Contactless Payment Wristband: A Comprehensive Entrepreneurship Report

This report provides a comprehensive analysis of a new entrepreneurial venture: a contactless payment wristband. It begins by identifying the problem of fraud and inconvenience associated with traditional payment methods, leading to the formation of the idea for the wristband. The report details the features of the wristband, highlighting its security, time-saving capabilities, and affordability. It then assesses the external environment, considering political, social, economic, technological, and legal factors within the UK market. The report also analyzes the industrial attractiveness of the venture using Porter's Five Forces, evaluating the threats of new entrants, bargaining power of suppliers and buyers, threats of substitutes, and existing competitors. A marketing plan and value proposition canvas model are also included, alongside a contingency plan. The report aims to explore the potential of the contactless payment wristband as a viable business, offering insights into its development and market positioning.

ENTREPRENEURSHIP
DEVELOPMENT

Table of Contents
ENTREPRENEURSHIP..................................................................................................................1
INTRODUCTION...........................................................................................................................3
Problem Identification............................................................................................................3
IDEA FORMATION.......................................................................................................................3
Environment Assessment.......................................................................................................5
Industrial attractiveness..........................................................................................................6
Opportunities-.........................................................................................................................8
Threats-...................................................................................................................................9
Contingency plan....................................................................................................................9
VENTURE DEVELOPMENT......................................................................................................10
Market size and Customer Segmentation.............................................................................10
Venture Preposition Canvas model......................................................................................11
Marketing plan......................................................................................................................13
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16
The Value Proposition Canvas, 2019. [Online] Available through:
<(https://www.strategyzer.com/canvas/value-proposition-canvas) >..................................16

INTRODUCTION
Entrepreneurship refers to the process which includes the designing, launching and
operating a new business which is normally a small business. The person who took initiative to
form the enterprise are called entrepreneurs(Bhachu 2017). Entrepreneurship is described as the
ability and willingness to develop or form a new enterprise and managing the venture with
bearing risk and with a view of earning profit. This report is covered on a contactless payment
wristband which is going to provide services related with the payment through wristband to the
users in relation with the removal of problem of credit card and carrying cash. This report will
cover the idea formation for this new venture that how to expand its business in new regions and
the idea is required to be developed according to the set objectives. This report will cover the
opportunity formed or developed regarding the establishment of this new venture. This report
will cover brief description of the new application and the ways used to make this app recognised
in the market.
Problem Identification
In this modern era, a large amount of people prefer to use card and online payments but
the problem of fraud which takes place through the use of cards and banking through online is
the major issue that peoples are facing. Most of the people do not use the online banking services
as they are afraid of these frauds so this is a problem which has to be considered by the venture
and it is required to be addressed. Carrying cash at every place is also not safe in the view of
people and not able to carry cash but afraid to use the online banking services is the major issue
which is faced by the society.
IDEA FORMATION
The contactless payment wristband is a new venture which is created for providing
wristband payment services to the users and for this a idea is required to be created. This will
provide people to pay through wristband anytime without having any legal boundaries on the
user. The application of this micro chip makes the payment faster and safer. This is a major task
for the venture to estimate the effective solutions of the problem which is described above. This
problem has caused various incidents in the life of the citizens of the United Kingdom. There are
various people who require this type of services as they don't consider carrying cash is safe at
every place and cards are not accepted in every place.

There are certain additional features which make the new product more attractive in
nature. Here, are certain features of contactless payment wristband and the explanation is as
under:
1. Secure in nature
2. Saves time
3. Easy to asses does not provide stress to users.
4. Affordable price of product.
5. Transaction can be done easily without any complications.
The importance of new product are described as follows:
1. The connectivity with mobile is effective in nature.
2. It contains 3 led lights such as, Green, amber and red.
3. Best feature is that it can set the spend limit.
4. Contactless payment wristband is durable in nature and is long lasting.
5. However, this innovative product reduces the presence of money and ticket. By this more
and more potential consumers can be attracted towards the goods.
The contactless payment wristband have to take some step to remove this problem and
develop their enterprise in this region. The solutions which can be used by the company are as
follows-
 Contactless payment wristband can use social media to make them in consideration in the
mind of the people who can buy this band. This will make them to attract their attention
and wide range of people can take benefit of this service.
 This venture can create the mobile application which will make the service available to
the wide range of the customers and they can buy online and register themselves in this
type of service.
 This venture will open physical stores in the different places so that they can provide the
services at various places which will be helpful in establishing this venture.
Being a CEO, the suggestion regarding the different ideas which are required to explore
and identify the suitable way to promote this venture so that the this venture can provide their
services to the wide range and an effective idea can be chose to develop this venture in the U.K.

Environment Assessment
The assessment of the environment is necessary for the contactless payment wristband as
it will make this venture to identify the external factor which may affects the operations of this
venture. There are some factors which are required to be studied as these factor can create
problems for this venture. The explanation of this venture are as follows-
Political factors-
These factors are related with the political condition of the region where venture is
planning to expand. These factor are consists of the political stability, government policies etc.
and they impact the performance of the company. The situation of the United Kingdom is
required to be considered before taking any decision regarding the policies of the company. The
political stability and the political condition of the region have to be analysed by the venture so
the venture will be able to meet with the uncertainties(Kiss, Danis and Cavusgi 2012).
Social Factors-
These factors are related with the social norms, beliefs, values and culture of the people
who will avail the services of this venture. In this era, people have mindset that cash is not safe o
carry but this can be change at any time so the venture is require to consider the culture of the
targeted customers. The social factors can affect the sale of the business as if people will prefer
online banking services as a good option then this will be a threat for the venture.
Economical Factors-
These factor include the economic state of the country which include growth rate,
inflation rate etc. These factors are required to considered by the contactless payment wristband
so that they can target the market where the rate of growth is high and there is a need of this type
of technology which will benefit the establishment of this new idea(Brush and Cooper 2012).
Technological factors-
These are related with the innovative technology which is used by this product that is a
micro chip which is installed in the wristband and with the help of it, they can make payment
anywhere. The transaction takes place when their card comes in the range of the POS terminal
then it read the stored information automatically and then the payment transaction is proceed.
Legal factors-
The formation of this product require legal approval and the venture is required to follow
all the rules which are made for the online transactions. This will be a faster way of transferring

money and this requires a complete process to get approved from the government. For the ethical
instance the venture have to follow all the rules which were made for the online application in
which products are made available so that venture can sell the product to large number of
customers.
Industrial attractiveness
The contactless wristband payment which is a new product launched by a new venture
have to form a new competitive strategies so that they can become a leading venture in the
industry. The company have to create certain ideas to gain competitive advantage in the industry
as the venture has to determine the forces of the industry so that they can attract their target
customers. The venture is focusing on the five forces of industry so that they can form a
competitive advantage gaining strategy and the explanation of the forces are as follows-
Threats of new entrant-
This force is related with the determination of the factor which allow a new enterprise to
enter in the industry. The factors which will be considered by any new enterprise will be the
chances of the profitability and there are some barriers which are required to be identified. This
product which include use of high innovative technology requires huge amount of capital. That
makes tough for the enterprises to enter into the new markets. In this type of industry customer
do not generally switch as it involves a procedure to use these type of products as it requires
information of the customer account detail.
Bargaining power of Suppliers-
Supplier are the person who are engaged in selling of the product or the mean through
which products are delivered to the customers. In this venture, the micro chip is an essential part
to supply this product as chip stores the information which is necessary to make payments. This
is a innovative product so there will be low level of competition in the market and this allow the
venture to charge higher amount from their customers. This allow the venture to increase the
profitability by charging premium prices from their customers. The change in technology will
cost high capital to the venture so it is necessary for this venture to charge higher prices from
their customers. This product is a unique product and launched in the industry at very first time
which makes the venture to gain the advantage in the online payment industry.
Bargaining power of Buyer-

Buyer are the one who are the targeted customers of the venture and who will eventually
buy the product(Baum, Frese and Baron 2014). The bargaining power of buyer get affected by
the several factors such as the number of buyers, many substitute and price sensitive. While
considering the contactless payment wristband, there are no close substitute in the market which
makes the low level of bargaining power and it depends upon the targeted customers as they are
price sensitive or not. If their purchase of the product is based on the price of the product then
they will not be able to purchase this premium price product. But usually this is an innovative
product formed by the company due to the needs of customers and this product fulfils the needs
and provide various benefits to customers which made them buy this product.
Threats of substitutes-
Substitutes are the product or services which can be used by the customers in the place of
the main product. The contactless wristband payment allows their customer to pay through a
wristband which is linked to the bank account and this innovative product has made the online
payment easier and safe as there is a separate to use this feature. Although, this product has no
close substitute as this is a innovative product which provide a free life to customers as they can
travel without carrying cash and this type of payment will be accepted by the every person as it is
a safest mode to pay. This is a method in which a payment is made through gadget although the
application such as Google pay is a substitute of this product. As google pay in a mobile
application and this provide same benefit that is travelling without cash. So, the product has a
threat from its substitutes which made fixation of the price tougher task.
Threats of existing competitors-
Competitors are the one who produce same type of product with a unique feature. The
analysis of competition in the industry is important to determine so that the venture can gain
competitive advantage. contactless payment wristband is a new and innovative product in the
market therefore, there is no close existing competitors which allow the company to charge
higher prices from their customers. This is the method of payment which has a unique feature
that is it asks for a pin when there is a quick purchases in a particular time. This provides a
competitive advantage against competitors which are the mobile application in which payment is
made at online.

Hence, these forces are necessary to be determined by the venture before developing this
new product as it made easy for the firm to create decision or form strategies for the future in the
case of any contingency.
Strengths:
 Keep record of daily transaction.
 Easy to accessible any where
 Compatible in nature
 Secure the account through which transaction take place.
Weaknesses:
 Require flexible online accessible person
 Need full speed internet connection and internet banking
 Less used eBay in stores.
 Payment through eBay is long and complex in nature.
Opportunities-
There are several opportunities which are available for the venture producing innovative
product that is a contactless wristband payment in the online payment industry. Some of the
available opportunities are as follows-
 Out of five adults only one wears smart watch or a fitness strap.
 Through wearable technology market worth will be 30 billion by 2020.
 Over the years the market ratio raises by 10 % which is a positive sign for the
company.
 This product is made with an innovative technology allows the customer to pay with a
wristband and the money is transferred for one bank to another bank and it do not have
any medium in between. This increases the use of bank in life of new generation and
reduces the risk which is involved in carrying cash(Kuratko and Audretsch 2013).
 As it is a innovative product with unique features which allows the company to charge
premium prices from their target customers.
 This product can mostly attract the attention of youth because most of the people love to
wear band. This can work as both as fashion mean and electronic gadget.
 This gadget have made the payment through bank easier and safer which provides a
competitive advantage to the company.

Threats-
There are some threats which have to be faced by this venture which are explained
below-
 Hackers steal confidential data due to which customers avoid online payment.
 Brexit mostlystrike eCommerce business the most in the cut throat competitive world.
 Penalty of 1% is charged if customers are not satisfied.
 Customers using computers or phone which has certain software to compromise access
data.
 Though this is an innovative product and it has no close substitute but it can not be
considered as a product have no competition. There are various mobile application which
provides same benefit to the customer that is making payment through electronic Gadget.
 This is a major threat for this new product as these application have already gathered the
online payment industry so it is difficult for this product to make things in the facour of
the venture(Henry, Hill and Leitch 2017).
Contingency plan
Threats which are stated above are the basic competitors threat but the venture have to
take some serious step in which a plan is to be formed that can be applied in the event of
contingency. So, to make Contactless wristband payment successful product the venture have to
create a contingency plan and to attain this, a mitigation plan is required which are described
below-
Risk Severity Contingency plan Mitigation plan
Customer loses the
band
High
If this situation arises
customer can contact
the bank and can stop
the flow of
transactions so that it
reduces the risk of
fraud.
After handling the
situation, the venture
will issue a new band
to their customer after
charging the cost of
band.
As there are very less
chances when there is
After handling the
situation, the number

Chip is hacked Medium
a situation where chip
is hacked as it is a very
safe mode but if any
this type of situation
arises venture can use
Sop terminal number
and stop the flow of
transaction(Audretsch,
Heger and Veith
2015).
of the chip is blocked
and a new micro chip
with a new number is
issued by the venture
and a safety guard is
installed in that chip.
Disloyal employees Low
There are some
chances where
employee of the
venture tries to misuse
the account detail of
their customers in such
condition the
employees are required
to be terminated
permanently(Lowe and
Marriott 2012).
The amount lost by the
customer will be
provided them back so
that venture do not
losses the customer
loyalty(Aldrich 2012).
VENTURE DEVELOPMENT
After analysing the external factors and forces of industry and considering the potential
risk, as the CEO of the company the next step is to develop the new venture so that the product
can be sold widely.
Market size and Customer Segmentation
Contactless wristband payment is a product and for this the venture is estimating the size
of the market and the type of the customer to which product will be sold. There is high
opportunity for the product as the market size is vast. As most of the people in current era, do not

prefer to carry cash while going somewhere far and with card there is a fear of getting fraud.
This product have a feature which made it a safer mode to pay and the venture is targetting to the
customer from Europe and United states. The segment market of the product will be the youth of
this era because band is only preferable by the people who has a sense of fashion. Normally, the
segment market cover under 20-35 and it is for both men and women(Valdez and Richardson
2013). This administration work in partnership with leading companies such as, eBay, Amazon
and other distribution channels. By doing so they are motivated to come up innovative product
on continuous basis.
Venture Preposition Canvas model
This is a model reflecting the points where the product of the venture intersects with the
desire and want of the customers. This model builds the relationship between brand strategy and
business strategy. The format of this model is shown below-

Explanation-
This is the format of this model which includes benefits and features of the product which
are linked with the needs and wants of the customer. All these are described below-
 Benefits- Contactless wristband payment allows the customer to pay safely through their
bank accounts.
 Features- This provide a safety feature which is that the gadget ask for a pin when there
are quick purchases(Katz 2014).
 Wants- This fulfils the want which is a electronic gadget but comes under the fashion
criteria so the youth can use this as both.
 Needs- This product fulfils the need of the customers who want to travel freely without
carrying cash.