The Use of QR Codes for Payment

Critical Thinking Questions

3. Describe the ways in which online retailer Amazon.com has acted strategically to maintain its position as a leading e-commerce site. What does this suggest about what it takes to be successful in e-commerce today?

Amazon.com has acted strategically by investing heavily in Information Technology infrastructure and obtaining patents for most of its technology (Tou et al., 2019). Through the use of technology, Amazon.com has managed to offer a massive catalog of books to its readers at low prices. It is easier to search for books on the website than browsing through a physical bookstore, making it more attractive to buyers. Secure online payments give customer confidence they can trust their money will be safe and that there is no likelihood of fraud taking place when they provide their card details. Amazon has been improving the customer experience through innovation and revising its business model. The use of the patented One-Click order feature enables customers to personalize their accounts and manage their orders.

To reinforce its e-book market, Amazon launched the Kindle e-reader, leading to its competitors’ entry with other tablets. The Kindle has allowed Amazon to sell more e-books than print, demonstrating how technology is overtaking the print world. Innovation has enabled Amazon to continue leading the online market, and the company has launched the Kindle app to be used on mobile devices, ensuring people can still purchase books from Amazon even if they don’t own a Kindle e-reader. The patents obtained by Amazon ensure no other company can use the same technology giving the company the edge over its competitors.

To be successful in e-commerce today, a company has to have a futuristic mindset where it envisions the best way of using technology to improve user experience. The business model has to be revised numerous times to ensure the company stays competitive and adopts new technology as it comes to market. Also, there should be no fear of launching a product that is not currently in the market, as was the case with the Kindle e-reader, which pioneered the tablet industry through its success. Finally, using the patents will ensure the company can maximize its technologies without fear of others using the same technology.

17. Evaluate the various mobile electronic payment processes described in this chapter. Which one do you think is likely to emerge as the dominant method for mobile payment? Explain your answer.

The QR Code system is likely to emerge as the dominant method for mobile payment. With a QR code, the customer scans the code displayed by the merchant to authorize payment. The system’s security is guaranteed because the customer has to scan the code from their phone (Liu et al., 2021). Compared to NFC, the QR code system is more secure because the customer will always be aware when making a payment, and there is no chance of payment authorization without them knowing. The likelihood of NFC becoming widespread is limited to the phone’s capability because the phone must be equipped with NFC technology. The security of the QR code system lies in the fact that the user must scan the code themselves or have a QR code generated on their phone to be scanned by the merchant.

All one needs to use the QR code system is a phone with a camera and the ability to scan QR codes. The simplicity and security of the system make its adoption easy. Another additional security of the QR code system lies in the fact that the user must authorize the transaction even after scanning the merchant’s QR code.