Third-party payment in Canadian market

Part 1.

Types of business ideas:

1. a) Social media platform
2. b) Third-party payment
3. c) Beverage Company
4. d) Gas filling station
5. e) E-commerce
6. Social media platform: This is a social media platform that enables the user to create, share short music videos.
7. Third-party payment: Is a third-party digital wallet that allows customers to conduct payment directly from their mobile devices.
8. Beverage Company: The Company sells many kinds of drinks to the market around the world.
9. Gas filling station: This is a facility sells fuel products and lubricants for motor vehicles. The most commonly sold fuel is gasoline and petrol.
10. E-commerce: This is a multinational e-commerce company specialized in online retails, internet, and technology.

Part 2.

Description of Idea 1: Social media platform

Description of Idea 2: Beverage company

Description of Idea 3: alipay

Total scores:

Idea 1: 103

Idea 2: 134

Idea 3: 141

Part 3:

Q1.

In the business ideas described above, third-party payment is the most significant new business opportunity because of its effectiveness in today’s business market (Allouch, 2018). The compatibility of the application to be able to operate in smartphones, both the android system and ios allows the application to access the market through the telecommunication network. The application is easy to operate as users only require to download the app from the  appstore, and then install, sign up, finally link the bank account with the application. The app is reliable as it allows payment from the bank account directly through mobile phones. This cashless transaction is encouraged by so many companies or businesses as it is safe manageable. The app is secured with the pin that only allows the user to log in and make any transactions. The Third-party payment is also responsible for one transaction process; therefore, the customer’s data information is safely encrypted.

The new venture in technology gives the Third-party payment a greater opportunity in the market as the need for payment of goods through cashless transactions (Reukauf, 2018) rises in today’s market. Take Alibaba group as example. Alibaba group has the world leading Third-party payment “Alipay”, The app also has a ready market and customers from the leading multinational online-marketing Alibaba group, because it was initially founded by the Alibaba group to enable transactions of their customers in their online retail shops in china. The company has many customers spreading in a different part of the globe providing a ready and reliable customer to the application (Wang, 2011). The opportunity for this business is that it is based on computer application programs, and therefore it will not be affected by the rapid change in technology. It will only require an update to the new version as it provides the necessary assistant to the customers. As the need for mobiles phones users in the market increases also increases the customers and market for Third-party payment, thus creating the need for the transaction process necessary for the payment of goods from the Third-party payment company.

Q2.

Despite the Third-party payment being the most significant business idea, it also has some defects as observable in Buskirk’s factors, (Hubpot, 2017) which are expected to be worked on and improved. As the application is directly downloaded from the store, It mayface some restriction of operation under different regions as the government regulations vary. Therefore, it is important to request the government to approve the application’s terms. There are also competitions from other online payment methods such as PayPal, Alipay as they are providing similar services. So, it is important for the new business to state its business position and find the right strategy to improve its compatibility and gain more market shares.This goal can be achieved by shorten the transaction processing time. The rapid change in technology is also concerning, as it may change the existing market structure and attract new entrants.

Technological advancement in the market allows other businesses or platforms to use the third-party payment easier, but it also creates stiff competition in the market. The happening of the fraud and leakage of information raises the public concerns about the payment security. Someplatforms and consumers are refused to use third party payment to anti frauds. (Tullberg, J, 2012).The application also has the risk of failing to provide the service successfully because the third part may have limited information about the customers and the bank or sometimes the technical issues may occur. Some of the operations might be fully controlled by the respective bank that is linking with the app. Therefore, some agreements between the user and the bank will not be violated; this adjacent can only be made between the bank and the user.

References

Allouch, N. (2018, December 3). Marketers; Outdoor Marketing Strategies That Will Boost Your Brand like Crazy. Retrieved July 4, 2020, from Penji: https://penji.co/outdoor-marketing-strategies/

HubSpot. (2017, October 21). Marketing Automation. Retrieved July 4, 2020, from Hubspot: https://www.hubspot.com/products/marketing/marketing-automation?_ga=2.165389375.1805801942.1580008712-612329618.1580008712

Reukauf, J. A. (2018). The correlation between job satisfaction and turnover intention in small businesses (Doctoral dissertation).

Retrieved from https://scholarworks.waldenu.edu/dissertations/4322/

Telford, H. (2015, February 10) Food and Beverages: 4 big challenges of Coca-Cola. Retrieved July 4, 2020, from https://www.foodmag.com.au/four-big-challenges-for-coca-cola/

Tullberg, J. (2012). Integrity-Clarifying and Upgrading an Important Concept for Business Ethics. Business and Society Review, 117(1), 89–121. DOI: 10.1111/j.1467-8594.2011. 00401.x

Wang, Shanshan (May 27, 2011). “Alipay Awarded Third-Party Payment License.” Caixin Online.