QUESTION TWO

Read the case study below and answer the questions that follow:

(10)

[40]

Standard Bank clients can now get free coffee and burgers if they tap their Samsung's to pay at tills

Standard Bank just became the second bank in SA, after Absa, to offer Samsung Pay.

Samsung Pay allows clients to simply tap their Galaxy phone on a payment terminal to make a payment.

The electronics company says more banks and merchants will be added in

coming months.

Standard is offering incentives that include the chance to win a high-end

cellphone for using its new service.

Standard Bank is the second bank, after Absa, to offer Samsung Pay, the Korean technology company announced on Friday. Standard Bank clients will now be able to tap

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POSTGRADUATE DIPLOMA IN MANAGEMENT - ACADEMIC AND ASSESSMENT CALENDAR

their cellphones instead of using a card at pay points. "We're proud to be offering this exceptional service to South Africans and the positive response from banks and vendors," says Samsung SA's VP of Integrated Mobility, Craige Fleischer. Samsung Pay allows users to make payments by launching Samsung Pay app, authenticating with an eye or fingerprint scan, and tapping their phone to complete the transaction. It is available on these devices:

Samsung Galaxy Note 8 and 9;

Samsung Galaxy S7, S8 and S9;

Samsung Galaxy A5 and A7.

Absa clients were the first on the African continent to have access to Samsung Pay. Samsung SA says more merchants and banks will be added in the coming months.

Source: https://www.businessinsider.co.za/standard-bank-clients-can-now-get-free-coffee- and-burgers-if-they-tap-their-samsungs-at-tills-to-pay-2018-8

2.1 Discuss the possible reasons for Standard Bank adopting Samsung Pay as an alternative to conventional payments (10)

2.2 Samsung Pay is another example of the development of e- commerce, in light of this discuss with the use of relevant research the state of e- commerce in Africa and whether there is sufficient growth in e- commerce in Africa to adopt these new technologies. (15)

2.3 Technology such as Samsung Pay will not apply to all of Standard Bank customers as the limiting factors are the cellphone make "Samsung" and the limited Samsung devices that will support this technology.

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POSTGRADUATE DIPLOMA IN MANAGEMENT - ACADEMIC AND ASSESSMENT CALENDAR

With regards to the above discuss the three criteria Standard Bank will have to base its Points of Differences on to differentiate from the market leader ABSA in this niche market.