1

Name
Institution
Course
Instructor
Due date

strength of online mobile payment forms to gain an edge over

competitor’s local firms

Abstract
This study aims to determine the strengths of online mobile payments forms that businesses can
use to get a competitive advantage over their competitors. The research will focus on why many
local businesses nowadays choose online mobile payments. This research will also address the
problems faced by the users and the business owners. The research is also intended to address the
gap viewed due to the low uptake of the online mobile payment methods by the local firms
operating in remote areas. This study aims to show how companies have incorporated and used
information technology to their advantage and how they have developed the methods to suit
them.
 2

Introduction
The study aims to present a proposal for merits associated with online mobile payments that
firms use to gain a competitive advantage over their competitors. Online mobile payment is
popular mostly with organizations located in cities and towns. Many organizations have been
forced to join their competitors in the trend to stay relevant and left behind in the technological
field. The study will provide insight into why businesses have decided to use online payment
methods and show why the mobile payment method has failed to prevail for local businesses.
The research will also address why many local businesses are skeptical about embracing online
payment methods. The study will again provide important insight on the studies that the business
information technology field has conducted to address the solutions on the gaps that are
experienced in the implementation of information technology systems in the firms to gain a
competitive advantage over the other businesses ("Mobile payment and mobile applications
(Apps) behaviors for online recommendations," 2021).
This concept briefing enables the readers to (1) understand the purpose of information
technology in business. (2) The role of online mobile payment in providing a competitive
advantage over other businesses. (3) problems faced by incorporating M-Payment in local
businesses and their solutions.
Definition
The payment of a product or service through portable electronic gadgets, for example,
smartphones and tablets, is referred to as online mobile payment. It is abbreviated as M-Payment
and is used to make the payment process of a local organization easier. The three payment types
are proximity payment method, branded payment proximity, and peer-to-peer payment, which
can be used interchangeably to give local organizations a competitive advantage.
Purpose and implications
Purpose
In an information organization, the main goal of information technology is to improve business
performance through its creativity in the field. The business has an opportunity to enjoy and
leverage online mobile payment and gain a competitive advantage over other local businesses.
There have been many drawbacks that local businesses have faced in their quest to adopt online
mobile payment. The challenges have led to the innovativeness of the information technology
team, which has established solutions in online mobile payment, making it easy to assimilate
(Publication, 2021). When online mobile technology is assimilated successfully in a business, it
has produced spending performance.
Challenges faced in using online mobile payment.
Cyber security of the customer’s bank accounts due to availing too much of their private
information.
Internet availability for the gadgets’ connection allows users to use online mobile payment.
Poor attitude towards the use of online mobile payment by consumers.
High numbers of people don't know how to operate online mobile payments.
 3

Solution provided by the information technology team

The information technology team has been at the forefront of providing remedies to local
businesses' challenges facing online mobile payment.
Giving a lot of emphasis on the security requirements to be used. The emphasis on the data
protection measure will be used to provide a safe place for consumers to pay for commodities
which will, in turn, increase their motivation to use the sites. The IT teams have provided a
solution by having a fingerprint to protect online mobile sites ("SEKUR I integrates fingerprint
recognition into mobile online payment app," 2018).
Ensuring that there is internet availability in the local area where the businesses are located gives
a chance to many consumers to use the online mobile payment.
A poor attitude can be countered by making the site user-friendly, thus using appealing features
that will attract customers to use them more often when they are transacting instead of using
physical methods of payment.
The challenge of illiteracy of the app features can easily be solved by the local businesses
creating advertisement programs to educate consumers on how to use online mobile apps.
Examples
Example 1# proximity payment system
This is the type of payment where both the payee and the payer are in the same area while paying
for the commodities. The transaction of the devices heavily relies on the communication of the
two devices through proximity technology. For example, through the use of quick response (QR)
codes, near field communication (NFC), and Bluetooth technology (BT). These payments are
mostly used by large companies like Apple, Goggle, and Samsung. The mobile payment
proximity family is comprised of many payment types, which include mobile contact payments
among them.
Example 2# branded proximity payment
This type of payment involves using the same payment technology, just as in the proximity
payment system. Branded proximity payment can only be used in single merchant stores such as
Target, Walmart, and other big companies (Tounekti, Ruiz-Martinez & Skarmeta Gomez, 2020).
Also, branded proximity payments are different from proximity payment due to the restricted use
to only merchant stores.
Example 3# payment between individuals or in other terms (P2P) payment
These can also be referred to as peer-to-peer payment systems or money transfer apps, for
example, PayPal, Venmo, and Cash App. They give their users a chance to send one another
payment using their mobile phones through a linked card or a bank account. This form of
payment makes splitting and payment of the bills easily among family and friends. These forms
of payment have made it very easy for people to use them conveniently hence providing a chance
for local businesses to incorporate them.
Conclusion
 4

The briefing has provided answers to the million-dollar problem that has faced local businesses
in the incorporation of online mobile payment. It is vivid that online mobile payment has grown
and diversified to international and cross-border integration. The growth of online mobile
payment has provided opportunities for local businesses to use this form of payment to gain a
competitive advantage over other businesses. Online mobile payment is the future of payment
which is not here to replace physical payment but is here to replace cash and checks. The success
of online mobile payment relies on appropriate business strategies and well-laid plans. M-
Payment can be leveraged to provide a competitive advantage over their message competitors
when applied by local businesses.
 5

Reference
Mobile payment and mobile applications (Apps) behaviors for online recommendations.
(2021). Journal Of Organizational And End User Computing, 33(6), 0-0. DOI:
10.4018/joeuc.20211101oa02
Publication, I. (2021). MOBILE SIMPLE PAYMENT SYSTEM DEVELOPMENT FOR
ONLINE DONATION INVIGORATION. SSRN Electronic Journal. DOI:
10.2139/ssrn.3936517
SEKUR Me integrates fingerprint recognition into mobile online payment app.
(2018). Biometric Technology Today, 2015(3), 2. doi: 10.1016/s0969-4765(15)30026-6
Tounekti, O., Ruiz-Martinez, A., & Skarmeta Gomez, A. (2020). Users Supporting Multiple
(Mobile) Electronic Payment Systems in Online Purchases: An Empirical Study of Their
Payment Transaction Preferences. IEEE Access, 8, 735-766. DOI:
10.1109/access.2019.2961785