Analysis on online payment systems of e-commerce

Abstract

With the rapid development of science, computer and network technology, electronic-commerce (e-commerce) has become a routine part of human life because it is convenient for customers, particularly in Business to Customer (B2C) commerce. The customer can place orders at home and thus save time. Online payment systems have a very important role in e-commerce and they are used to complete e-commerce transactions.

The purpose of this thesis is to introduce current state, the challenges and future expectations of online payment systems in China and Europe and especially in Finland. The theoretical background discusses history of e-commerce, the current situation of e-commerce and the methods of online payment systems used in e-commerce in Europe and China. In the research section, various types of customer opinions of online payment are studied by using questionnaire survey.

The results of the research show that nowadays online payment systems are popular. All the respondents have experience on online payments. Debit card (Visa or MasterCard) and Net Bank are the most popular online payment systems, not only in Europe but also in China and other countries. The second one is third-party online payment systems. PayPal is more popular in Europe. By contrast in China, AliPay is the top online payment system. The two main factors contributing to choosing online payment system are convenience and the quickness of transaction. Technical problems and vulnerability to cyber-crime are the main pros of online payment system. Malware attack and financial issue are the main challenges of online payment. Having a secure, reliable and trustworthy online payment environment is important.