...Journal of Electronic Commerce Research, VOL. 5, NO.4, 2004 USING E-CASH IN THE NEW ECONOMY: AN ECONOMIC ANALYSIS OF MICROPAYMENT SYSTEMS Michelle Baddeley Gonville & Caius College and Faculty of Economics and Politics, Cambridge, UK mb150@cam.ac.uk ABSTRACT The growth of electronic commerce is dependent upon the emergence of effective electronic payment systems. Whilst payments for large purchases can be made relatively easily using credit/debit cards, small-scale electronic commerce is constrained by the limited nature of existing e-cash (or ‘micropayments’) systems. This paper outlines the evolution of electronic payment systems, leading to an analysis of the essential characteristics of e-cash, and microeconomic / macroeconomic implications of the development of e-cash. Finally, the key characteristics of successful electronic payment innovations are analysed using binary dependent variable estimation techniques on data derived from the Electronic Payments Systems Observatory (ePSO) database. Keywords: e-cash, micro-payment systems, e-commerce 1. Introduction Electronic commerce is growing at an increasing pace and financial instruments are adapting to the increased volume of spending taking place over the Internet (Economides, 2001). Until now, most buyers have used credit arrangements or checking accounts as the principle means of paying for Internet purchases. There is however, a 'price umbrella' underneath credit-card transactions that makes them...
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...major types of electronic commerce are business-to-consumer, business-to-business, and consumer-to-consumer. Business-to-consumer (B2C) is selling products and services to individual shoppers. Barnes&Noble.com is an example of business-to-consumer electronic commerce. Business-to-business (B2B) involves the sale of goods and services among businesses. Millpro.com provides business-to-business electronic commerce. Consumer-to-consumer (C2C) involves consumers selling directly to consumers. An example of consumer-to-consumer electronic commerce is eBay.com. Electronic commerce transactions can also be classified based on the participants’ physical connections to the Web. Participants can use wired networks or mobile commerce. ( HYPERLINK "http://www.angelfire.com/rebellion2/jsmith/case_4.html" http://www.angelfire.com/rebellion2/jsmith/case_4.html) Some types of electronic payment systems are Digital Wallets, Micropayment Systems, Accumulated Balance Digital Payment Systems, Stored Value Payment Systems, Digital Checking Systems, and Electronic Billing Presentment and Payment Systems. Digital Wallets make payment by credit card easier and faster by storing the card holder's information securely. When each transaction is made, the card holder does not have to enter their information over and over again. An example is google checkout. Micropayment Systems have been made for purchases under 10 dollars, and Accumulated Balance Digital Payment Systems are used to...
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...Jacorey Williams Analysis of Electronic Payment Systems Electronic commerce transactions can be classified in many ways. The three major electronic commerce categories that we have read about are business-to-consumer e-commerce, business-to business e-commerce, and consumer-to-consumer e-commerce. Business-to-consumer (B2C) is an electronic commerce that involves retailing products and services to individual shoppers. BarnesandNoble.com is an example of B2C e-commerce. Business-to business (B2B) is an electronic commerce involves sales of goods and services among businesses. ChemConnect’s Web site for buying and selling chemicals and plastics is an example of B2B e-commerce. Consumer-to-consumer (C2C) is an electronic commerce involves consumers selling directly to consumers by auctioning their merchandise off to the highest bidder, or for a fixed price. Craigslist is the most widely used platform used by consumers to buy from and sell directly to others. Internet technology supports business-to-business by helping reduce cost and provides more flexible platform for linking to other firms. Business are also able to extend digital technology to a wider range of activities and broaden their circle of trading partners. It also enables companies to locate suppliers, solicit bids, place orders, and track shipments in transit electronically. Net marketplaces provide a single, digital marketplace for many buyers and sellers. Private industrial networks link a firm with its...
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...Chapter 11 E-Commerce Payment Systems Learning Objectives Upon completion of this chapter, you will be able to: 1. Understand the shifts that are occurring with regard to online payments. 2. Discuss the players and processes involved in using credit cards online. 3. Discuss the different categories and potential uses of smart cards. 4. Discuss various online alternatives to credit card payments and identify under what circumstances they are best used. 5. Describe the processes and parties involved in e-checking. 6. Describe payment methods in B2B EC, including payments for global trade. Content Opening Case: Pay-per-View Pages: The Next iTunes 11.1 The Payment Revolution 11.2 Using Payment Cards Online 11.3 Smart Cards 11.4 Stored-Value Cards 11.5 E-Micropayments 11.6 E-Checking 11.7 B2B Electronic Payments Managerial Issues Closing Case: The Check Is in the Network Answers to Pause/Break Section Review Questions Section 11.1 Review Questions 1. Describe the trends that are occurring in cash and non-cash payments in the United States. Today, we are in the midst of a payment revolution, with cards and electronic payments taking the place of cash and checks. In 2003, the combined use of credit and debit cards for in-store payments for the first time exceeded the combined use of cash and checks (Federal Reserve System 2004). 2. What types of e-payments should B2C merchants support? For online B2C merchants, the implications...
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...Da Huo 201007572 Part A 1. Information system Amazon: http://www.amazon.ca/gp/homepage.html?tag=lpo%5Fixgwamuscaen-21 2. Description (Where you used it, etc.) Amazon provides an online trading platform for vendors and customers. At the beginning of the last semester, I bought a second-hand organizational behavior text book (the 7th edition but can be the substitution) on Amazon using my laptop in the dormitory. It totally took me 32 CAD including shipping expense and taxes while the book store’s price was more than 110 CAD (the newest edition). 3. How did it benefit you? * It saved my time of going to bookstore and lining up at the registers. It allowed me to complete the whole transaction process at home. * It broke the business hours’ and places’ limitation. I can buy what I want anywhere has internet access at anytime. * It helped me to easily find many used books which often belong to rarities in MUN’s book store. * It provided me some substitutions such as the prior edition text book that I cannot find in the book store. * Based on my searching, browsing and buying habits, Amazon customized my special user page, provided me many related business courses’ books. * I can choose the seller after comparisons. 4. How did it benefit the organization that implemented it? * It helped the organization to expand their marketplace to global proportions. * Cheaper electronic transactions. Organizations saved sale staff and simplified...
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...travels from the sending device to the receiving device What is a protocol and why is it important in electronic communications? * Protocol: Rules that govern data communication, including error detection, message length, and transmission speed * Because before a communication link can be established between 2 devices, they must be synchronized, meaning that both devices must start and stop communication at the same point. What is a host? * Any device that connects to the network is a “host” What is the difference between a switch and a router? * Router: Main linking device across different networks. * Is a network connection device containing software that connects network systems and controls traffic flow between them. * Switch: Main linking device within a network. * Connecting two or more nodes in the same network or different network. Distinguish between the main two types of conducted media (wired media). * Provides a physical path along which signals are transmitted * Electrical Conductors * Wires (STP & UTP) * Coaxial cable * Light Conductors * Fiber optics Distinguish between centralized data processing, decentralized data processing, and distributed data processing. * Centralized: Processing is done at one central computer. * Advantage * Being able to exercise tight control on system operations and applications * Disadvantage * Lack...
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...Bushry (2005) defines electronic commerce as „an emerging concept that describes the process of buzing and selling or exchanging of products, services and information via. telecommunication and computer networks including the Internet“ (p. 1). Bajaj and Nag (2009) notice that „E-commerce not only automates manual processes and paper transactions, but also helps organizations move to a full electronic environment and change the way they operate“ (Nansi, 2004, p. 14). In a word, E-commerce today involves business information sharing, business relationships maintaining, and business transactions conducting by telecommunications networks (Web catalogues, advertazing and other). Besides, e-commerce considers electronical orders of products and services, payments (traditional payment, by credit cards, EDI, digital money), form filling (Web form, e-mail, faxing and others), services and technical support (Frequently Asked Questions, e-mail, bulletin boards and others). One of the major advantages of e-commerce is low connection and usage prices and multichanelled access and delivery. On the other hand, M-commerce reffers to mobile commerce and it “is defined as the exchange or buying and selling of commodities, services, or information on the Internet through the use of mobile handheld devices.” (p. 1-2). In another words, mobile commerce refers to the implementation of e-commerce over wireless devices. It is commercial mobile computing application based on wireless networks...
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...Research the reasons for the growth of online business in the last ten years. What do you think are the most influential ones and why? Online business or electronic commerce is the buying or selling products or services via the Internet or the utilizing of Internet technologies to increase productivity or profitability of the business. Due to the evolution of technology and World Wide Web in the 1900s, the market has significantly progressed from traditional brick-to-mortar businesses to electronic businesses within the last decade. This essay will explore the factors in the growth of online businesses, which includes removal of location and time limitations, greater customer relationships, enhanced product experience and services and low procurement costs. Amongst many of those triggers, it is the low economic impacts of such benefit that accounts for the major reasons wherein traditional businesses have progressively change their format. The removal of location and time limitations by the use of Internet has made business highly accessible to customers around the globe. This accounts for the main factor for the increase of online businesses (Jie, M., 2000). Consumers no longer need to see the physical stores in order to access information of products and sales. They now learn about product information over cooperate websites or even shop online via product-sale websites like eBay and Amazon (Blakey, P., 2008). By the nature of Internet, product information is made available...
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...Quiz 2 Study Guide 1. In order from beginning to end, the major steps in the SDLC, are: A) systems analysis/planning; systems design; building the system; testing; and implementation. B) systems design; testing; building the system; and implementation. C) systems analysis/planning; systems design; building the system; implementation; and testing. D) systems analysis/planning; implementation; building the system; and testing. 2. Which of the following basic system functionalities is used to display goods on a Web site? A) product database B) digital catalog C) shopping cart system D) customer database system 3. Which of the following systems is required to understand the marketing effectiveness of your e-commerce site? A) shopping cart B) product database C) site tracking and reporting system D) inventory management system 4. Which of the following might include a data flow diagram to describe the flow of information for a Web site? A) physical design B) logical design C) testing plan D) co-location plan 5. The leading Web server software is: A) Apache. B) Microsoft Internet Information Server. C) Sun. D) Zeus. 6. Which of the following is used to process certificates and private/public key information? A) HTTP B) SSL C) FTP D) data capture tools 7. Which of the following cannot be used to retrieve objects from a database? A) CGI B) ASP C) JSP D) HTML 8. Which of the following types of servers monitors and controls...
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...|ELECTRONIC BUSINESS | | | |STUDY GUIDE FOR | |INYM 225 MEC | |*INYM225MEC* | |FACULTY OF COMMERCE AND ADMINISTRATION | |MAFIKENG CAMPUS | Study guide compiled by: Ms S.T. Nthutang Instructional Design by Mrs Annelize Cronje,Senior Academic Development Advisor, ADC Page layout by Roxanne Bremner, Academic Development Centre Printing arrangements and distribution by Department Logistics (Distribution Centre). Printed by Nashua Digidoc Centre (018) 299 2827 Copyright ( 2014 edition. Date of revision 2016. North-West University, Mafikeng Campus. No part of this book may be reproduced in any form or by any means without written permission from the publisher TABLE OF CONTENTS Module information vii Study guide title: Electronic Business vii Module qualification:...
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...Mobile Commerce Research June 22, 2013 M-commerce and its applicability in Egypt Prepared by Mahmoud Youssef Hany Nemr Mahmoud El Sayed Research Paper Title: Mobile Commerce and its applicability in Egypt 1. Abstract 2. Introduction 3. Mobile commerce features 4. Mobile commerce opportunities 5. Mobile commerce success factors 6. Mobile commerce adoption barriers and challenges 7. Mobile commerce applications 8. Future trends in mobile commerce 9. Conclusion 10. References ABSTRACT F ast−growing ability of wireless devices to handle a wealth of data content as well as voice transmission is opening the door to the creation of new products, services, markets, and revenue streams. According to research projections, mobile commerce will cross $30 billion by end of 2016 growing at 40% compound rate at U.S. only. Globally, consumers are likely to spend $119 billion by 2015 through their mobile phones, which will account for 8% of all ecommerce activity. Mobile commerce is gaining increasing acceptance. The need for mobility is a primary driving force behind mobile banking, mobile entertainment and mobile marketing, and is supported by an ever increasing convergence of computers and mobile telecommunication devices. So this paper is a descriptive study for the overall picture of mobile commerce and its features, opportunities, success factors and challenges and its applicability...
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...Mobile Commerce Research June 22, 2013 M-commerce and its applicability in Egypt Dr. Eman Arafa Prepared by Mahmoud Sayed Hany Hassan Hussein Nemr Mahmoud Mohamed El Sayed Research Paper Title: Mobile Commerce and its applicability in Egypt 1. Abstract 2. Introduction 3. Mobile commerce features 4. Mobile commerce opportunities 5. Mobile commerce success factors 6. Mobile commerce adoption barriers and challenges 7. Mobile commerce applications 8. Future trends in mobile commerce 9. Conclusion 10. References ABSTRACT F ast−growing ability of wireless devices to handle a wealth of data content as well as voice transmission is opening the door to the creation of new products, services, markets, and revenue streams. According to research projections, mobile commerce will cross $30 billion by end of 2016 growing at 40% compound rate at U.S. only. Globally, consumers are likely to spend $119 billion by 2015 through their mobile phones, which will account for 8% of all ecommerce activity. Mobile commerce is gaining increasing acceptance. The need for mobility is a primary driving force behind mobile banking, mobile entertainment and mobile marketing, and is supported by an ever increasing convergence of computers and mobile telecommunication devices. So this paper is a descriptive study for the overall picture of mobile commerce and its features, opportunities, success factors...
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...Mobile money An overview for global telecommunications operators Mobile money An overview for global telecommunications operators I About Ernst & Young’s Advisory Services Most businesses today are looking to solve two key challenges — improving business performance and reducing costs. This dual objective can deliver significant benefits and position your organization to emerge from the downturn with a stronger and more competitive profile. To help you meet these interconnected challenges and achieve your potential, we harness the diverse perspectives and experiences of our 18,000 advisory professionals — one of the broadest global advisory networks of any professional organization. We assemble seasoned multi-disciplinary teams to work with you to deliver a superior experience built on a consistent global methodology, a robust knowledge culture, and insights from our work around the world. We also understand that, to achieve your potential as an organization, you require services that respond to your specific issues, so we bring our broad sector experience and deep subject matter knowledge to bear in a proactive and objective way. It’s how Ernst & Young makes a difference. www.ey.com/advisory About Ernst & Young’s Global Telecommunications Center In a rapidly changing environment, telecommunications operators are facing the challenges of growth, operational efficiency, convergence, technology and increasing regulatory pressures. Ernst & Young’s Global Telecommunications...
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...Authorize.net About the organization Authorize.Net is a payment gateway service provider allowing merchants to accept credit card and electronic checks payments through their Web site and over an IP (Internet Protocol) connection. Authorize.Net claims a user base of over 305,000 merchants, which would make them the Internet's largest payment gateway service provider. In November 2007 Cybersource purchased Authorize.Net for $565 million. Authorize.Net was originally purchased in 2004 by Lightbridge for $82 Million. Function Credit card processing diagram of authorize.net: Authorization Settlement/funding The major steps in the process are: Step 1: The merchant submits a credit card transaction to the Authorize.Net Payment Gateway on behalf of a customer via secure Web site connection, retail store, MOTO center or wireless device. Step 2: Authorize.Net receives the secure transaction information and passes it via a secure connection to the Merchant Bank's Processor. Step 3: The Merchant Bank's Processor submits the transaction to the Credit Card Network (a system of financial entities that communicate to manage the processing, clearing, and settlement of credit card transactions). Step 4: The Credit Card Network routes the transaction to the Customer's Credit Card Issuing Bank. Step 5: The Customer's Credit Card Issuing Bank approves or declines the transaction based on the customer's available funds and passes the transaction results back to the Credit...
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...4.1 ELECTRONİC PAYMENT SYSTEMS (EPS) Issues of trust and acceptance play a more significant role in the e-commerce world than in traditional businesses as far as payment systems are concerned. Traditionally, a customer sees a product, examines it, and then pays for it by cash, check, or credit card (Figure 4.1). In the e-commerce world, in most cases the customer does not actually see the concrete product at the time of transaction, and the method of payment is performed electronically. Figure 4.1 Traditional payment scheme EPSs enable a customer to pay for the goods and services online by using integrated hardware and software systems. The main objectives of EPS are to increase efficiency, improve security, and enhance customer convenience and ease of use. Although these systems are in their immaturity, some significant development has been made. There are several methods and tools that can be used to enable EPS implementation (Figure 4.2) Figure 4.2 Electronic payment scheme While customers pay for goods/services by cash, check, or credit cards in conventional businesses, online buyers may use one of the following EPSs to pay for products/services purchased online: • • • • • • • • • Electronic funds transfer (EFT): EFT involves electronic transfer of money by financial institutions. Payment cards : They contain stored financial value that can be transferred from the customer's computer to the businessman's computer. Credit cards : They are the most popular...
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