Electronic Payment Systems: An Empirical Investigation of Customer and Merchant Requirements

Abstract

The advantages of electronic trading are numerous, with benefits for both users and merchants. However for electronic trading to reach its full potential, factors such as ease of use and improving customer confidence will have to be addressed in relation to many aspects of electronic business. Indeed an important stumbling block for widespread adoption of electronic trading, from a convenience perspective, is the ability to complete transactions electronically at payment and delivery stages. The delivery stage is dependent on the type of product or service, but electronic payments are possible even if many payment options are not widely used. Conventional payment instruments are not well equipped for the speed and cost effectiveness required by electronic commerce. The marketing ploy of the Internet is its ease of use and convenience. Many therefore deem it unacceptable that customers have to utilize conventional payment mechanisms due either to the complexity of existing payment systems or the customer’s fear of conducting financial payments electronically.