eCom 302: Exam Results

The exams have been scored. We wanted to share with you the results of the eCom 302 to date.

Question 1: What was the biggest driver for consumer adoption of checkout platforms?

 

a) Greater convenience (50%)

b) Higher security (0%)

c) Merchant discounts (50%)

d) Processor promotion (0%)

Question 2: What has been the primary driver of merchant adoption of alternative checkout solutions?

 

a) Lower cost for price leverage against more established payments products (0%)

b) Greater penetration of online consumers than traditional payments players (25%)

c) Superior functionality in streamlined checkout (25%)

d) Closed loop marketing opportunity (50%)

Question 3: Even with emerging eCommerce payments platforms, the network effect has been a factor in transaction growth?

 

–  True (75%)

–  False (25%)

Question 4: Which emerging competitor business model most closely resembles merchant acquiring?

 

a) PayPal (100%)

b) Google Checkout (0%)

c) Amazon One-Click (0%)

d) Facebook Credits (0%)

Question 5: As traditional payments networks work to close the checkout gap with emerging competitors, which will prove to be the most critical factor in competitive success?

 

– Customers and distribution (25%)

– Capability and technology (75%)

Question 6: Please briefly explain your answer to question 5, making a prediction about which type of provider (eCom specialist or network generalist) will win out.

– “I cannot see customers and distribution ” being a big factor” since there is no such thing for the standard provider, only the newcomers. What will eventually win out is secure capable technology functioning at a reasonable cost will win the day simply because the easier you make it for the customer, the more customers you will get.”

– “Between the mid-1970s and today, Visa went from 50% the size of Mastercard to 150% the size of Mastercard. The reasons: the POS terminal, more efficient bank connections, the Point of Sale terminal network, better execution of direct merchant connections, the debit card processing system and the ATM network. The major non-technology difference between Visa and Mastercard is deployment of the debit card, which Visa promoted more seriously than Mastercard, resulting in a significant transaction volume increase.”

– “I think eCom specialist is better positioned to win as it provides an opportunity to merchants to leverage their relationship with consumers through closed promotions, loyalty programs etc.”