Point of Transaction 201: Exam Results

The results are in! Below is a round-up of how PYMNTS U. participants answered on the Point of Transaction 201 exam.

Question 1: If remote payments are supposed to be the future of the industry, why are so many consumer purchases still at the physical point of sale?

a) Although maintaining millions of square feet of retail floor is more expensive than managing a website, retail business models are slow to change (0%)

b) The payments industry has been slow to adopt remote models that would create more consumer payment choice in an effort to protect their current positions (25%)

c) The government and behavioral economists have not yet stepped in and managed the evolution of the payments industry effectively (0%)

d) Consumers are the main driver, and their behavior is hard to change. They enjoy the experience of physical retail (& how can your kids throw Cap’n Crunch into the checkout basket @ feedmemom.com?) (75%)


Question 2: Which player in the payments value chain has the greatest concentration of influence and power?


a) Merchants, where the top 200 control over 20% of all consumer spending (or ~13% of GDP) (42%)

b) Payments networks, where the top two process nearly 22% of all consumer spending (or ~14% of GDP) (17%)

c) Major financial institutions, where the top 10 electronic payments players control nearly 80% of all card network volume (8%)

d) Consumers, who make rational retail and payments decisions every day from a range of choices, controlling ~100% of consumer spending (33%)


Question 3: According to the basic innovation types described in lesson two, which of these is the right combination of innovation and type?

a) Rewards cards are a platform innovation (17%)

b) Contactless payments are a platform innovation (50%)

c) ACH-based point-of-sale debit products are a platform innovation (25%)

d) Biometric authentication payments are an insanely great idea (8%)


Question 4: How many ACH-based deposit access products do you currently carry in your wallet?

a) None (58%)


b) One (33%)


c) Between 2 and 4  (8%)


d) 5 or more (0%)