Analysis of Mobile Payment Market: Value Propositions, Limitations, and Strategies

CASE ANALYSIS
Case Study: The Mobile Payment
Marketplace: Goat Rodeo
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1. What is the value proposition that Apple Pay offers consumers? How about
merchants?
ANSWER:
In case of the consumers, Apple Pay offers convenience in terms of payments. For this the
company enables it consumers to wherever and whenever they want without any kind of physical
contact or physical card (Dalenberg & Blum, 2012). The consumers are free to complete their
transactions from their convenience as it has eliminated the need for the consumers to go to the
counters and pay their bills. Along with this the company also offers security to its consumers in
which the consumers are not required to carry the wallet or cards with them which helps them in
eliminating the risk of any kind of fraud and theft. The cards of the consumers are encrypted
due to which any of the consumer information shall not be transferred to the merchants at the
time of transactions. Next value proposition that is offered by Apple Pay to its consumers is
Privacy where the consumers who are the owners of the card have the access to it. The
transactions can only be completed by the owner of the cards through the fingerprint ID that is
very much secure. The cards of the consumers can also be stored digitally which is very secure.
Along with this it is also providing the ease of adoption by a very large number of merchants and
no or less additional costs associated with the transactions (Johnsson, 2017).
Along with the consumers the Apple pay has been offering good value propositions to its
merchants as well. Unlike the credit card companies that charge 2% to 3% fee from the
merchants the Apple Pay doesn’t charge such fee from its merchants. The merchants’ will
also be benefited through fewer lineups at theirs stores as the consumers will be paying their
bills through instant touch. There will be no need of card approval or slips of paper required

for the merchants. Along with that the merchants are also benefited through security in the
transactions.
2. What are some of the limitations of Apple Pay that might prevent its widespread
Adoption?
ANSWER:
Some of the limitations of the Apple Pay that might prevent its widespread adoption are as
follows:
 Firstly, is someone is willing to use Apple Pay one must have an Apple product that is
an iPhone 6 or a newer version or an Apple watch. The Apple Pay only works well with
the iOS devices that begin with iPhone 6. So, the consumers who use the android phones
or any other phones cannot make the use of the Apple Pay.
 Secondly, the merchants are not allowed to use the payment processes of Apple Pay for
any kind of additional marketing and advertising. Apple Pay prohibits the merchants to
use its services for any kind of marketing and advertising which cannot be a very good
idea for the merchant’s point of view. This limitation is not good for the merchants as
they always make efforts to market or advertise their products and services through
various ways (Sherman, 2017).
 Thirdly, it requires the purchases of NRC point of sale terminals. The Near Field
Communication which is a wireless technology that enables the chip in an iPhone and
other phones. The NFC is touted with the payment mechanism. For using Apple Pay NFC