[Brielle Buckler]

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 module, and research some of the forms of “virtual currency” or cash alternatives that are currently available to consumers. Some of these include digital currencies, EFT, ACH transactions, iPay, Google Wallet, ePayments, direct draft.

For this discussion, first answer the following questions, and then respond meaningfully to at least two of your classmates’ posts.

1. Briefly explain briefly the alternative form of payment that you researched and how it works as an alternative to traditional cash.
2. What are the advantages of this form of payment?
3. Are there disadvantages or risks associated with the form of payment that you researched?
4. 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?

————-

In order to receive full credit for this assignment, you must first post your own response to the question(s) above by Friday, September 29 at 11:59pm ET. You then must comment meaningfully on at least two classmates’ posts by Sunday, October 1 at 11:59pm ET.

This assignment is worth a total of ten (10) points — 6 possible points for your original post, and up to 2 points for each of the two responses to your classmates’ posts. Please reference our Discussion Rubric for more information, and to this guide from MSSU to learn more about what it means to respond meaningfully to a classmates’ post.

Source: Lumen Learning

• This topic was modified 2 years, 12 months ago by Brielle Buckler. Reason: Republish

[Sheldon Clark]

‘In the United States, the mobile wallet market is noted by some key players: Google Pay, AmazonPay, ApplePay, Venmo, Zelle, and CashApp. These services allow users to manage various financial activities directly from their mobile device. While adoption can be largely credited to the COVID-19 pandemic and the subsequent need for social distancing, these apps and services also prove to be more accessible for users, with Apple Wallet and Google Pay already installed on smartphones, and apps like Venmo and CashApp simply requiring a download. In the Apple Wallet for example, users simply need to take a photo of their card and it will be available to digitally use.’ – Michigan Journal of Economics

Apple Pay is a common digital cash alternative exclusive to iPhone users. A simple double click of the power button will have a virtual image of your debit card pulled up on the screen and ready to use for payment. Personally, this is a feature that has saved my life in situations where I needed to pay for something and left my wallet at home. Set up is easy, you can enter your card details manually or simply take a picture. Digital payments have also never been more secure; when you load a credit or debit card to your phone it is assigned a unique Device Account Number, which is encrypted and stored in the device’s secure element. The Device Account Number, and not your 16-digit card number, is then used to make purchases. You can save up to 8 cards and over 500 banks and credit unions are onboard with it including Bank of America, PNC, Navy Federal Credit Union, and Wells Fargo to name a few. Making a purchase online or through a mobile app is pretty straightforward as well. Apple Pay simply shows up as a payment option with participating merchants/apps, you click on that option, and then verify using the Touch ID button. That’s it.

While convenience, security, and the popularity of this nifty built-in app have all won me over, it has its drawbacks also. Although Apple Pay is very popular, it is worth considering not everyone has an iPhone and not all merchants accept this form of payment. Apple boasts on its website that nearly 85% of all retailers and merchants accept their digital currency, but online surveys and other various sources suggest that this figure may be significantly lower. Another downside to consider is that while it is true that Apple takes hefty measures to consider your security, the user has a part to play in taking measures to protect themselves too. Public Wi-Fi connections are often insecure and attractive targets for hackers. Never use Apple pay when connected to a public Wi-Fi source, as it can lead to potential breaches of your financial information. You shouldn’t use Apple Pay if you have a jailbroken iPhone. The reason is that hackers can override your transaction limits and duplicate previous contactless payments. As silly as it may sound, phones die and a lot of times at the wrong time. The main reason this shouldn’t be relied upon versus your traditional wallet is because you may be somewhere you can’t get a charge, and the bill won’t pay itself if your phone dies.

As I stated earlier, Apple Pay and Google pay have both came in clutch for me whenever I’ve forgotten my wallet. I don’t typically rely on these things on a daily basis, but when I do use them it’s almost always at my own leisure. I usually have my phone connected to a VPN, or I’m relying on cellular data, so security isn’t something I usually worry about. Just remember Apple Pay and public Wi-Fi networks are not a safe combo. One other alternative to cash I use is just my regular debit card. The only time I ever use actual cash is at the Donut shop I go to on Sundays, because they don’t have a card reader.

Works Cited:
The Economics of Apple Pay – Michigan Journal of Economics (umich.edu)

Additional Sources: Apple Pay Review | PCMag 

• This reply was modified 2 years, 10 months ago by Sheldon Clark.

[Jessica Munoz]

Hi Sheldon, I really liked how in detail you went on with apple pay. You explained how to set it in the 2 options you are given digital or manual. Also, with the detailed explanation on the security aspect given on the level of security apple has for its customers.

[Annmaria P]

Hi Sheldon,

I found it very interesting how you went into the technological aspect of Apple Pay and devices. I haven’t use an Apple Pay since it came out if I’m not mistaken, and I had no idea that each phone is assigned a device account number specific to that phone. This makes me feel a lot more secure using my Apple Pay whenever I’m out. One thing I found relatable was a con, I sometimes well most of the times leave my wallet at home I mean, but who wants to carry around a Wallet these days anyway so I look to my phone and my Apple Pay to get it most of my purchases done. Sometimes I find myself out of luck when I’ve left my wallet at home and the place which I’m trying to purchase something that doesn’t accept Apple Pay.

[Christopher Ochoa]

Hey Sheldon, after reading your response about Apple Pay, I totally agree with what you were saying. I also use Apple Pay when I go out to buy food or buy clothes. It’s a really fast and easy way to pay for stuff. You can also send money to friends and families. Even though Apple Pay is a really easy and convenient way to pay, it can also have it’s cons. Like you said, wifi networks and Apple Pay is not a safe combo. And sometimes there are businesses that don’t accept cards or don’t have a cash reader like you said. I always use Apple Pay on a daily basis and agree with everything you said.

[Amanda Velez]

Hi Sheldon, I’m one of those people that uses Apple Pay everywhere I go. Regardless if I have cash or my debit card on me, Apple pay is my go to because the convenience of not having to go into my wallet since I always have my phone in reach just works for me. The only time I would say that I had a problem with Apple Pay is when I would have it automated to collect funds when close to the MTA reader. I do still purchase a physical weekly metro card and when my phone was on automatic touch to pay, my phone would pay the fare at the reader when it was still in my pocket and I was leaning towards the metro card scanner so I would pay twice. I took the automated touch to pay off because of wasting money but it was more convenient because now if I ever need to touch to pay I have to enter my pass code first.

• This reply was modified 2 years, 10 months ago by Amanda Velez.

[Tanisha]

Hi Sheldon I totally agree with everything you said about Apple Pay I use it almost daily and even though Apple Pay is really easy to use and fastest way to pay to pay for everything it also has a downside to it like using Apple Pay and wireless network together is not secured there’s a lot of places that don’t accept apple pay.

[Mark Robinson]

Hi Sheldon,

Ever since I started using ApplePay a few years ago, I never walked around with cash or even my credit cards or debit cards as much. I have lost my wallet multiple times and for that reason ApplePay has allowed me to have a safe more convenience way to pay instead of carrying around my wallet.

[Brielle Buckler]

Thanks for this overview, Sheldon. I thought of this post the other day while at Walmart, because I walked in to buy a beverage while on a roadtrip and stopping for gas, but my husband was using our credit card at the pump. I figured I could pay with Apple Pay, but then I learned that Walmart doesn’t accept payments other than cash, check, card, or Walmart Pay.

[Annmaria P]

Mobile Payments – ApplePay, IPay, Samsung Pay

 

“What started with in-person improvements, like contactless “tap and go” cards or the ability to scan a mobile phone at checkout, has accelerated exponentially. Some 82% of Americans used a form of digital payment in 2021, according to a Digital Payments Consumer Survey from McKinsey. Any company that transacts with consumers must navigate the move away from cash, checks and even physical cards to a widening assortment of digital payment options.” – BOA Article

 

 

This module was very insightful. I didn’t realize how much different alternatives of cash are used on a day-to-day basis. I took a deep dive into my transactions for the week, and I was truly surprised.

 

“Over the last decade, technological innovations have enabled new access modes, such as online banking and mobile apps. This has helped consumers and businesses to migrate away from cash and cheques towards electronic payments, including card payments, electronic fund transfers and e-money payments. In addition, an increased demand for convenience and speed has resulted in a growing use of contactless and fast payments.” – BIS Article

 

The alternative form of payment I decided to speak about today was the mobile payments. Mobile Payments such as Apple Pay and Google Wallet has increased in use over the past two years alone. A mobile payment is a money, transaction or payment made for a product or service to a portable electronic device, such as a tablet or a smart phone. How it works is, instead of paying or handing a cashier physical cash, checks, or a credit card, a consumer can open their phone and use of mobile payment app to complete the transaction for the good or service they are requesting. There are many advantages and disadvantages to the rising demand for mobile payments.

 

Some advantages that consumers face, while utilizing this new phenomenon of alternative payments, are quite interesting. Social commerce, and the rise of social media is a driving factor in the increase of mobile payment incorporated in businesses around the world. Facebook Instagram, and various other social media applications now offer one click “buy now” buttons that offer a one-step check out process for consumers. The alternative also provides a faster check out and financial transfer service for consumers. You can enter your information once and save it for future purchases. This is something that can be crucial when it comes down to snagging concert tickets or ordering a car share immediately so you can get out the thunderstorm.  Mobile payments also make peer-to-peer transactions much more seamless you can, Apple Pay, your friend instantly, without having to visit a bank or withdraw cash from the ATM. Speaking of less work, that’s exactly the next advantage of mobile payment, it cuts out the hassle of having to find an ATM or bank that is open and it doesn’t force you to search through that pile of bags and figure out which one you last used and left your credit card in. The last advantage I would like to mention consumers liked was the safety mobile payments add in regard to the COVID-19 scare. Safety protocols during that time called for cashless and contactless operations. This included transactions, many businesses stopped offering cash as a tender option at check out which forced a lot of people to seek other options.

 

Consumers aren’t the only ones that took advantage of the mobile payments, and all that it brought to this new age. Businesses now operated much faster with cashless and contactless operations. No cash or check speeds up payments and reduces labor cost, as well as provides faster reconciliation. Businesses also saw fewer declined transactions. Mobile payment accesses consumers bank information to cut down on the amount of insufficient declining transactions.

 

Some of the disadvantages of mobile payments include limited acceptance because it is still an emerging thing. Not all businesses are open to adapt this new form of payment. Some places where mobile payments are accepted, only except a limited, or certain type of mobile payment which can be frustrating to the consumer. The dependence on the Internet connection is also another disadvantage, that both consumers and businesses face. The Internet and it’s connectivity is always up and down. You can never ensure a stable and secure network connection, this can cause issues when it comes time to access mobile payment apps to complete a transaction. One of the biggest risks of mobile payments are the security risk. Phishing and many other tactics scammers use can land a consumer not careful enough with a big identity or fraud problem. And lastly mobile payments are only valid if you have your phone in the case that you lose your phone or it’s stolen now only can you not make mobile payments, but you open yourself up to a larger security risk.

 

I am most definitely a consumer of alternative forms of cash, I utilize my mobile payment app to pay for almost EVERYTHING! From buying breakfast in the morning to stopping and getting hygiene products at target I use my mobile payment app to complete nine out of 10 transactions I make daily. Another alternative form of payment I’ve used was cryptocurrency. I have been investing and using cryptocurrency since 2019 and I have seen some gains and a lot of losses. My biggest concern about the security of these payment methods are my identity and data privacy. Millions of people, experience data breaches and identity theft due to mobile transactions. If there’s anything I can do some mitigate this I would implement reliable, mobile security apps that protect my information and update my passwords and security questions frequently.

 

Cited Work:

Digital payments make gains but cash remains (bis.org)

Trends & Growth in Payments: Evolution of Digital Payments (bofa.com)

The Pros and Cons of Mobile Payment (dealnews.com)

 

[Sheldon Clark]

Hi Annmaria, I like how you talked about all of the different forms of mobile payments and I found your response to be very relatable, and enlightening. I also use mobile payments or debit card as an alternative to cash more often than not. I think it’s really cool how you’ve used cryptocurrency that’s not something I’ve ever looked in to before, so it’s neat that you’ve invested in it and stuff.

[gianna]

Hi Anmaria, I feel like we all mostly talked about Apple Pay so I like how you included other forms of mobile payments like IPay and Samsung Pay. Another point that you added that didn’t even come across my mind until reading your post was how the internet connection can determine if you will be able to use the mobile payment or not. Great point.

[Brielle Buckler]

Yes! Mobile wallets are great…until there’s no service or WiFi. And then if you don’t have cash…you’re often out of luck. I’ve run into this issue a few times.

[Ryan Natiello]

Wow, you made a really good point with the inclusion of internet connection, personally I never had an issue with it, but I bet for people who rely on Apple Pay it can be a real bother. I think another thing is not paying your phone bill on time because then you won’t even be able to do anything on your phone.

[Jessica Munoz]

Hi Annmaria, I liked how after every piece of information you gave out a detailed explanation and it had your opinion as well. Another thing that was interesting to be was how you said how its business benefit from apple pay.

[Tanisha]

Hi Annmaria I like how you provided a through explanation  and your viewpoint following each piece of information.

[Brandon Becerril]

One of the most popular and polarizing forms of cash is crypto currency an alternative to traditional methods of payment.  Crypto currency is a digitized currency created by encryption algorithms and is held in digital wallets.  The most well known currency is bitcoin which made an explosion into the world back in the 2010s.  Cryptocurrency is publicly traded and can be bought and sold for a profit and are held on a public record known as a blockchain.  The process of acquiring them is known as data mining, where miners use their computers to solve complicated math problems to generate more currency.

There are many advantages to owning crypto currency and I will highlight a few of them.  One that can be a pro or a con depending on outlook is that crypto works outside the control of government regulations.  Crypto allows you to make quick transfers of money that can be untraceable. Crypto can also be a tool to protect against inflation because there is a hard cap on how many coins that will be mined.  Transferring crypto across the world is much easier because you can send the currency and the other party will likely receive it in hours. Investing in crypto gets you the chance to make a profit on your investments. Its also safe and very accessible to anyone if they have a smartphone or computer with access to the web.

The biggest drawback of crypto is the vitality of not only the market but the process of obtaining coins and even in the mining process. Crypto isn’t backed by any government entity meaning that if the market collapses than there is no insurance or bail out for your loss.  Converting crypto into other forms of government backed currencies like the dollar is also a difficult process.  You have to keep watch for hackers to your account and if you decide to data mine, you need access to tons of power and exceptional hardware.

As a consumer I use many different types of cashless payment from credit cards, apple pay, and direct deposit.  Truthfully, I don’t put much thought into how protected or vulnerable these methods of payment are other than not typing in my pin at stores when paying with debit.  I keep my bank information password protected and keep watch for fraudulent activities or charges.

 

https://www.investopedia.com/terms/c/cryptocurrency.asp#:~:text=The%20advantages%20of%20cryptocurrencies%20include,and%20use%20in%20criminal%20activities.

 

https://www.oswego.edu/cts/basics-about-cryptocurrency#:~:text=A%20cryptocurrency%20is%20a%20digital,you%20need%20a%20cryptocurrency%20wallet.

 

https://usa.kaspersky.com/resource-center/definitions/what-is-cryptocurrency

 

https://www.forbes.com/advisor/in/investing/cryptocurrency/advantages-of-cryptocurrency/

[Ryan Natiello]

Very interesting, I always wanted to get into Crypto but never fully went into it. It always seemed like a complicated thing, especially scary because of the hackers and the lack of government regulations but perhaps that’s one of Crypto’s strengths, is how free it is.

[gianna]

Hi Brandon, I really like you post I had no idea what crypto currency was and I learned a lot from reading this. It good to know what the benefits and the biggest drawbacks of using this currency.

[Annmaria P]

Hi Brandon,

 

I found it very intriguing that you chose cryptocurrency to discuss. As someone who has used cryptocurrency in the past and still owns some coins, I found this to be very relatable amongst my journey I have definitely invest that money that I thought would generate a return, but in the end, I actually suffered a big loss, and then I have some situations where I invested a little bit amount of money, and was able to take that money and pay for things that had nothing to do with cryptocurrency as a whole they just accepted the payment. One thing I can say, is the loss scared me not being able to lean on government to get that money whenever I have incurred a issue with the application that was providing the crypto buying definitely was a factor in me, taking a step back from that heavy use.

[thomas mahoney]

I found your response very interesting, i did not have to much knowledge on crypto and I can definitely see the advantages in using it. I think that the untraceable transfers and payments can be a game changer and may be very beneficial to some.

[Brielle Buckler]

I think the untraceable transfers is the piece of crypto that always gives me pause. Why would a transfer need to be untraceable? It makes me thing there are dishonest players involved when I hear more about this as an advantage.

[Christopher Ochoa]

Hey Brandon, I found your response really interesting. I always wanted to get into crypto and I actually started trading back then but then stopped since I was kinda losing money. Just by hearing the word “crypto” makes it seem like a really hard topic to learn and understand. But now that I have read your pros and cons on your response, I would definitely learn more about crypto.

[Tania Maree]

Hey Brandon,

I was intrigued by your post because cryptocurrency is a topic that’s been difficult for me to understand. I purchased some bitcoin a few years ago but sold it last year because of what you mentioned – the volatility of the crypto market. From what I do know, the value of most crypto has been pretty low this year so I’m curious when it will begin to pick up again.

[Mark Robinson]

Hi Brandon,

I love that you chose cryptocurrency as you topic for our discussion board assignment. As someone who used to trade crypto, I definitely see the advantages of using it, however the market is too volatile for my liking and I rather use other forms of payment methods.

[Julian Watson]

A popular alternative form of payment that took in a large amount of popularity during covid is crypto currency.Cryptocurrency is a decentralized digital currency that uses encryption techniques to control the creation of new units and verify transactions. It operates independently of central banks and is not issued by any government.The most known and popular cryptocurrenys are known as bitcoin ethereum and usdc

Some advantages to crypto currencies could be it  Provides a fast, global payment system that operates 24/7. Transactions are quick and fees are low compared to traditional money transfers or payments.Also it secures your information and keeps your name private because ,Transactions are pseudonymous – users interact through wallet IDs rather than names. This provides more privacy.

Some of the flaws of crypto could be that money exchanges are irreversible unlike banks with a refund/chargeback features.Once transactions are completed they cannot be reversed. Users must ensure transfers are going to a trusted recipient.

Me persoanlly i have used crypto before i feel that its easier for you to get scammed due to wallets not having a reversable / charge back feature but as long you dont click on any fishy links or input your information into anything sketchy you should be fine for the most part

[thomas mahoney]

I like how you balanced the safety factors of using crypto as well as the possible risks you may be taking when using crypto, i found this response very interesting and think that using crypto could be very beneficial. Cryptocurrency is something that may have a direct impact on the market in years to come.

[Zidan Ahmed]

Hi Julian. I thought your response was quite thorough. I do not have much knowledge on cryptocurrency so I found your response helpful. I am quite intrigued with crypto identities being separate from the individual using them; this concept of Wallet IDS sounds like it could have many upsides, but also downsides. I definitely think the absence of refunds or charge disputes can prove to be a big con. It is not a centralized system as you said. It is a worldwide entity that interacts freely. There is not one singular reference of regulation as many traditional currencies and payment methods possess. I think that this along with the fact that all transactions are final and irreversible can make crypto intimidating to everyday consumers.

• This reply was modified 2 years, 10 months ago by Zidan Ahmed.

[Brielle Buckler]

This reminds me of Venmo and when you are prompted to enter the last four digits of a friends’ phone number if you have never paid them or accepted a payment from them before. It ensures you’re sending to the right person, since those transactions aren’t reversible either.

[Ryan Natiello]

In today’s current age technology brings wonders to our world and can make our lives a lot easier depending on what it is. Apply Pay is one of those things, in today’s your you can do so much on your mobile device and just makes your day-to-day life easier. Apple Pay is basically a form of payment that you do by just taking out your phone, all you have to do to set it up is put your card info in and you are good to go. One way Apple Pay made my life a lot easier is by taking the MTA; no longer will I have to run to get a metro card or get a change for a bus. Now you can just go on the bus and pay with your phone it’s the best. If you want to buy a song or app on your phone, you can just buy it instantly without having to put all your card info in. You can go to a deli and buy something without having to awkwardly take out your wallet which is always great.

It sounds too good to be true, but of course, there is a negative side to everything. One thing about Apple Pay is that not all stores have it and that can be a big deal if you decide to only carry your phone around because you think Apple Pay has it covered. Another negative of Apple Pay is that if you ever lose your phone out on your journey god forbid someone takes it and has your info or what if you were only carrying your phone, you will have nothing to survive with.

Personally, I think Apple Pay is a great thing and can come in clutch for a lot of moments in your daily life, but it isn’t an excuse to never carry at least some physical cash on you. I always carry cash on me and most of my things with cash, I think of Apple Pay as a shortcut I guess you can say. I would say give it a try but don’t rely on it, always have a backup on you.

Work cited: Didn’t use any websites.

• This reply was modified 2 years, 10 months ago by Ryan Natiello.

[Jada Hunter]

Hello. Yes so true I always was taught to have at least some cash on me just in case god forbid i get into and accident or something I’m going to the hospital I should have at least cash on me to buy stuff.Apple pay really did pave the way to having a card on your phone so I give them credit for that but I feel it should be more secure or perhaps I’m too paranoid.

 

[Jessica Munoz]

Nowadays most stores you go to will have “tap payment”, which could include just tapping your car or using any form of mobile payment. For example, apple pay, google pay, even after pay or pay pall, and I believe even cash app. These forms of payments give you the opportunity to not have a physical with you for the payment.

“Contactless Payment allows customers to make payments, without using cash or swiping the card. The customers must ‘Tap’ or ‘Wave’ their card over a card-reader to use this method. After that, the terminal will connect with the Bank Account and the payment will be made, quickly.”

If you have a Samsung or an iPhone, you have the ability to add as many cards as possible to your Phones wallet. You can add your debit, credit and even gift cards to your online wallet, to use when you don’t have your physical cards with you. This can be considered as an advantage.

For Instance, let’s say you were rushing to leave the house and sis does not have the chance to get your wallet, with apple/google pay you would already have your cars on your phone. This also works if you’re ordering something online.

Personally, I use Apple pay as a different form of payment. Most of the time I don’t really carry my wallet when I go out to crowded places. So, apple pay really comes in handy when I want to buy something, and I don’t have my wallet or cash. A pro for having apple pay is that for security apple pay is programed to change the last 4 numbers of your card so no information is stollen. “Apple Pay is designed with your security and privacy in mind, making it a simpler and more secure way to pay than using your physical credit, debit, and prepaid cards. Apple Pay uses security features built-in to the hardware and software of your device to help protect your transactions. In addition, to use Apple Pay, you must have a passcode set on your device and, optionally, Face ID or Touch ID.

 

-Jessica Munoz

[Jada Hunter]

Hello, I like your explanation and even example you use to relate to everybody cause trust me forgetting my wallet happens more times than it should. If you would change one thing about Apple pay, what would you change though?

[Sheldon Clark]

Hi Jessica, I’m a big fan of how you mentioned that you have to have a passcode setup to even use apple pay. That was a small detail I had forgotten about, but it really does emphasize the measures Apple takes to make sure your payment information is secure!

[Brielle Buckler]

I saw this interesting video where a woman cut the “tap” device out of her credit card to see if she could use it to make a contactless payment. I’ll see if I can find it to share.

[gianna]

1. Briefly explain briefly the alternative form of payment that you researched and how it works as an alternative to traditional cash.

• The alternative form of payment that I researched was Apple Pay. If many don’t know what Apple Pay is I will explain it to you. Apple Pay is something that Apple Inc. created, “it allows users to make payments in person. It is supported on iPhone, Apple Watch, iPad, and Mac. It digitizes and can replace a credit or debit card chip and PIN transaction at a contactless-capable point-of-sale terminal”. Apple Pay is alternative to traditional cash because this form of payment is used to be contactless and involves nothing but your phone.

1. What are the advantages of this form of payment?

• The advantages of using Apple Pay is that you do not need a physical copy of your card, just your phone and your password/Face ID. Allows you to send payments to other people if needed, keeps others from using you card if they do not know the information to get into your phone. Lastly There is no limit limit to the amount of times you can use your card on a daily basis. Just tap and go.

1. Are there disadvantages or risks associated with the form of payment that you researched?

• Some disadvantages of Apple Pay would be if you were to loose your phone and not have a single card/cash on you there is no way of having money on you. Secondly if you do not have Face ID or a password on your phone then anyone will be able to access your Apple Pay and use your money. Lastly some stores do not except Apple Pay, so if you are relying on just that it will not be the best idea.

1. 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?

• Yes I do use forms of cash alternatives such as Apple Pay, credit cards, and direct deposit.

works cited: https://www.apple.com/apple-pay             https://www.makeuseof.com/reasons-to-start-using-apple-pay/

• This reply was modified 2 years, 10 months ago by gianna.

[Marianela]

EFT(electronic funds transfer) is an alternative form of payment involving the electric transfer of money from one bank account to another. This can include direct deposits, wire transfers, and online bill payments.

An advantage to EFT is that transactions are processed very quickly compared to traditional banking methods. You can automate certain transactions, and they are accessible and convenient since you don’t need physical checks or cash.

However, there are security concerns with regards to EFT. Transactions can susceptible to hacking and fraud. Additionally, they are reliant on electricity, and technical issues can affect services by take systems down for days.

Personally, I often use EFT, ACH, Apple wallet, Google wallet, Cashapp, Venmo and PayPal. I am definitely not the most trusting with some of these. I try not to keep money in apps like Venmo, and I limit the amount of cards I have linked to the electronic wallets in case there is a security issue. I typically trust EFT and ACH, and I appreciate not having to deposit checks or move money in person.

[thomas mahoney]

“Tap to pay” is an alternate form of payment that has become extremely popular within the past few years, specifically on devices like iphones and android devices that offer apple pay and google pay. Tap to pay is an easy and an extremely convenient way to purchase almost anything you want, this feature has became available at almost every general store in the past few years. This allows you to make a purchase with just your mobile device, not requiring any physical form of payment. Apple and google pay are also usable when purchasing something online using your mobile device. I used apple pay today to purchase a hoodie, this saved me the hassle of manually entering all of my card information. Another advantage of tap to pay is the speed in which the payment completes and the easy access on your phone. A simple double tap on your power button will quickly complete a face scan and allow access to your credit or debit card. Tap to pay is also very secure, ” In some ways, Apple and Google Pay are actually more secure than their plastic counterparts. Both services use tokenization, creating a unique code whenever you make a purchase the merchant never sees your credit card number, and even if a thief were to somehow steal that code, they wouldn’t be able to use it to make more purchases. ” I think that one of the most convenient ways to use tap to pay is when using MTA services, instead of pulling out a metrocard or having to purchase one you can quickly scan your phone and keep moving. I feel that this also helps during rush hours to keep the flow of people moving in and out of train stations or buses. The only real disadvantage of tap to pay would be that some retail or older stores may not accept it as a form of payment, therefore you should not rely strictly on tap to pay as your main form of payment. I use apple pay almost daily and firmly believe that physical payments in many places will slowly become a thing of the past.

https://www.wired.com/story/you-should-use-apple-pay-google-pay/

[Brielle Buckler]

I remember thinking FOR YEARS that it was ridiculous that we had Apply Pay but still had to buy subway cards and refill them. Thank goodness that has changed!

[Caroline Rodriguez]

An alternative form of money that some, if not all have heard of is, prepaid cards. They work in a form of a debit card but aren’t linked to a specific bank. You load money into it using your cash, debit card or credit card and can either use as a gift to someone else or for yourself and is accepted everywhere, if not specified.

A great example to this form of payment are pre-paid Disney cards. These cards aren’t your traditional kinds of pre-paid cards as they are only allowed to be used on Disney owned property, but they do have their perks. When using them at the parks or to book a hotel you get discounted prices and if they expire you can transfer the money on to a new card.

There are definitely risk when using pre-paid cards, you can lose them, therefore any money you put into the card is lost forever, since it’s not backed by any banks or government entity. There are also activations fees associated with them that is an extra cost that isn’t going towards what you add on. Unlike traditional money there are time limits to how much you can put on the card to how long you can use them. Once a pre-paid card is expired you lose out on the money you put in. This isn’t the case for all but most.

I often use apple pay for most of my transactions as my form of alternative payments. As of right now I don’t have any concerns it’s pretty convenient and most, if not all places accept it now.

 

[Marianela]

I enjoyed your post, prepaid cards didn’t occur to me and this was refreshing to read. You did a good job pointing out all of the risks associated with using these cards. Having to worry about losing your balance due to expirations or physical loss is a lot, and it seems like prepaid cards offer organizations an easy way to make a profit off of unlucky customers.

[Julian Watson]

I liked your post Prepaid cards can definitely be a convenience  especially for gifts or for those who may not have a bank account. However, as you mentioned, the risks of losing the cards and unused funds is a downside.Which could be one of the leading factors to why people don’t use prepaid cards as much

[Tania Maree]

Hey Caroline,

Your post made me realize how much I don’t think about prepaid cards anymore and how popular they were when I was growing up (whether it be a gift card or one of those prepaid visa cards). I received one last year and the company it was from allowed you to register your card so that you could get a replacement in case it got lost. This is an upgrade that made me feel more secure using it. Though I don’t see myself using them often, I like the idea of buying them on occasion to take with me to places that I don’t feel comfortable bringing my credit/debit cards.

[Amanda Velez]

Hi Caroline, I liked reading your post because it gave me some insight into what my idea was for pre-paid cards. I have a daughter who loves buying her own things and I am contemplating on getting her a debit card. I did think about a pre-paid card but something about the security of the bank pulls me towards a traditional debit card. The pre-paid card just seems more feasible for a young girl because you load it and don’t have to worry about her having a long-term responsibility to it if she ever finishes using it she doesn’t have to keep it. However, now reading about the activation fee and the fact that if you lose it when you already put money on it and not being able to get that back because you don’t have security from a bank, the debit card sounds like the better option for me and my daughter. Plus, it’s never too early to learn about financial responsibility and start a commitment with something you’ll carry throughout the rest of your life regardless.

[Amanda Velez]

1. Briefly explain briefly the alternative form of payment that you researched and how it works as an alternative to traditional cash.
The alternative form of payment that I researched is ACH (Automated Clearing House). ACH works like a debit card except the transaction you make from your bank account to the business you are paying does not require a debit card, but transfers money from your bank account straight to the business.
2. What are the advantages of this form of payment?
The advantage of this form of payment is that it is a more secure way of transactions from your bank account unlike a debit card that can be lost or stolen and used with a pin by anyone, an ACH is authorized by yourself and your bank by providing identity and your routing and account number.
3. Are there disadvantages or risks associated with the form of payment that you researched?
There are risks and disadvantages when using an ACH because if your business’s database is hacked people may gain access to your bank account and this calls for an extensive process in the cancelation of your whole bank account, unlike when someone gets a hold of your debit card, you can just cancel the card and get a new one.
4. 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?
I chose to research ACH because that is one of the forms of cash alternatives I use. I pay my rent with an ACH and I think it’s very convenient for me. I know very few people who pay their rent with an ACH, most people are still going to an office to pay with a check or money order. The only concern I have about the security of this payment method is if my building’s database ever gets hacked, my bank account may be at risk, however, to mitigate this I can sign up for a fraud protection program with my bank which will help the process of getting my account secured again much easier.

[Brielle Buckler]

So many of us use ACH transfers — thank you for highlighting them here!

[Tania Maree]

Briefly explain the alternative form of payment that you researched and how it works as an alternative to traditional cash.
I researched P2P (Peer-to-Peer) payment apps. Some of the apps that fall under this category are Zelle, Venmo, Cash App, and PayPal. These apps allow users to send and receive money instantly at no (or little) cost. Some apps allow you to carry a balance within them (but can also be connected to a bank account), and others (Zelle) are tied directly to your bank accounts.
What are the advantages of this form of payment?
Some of the advantages of using this form of payment are that it allows you to send money to friends, family, and businesses instantly. This can be convenient if you are frequenting a business and you leave your wallet behind (you could use the app to pay the business directly or to reimburse a friend), and can use it to pay friends and family. One of the most advantageous features for me has been through Venmo – I can connect it to my Uber and Uber Eats accounts so that if I am ever in a situation where I need to call a cab or order food, but don’t have any other form of payment, I can. Another advantage is that Cash App (and other P2P $ apps) has enabled people who traditionally have a difficult time opening bank accounts the ability to have something that functions similarly to (or as, in cash app’s case) one. This allows a large population of our society to start being active participants (not having a bank account presents a plethora of issues and barriers to financial independence if you are living in areas of the country that have largely moved away from cash like NYC).
Are there disadvantages or risks associated with the form of payment that you researched?
The main issue, in my opinion, is the risk that comes with storing your money in Venmo or CashApp. Since the apps are not banks, they are not FDIC-insured (unless you are a user of the banking services they offer). This means that you cannot get your money back if it disappears from the app through a scam or some other mechanism. Another risk is that if someone gains access to your account (
For example, if you give someone who has poor intentions your phone for a moment), it is easy for someone to steal your money.
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?
I have an account with almost every single cash app available. I use Apply Pay, I have a Google Pay account, Venmo, Cash App, Zelle, and PayPal. Beyond P2P apps, I use products like Stripe and Wave. Of these cash alternatives, I do have preferred ones, however, I always tell people that I’ll download an app on the spot if that means a client fills my invoice on time.
In terms of security, I am not concerned about any of my accounts as I have multi-factor authentication set up on all of them, and all of my apps require a passcode to even open them. Beyond this, I don’t keep money in any account for longer than a couple of days other than my bank account.

Venmo, Cash App, and Zelle: Are Mobile Payment Apps Safe to Use?

https://www.consumerreports.org/money/digital-payments/peer-to-peer-payment-apps-comparison-a5999129619/

[Marianela]

I like that you included cash app’s inclusivity in allowing people to create bank accounts when their options are scarce. I also try to avoid leaving money in P2P payment systems as they are not FDIC insured.

[Caroline Rodriguez]

hey Tania ! I loved how you explained how p2p works , I wasn’t very knowledgeable with how those worked aside from zelle. I also use apple pay as well in my day to day life for pretty much everything is rare that I takeout my physical card

[Brielle Buckler]

These apps created new WORDS! How often do you go to dinner with friends and say “I’ll put it on my card; just Venmo me.”? It’s become so pervasive!

[Jada Hunter]

Apple pay a more common form of an alternative for cash payments since most do have an apple phone to access this from. The way to do this is you enter your card information in your wallet which links automatically to Apple pay services .In order to use your card which is now set up on your phone you double tap your home button and put it close to the card reader in the store or if you purchasing anything online you just select the apple pay option if its listed and you use your fingerprint print to confirm your payment. The advantages of this form of payment are that you wouldn’t gave to carry around your wallet filled with your card this is a light way to carry around cash. However, the disadvantages of this form of payment are that you are prone to cyberattacks and also only works if you have an apple iPhone making if less accessible to other people if they need to send someone money who has an android phone. Also, this form of payment also affects merchants as well the problems with it is the technical difficulties using apple pay as a form of payment also the irritability and confusion with new users. As a consumer myself I do use cash alternatives I just recently set up my apple pay wallet so I can’t say for sure how to feel about it just yet. I do mainly use my debit card though and I find both easier than using cash especially when making big purchases it would show up on my bank statement easier for me to track then keeping my receipts for reference when budgeting for each month. I have no concerns about this form of payment,debit,other than stores trying to scam you when inserting your card by putting a fake card reader that takes your information to keep. While with Apple pay, I’m concerned about when I have to buy something, and the store doesn’t take apple pay.

Source:8 Reasons You Shouldn’t Use Apple Pay (makeuseof.com)

[Caroline Rodriguez]

Hi Jada, one problem I have with Apple Pay when it comes to malfunction are the double charges it allows the MTA to make when tapping your card. Its very frustrating and hopefully down the line that’s something that can be fixed

 

[Mark Robinson]

Apple Pay & Google Pay

Apple Pay and Google Pay aim to provide a convenient and secure way for users to make payments, whether in physical stores, online, or within apps, while protecting their sensitive financial information. Apple Pay is primarily designed for Apple devices, including iPhones, iPads, Apple Watch, and Macs. It works within the Apple ecosystem. Google Pay is designed for Android devices but is also available on iOS. It’s more platform-agnostic and can work with a broader range of Android smartphones and some non-Android devices. Both Apple Pay and Google Pay allow users to add their credit, debit, or other payment cards to their mobile devices. These cards can be used for making contactless payments. Apple Pay and Google Pay both rely on Near Field Communication (NFC) technology to enable contactless payments. This allows users to make purchases by simply tapping their mobile devices (smartphones or smartwatches) on compatible payment terminals without the need to physically swipe or insert a card.

A major advantage of contactless payments is security. Contactless payments eliminate the need to physically insert or swipe a card, reducing the risk of card skimming devices being placed on payment terminals. These skimmers are used by criminals to steal card data when cards are swiped or inserted. Also, contactless payments use encryption to secure the transmission of payment information. This encryption ensures that the data is scrambled and can only be decrypted by authorized parties, such as your bank or the payment network.

One disadvantage when it comes to making a payment in person, Google Pay and Apple Pay require near field communication (NFC) technology to work. If a store or business doesn’t have an NFC terminal, then customers won’t be able to make payments using Google Pay or Apple Pay in person.

I currently use both Apple Pay and Google Pay as cash alternatives. I have never had an issue regarding security because I have been able to lock my card or change my biometrics or passwords whenever I noticed that there was a suspicious charge. However, as technology continues to advance I am still precautions whenever I am about to conduct a transaction online or in person.

Work Cited: https://www.investopedia.com/articles/personal-finance/010215/apple-pay-vs-google-wallet-how-they-work.asp

https://www.business.com/articles/google-pay-vs-apple-pay-vs-samsung-pay/

[Christopher Ochoa]

The alternative form of payment that I researched is digital wallet. Many people around the world use digital wallet on their phones. For example, if people have an Iphone, they use “Apple Pay”. There are many more digital wallet that people can use such as Paypal and Google Pay.

The advantages of digital wallets is that it can be a secure and fast way to make payments instead of using cash. Some of the disadvantages of digital wallets is security risk. Hackers can be able to get access to your digital wallet account. Another disadvantage is that sometimes there can be technical issues which can make you lose internet connection and prevent you from accessing your account and making payments.

Even though I still use cash when a business offers cash only, I still use digital wallet to make online stores and in-store payment. I also use it to send money to friends and family members. Even though there are some risk, I can still overcome these risk by taking precautions such as putting a strong password and enabling two-factor authentication for my digital wallet account. I am also careful to who I am sending money to. Overall, I am comfortable using digital wallet as a form of payment.

[Tanisha]

The alternative form of payment I researched about is Apple Pay it is a convenient and secure mobile payment system developed by Apple it allows users to make purchases using their iPhone Apple Watch and iPad you can add your credit and debit cards to wallets and make contactless payments supported by stores and online.

“In the early 2000s, the U.S. started accepting contactless payments at credit card terminals, which used near-field communication (NFC) technology to make it happen. However, it was still too early and not widely adopted until 2008, when the major credit card companies began to offer contactless credit cards.But contactless payments continued to evolve. Soon enough, Apple added Apple Pay in 2014, allowing you to add your credit and debit cards in the digital Wallet app and pay with your phone. There is also Google Pay for Android devices, and even Samsung has its own version of mobile payments called Samsung Pay.”

The advantages of this form of payment is it is safer than using a physical credit and debit card Face ID Touch ID and phone passcode to use Apple Pay, card numbers aren’t shared with merchants  and the actual card number are not stored on devices or servers.

The disadvantages of Apple Pay is it is vulnerable to cyberattacks limited acceptance not secure under certain conditions anyone will be able to access to your cards and make purchases if you don’t have Face ID or password set up.
<div class=”dt-primis dt-primis–related”>As a consumer myself I mostly use Apple Pay for everything I rarely ever take my cards out with me or any cash, some concerns  I have with Apple Pay is that I worry about the safety of my financial information unauthorized transactions and data breaches .</div>
<div></div>
<div>work source cited: https://www.digitaltrends.com/mobile/its-2023-ditch-your-physical-wallet-use-apple-pay/</div&gt;

[Julian Watson]

The fact the apple can protect u from fradualant charges and scammers are a major plus Apple Pay provides enhanced security by not exposing your actual card number during transactions. The tokenization approach helps prevent fraud and theft.Also The convenience and speed of Apple Pay is definitely a major benefit. Not having to pull out your physical card saves time.

[Zidan Ahmed]

Briefly explain the alternative form of payment that you researched and how it works as an alternative to traditional cash.

 

The alternative form of payment I researched is Apple Pay – a form of payment I use everyday. Apple states, “Apple Pay replaces your physical cards and cash with an easier, safer, more private and secure payment method. Use it online, in apps, and in stores. It’s the simple way to pay every day.” So overall, Apple pay is a contactless payment method that is utilized via your iPhone and other Apple products. Your bank cards are stored within the ‘wallet’ app and you simply double tap the power button to bring them up. You choose which card you intend to pay with, put in your passcode or use Face/Touch ID as a two-factor authentication method, and tap your phone on the contact capable card reader. Similarly, you can use Apple Pay to send others money via the iMessage app. And of course, Apple Pay can be used for online transactions. With Apple Pay, you do not have to physically possess your bank cards and cash; you do not have to take your wallet out during transactions. It replaces the tangible payment methods of physical cash and cards by making your device the middle-man.

 

What are the advantages of this form of payment?

 

Apple Pay is notorious for its convenience. The ‘tap to pay’ method has been found to be very quick and efficient. It bypasses the hassle of having to enter the PIN for physical cards and makes transaction interactions much smoother. Another advantage is the pure simplicity. Oftentimes, a person possesses multiple debit and credit cards in their wallet, along with other things such as ID cards, membership cards, etc. Apple Pay concises all your banking cards into one singular payment device reduces the chaos a physical wallet sometimes may be. Security is another advantage of Apple Pay; but could also be a disadvantage as I will explore later. Apple does not save nor install your card information on your device. It instead utilizes a number associated with your device to process transactions. So in the unfortunate event that your phone is stolen, nobody would have access to your banking information, and would also be unable to utilize Apple Pay due to their two factor authentication mechanism.

 

Are there disadvantages or risks associated with the form of payment that you researched?

 

As security could be an advantage to Apple Pay in one manner, it is also a disadvantage. As a digital payment method, it is prone to hackers and other means of technological threats. For example, using unsecure WiFi without a VPN (various public wifi connections) can expose you to certain threats. Of course you can take measures to prevent this, but on the surface level, it is a risk associated with having digital payment methods. One other disadvantage is the reality of not all merchants accepting Apple Pay. Even though digital contactless payment methods such as Apple Pay have taken the world by storm, many still do not possess the facilities to accept it as payment. This could limit your autonomy as a consumer as you can only interact with businesses that accept Apple Pay. However, in my personal life, I have also experienced certain businesses that do not accept cash. Inaccessibility is not an issue exclusive to Apple Pay or contactless digital payment methods. The most clear disadvantage to Apple Pay in my opinion is the potential for you to not have access to it. Your payment method depends on your phone’s battery and presence. If you do not possess your device, you do not possess your payment method. However, Apple recently implemented the concept of ‘Express Cards’ – which is a method in which you can use Apple Pay with a dead battery.

 

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?

 

I am an avid user of cash alternatives, especially Apple Pay. From paying the MTA fare to buying breakfast, I use Apple Pay for the majority of my daily transactions. Other digital payment methods I use include PayPal, CashApp, and Venmo. I believe the payment methods I listed are very popular with my generation (17-24 year olds). Most of my friends also are avid users of these cash alternatives. I do have concerns about the security of all these payment methods. To offset these concerns, I take steps in my everyday life to remain as secure as I can possibly be digitally. I rarely join public Wi-Fi servers, and when I do, I use a VPN. This provides a layer of security as I avoid networks where my information has the potential to be infringed and stolen. Gladly, I have not had any security or privacy issues with Apple Pay thus far. The same goes for methods such as CashApp, Venmo, and Paypal. I believe there are risks with using physical cards and cash as well, so I just see it as picking your poison.

 

Sources Used –

1. https://swissmoney.com/pros-and-cons-of-apple-pay
2. https://www.makeuseof.com/reasons-to-start-using-apple-pay
3. https://appleinsider.com/inside/apple-pay

• This reply was modified 2 years, 10 months ago by Zidan Ahmed.
• This reply was modified 2 years, 10 months ago by Zidan Ahmed.

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