Discussion Points

1.     MasterCard managers are motivated
to increase (1) the number of individuals who have and use a MasterCard credit
card, (2) the number of banks and other clients who issue MasterCards to
customers and/or employees, and (3) the number of locations that accept
MasterCard payments. Discuss how MasterCard could use its data warehouse to
help it expand each of these customer bases.

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Mastercard managers can promote its
utilization by deploying core capabilities of Business Intelligence.

Data Storage and Management

1.    
Data
Warehousing

2.    
Ad-Hoc
Analysis

3.    
Data
Quality

4.    
Data
Mining

Data
extraction is operation of extracting data from a source system for further use
in a data warehouse environment. This is the first step of the ETL process.
After the extraction, this data can be transformed and loaded into the data
warehouse. Designing and creating the extraction process is often one of the
most time-consuming tasks in the ETL process and, indeed, in the entire data
warehousing process. The source systems might be very complex and poorly
documented, and thus determining which data needs to be extracted can be
difficult. The data must be extracted normally not only once, but several times
in a periodic manner to supply all changed data to the warehouse and keep it
up-to-date.

The
estimated amount of the data to be extracted and the stage in the ETL process
have the impact on decision of how to extract from a logical and a physical
perspective.

Logical
Extraction Methods include two kinds:

1.     Full
Extraction: In this the data is extracted completely from the source system.
The advantage is that there is no need to keep track of changes to the data
source.

2.      Incremental Extraction: In this only the data
that has changed since a well-defined event back in history will be extracted.
This information can be either provided by the source data itself like an
application column, reflecting the last-changed timestamp or a change table
where an appropriate additional mechanism keeps track of the changes besides
the originating transactions. In most cases, using the latter method means
adding extraction logic to the source system.

The extracted data from ETL
processes can be processed through Data warehouse which is further sent to Data
Marts. The information can be processed through Business Intelligence
Environment which includes data mining, reporting and OLAP Analytics.

Some of the Data warehouse tools
are:

1.    
Portfolio
Analytics suite: It helps in assessing the risk across multiple asset classes.
Also assists in understanding performance, measuring the ratings, view metrics
and evaluate absolute performance.

2.    
MasterCard
Marketing Center: It provides access to the customers to monito and develop
patterns of usage of card worldwide.

3.    
Holistic
Data Management: This tool is entirely based on establishing a data object
relationship. Data is primarily divided in to child data object and parent data
object. This toll performs a wide range of functions that includes data
governance, integration and data management.

4.    
Informatica:
This tool focuses mainly on data virtualization, replication, integration and
cloud data integration.

5.    
Teradata:
This tool helps in analysing the data in simple and effective manner.it works
by dividing data into hot and cold. Cold data is the one which is not used
frequently.

 

2.     MasterCard makes its analytics
tools available to all its member banks and other issuers. It knows that
getting its clients to use these tools can be critical to keeping them as loyal
customers. Discuss the steps that MasterCard can take to promote greater use of
its BI and reporting tools by its clients. Who do you think larger or smaller
clients will benefit most from MasterCard’s analytics tools? Why?

 

Small companies will benefit the
most by deploying BI tools.

Steps
to promote BI:

1.     Determine
Marketing strategy: In a market with saturated analytic tools, apps it is
important to have a crucial strategy for small companies to promote BI.
Identify where and how customers consume their information and what is the
driving force behind them to purchase and subscribe.

2.     Avoid
problems in fragile market: Deploy BI tools which predicts the future to avoid
bottlenecks and acts better for decision making. BI tools are not just for
tracking performance indicators.

3.     Deploy
effective business model: this include deploying BI tools with all the core
capabilities of Business Intelligence. In the market of oversaturation its
important to make small decisions and tracking what are the effects of the
decisions.

4.     Customers
view on single platform: It’s important to understand the views of customers
across a multitude of platforms and channels. Deploying live chats, email
marketing can get the data necessary to understand the views of customers.

5.     Deploy
Data Scientists: Organization will need right people for right job. Inquisitive
workers with analytical skills are more likely to develop the company’s
strategies.

6.     Validation:
its important to validate the process that focuses on enabling access o all the
data needed. It’s important to check the quality of data entering the BI tool.

7.     Monitor
the performance: Finally, its needed to track the performance of the tool. The
performance f the tool across multiple users in then business should be
tracked.

 

3.    
Do
some Internet research to identify examples of “tap & go” applications.
What are some typical types of “tap & go” payment applications and what
growth trends are expected? Do you think that there are limits to the types of
applications that “tap & go” payments can be used for? Why or why not?

 

Tap & Go is a mobile payment
service. It enables settlement of payment anywhere worldwide embedded in SIM or
online via MasterCard. It enables small and medium sized enterprises and online
merchants save on operating costs and an adorable experience.

Examples:

1.    
Android
Pay

2.    
Apple
pay

3.    
Samsung
pay

4.    
Visa
pay Wave

5.    
MasterCard
Pay Pass

6.    
Pay
Ready: Go QR, MasterCard

7.    
Online
purchase

8.    
Paypartner:
in-app, online, QR code and NFC (Near Field Communication) mobile payment by HKT commercial
group.

9.    
Pay
Buddy 2.0: This is done by NFC- enabled smartphones.

10.  PayMaster: it’s a tap and go mobile
wallet with maximum of 5 accounts.

 

NFC payment apps have inbuilt RFID
systems that allows two-way communication.

Its advantageous to use the tap and
go applications as they are secured: Password protection, notification of
transactions, advanced security, personalized settings, and immediate
suspension of account on report of loss.

 

Growth:

Its estimated that more than 4.8
billion individuals will use these apps by end of 2016. 90 percent of
smartphone users will have made a mobile payment. It’s estimated that by 2017,
there will be $60 billion in mobile payment sales. (Rampton J, 2016).

 

References:

The evolution of the mobile payment

https://blog.marketresearch.com/10-ways-business-intelligence-can-improve-your-organization

https://www.tapngo.com.hk/eng/about.html

https://www.rishabhsoft.com/blog/top-5-nfc-payment-apps

 

4.    
Do
some research on the extent to which MasterCard’s PayPass digital wallet is
being embraced as a payment mechanism for online purchases. What are the
advantages and disadvantages of digital wallets such as PayPass? What can
MasterCard do to encourage online merchants to accept PayPass digital wallet
payments?

The PayPass digital wallet payments
allow users to store all their cards and allows other wallets to work with its
network. There is lot of competition from other digital wallets as Visa,
American Express and Pay.

Advantages:

1.    
Lower
costs: NFC based application have replaced expensive POS (Point of Scale) that
will reduce transaction costs for the business.

2.    
Secured:
Password protection, notification of transactions, advanced security,
personalized settings

3.    
Convenience:
Purchase can be made in seconds with simple atp or scan.

4.    
Competitive
advantage: Redefines the competitive edge in the market by convenient
experience of customer.

         Disadvantages:

1.    
Budget:
Initial investment in building the app is large. Also requires maintenance,
updates and fix of bugs.

2.    
System
outages: Data is stored in servers or cloud and system outage is a always a
pose a problem for storage.

3.    
Support
Technology: As the technology is new, Paypass can function only with
corresponding hardware device for each application.

 

References:

http://digitalwallet.weebly.com/advantages–disadvantages.html

 

5.     Supporting
mobility and smartphone apps is important to MasterCard. What challenges does
MasterCard face in rolling out smartphone payment systems? Which of these do
you think will be most difficult to address? Why?

 

Challenges:

1.     Financial
system for Unbanked Individuals: Deploy a service that allows financially
excluded individuals to accept and deliver payments to help address their
needs.

2.     Dependency
on Supporting system: NFC terminals and specialize scanners are the only
devices created now that will support the processing of digital wallet
payments; thus, it is very limited because the technology is still new.

3.     Credit
card Fraud: Appropriate authentication is required for credit card transactions
to be secured. These problems must be overcome.

4.     Cash
Advances and Interest rates: The rates for cash advances are expensive and can
apply for many transactions over worldwide.

Among
these the most difficult challenge to address is cases of fraud while using
Mastercard payment as it may lead to breach in security and beliefs of
customers.

 

 

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