ePayments February 28, 2001

E-paymentsE-payments

Conditions Conditions

- Modern banking systems- Modern banking systems

- Businesses are connected to internet, to - Businesses are connected to internet, to banksbanks

- Legal framework (laws, decree, e-UCP...)- Legal framework (laws, decree, e-UCP...)

- Security infrastructure for online payments- Security infrastructure for online payments

- Purchase habits, business culture- Purchase habits, business culture

E-paymentE-payment

Current status of banking systemCurrent status of banking system

- 1998, World Bank project “Modernizing the - 1998, World Bank project “Modernizing the banking ans payment system in Vietnam”banking ans payment system in Vietnam”

- Six major commercial banks completed in - Six major commercial banks completed in 20032003

+ Vietcombank, Techcombank, AgriBank, IDB, Exim Bank, + Vietcombank, Techcombank, AgriBank, IDB, Exim Bank, Marine BankMarine Bank

- Implemented SWIFT (Society of Worldwide - Implemented SWIFT (Society of Worldwide Interbank Financial Transactions Interbank Financial Transactions www.swift.com)www.swift.com)

- ATM systems- ATM systems

- Internet Banking- Internet Banking

E-paymentE-payment

Some barriers to e-paymentSome barriers to e-payment- Legal values of electronic-documents in finanace, - Legal values of electronic-documents in finanace, bankingbanking

- Sucurity infrastruture, especially “comsumer’s - Sucurity infrastruture, especially “comsumer’s protection”protection”

- Promote e-payment services to each - Promote e-payment services to each businessesbusinesses

- 2006: trial process- 2006: trial process

Details: Report VN’s Ecommerce statusDetails: Report VN’s Ecommerce status

www.mot.gov.vnwww.mot.gov.vn; ; www.ftu.edu.vnwww.ftu.edu.vn

E-paymentsE-payments

Tools: Payment cardTools: Payment card

- Credit card: since 1996, 10 major banks, - Credit card: since 1996, 10 major banks, 2004: 125.000 cards, increase rate 49%/year2004: 125.000 cards, increase rate 49%/year

- Debit card: since 2002, 15 major banks, - Debit card: since 2002, 15 major banks, 760.000 cards, debit, small payments, money 760.000 cards, debit, small payments, money transfer... 10.000 card acceptance points, 800 transfer... 10.000 card acceptance points, 800 ATMsATMs

- Purchase card: Viet Travel, Saigon Tourist, - Purchase card: Viet Travel, Saigon Tourist, Citymart, Citymart, www.golmart.com.vnwww.golmart.com.vn......

E-PaymentsE-Payments

Internet BankingInternet Banking- Bank for Foreign Trade of Vietnam- Bank for Foreign Trade of Vietnam

www.vcb.com.vnwww.vcb.com.vn - Vietnam Industrial & Commercial Bank- Vietnam Industrial & Commercial Bank

www.icb.com.vnwww.icb.com.vn - Vietnam Technical & Commercial Bank- Vietnam Technical & Commercial Bank

www.techcombank.com.vnwww.techcombank.com.vn - Asia Comercial Bank- Asia Comercial Bank

www.acb.com.vnwww.acb.com.vn Customers: medium, large enterprices...Customers: medium, large enterprices...

E-paymentE-payment

IssuesIssues

- Order of account holders & digital signatures- Order of account holders & digital signatures

- Desides credit card, the other cards do not use - Desides credit card, the other cards do not use for online paymentfor online payment

- E-commerce process is not completed without - E-commerce process is not completed without paymentpayment

Current solutions:Current solutions:

- Business - Business Banks’s clients Banks’s clients

- Process of payment: - Process of payment:

Process of payment (example 1)Process of payment (example 1)

www.vdcsieuthi.com.vnwww.vdcsieuthi.com.vn

- Customers complete purchase orders, confirm - Customers complete purchase orders, confirm payment order (payment modules on the payment order (payment modules on the website)website)

- VDC forward card’s info to ACB to verify- VDC forward card’s info to ACB to verify

- ACB confirmed, debit customer’s account- ACB confirmed, debit customer’s account

- VDC confirmed acceptance, proceed delivery- VDC confirmed acceptance, proceed delivery

- Delivery receipt, customer’s acceptance, VDC - Delivery receipt, customer’s acceptance, VDC forward the receipt to ACBforward the receipt to ACB

- ACB credit VDC’s account- ACB credit VDC’s account

NoteNote + VDC, customers have account at ACB+ VDC, customers have account at ACB

+ ACB charge fee on each transactions+ ACB charge fee on each transactions

E-payment (example 2)E-payment (example 2)

Online Bill paymentOnline Bill payment

- For electricity, water, telephone, internet- For electricity, water, telephone, internet

- Payment through internet- Payment through internet

- Tools: credit card, debit card, purchasing card- Tools: credit card, debit card, purchasing card

www.ebill.com.vnwww.ebill.com.vn

Sample:Online payment systesm of VASC https://paygate.vasc.com.vn/

Sample: Digital certificate management system of VASChttps://vasc-ca.vasc.com.vn/

Sample: Mobile commerce system of VASC http://telsoft.vasc.com.vn/mcommerce....

E-PAYMENTE-PAYMENT

Major issues (1)Major issues (1)

- Seller’s SW/payment module to accept - Seller’s SW/payment module to accept payments from custmerspayments from custmers

. Bank or Ecommerce solution provider. Bank or Ecommerce solution provider

JAN 03 Payment Methods

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-PAYMENTE-PAYMENT

Mét sè vÊn ®Ò chÝnh (2):Mét sè vÊn ®Ò chÝnh (2):

- Merchant’s account- Merchant’s account

- Process of online-payment- Process of online-payment

JAN 03 Payment Methods

Credit, Debit, or Charge Card Online Payment Processing

JAN 03 Payment Methods

Credit, Debit, or Charge Card Online Payment Processing

JAN 03 Payment Methods

Systems that Support Order Processing

JAN 03 Payment Methods

Order Processing Systems

Eleventh EditionJames A. O’Brien 26Introduction to Information Systems

Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.

Electronic Payment and Security Systems

Merchant’sWeb ServerMerchant’sWeb Server

ClientBrowser

ClientBrowser

PaymentServer

PaymentServer

Electronic CashCybergoldQpass

E-Bill PaymentCheckFreeBillerXpert

Online buyingCyberCash1 ClickCharge

Bank accountsDebit CardsOnline Banking

Credit cardsVISAMasterCard

•Verify merchant•Receive order•Receive payment•Confirm order

•Verify customer•Review payment•Authorize or deny payment

JAN 03 Payment Methods

Credit, Debit, or Charge Card Online Payment Processing

JAN 03 Payment Methods

Security

JAN 03 Payment Methods

Electronic Wallet

E-PAYMENTE-PAYMENT

Major issues (2):Major issues (2):

- Merchant’s account- Merchant’s account

- When merchant’s involved in online-payment - When merchant’s involved in online-payment acceptanceacceptance

2

34

5

6

History of internet & ecommerce

10 July 2002

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 webTrao ®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 / CollaboratingNéi 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

eMatrixeMatrix

Nhµ s¶n xuÊt

Ng êi ph©n phèi

Ng êi cung cÊp

Ng êi gom hµng

ChuyÓn ph¸t nhanh

Ng êi b¸n lÎ

Ng êi b¸n bu«n

Cöa hµng trùc

tuyÕn

E-PAYMENTE-PAYMENT

Major issues (3)Major issues (3)

- Merchant’s account- Merchant’s account

- Online payment process- Online payment process

- Which products are suitable with e-commerce?- Which products are suitable with e-commerce?

Qualitative EvaluationN

atu

re o

f P

rod

uct

sN

atu

re o

f P

rod

uct

s

Sim

ple

Com

ple

x

Unskilled Sophisticated Unskilled Sophisticated

Buying decision/knowledge of buyerBuying decision/knowledge of buyer

Cisco

Dell

Amazon.com

Term insurance

Estate planning

Groceries

Quantitative Evaluation

PriceS = ----------------- 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 / 100Real estate: 85.0 / 100GameOnline: HotelBooking:

E-PAYMENTE-PAYMENT

Major issues (4):Major issues (4):

- Merchant’s account- Merchant’s account

- Online payment process?- Online payment process?

- Which products are suitable for e-commerce?- Which products are suitable for e-commerce?

- SW solution for e-payments- 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

Concerns Total

Credit card security 79%

Disclosure of personal details 77%

Distrust of Web retailers 48%

Complex order process 21%

Time consuming order process 20%

Unfamiliar with online Web storefronts 40%

Source: Price Waterhouse Coopers 2000

Eleventh EditionJames A. O’Brien 43Introduction to Information Systems

Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.

e-Commerce Success Factors

Selection & ValueSelection & Value

Performance & ServicePerformance & Service

Look & FeelLook & Feel

Advertising & IncentivesAdvertising & Incentives

Personal AttentionPersonal Attention

Community RelationshipsCommunity Relationships

Security & ReliabilitySecurity & Reliability

Some KeyFactorsfor Successin E-commerce

context

content

commerce

communication

customiza..

com

connection

E-PAYMENTE-PAYMENT

THANK YOUTHANK YOU

Questions & AnswersQuestions & Answers