Fintechs can be grouped according to what parties are invovled correct answers -Peer to peer (P2P)
-Business to person (B2P)
-Person to business (P2B)
-Business to business (B2B)
Two interesting areas in payments correct answers 1. Cross-border payments
2. Mobile payments
Fintechs & payme...
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Fintechs can be grouped according to what parties are invovled correct answers -Peer to peer (P2P)
-Business to person (B2P)
-Person to business (P2B)
-Business to business (B2B)
Two interesting areas in payments correct answers 1. Cross-border payments
2. Mobile payments
Fintechs & payments correct answers Fintechs started mostly with payments, now may seem to be shifting away to become a data industry
Integrated billing mobile correct answers Consists of payment services such as ordering and payment apps and integrated mobile shopping apps e.g. Uber
Streamlined payments correct answers -Services such as location-based payments e.g. geotagging, -Machine to machine payments
-Mobile point of sale e.g. paypal
Four market segments in cross-border payments ((how do they work)) correct answers 1. Capturing: interfacing directly with users
2. Messaging: involved handling payment instructions
3. Settlement: Involves 1. Transfer of money from bank to bank domestically), 2. Transfer of funds across borders (cross-border settlement)
4. Disbursing: involves interfacing with clients again
Emphasis on what factors in cross-border payments correct answers Low cost
Security
Convenience
Predictability
Transparency
Assumption of confidentiality
Non-cash payment methods correct answers -Payment cards: Can take cash out of ATM and used to pay vendors at point of sale
-Bank transfers: Payment orders made by debtors to transfer sum to creditor
-Direct debits: Where one individual withdraws funds from another person's bank account
-Checks: Negotiable instrument instruction financial institution to pay an amount from an account in makers name
Mobile money correct answers Refers to a network that supports payments from one user to another via a mobile device Three main and highly interrelated disruptive factors, which have helped the market develop in this area correct answers 1. Technology enables innovation
2. Regulatory intervention
3. Shift in consumer preferences
Mobile payments can be classified as the following correct answers -Mobile remote payment (pay independently of phone's location)
-Mobile proximity payment (for in-store)
-Mobile P2P payments
Forms of payment cards correct answers -Debit
-Credit
-Pre-paid
Difference between credit & debit card correct answers -Both eliminate need to carry cash
-Fundamental difference is where card pulls money
Debit: Pulls from your banking account
Credit: Charges to your line of credit
Pain points in traditional monetary subsitutes correct answers -Costs
-User experience
-Time waiting
-No control on spending
-Fraud
First takeaway correct answers Each new payment must be better in some features to substitute an old one
Market infrastructures for clearing correct answers Process of transmitting, reconciling orders prior to settlement
Market infrastructures for settlements correct answers Is the completion of a transaction
System used to facilitate the settlement of transfers of funds
Credit cards are e.g. visa correct answers Global networks that process payments and charge a fee for that
To accept credit cards correct answers -Banks pay for their global network coverage with ATM's
& merchant terminals (POS)
-They're not a bank
-Not liable for any dispute
-Middle men processing the payment for banks & merchants
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