EPayments

ePayments February 28, 2001 E-payments Conditions - Modern banking systems - Businesses are connected to internet, to banks - Legal framework (laws, decree, e-UCP...) - Security infrastructure for online payments - Purchase habits, business culture E-payment Current status of banking system - 1998, World Bank project “Modernizing the banking ans payment system in Vietnam” - Six major commercial banks completed in 2003 + Vietcombank, Techcombank, AgriBank, IDB, Exim Bank, Marine Bank - Implemented SWIFT (Society of Worldwide Interbank Financial Transactions www.swift.com) - ATM systems - Internet Banking E-payment Some barriers to e-payment - Legal values of electronic-documents in finanace, banking - Sucurity infrastruture, especially “comsumer’s protection” - Promote e-payment services to each businesses - 2006: trial process Details: Report VN’s Ecommerce status www.mot.gov.vn; www.ftu.edu.vn E-payments Tools: Payment card - Credit card: since 1996, 10 major banks, 2004: 125.000 cards, increase rate 49%/year - Debit card: since 2002, 15 major banks, 760.000 cards, debit, small payments, money transfer... 10.000 card acceptance points, 800 ATMs - Purchase card: Viet Travel, Saigon Tourist, Citymart, www.golmart.com.vn... E-Payments Internet Banking - Bank for Foreign Trade of Vietnam www.vcb.com.vn - Vietnam Industrial & Commercial Bank www.icb.com.vn - Vietnam Technical & Commercial Bank www.techcombank.com.vn - Asia Comercial Bank www.acb.com.vn Customers: medium, large enterprices... E-payment Issues - Order of account holders & digital signatures - Desides credit card, the other cards do not use for online payment - E-commerce process is not completed without payment  Current solutions: - Business  Banks’s clients - Process of payment: Process of payment (example 1) www.vdcsieuthi.com.vn - Customers complete purchase orders, confirm payment order (payment modules on the website) - VDC forward card’s info to ACB to verify - ACB confirmed, debit customer’s account - VDC confirmed acceptance, proceed delivery - Delivery receipt, customer’s acceptance, VDC forward the receipt to ACB - ACB credit VDC’s account Note + VDC, customers have account at ACB + ACB charge fee on each transactions E-payment (example 2) Online Bill payment - For electricity, water, telephone, internet - Payment through internet - Tools: credit card, debit card, purchasing card www.ebill.com.vn Sample:Online payment systesm of VASC https://paygate.vasc.com.vn/ Sample: Digital certificate management system of VASC https://vasc-ca.vasc.com.vn/ Sample: Mobile commerce system of VASC E-PAYMENT Major issues (1) - Seller’s SW/payment module to accept payments from custmers . Bank or Ecommerce solution provider Merchant Account Register with a bank which provide this service Monthly fees Set up fee Transaction based rate Risks of merchant: Chargeback Card holder not present Broken & returned goods E-PAYMENT Mét sè vÊn ®Ò chÝnh (2): - Merchant’s account - Process of online-payment Credit, Debit, or Charge Card Online Payment Processing Credit, Debit, or Charge Card Online Payment Processing Systems that Support Order Processing Order Processing Systems Electronic Payment and Security Systems Credit, Debit, or Charge Card Online Payment Processing Security Electronic Wallet E-PAYMENT Major issues (2): - Merchant’s account - When merchant’s involved in online-payment acceptance 2 3 4 5 6 History of internet & ecommerce 2. C¸c giai ®o¹n ph¸t triÓn cña E-Commerce 3 giai ®o¹n ph¸t triÓn chÝnh Th­¬ng m¹i Th«ng tin (i-Commerce) Th«ng tin (Information) lªn m¹ng web Trao ®æi, ®µm ph¸n, ®Æt hµng qua m¹ng (e-mail, chat, forum...) Thanh to¸n, giao hµng truyÒn thèng Th­¬ng m¹i “céng t¸c”(c-Business) Integrating / Collaborating Néi bé doanh nghiÖp c¸c bé phËn lkÕt (integrating) vµ kÕt nèi víi c¸c ®èi t¸c kinh doanh (connecting) Th­¬ng m¹i Giao dÞch (t-Commerce) Hîp ®ång ®iÖn tö (ký kÕt qua m¹ng) Thanh to¸n ®iÖn tö (thùc hiÖn qua m¹ng) (online transaction), 1. 3. 2. Electronic Marketplaces Will Join People Together In Real Time eMatrix Nhµ s¶n xuÊt Ng­êi ph©n phèi Ng­êi cung cÊp Ng­êi gom hµng ChuyÓn ph¸t nhanh Ng­êi b¸n lÎ Ng­êi b¸n bu«n Cöa hµng trùc tuyÕn E-PAYMENT Major issues (3) - Merchant’s account - Online payment process - Which products are suitable with e-commerce? Qualitative Evaluation Nature of Products Simple Complex Unskilled Sophisticated Buying decision/knowledge of buyer Cisco Dell Amazon.com Term insurance Estate planning Groceries Quantitative Evaluation Price S = ----------------- x (Intro on web + Customize + Service + Buying Decision’s Info) Frequency of purchase 1: very low, 2 low, 3 normal, 4 high, 5 very high Soy source: 0.8 / 100 Real estate: 85.0 / 100 GameOnline: HotelBooking: E-PAYMENT Major issues (4): - Merchant’s account - Online payment process? - Which products are suitable for e-commerce? - SW solution for e-payments Ecommerce website’s Modules Web site development tools Web page construction software E-commerce software Catalog software Product configuration software Electronic shopping cart Electronic Payment Systems Electronic cash Electronic wallets Credit, charge, debit, and smart cards E-Payment system E-payment Process Three basic activities Enterprise needs: Web design Web hosting SSL + Payment Gateway + Fraud Prevention Online payment is very important (security, complete process of ecommerce) barriers to online purchases Source: Price Waterhouse Coopers 2000 e-Commerce Success Factors context content commerce communication customiza.. com connection E-PAYMENT THANK YOU Questions & Answers