they have to pay credit card companies over 2% for payment clearance. Also, Square is dependent on their merchants to have an iPad being that the app used for the card reader and the Square register is only compatible with the iPad.

2. Why would telecommunications carriers like AT& T and Verizon want to move into the payments business? What chance do they have to compete against Google? What’s their advantage?

b. Reasons why carriers like AT&T and Verizon wants to move into the payments business is because they are already have a large base of cell phone subscribers. Utilizing their customer base opens up the capability to collect data on their users, and later use that date to market to them and get them to spend more money with them. The advantage they have is the amount of the customers and the availability of contact that’s already established. Also due to their experience in the industry, they have developed a billing system that is nearly perfect and can be used as a payment system as well. They can compete against Google because the consumer would be better integrated with their carrier.

3. What advantages does PayPal have in the mobile payment market? What are its weaknesses?

c. PayPal is at an advantage in the mobile payment market because they already do this job, just through a different medium, which is only slightly different in the eyes of a consumer. People who already use PayPal would enjoy using it on their mobile phone so they are always connected to their account, no matter where they are. Their weakness is that a...