E-Commerce Settles for established payment systems: Limited market potential for innovative payment systems Summary and Evaluation Presented by: Li-Ann Jordan & Alvin Cox

SUMMARY

Research Question Why 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.

Introduction Payment Systems ◦ What are payment systems? ◦ Familiar systems Purpose of the paper ◦ To make known the evolution of payment systems in Germany

Methodology In 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 Challenges Security Consistency Totality Repudiation Transaction Costs Speed Degree of use Privacy

Innovative System Challenges cont’d Easy-to-use Portability All of these challenges help contribute to traditional systems domination of the B2C E-commerce market.

E-shoppers Payment Choice Three criteria that explains E-shoppers payment choice. Income Age E-shopping Experience

What attributes to dominance of traditional payment choices? The pronounced network effect The focus of innovative systems in some respect are not geared towards B2C business situations but more towards niche segments

Conclusion Payment systems are a key aspect of B2C e-commerce Innovative systems are left to scramble for niche segments Old Business ideas live on

EVALUATION

Objectives and Methodology Are the objectives clearly stated? ◦ Yes Is 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 Paper Is the paper written in a clear an effective manner? ◦ The ordering ◦ Layout ◦ Fairly written paper

Conclusion Informative Suggestions