PayPal Entry into Mobile Payments

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Acknowledgement

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DECLARATION

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Abstract

Mobile payments are not only used for payment of merchandise but also for different transactions in the physical world. The purpose of this research is to analyse mobile payment methods. The research also aims to analyse the entry of PayPal into mobile payment systems. PayPal is a company that is owned by eBay. PayPal has enabled global e-commerce several million active accounts in different markets and currencies around the globe. PayPal's merchant services business continues to provide retailers of all sizes with what they need - a fast, safe and global payment solution. According to the perceptions of customers, PayPal is a leader in the industry of alternative payment services. The credit of PayPal success goes to its inventive approach and flexibility. PayPal has the willingness to discover business models that ensure profitability.

Table of Content

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 01: INTRODUCTION1

OUTLINE OF THE STUDY1

BACKGROUND OF THE STUDY1

PURPOSE OF RESEARCH2

CHAPTER 02: LITERATURE REVIEW4

MOBILE PHONE TECHNOLOGY4

MOBILE PAYMENT4

HISTORY AND RISE OF MOBILE PAYMENTS7

MOBILE BANKING8

PAYPAL MOBILE PAYMENT SYSTEM9

CHAPTER 03: METHODOLOGY13

DEFINITION OF QUALITATIVE RESEARCH13

RESEARCH DESIGN13

SECONDARY DATA13

ASSUMPTIONS OF QUALITATIVE RESEARCH14

LITERATURE SEARCH14

CHAPTER 04: FINDINGS15

CASE OF PAYPAL15

Easy set up16

Lower costs16

Reduce Fraud16

THE PAYPAL PHENOMENON17

PAYPAL HERE18

Focus on the customer18

Keep it simple. Keep it understandable18

Design for Adoption19

Think Incrementally19

Costs matter19

HOW PERSON-TO-PERSON PAYMENTS WORK19

PAYPAL SERVICES FOR CUSTOMERS20

VALUE PROPOSITION OFFERED BY PAYPAL22

Convenience22

Low cost22

Security23

Convenience23

Flexibility23

Security23

DEALING WITH ONLINE FRAUD23

Buyer Fraud24

Target Markets and New Applications24

International Payments25

Small Business Owners25

International Expansion25

RULES OF PAYPAL26

Rule #1: Focus on the customer26

Rule #2: Keep It Simple27

Rule #4: Design for Adoption28

Rule #5: Think incrementally29

Rule #6: Costs matter30

CHAPTER 05: CONCLUSION31

REFERENCES33

CHAPTER 01: INTRODUCTION

Outline of the Study

This research is divided into different chapters. The first chapter is introduction that has presented the background of the research. The first chapter has also presented the purpose of this research. The second chapter includes a review of the relevant literature. The topics that have been covered in the literature review section include advanced payment methods, mobile payment systems, and the entry of PayPal into mobile payment systems. The third chapter includes the methodology that has been adopted for this research. In the fourth chapter, the findings of the research have been presented. On the basis of data collection and literature review, a conclusion will be presented in the last chapter of the dissertation.

Background of the Study

Mobile payments are not only used for payment of merchandise but also for different transactions in the physical world. There are diverse factors that have increased the popularity of mobile payments. One of these factors that have resulted in the widespread acceptance and utilisation of mobile payments is the use of mobile phones. The trend towards digital cash has also contributed towards driving this change. The active players in the industry of mobile payments include mobile operations, manufacturers of mobile devices, as well as ...