The extent of mastercards paypass digital wallet being used as a payment mechanism for payment purchases:The mastercards paypass digital wallet allows the customers to make the transactions and it also stores the data of these transactions.The customer can view the transactions when ever necessary by using the mobile and all electronic device apps.The customer can keep in this wallet safely their payment credentilas such as shipping address etc.It is one of the most used during the last one year for online transactions.It is open to merchants, financial providers, shopping website and all customers for all kind of transactions.
By using this sinle wallet a customer can do all kind of transactions.It surpass the paypass.Advantages and disadvantages of digital wallets such as paypass:Advantages:i)Competitive edge through convienece to customers:Customers will be able to order a product or service in seconds by a simple tap on screen.Thus,the digital services provide more convience method for the customers.The companies or organizations which provide such fast and accurate ordering method will have more gain.
ii)Lower costs and reduction: The use of such digital wallets offers variuos discounts to customers which is an advantage towards them. The use of such digital wallets also reduces the cost of intermediaries involved in the transation.iii)It is modern cash less e-transaction.Disadvantages :i)investment :The initial cost involved for building digital wallets is too high.It beacuse of huge cost involved for bringing the supporting technologies.ii) Security prolems and malfunction problems: The digital wallets will save the information of customers on cloud of the business servers.So it may lead to heavy traffic on servers.and other issue is it may be misused by hackers if identified .
The things that can be done by the mastercard to encourage online merchants to accept paypass digital wallet payments:1. It can make appear a popup the merchant website for payment option.2.It needs to offer payment mechanism for all kind of products and services.
2. Challanges faced by mastercard in rolling out smartphone payment systems:1. customer adoption is slow: Many customers are still using old methods as a security problem concern.many people do not trust the service.2.Technology: In so many countries still the network systems are slow.It is also a challenge.