E-commerce Online Payment英文版).ppt

1 E commerceOnlinePayment AAAAConsulting 2 Content Projectoutline 3E commercedevelopmentinChina 4 25Methodology 26 27Keyfindings 28 77Availablepaymentmethods 29 38MainbanksinvolvedinE commerce 39 43Onlinepaymentprocessflow 44 52Differenceinthreecities 53 71Marketsurveyresult 72 77Analysis Recommendation 78 82Issue Concern 83 85 3 ProjectOutline E commercedevelopmentMethodologyKeyfindingsAnalysis RecommendationIssue Concern 4 E commerceDevelopmentinChina CurrentStatusKeyIssuesFutureDevelopment 5 E commerceDevelopmentinChina E commerceDevelopmentProcessinChina Source Desktop 1996 StudiedE commercedevelopmentinChina1996 12 StudiedE bankservicemodel1997 2 OrganizeddevelopingteamofE bankservicesystem1997 7 FormulatedE bankservicesystem includingprovidingonlineinquiryofcooperatefinanceandcreditcard onlinedeclareofbalanceofinternationalpayment1998 1 OrganizedleaderteamofE bankservicesystembyheadofficeofbank1998 3 FirstonlinetransactioncompletedbyGreatwallcreditcard1999 1 EstablishedE bankdepartmenttocoordinateE commercedevelopment1999 6 Providedmanyonlinepaymentmethods forexample Easypaydevelopedthefirstcompleteonlinepaymentsystem BankofChinasetuppaymentgatewayofSETandCACenter1999 9 SoftwaredevelopmentcenterofBOCsetupE commercelaboratory 6 E commerceDevelopmentinChina Source Desktop E commercecurrentcondition E commercedevelopmentisstillinthegrowthstageandexperiencedrapiddevelopmentin1999 In1999 totalamountofonlinetransactionisRMB5 5manditisestimatedthatthetotalamountofonlinetransactionwillreachRMB3 5bin2000ThelatestresearchpresentsthatinternetusersinChinahasexceeded17mByMarch2000 thereareabout1100Websites 7 E commerceStructure E commerceDevelopmentinChina Note CAwillverifyidentityofallparticipantsduringthecourseoftransaction 8 E commerceDevelopmentinChina 1 User browsingWebsite formulatingorder deliveryorder paymentdatatoWebsite2 3 Website confirmingorder conveyingpaymentdatatopaymentgateway4 Paymentgateway deliverypaymentdatatocardissuer sbank5 Cardissuer sbank verifyingpaymentvalidity transferringmoneytoclearingcenter6 Clearingcenter acceptingmoney notifyingcollectingbank7 8 Collectingbank collectingmoney notifyingWebsite9 10 Website processingdata informingdistributortoarrangingdelivery11 12 Distributor deliverproducts 9 BusinessModel B2BModel1 InformationPlatform E commerceDevelopmentinChina Function Websiteissuingsupply demandinformationtobuyerandsellerNote SuchkindofWebsiteonlyprovideverybasiccommunicationservicebetweensupplierandbuyerExample 10 E commerceDevelopmentinChina BusinessModel B2BModel2 OnlineShoppingCity Function WebsiteprovidingbusinesswithE commerceplatform helpingbusinesstodeveloponlinetransactionNote ThemajorityofparticipantsarebusinessprovidingconsumptionproductsTheWebsiteissimilartotraditionalretailerrentingcounterExample 11 E commerceDevelopmentinChina BusinessModel B2BModel3 BusinessownWebsite Function DistributionWebsite businessthroughitsWebsitetodeveloptraditionalofflinedistributionactivities providingonlineservicetoitscustomersPurchasingWebsite businessbuyingonlinebyitsownWebsiteExample 12 E commerceDevelopmentinChina BusinessModel B2BModel4 CompetitivePurchasingPlatform Function Websitecombiningbusinessproductandserviceinformationtoprovidecompetitivepurchasingservice Purchasingprocess Buyer issuinginquiry fillingoutinquirybillWebsite transferringinquirytosuppliersSuppliers givingquotationandreturningittobuyerseparatelyBuyer choosingsuitablesupplierNote ComparingwithInformationPlatform businesscanObtainmoreeffectiveservicefromsuchmodelForexample gainingmorebusinessopportunities reducingtransactiontime loweringoperatingcostExample 13 E commerceDevelopmentinChina BusinessModel B2BModel5 Product ServiceAgentPlatform Function BusinesswhohavebecomeagentsofcertainproductorservicedevelopwholesaleonlineNote AgentonlinedeveloptraditionalofflinewholesaleactivitiesthroughInternetExample 14 E commerceDevelopmentinChina BusinessModel B2BModel6 TechnologySupportPlatform Function Websiteonlineprovidingtechnologysolutiontobusiness rangingfromInternettosoftwareNote TherapiddevelopmentofE commercebringingagreatperspectiveforInternettechnologyandconsultingserviceExample 15 E commerceDevelopmentinChina BusinessModel B2CModel1 OnlineShopping Forexample CompetitivePurchasing DealingwithsupplierwhoofferscompetitivepriceFoxexample 16 E commerceDevelopmentinChina BusinessModel B2CModel2 IndividualQuotation Duringthiskindoftransaction supplierwilldealwithconsumerwhogivethehighestoffer sopriceflowsfromlowtohighinthismodelForexample GroupQuotation Duringthiskindoftransaction todealwithallconsumers supplierwillgiveCheaperoffer sopriceflowsfromhightolowingroupquotationForexample 17 E commerceDevelopmentinChina BusinessModel B2CModel IndividualE bank Expenseaccount forexample gasbill mobilephonefeesChecking transferringaccountOnlineshoppingpaymentForexample 18 BasicE commerceTransactionProcess E commerceDevelopmentinChina Notify Consumer Creditcardorganization Bank Merchant CACenter Order Delivery Transfer Transfer Payment Bill Transfer 1 2 3 4 5 6 7 8 1 Consumer formulatingorder deliveringorder paymentdatatomerchants2 Merchant confirmingorder transferringpaymentdatatobank3 Bank verifyingvalidityofpayment informingcreditcardorganization4 5 6 Creditcardorganization transferringmoney notifyingbank7 Bank returningpaymentresulttomerchant8 Merchant arrangingdelivery 19 TechnologySupport E commerceDevelopmentinChina Paymentsoftwareformerchantserver CyberCashCashRgistP4 01999 05 19 G10beSetPosl 2 1998 06 15 S PAY2 2 3 1999 01 11 VPos4 5 1999 01 20 IBMPaymentServer1 2 1999 05 12 Paymentgatewaysoftwareforbankserver G10beSetG10beSetGateway1 3 1998 08 28 S PAY2 5 1999 04 19 VellfoneVGATE4 1 1999 02 16 IBMPaymentGateway 1999 02 25 SoftwareforCA CommerceSTAGESecureCA 1999 7 6 G10beSet的G10beSetCal 2 1998 7 21 VerisignCAServicesl 10 1999 2 26 IBMPaymentBegist1 2 1998 11 17 E walletsoftwareforcardholder CommerceSTAGECardho1derl 0 1999 5 26 CyberCashWal let 1999 5 29 G10beSetWallet1 1 1999 5 29 Spyrust TerisaWebWallet1 0 1998 5 29 TnntechS NY2 1 1999 5 29 Verifonewallet2 1 1998 5 29 IBMComsamerWallet1 0 1998 10 7 20 E commerceDevelopmentinChina Caseone IBMSolution PaymentGateway 1999 02 25 Paymentgatewayenablingservices forBank FinancialinstitutionsSETforE creditEnablingServices transformingcreditcardtransactioninformationunderSETsystemSETforE debitEnablingServices transformingautomatictransferinformationunderSET likesystemSSLforE creditEnablingServices transformingcreditcardtransactioninformationunderSSLsystemPaymentgatewayconnectionservices forStoreappointedbybank ISP onlineshoppingcitySETforE creditConnectionServices Connectingobjectiveswithpaymentgatewayofbank financialinstitutionsunderSETsystemSSLforE creditConnectionServices Connectingobjectiveswithpaymentgatewayofbank financialinstitutionsunderSSLsystem 21 E commerceDevelopmentinChina KeyIssues Onlinepayment Bandwidth Productdistribution Creditsystem 22 BandwidthSlowonlinetransactionresultedbycurrentBandwidthhasgreatlyimpededE commercedevelopmentinChina ForWebsite difficulttointroduceproductswithmulti mediawayDifficulttoincreasetransactionamountForuser longtransactiontimedemotivatesmostofconsumerslongtransactiontimeincreasingcommunicationandtimecost OnlinepaymentIntoday smarket onlinepaymentisthebottleneckofE commercedevelopmentDifficulttorealizeE commerceadvantageforlackingconvenientpaymentmethodsUnsecuredonlinepaymentsystemUncompletedregulations forexample contractlawacceptE contractbutdoesnotacceptE signature E commerceDevelopmentinChina 23 E commerceDevelopmentinChina DistributionsystemPoordistributionsystemisanotherimpedimentWebsite difficulttoestablisheffectivedistributionsystemcoveringwholecountryDeferringdeliveryslowtransactionprocessanddemotivateconsumersDistributionsupplier smalloperationscaleresultinghighoperationcostInsufficientdistributionsupplierinmarket CredibilitysystemLowlevelcreditabilitysystemLackingfundamentalcreditabilitybetweenbusinessandpersonalUncompletedcreditor srightprotectionBankcreditabilitydominatedinChinacreditabilitysystemCommercialcreditabilitysystemdevelopedslowly 24 E commerceDevelopmentinChina Individualcredibilitysystem1999People sBankofChina increasedindividualconsumptionloan1999 5ShanghaiCreditabilitycompany createdbyPeople BankofChina ShanghaiinformationOfficeand15localmerchantbanks isthefirstmediaorganizationtakingresponsibilityforinvestigatingindividualcreditability2000 4Realnamesystem itisnecessarytouserealnametoopenaccount2000 7 ShanghaiIndividualCreditabilityServiceSystem providedbyShanghaiCredibilitycompany banksinShanghaicancheckcreditabilityofpeoplewhoapplyingforofcreditcardandloanwithinseconds 25 E commerceDevelopmentinChina FutureDevelopment Trendsin2 3years TraditionalindustrybegintoexploitE commerceOnlinepaymentwillnotbethefocusofE commerceWebsitemodelwillbemorediversifiedDistributionproblemwillbeworseTraditionalgamerulethatonlyprotectsmerchant sinterestandignoresconsumer sinterestwillexperiencechallengeLegalandsecureenvironmentwillbeimprovedCreditsystemwillbethebottleneckofE commerce 26 Methodology SecondaryResearchIn depthInterview 27 Methodology In depthinterviewIn depthinterviewhelptoviewthewholepictureofallrelatedproblemsaboutonlinepaymentinChinaInterviewshavebeendevelopedinBeijing ShanghaiandGuangzhou includingmerchant bankanduserAchievementofin depthinterviewAvailablepaymentmethodsCurrentbankservicesMerchant consumer srequirementOtherstuffrelatedE commerce SecondaryresearchSecondarymaterialssources Relatedpublishedsources governmentinformation statistic professionalmagazines brochuresofbanks merchantsInternetsourcesProfessionalinstitutionsAchievementofsecondaryresearchRelatedregulationsBasicstatusofonlinepaymentPotentialcompetitorTrends opportunities 28 ProjectObjectives KeyFindings Onlinepaymentprocess Availablepaymentmethods MainbanksinvolvedinE commerce DifferenceinBeijing Shanghai Guangzhou Marketsurveyresult 29 AvailablePaymentMethods Onlinepaymentmethods Preferredmethodsforonlineshopping Offlinepaymentmethods Marketshareofdifferentmethods 30 AvailablePaymentMethods CurrentStatusKeyIssuesFutureDevelopment 31 OnlinePaymentMethods AvailablePaymentMethods 32 OfflinePaymentMethods AvailablePaymentMethods 33 MarketShareofDifferentMethods AvailablePaymentMethods Cashondelivery 70 Bankingcard 20 Postalremittance 9 Others1 34 AvailablePaymentMethods Consumer onlinebuyingprocessflow Note somewebsitewille mailorcallConsumertoconfirmdeliverytime place 35 PreferredPaymentMethodsforOnlineshopping AvailablePaymentMethods Ranking Bankingcard Cashondelivery others Postalremittance AlthoughCODisthemajorpaymentmethodintoday smarket mostconsumerpreferbankingcard Moreover certainamountofpotentialusersaregoingtoshoponlinebyvariedbankingcard However manyconstraints suchassecurity credibilityanddeliverypushconsumerstotakeCOD agoodsupplementforonlinetransaction 36 AvailablePaymentMethods Decisionframeworkforconsumershoppingonline Deferringdelivery30 Unsecuredonlinepayment30 Badaftersellingservice15 Complicatedpaymentprocess10 Insufficientpaymentmethods15 37 AvailablePaymentMethods DecisionFrameworkforConsumerPaymentBehaviors Consumer spositionduringonlinetransactionInoverseasmarketMerchantputconsumerinterestonthemostimportantposition Duringtransaction consumercanoverdraftfrombankandenjoybestserviceprovidedbymerchantInChinamarketCurrentregulationsprotectnotconsumerbutmerchant sinterest ItisalmostimpossibleforChineseconsumertooverdraftfrombank mostmerchantprovidelowlevelaftersellingservice FactorsinfluenceconsumerpaymentbehaviorsSecurityofonlinepaymentMerchantcredibilityConsumptionconceptApplicationofcomputer bankingcardProduct sattributeDiversifiedpaymentmethodsConvenienceofonlineoperatingThefollowingthreefactorshavemoreStrongerinfluenceSecurityofonlinepaymentMerchantcredibility aftersellingserviceConvenienceofonlineoperating 38 AvailablePaymentMethods FutureDevelopmentofonlinepaymentmethods Bankingcard50 Cashondelivery35 Greencard11 Postalremittance2 Others2 39 MainbanksinE commerce Cooperationstylewithmerchants Banksinvolvedinonlinepayment Businessscale 40 MainbanksinE commerce CurrentStatusKeyIssuesFutureDevelopment 41 BanksInvolvedinE commerce MainbanksinE commerce 42 CooperationStylewithMerchant BankofChina MainbanksinE commerce MerchantneedstocompletethefollowingprocesstobecomeanappointedbusinessofBOCDeliveryapplicationtoBOCforestablishingWebsiteRelatedtechnologyrequirement includingWebsiteandPaymentplatformInformingBOCtoexamWebsite paymentplatformReachingagreementandbecomingappointedbusinessDownloadingE certificatefromWebsitethreedaysaftersigningagreementTransferringE certificatetopaymentgatewayofBOCtoconfirm andthendealingwithbankingcardofBOC 43 MainBanksinE commerce Keyissueandfuturedevelopment keyissueNounifiedandauthoritativeCAcenterNocompletedlawandregulationsforE businessDifficulttocommencecross regionsoperationforrelativelowlevelofcomputer InternetapplicationwithinbanksystemDifficulttoformcross banksoperationfortraditionalmanagementmechanismTrendofdevelopmentEstablishingauthoritativeCAcenterbygovernmentSettinguprelatedlawtomanageE commerceImprovingcomputer InternetapplicationlevelwithinbanksystemAcceleratingexplorationofcross banks cross regionsoperation 44 OnlinePaymentProcess CurrentStatusKeyIssuesFutureDevelopment 45 SETTransactionProcess OnlinePaymentProcess CardHolder WebSite E payment E wallet Merchant sServer Merchant Bank PaymentGateway PaymentRegistry CACertificateAuthorityCenter Internet 1 2 3 3 3 4 4 5 6 7 7 1 Cardholder browsingwebsite formulatingorder2 Cardholder actingE wallet3 CA Paymentgateway verifyingparticipants identity4 E wallet deliveringorder paymentdatatoE payment paymentgatewayseparately5 Paymentgateway deliveringpaymentdatatoBank banktransferringmoneyandreturningtopaymentresult6 Paymentgateway deliveringtransactionresulttomerchantserver7 Merchantserver confirmingpayment arrangingdelivery 46 OnlinePaymentProcess B2C Model1 SET encryption e envelop e signature doublee signature CA 1Cardholder browsingwebsite6Merchant confirmingtransactionresult arrangingdelivery7Merchant regularlyaskingpaymentinformationfrompaymentgateway paymentgatewayaskingcardissuertotransfermoney returningresulttomerchant Note allparticipantscangetlegalidentityfromCAbeforetransactionandCAwillverifyidentifyofothersduringthewholetransaction 47 Model2 NON SETShoppingcard nobankinvolved SSL RSAencryption firewall OnlinePaymentProcess B2C 1 Cardholder buyingshoppingcardfromcardissuer sbankoragent2 Cardholder browsingwebsite onlineshopping3 Cardholder verifyingcardissueridentity deliveringorderencryptedbyRSA merchantcannotreadthepaymentdata 4 Merchant conveyingpaymentdatatocardissuer sbank5 Cardissuer sbank crackingpaymentdata transferringmoney returningpaymentresulttomerchant6 Merchant conveyingtransactionresulttocardholder arrangingdelivery7 Merchant regularlysettlingwithcardissuer sbankNote 1 Shoppingcardissuedbyorganizationauthorizedbymerchant forexample shoppingcardissuedbyCMB2 UnderSSL bankreplaceCAtoverifymerchant sinformationbeforetransaction3 Encryptionandfirewallcanhelpcardholdertoverifyidentityofmerchantandpaymentgateway 48 OnlinePaymentProcess B2C Model3 NON SETBankingcard SSL RSAencryption E signature Firewall 1 Cardholder loggingonWebsiteandverifyingmerchant sidentity2 Cardholder onlineshopping3 Merchant confirmingonlineshopping4 Cardholder verifyingpaymentgateway sidentity conveyingorder paymentdatahasbeenencryptedbypublickeywhichisunreadabletomerchant 5 Merchant deliveringpaymentdataencryptedbypublicsecretekeyofpaymentgateway askingpayment6 Paymentgateway crackingpaymentdata verifyingpaymentvalidityofbytraditionalbanknetwork transferringmoneyinrealtime7 Paymentgateway encryptingpaymentresultbyitsprivatesecretekey informingmerchantpaymentresultNote 1 bankingcardincludescreditcard debitcard savingaccountandICcard 2 UnderSSL bankreplaceCAtoverifymerchant sinformationbeforetransactions 49 OnlinePaymentProcess B2C Model4 NON SETBankingcard nomerchantinvolved SSL 1 Cardholder loggingonWebsite2 Cardholder onlineshopping enteringcardissuer sbankwebsite3 Cardholder verifyingWebsiteidentityofcardissuer sbank enteringpaymentdata4 Cardissuer sbank dealingwithpaymentdata transferringmoney5 Merchant regularlycheckingtransactionresults arrangingdeliveryNote 1 step2 3happenssimultaneously2 bankingcardincludescreditcard debitcard savingaccountandICcard 50 OnlinePaymentProcess B2B ServiceprovidedbyChinaConstructionBank Prerequisite buyershouldbethecustomerofE bankofCCBbuyerneedtoobtaincustomercertificateandcardreadingmachinefromCCBbuyerneedtoinstallS agentprovidedbyCCBonitsterminalProcess 1 Business buyer sellerreachingdealonline2 Buyer enteringpaymentinterfacebyactivatingS agent confirmingorder signingcontractwithE signature notifyingopeningbanktotransfermoney3 CCB transferringmoneytoselleraccordingtobuyer spaymentrequirement 51 OnlinePaymentProcess B2B ServiceprovidedbyChinaMerchantBank Prerequisite seller buyershouldopenaccountinthesamebankinthefirstdeal buyerneedstodeposittheequalamountoftradeamountinCMBbuyerneedtoinstallcustomerterminalprovidedbythebankProcess 1 Business buyer sellerreachingdealonline2 Buyer notifyingopeningbanktotransfermoneythroughcustomerterminal3 CMB transferringmoneytosellerNote CMBcanproviderealtimefinancialservice 52 OnlinePaymentProcess KeyIssues FutureDevelopment KeyissueSET Highsecurity Complicatedagreement LongeroperatingtimeHighdemandforconsumer merchantandbankintechnologystandardSSL Easydoingbutlowsecurity CannotverifyidentityofparticipantsMoreeasierthanSETtoletoutconsumer scardinformationFuturedevelopmentSSLwillbemoreacceptablethanSETinChinaforconsumer srelativelowersecurityconsciousnessandInternetlevelAsconsumersbecomemature itisnecessarytograduallyimprovesecurestandard forexample combiningSSLwithotherencryptionmeasures 53 AreaDifferenceinThreeCities Potentialcompetitor Relatedregulations laws 54 AreaDifferenceinThreeCities RelatedRegulation Laws CACenter Toidentityofallparticipantsduringthewholecourseoftransaction itisnecessarytosetupacreditsy