E-Commerce Settles for E-Commerce Settles for established payment systems:established payment systems:Limited market potential for innovative Limited market potential for innovative payment systemspayment systems

Summary and EvaluationPresented by:Li-Ann Jordan & Alvin Cox

SUMMARYSUMMARY

Research QuestionResearch QuestionWhy traditional payment systems

continue to dominate B2C E-commerce while some innovative payment systems fail to address the typical business situation in B2C E-commerce.

IntroductionIntroductionPayment Systems

◦What are payment systems?◦Familiar systems

Purpose of the paper◦To make known the evolution of

payment systems in Germany

MethodologyMethodologyIn 2006 a study was done on E-

shops in Germany that offer payments systems.

The results show that majority of the E-shops in Germany prefer traditional payment systems.

Innovative System Innovative System ChallengesChallengesSecurityConsistencyTotalityRepudiationTransaction CostsSpeedDegree of usePrivacy

Innovative System Innovative System Challenges cont’dChallenges cont’dEasy-to-usePortability All of these challenges help

contribute to traditional systems domination of the B2C E-commerce market.

E-shoppers Payment E-shoppers Payment ChoiceChoiceThree criteria that explains E-

shoppers payment choice.IncomeAgeE-shopping Experience

What attributes to What attributes to dominance of traditional dominance of traditional payment choices?payment choices?

The pronounced network effectThe focus of innovative systems

in some respect are not geared towards B2C business situations but more towards niche segments

ConclusionConclusionPayment systems are a key

aspect of B2C e-commerceInnovative systems are left to

scramble for niche segmentsOld Business ideas live on

EVALUATIONEVALUATION

Objectives and Objectives and MethodologyMethodologyAre the objectives clearly stated?

◦YesIs the scope of the research

appropriate?◦Yes.

Research method◦Questionnaires seemed to have been

the method used Results were given of only those that

responded but no knowledge of how many persons were asked

Presentation of the PaperPresentation of the PaperIs the paper written in a clear an

effective manner?◦The ordering ◦Layout◦Fairly written paper

ConclusionConclusionInformative

Suggestions