A study on benefits and challenges in an emerging economy. Online credit card payment system, online electronic cash system, electronic cheque system and smart cards based electronic payment system. There is a lot of interest into what is new in ecommerce payments, and the. Among the four categories, small payment is a transaction dependent on the size of the payment. You need to apply strategies for competitive advantages in ecommerce so that your business gets popular in no time.
Thats why its important to ensure your website is hosted on the right platform. E commerce is the distribution, purchase, sale, marketing of goods and services through electronic systems such as the internet or television, or other computer networks. Request pdf electronic payment systems for competitive advantage in e commerce recent innovations in the field of information technology and. However, the recent growth rate of ecommerce in india is far lagging behind than other developed countries. Mohebi2 1department of management, university of mazandaran, iran 2department of industrial engineering, mazandaran university of science and technology, iran abstract this paper is an overview of electronic payment. As ecommerce process transactions through the internet, it requires a more secure, stable and efficient payment system. Ecommerce growth is changing merchant payment needs. Rapid growth of ecommerce in the us can be attributed to infrastructure already in place and an easy availability of a physical delivery system. Koponen helsinki university of technology, telecommunications software and multimedia laboratory email. Electronic payment system in ecommerce or e business youtube. Evidence suggests that many banks are beginning to deliver credit and deposit products electronically.
Mohebi2 1department of management, university of mazandaran, iran 2department of industrial engineering, mazandaran university of science and technology, iran abstract this paper is an overview of electronic payment methods and analyses and. For example, if youre paying the minimum hosting fee and get a surge in traffic from a high converting ad or a television shoutout like shark tank, your. Electronic payment is a financial exchange that takes place online between buyers and sellers. Via an electronic payment system, users can browse an online catalog and purchase items online through. Enabling ebusiness competitive advantage international journal of business and information 82 advantage can be generated through a cost leadership, a differentiation strategy or a niche market. What to consider when choosing b2b ecommerce payment methods. Online payment systems for ecommerce oecd ilibrary. Payment methods report 2019 european payments council. Empirical study in the security of electronic payment systems. Electronic payment systems for competitive advantage in ecommerce francisco liebanacabanillas university of granada, spain francisco munozleiva university of cranada, spain juan sanchezfernandez university of cranada, spain myriam martinezfiestas. Electronic payments or epayments refer to the technological breakthrough that enables us to perform financial transactions electronically. Electronic payment system epayment is an important aspect of ecommerce. Dec 02, 2017 this lecture will support you to understand the concept of electronic payment system in ecommerce or e business. Introduction to information systems in business, competing with information technology, managing data resources, the networked enterprise, internet revolution and role of internet, e business systems, e commerce systems, it and competitive advantage, developing businessit solutions, implementing new.
This study predicts some challenges in an emerging economy. Currently, many electronic payment systems have been proposed for providing different levels of security to financial transactions 1, 2,3. Furthermore, online payment systems have a very important role in e commerce. An e commerce payment system or an electronic payment system facilitates the acceptance of electronic payment for online transactions. Comparative study among new payment systems and new future. Based on these electronic payment systems, ferreira and. An ecommerce payment system facilitates the acceptance of electronic payment for online transactions. The advantages of electronic payment systems bizfluent. In the contemporary competitive environment, the way that organizations generate, manipulate, select and make use of information about its customers has gained increasing importance for its potential to give the company an edge over competitors. Over the last few years, the payment systems used in business activities have been altered by recent technological developments.
Electronic payment systems for competitive advantage in e. Second, alternative ecommerce payment systems are some countries are debit cards. Request pdf electronic payment systems for competitive advantage in ecommerce recent innovations in the field of information technology and. Strategic role of mobile commerce mcommerce payment. Competitive advantage in electronic commerce siamak azadi i. All business activities need the support of payment system, so does the ecommerce. While some use ecommerce and ebusiness interchangeably, they are distinct concepts. C using it for competitive advantage at thomson holidays, long range. Raj garg assistant professor, ggn khalsa college, ludhiana rg. Us payment systems provides an array of features from standard ecommerce and retail transactions to more advanced tools for creating electronic invoices, web site integration, shopping cart integration, and various api resources for integration of merchants custom applications. Competitive advantage in ecommerce firms guide books. Electronic commerce ecommerce provides consumers with the benefits of any time, any where transactions, with lower costs.
E commerce increases the competition among organizations and as a result, organizations provides substantial discounts to customers. There are several payment methods and organization. Customers need not travel to shop a product, thus less traffic on road and low air pollution. Electronic payment systems are software systems that enable online credit card processing. Electronic commerce ecommerce commerce refers to all the activities thepurchase and sales of goods or services.
Free e business books download ebooks online textbooks. An analysis and comparison of different types of electronic payment systems 2001 3. This book provides coverage of essential topics in e commerce i. Payment by check advantages no need for bank at the time of payment disadvantages. Jun 06, 2019 the worst of the ecommerce disadvantages is when no one can buy from your store if your site crashes.
Ecommerce or electronics commerce sites use electronic payment where electronic payment refers to paperless monetary transactions. By reducing these costs, however, ecommerce firms may also be. The emerging role of banks in ecommerce new york fed. Introduction ecommerce is fundamentally changing the economy and the way business is conducted. The verification of an industrial payment protocol. Could be used to pay in the real and digital world. E commerce adopts the use of technology to meet customer demands and settle transactions.
In the research section, various types of customer opinions of online payment. A customer is more likely to return to the same e commerce site where his or her information has already been entered and. Marya sholevar department of banking and finance 2. Word ecommerce electronic commerce refers to a variety of different. The primary objective of this study is to investigate how ecommerce may give a competitive advantage. E payment is a subset of an ecommerce transaction to include electronic payment. Five reasons why ecommerce provides a competitive edge for. Ability for creating highly specialized businesses. It is a system which helps the customer or user to make online payment for. It means that a company either provides a better solution to a specific problem than its competitors or offers a similar kind of solution for a lower price and is a. Electronic payment systems for competitive advantage in ecommerce. E commerce involves emerging electronic technologies such as. Personal touch point through mobile phone application they are directly reaching out to you. Barriers to ecommerce and competitive business models in.
E commerce, payment, debit cards, credit cards, internet. Five reasons why ecommerce provides a competitive edge for wd companies for most businesses, competing on price is ultimately a losing proposition. The payment revolution in 2011 we are still in the middle of a payment system revolution electronic payments are taking the place of cash and checks in 2003 electronic systems. Information technology and e business download book. Ease of shopping through providing immense number of products and in various categories ecom is nowadays one stop point for products and service. Introduced compumarket, the first internet based system for ecommerce. Electronic commerce is a revolution in business practices. The more payments they can process electronically, the less they spend on paper and postage.
What are the competitive advantages that ecommerce industry. Payment systems ecommerce winter 2011 marek maurizio. There are several payment methods and organization supporting. Why flexible b2b ecommerce payments are easier than ever. Electronic payment system or epss enable a customer to pay for the goods and services online by using integrated hardware and software systems.
E commerce enterprises use online payment systems that refer to paperless monetary transactions, which has revolutionized the business processing by reducing paperwork, transaction costs, and labor cost. That is, care must be taken to make a close link between corporate strategy and electronic commerce strategy. Electronic payment systems for competitive advantage in e commerce provides relevant theoretical frameworks and the latest empirical findings on electronic payment systems in the digital marketplace. E commerce can involve electronic funds transfers, electronic data exchanges, automated inventory management systems, and automated data collection systems. Introduction e commerce is fundamentally changing the economy and the way business is conducted.
Electronic payment system electronic payment systems are becoming central to online business process innovation as companies look for ways to serve customers faster and at lower cost. If organizations are going to take advantage of new internet technologies, then they must take a strategic perspective. Aug 10, 2015 electronic payment systems in e commerce 1. Payment systems for ecommerce george mason university. Introduction to information systems in business, competing with information technology, managing data resources, the networked enterprise, internet revolution and role of internet, ebusiness systems, ecommerce systems, it and competitive advantage. Peirce, hitesh tewari, omahony donal, donal, omahony on. Epayments have several advantages, which were never available through the traditional modes of payment. E commerce helps in reducing the cost of products, so less affluent people can also afford the. A customer is more likely to return to the same ecommerce site where his or her information has already been entered and stored. The actual competitive business environment has opened doors for new opportunities. This article covers aspects related to benefits derived from ecommerce and what type of methods are used in commerce for payment.
Electronic payment systems overview of basic concepts creditcard based systems moto, ssl, set. Payment strategies for ecommerce growth first data. Smart cards cash, other independent payment schemes. Payment strategies for ecommerce growth as ecommerce has grown to represent a significant percentage of retail sales and profits, merchants should consider payment strategies that can. Comparative study among new payment systems and new future trends in mobile payments. The electronic payment systems can be divided into online credit card payments, electronic cash, electronic checks, and small payments, because of the different types of payment methods and transaction environments. Electronic payments can be understood as a payment mechanism using electronic media that does not involve cash. Electronic payment systems in e commerce slideshare. Broadly electronic payment systems can be classified into four categories. Marketing, sales, payment, fulfillment, customer service electronic. As such, epayment enables businesses to make sales to the customers who choose to pay electronically and gain a competitive advantage over those that only accept traditional methods.
In addition, some large banks are developing products designed exclusively for e commerce. In a retail payment system, four parties are involved. The emerging role of banks in e commerce john wenninger how is the banking industry responding to the rapid development of online commerce. Electronic payment systems for e commerce donal omahony, michael a. Danial, 2002 classified electronic payment systems as follows. E commerce forces companies to find new ways to expand the markets in which they compete, to attract and retain customers by tailoring products. One of the main advantages of using credit cards for online payment is that the. Focusing on the importance of e commerce in business development, including the advantages and disadvantages of e payments, this book is an. The 2004 federal reserve payments study noted that from 2000 to 2003, electronic payments grew as payment by check declined, which suggests that electronic. Ecommerce electronic commerce is the activity of electronically buying or selling of products. In fact, like many other studies, present study also reveals that the smart card based ecommerce payment system is best and it is expected that in the future smart cards will eventually replace the other electronic payment systems. In this business model, an entrepreneur does not need to have a physical premise. A study on benefits and challenges in an emerging economy by abdul gaffar khan mawlana bhashani science and technology university, bangladesh.
Also known as e commerce, electronic commerce is the process by which businesses and consumers buy and sell goods and services through an. Abstractinformation technology has been playing a vital role in the future development of financial sectors and the way of doing business in an emerging economy like bangladesh. Offering electronic payment can also help businesses improve customer retention. For example, by introducing an electronic procurement system, companies can cut the purchasing administrative costs by as much as 85 percent. Electronic payment has revolutionized the business processing by reducing paper work, transaction costs. E commerce or electronics commerce sites use electronic payment where electronic payment refers to paperless monetary transactions. Also known as a subcomponent of electronic data interchange edi, e commerce payment systems have become increasingly popular due to the widespread use of the internetbased shopping and banking. With all the benefits of electronic payment, its no wonder that its use is on the rise. E commerce its concerned with systems and business processes that support creation of information sources effective and efficient interaction among producers, consumers, intermediaries and sellers movement of information on global networks types of e commerce tangible goods digital goods software, music audio, text.
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