Online payment method has
profound influence on our daily life. Whether you are a buyer or a seller, and
no matter how big or small you business is, you can benefit from it. Online
payment method offers many advantages to users; as a result, more and more
users are using it. As the market becomes increasingly lucrative, more and more
players are joining the game to compete for huge potential revenues, which
creates “goat rodeo” situation. Nearly everyday, a new online/mobile payment
system is announced.
2. A Pie Which Everyone Wants A
Share
Many companies in many fields
are fighting to dominate the online payment marketplace: mobile hardware and
software, PayPal, credit card companies, telecommunication carriers, large
retailers… Over the past few years, a significant number of people started
using their mobile phones to shop has created the mobile payments sector, which
is growing by over 50% annually, much higher than average growth rate of e-commerce
of 20% and offline commerce, only 2%. PayPal is currently the largest
alternative online payment service, accounts for 78%. However, in the mobile
payment marketplace, PP only has 30% of the overall mobile payment market,
still a small player because they are beaten by a start-up firm called Square.
Square produce card readers plugged into smart phones and tablet using Square
app to process credit card information. Another potential in the next few years
are based on NFC, it enables a direct secure communication link between smart phone
and card register. There are also vast differences in global payment methods,
each country prefer one type of online payment and they also have local companies
compete with international companies. Thus, it is really hard to admit that an
online payment method can have ultimate power.
3. Government E-Payments Adoption
Many governments have
improved the efficiency and reach of their e-payment infrastructure in recent
years despite of financial crisis effect. By means of this, governments can gain
tremendous benefit from these services and spur their continued growth. The
governmental sectors of which e-payment can be applied include four main
categories:
1. Citizen-to-Government (C2G)
2. Government-to-Citizen (G2C)
3. Business-to-Government(B2G)
4. Government-to-Business (G2B)
1. Citizen-to-Government (C2G)
2. Government-to-Citizen (G2C)
3. Business-to-Government(B2G)
4. Government-to-Business (G2B)
4. Trends
of E-Payment & Lessons
It is important to recognize that e-payment is not just another shiny new object attracting temporary fascination, only to be discarded like yesterday’s augmented reality experiment. By the end of 2017, Forrester Research predicts that U.S. Mobile users will spend $90B via mobile payments, a 48% increase over the $12.8B spent in 2012. Mobile payments are revolutionizing how consumers spend online, and 50% of current smart phone users say they will use their mobile wallet for daily transactions as early as 2016. With more tap-and-pay devices coming on to the market, analysts are predicting that e-payment will be a mainstream consumer activity within five years. So, here are the three key lessons-usability, technology and standards that the financial institutions, technology companies and connectivity players must address to fulfill the potential of this new market.
It is important to recognize that e-payment is not just another shiny new object attracting temporary fascination, only to be discarded like yesterday’s augmented reality experiment. By the end of 2017, Forrester Research predicts that U.S. Mobile users will spend $90B via mobile payments, a 48% increase over the $12.8B spent in 2012. Mobile payments are revolutionizing how consumers spend online, and 50% of current smart phone users say they will use their mobile wallet for daily transactions as early as 2016. With more tap-and-pay devices coming on to the market, analysts are predicting that e-payment will be a mainstream consumer activity within five years. So, here are the three key lessons-usability, technology and standards that the financial institutions, technology companies and connectivity players must address to fulfill the potential of this new market.
References
Laudon,K&Traver,C. (2013).
E-commerce 2013, CourseSmart eTextbook, 9th Edition. Prentice Hall
The Economist (2011)
‘Government E-Payment Adoption Ranking’, The Economist, Available from:
http://corporate.visa.com/_media/2011_GEAR_Study_Final_Report.pdf
[21,October,2013]
Vuuren, C. (2013),
‘Connecting With Customers: The Future Of Mobile Payments’, Forbes. Available
from:
http://www.forbes.com/sites/groupthink/2013/08/13/connecting-with-customers-the-future-of-mobile-payments/[21,October,2013]
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