ECOM6013 E-Commerce Technologies

Topic 7 E-Payment Systems

Payment System Stakeholders’ Priorities

• Customer
  1. Low-risk
  2. Low-cost
  3. Refutable
  4. Convenience
  5. Reliable
• Merchants
  1. Low-risks
  2. Low-cost
  3. Irrefutable
  4. Secure
  5. Reliable
• Financial intermediaries
  1. Secure
  2. Low-risk
  3. Maximizing profit
• Government regulators
  1. Secure
  2. Trust
  3. Protecting participants and enforcing reporting

Type of Payment Systems

• Cash
• Cheque transfer
• Credit card
• Stored value
• Accumulating balance

B2C Payment System

• Credit cards
• Financial cybermediaries
• Electronic bill presentment and payment
• Smart cards
• Mobile payment

Features

• Make large purchases
• Will not pay with credit card or financial cybermediary
• Use financial EDI (Electronic Data Interchange)
• Pay for many purchases at once
• Likely that cloud-based payment gateway (or other Internet-based technology) will eventually take over completely!
• FPS - HKMA & HKICL Payment Gateway Faster Payment System (FPS)

E-Commere Payment Systems

• Credit cards
• Debit cards
• Digital wallets
• Digital cash
• Digital checking
• Online stored value systems
  • PayPal, AliPay, WeChat Pay
  • Smart cards
    • Contact
    • Contactless
      • EZPass, Octopus card
      • Radio Frequency ID (RFID)
      • Near Field Communications (NFC)

Future Payment System

• Exporting existing payment systems that work in traditional commerce to E-Commerce causes problems
• Need a payment/financial system designed for the online world
  • Cybercurrencies / digital currency