Alvin Koo's Blog

In reflection of the discussion on online social media and management information systems, I happened to come across this article where Paypal has launched a new smartphone “app” which allows users to deposit and cash cheques by taking a picture of it. The line of inventions seem to be getting more creative and innovative as companies become aware of the power of MIS and the internet. Paypal is now effectively rivaling against banks and other financial institutions in a race to provide financial services virtually in the Internet. From being accessible online, Paypal has out beaten banks and ATMs in convenience to customers.

However in terms of MIS, the article has leaded me to question Paypal’s information technology capacities to undertake such operations. Depositing cheques online by taking photos of the cheques seems like a risky choice for both the customer and Paypal themselves. In the customer’s point of view, there is always the risk of cheques not being cashed properly and the money ending up not being deposited. On the other hand, Paypal may lose money due to fraudulent cheques and photographic images of cheques neglects the purpose of anti-counterfeit features of the original.

http://www.cbc.ca/consumer/story/2010/10/08/con-cheque-app.html