中国电子支付环境报告（英文）

1、E-commerce Online Payment AAAA Consulting 天马行空官方博客： :/ ；QQ群：1755696321Content Project outline.3E-commerce development in China.4-25Methodology.26-27Key findings.28-77Available payment methods.29-38Main banks involved in E-commerce.39-43Online payment process flow44-52Difference in three cities53-71M

2、arket survey result.72-77Analysis & Recommendation.78-82Issue & Concern83-852Project OutlineE-commerce developmentMethodologyKey findingsAnalysis & RecommendationIssue & Concern3E-commerce Development in ChinaCurrent StatusKey IssuesFuture Development4E-commerce Development in ChinaE-commerce Develo

3、pment Process in ChinaSource: Desktop 1996: Studied E-commerce development in China 1996/12: Studied E-bank service model 1997/2: Organized developing team of E-bank service system 1997/7: Formulated E-bank service system， including providing online inquiry of cooperate finance and credit card, onli

4、ne declare of balance of international payment 1998/1: Organized leader team of E-bank service system by head office of bank 1998/3: First online transaction completed by Great wall credit card 1999/1: Established E-bank department to coordinate E-commerce development 1999/6: Provided many online pa

5、yment methods, for example: Easy pay developed the first complete online payment system; Bank of China set up payment gateway of SET and CA Center 1999/9: Software development center of BOC set up E-commerce laboratory5E-commerce Development in ChinaSource: DesktopE-commerce current condition E-comm

6、erce development is still in the growth stage and experienced rapid development in 1999. In 1999, total amount of online transaction is RMB 5.5m and it is estimated that the total amount of online transaction will reach RMB 3.5 b in 2000 The latest research presents that internet users in China has

7、exceeded 17m By March 2000, there are about 1100 Web sites6E-commerce StructureE-commerce Development in ChinaNote: CA will verify identity of all participants during the course of transaction.Exchanging/clearingUserDistributionBuying/Selling/StoringCAWeb SiteTransactionData base AccountingPayment G

8、atewayInformationCard Issuers Bank（Paying Bank）Collecting System（Collecting Bank）.Back System12123456789101010117E-commerce Development in China1.User: browsing Web site, formulating order, delivery order/payment data toWeb site2/3.Web site: confirming order, conveying payment data to payment gatewa

9、y4.Payment gateway: delivery payment data to card issuers bank5.Card issuers bank: verifying payment validity, transferring money to clearing center6.Clearing center: accepting money, notifying collecting bank7/8.Collecting bank: collecting money, notifying Web site9/10.Web site: processing data, in

10、forming distributor to arranging delivery11/12.Distributor: deliver products8Issuing informationBusinessWeb siteBusinessDealChecking informationBusiness Model-B2B Model 1: Information PlatformE-commerce Development in China Function: Web site issuing supply & demand information to buyer and seller N

11、ote: Such kind of Web site only provide very basic communication service between supplier and buyer Example: alibaba 9E-commerce Development in ChinaWeb site public platformBusinessBusinessBusinessConsumerBusinessBusiness Model-B2B Model 2: Online Shopping City Function: Web site providing business

12、with E-commerce platform & helping business to develop online transaction Note: The majority of participants are business providing consumption products The Web site is similar to traditional retailer renting counter Example: toecom 10BusinessBusiness Web siteRaw MaterialSupplierPurchasingBusinessBu

13、sinessWeb siteDistributorDistributionE-commerce Development in ChinaBusiness Model-B2B Model 3: Business own Web site Function: Distribution Web site: business through its Web site to develop traditional offline distribution activities & providing online service to its customers Purchasing Web site:

14、 business buying online by its own Web site Example: haier 11E-commerce Development in ChinaBusinessWeb siteBusinessDealBusiness Model-B2B Model 4: Competitive Purchasing Platform Function: Web site combining business product and service information to provide competitive purchasing service . Purcha

15、sing process: Buyer-issuing inquiry, filling out inquiry bill Web site-transferring inquiry to suppliers Suppliers-giving quotation and returning it to buyer separately Buyer-choosing suitable supplier Note: Comparing with Information Platform, business can Obtain more effective service from such mo

16、del For example-gaining more business opportunities, reducing transaction time, lowering operating cost Example: lalashou 12SupplierWeb siteDistributorE-commerce Development in ChinaBusiness Model-B2B Model 5: Product/Service Agent Platform Function: Business who have become agents of certain produc

17、t or service develop wholesale online Note: Agent online develop traditional offline wholesale activities through Internet Example:13E-commerce Development in ChinaBusinessBusinessTechnology requestTechnology serviceBusiness Model-B2B Model 6: Technology Support Platform Function: Web site online pr

18、oviding technology solution to business, ranging from Internet to software Note: The rapid development of E-commerce bringing a great perspective for Internet technology and consulting service Example: east .net14E-commerce Development in ChinaBusiness Model-B2C Model 1Online ShoppingSupplierWeb sit

19、eConsumerDealSupplyDemandFor example:Competitive PurchasingSupplier1Supplier2Supplier3ConsumerWeb siteDealDemandSupplySupplySupplyDealing with supplier who offers competitive priceFox example: lalashou 15E-commerce Development in ChinaBusiness Model-B2C Model 2Individual QuotationConsumer1Consumer2W

20、eb siteSupplierConsumer3SupplyDealDemandDemandDemandDuring this kind of transaction, supplier will deal with consumer who give the highest offer, so price flows from low to high in this modelFor example : yabuy Group QuotationSupplierDealConsumer1Web siteConsumer2Consumer3SupplyDemandDemandDemandDea

21、lDealDuring this kind of transaction, to deal with allconsumers, supplier will give Cheaper offer,so price flows from high to low in group quotationFor example : yabuy 16E-commerce Development in ChinaBusiness Model-B2C Model: Individual E-bankConsumerConsumerWeb Site of BankExpense account: for exa

22、mple, gas bill, mobile phone feesChecking/transferring accountOnline shopping paymentFor example: www bchina 17Basic E-commerce Transaction ProcessE-commerce Development in ChinaNotifyConsumerCredit card organizationBank MerchantCA CenterOrderDeliveryTransferTransferPaymentBillTransfer123456781.Cons

23、umer: formulating order, delivering order/payment data to merchants2.Merchant: confirming order, transferring payment data to bank3.Bank: verifying validity of payment, informing credit card organization4/5/6.Credit card organization: transferring money, notifying bank7.Bank: returning payment resul

24、t to merchant8.Merchant: arranging delivery18Technology SupportE-commerce Development in China Payment software for merchant server: Cyber Cash CashRgistP4.0 1999/05/19) G10beSet Pos l.2 (1998/06/15 ( ) SPAY 2.2.3 (1999/01/11) V Pos 4.5 (1999/01/20) IBM Payment Server 1.2 (1999/05/12) Payment gatewa

25、y software for bank server: G10beSet G10beSet Gateway 1.3(1998/08/28) SPAY 2.5 (1999/04/19) Vellfone V GATE 4.1 (1999/02/16) IBM Payment Gateway (1999/02/25) Software for CA: Commerce STAGE Secure CA(1999.7/.6) G10beSet的G10beSet Cal.2 (1998.7.21) Verisign CA Servicesl.10 (1999.2.26) IBM Payment Begi

26、st 1.2 (1998.11.17) E-wallet software for card holder: Commerce STAGE Cardho1derl.0(1999.5.26) CyberCash Wallet (1999.5.29) G10beSet Wallet 1.1 (1999.5.29) Spyrust/Terisa WebWallet 1.0(1998.5.29) Tnntech SNY 2.1 (1999.5.29) Verifone wallet 2.1 (1998.5.29) IBM Comsamer Wallet 1.0(1998.10.7)19E-commer

27、ce Development in ChinaCase one-IBM Solution: Payment Gateway (1999/02/25) Payment gateway enabling services: for Bank & Financial institutions SET for E-credit Enabling Services: transforming credit card transaction information under SET system SET for E-debit Enabling Services: transforming automa

28、tic transfer information under SET-like system SSL for E-credit Enabling Services: transforming credit card transaction information under SSL system Payment gateway connection services: for Store appointed by bank, ISP, online shopping city SET for E-credit Connection Services:, Connecting objective

29、s with payment gateway of bank & financial institutions under SET system SSL for E-credit Connection Services:,Connecting objectives with payment gateway of bank & financial institutions under SSL system20E-commerce Development in ChinaKey IssuesOnline paymentBandwidthProduct distributionCredit syst

30、em21 Bandwidth Slow online transaction resulted bycurrent Bandwidth has greatly impededE-commerce development in China: For Web site: difficult to introduce products with multi-media way Difficult to increase transaction amount For user: long transaction time demotivates most of consumers long trans

31、action time increasing communication and time cost Online paymentIn todays market, online payment is the bottleneck of E-commerce development Difficult to realize E-commerce advantage for lacking convenient payment methods Unsecured online payment system Uncompleted regulations: for example, contrac

32、t law accept E-contract but does not accept E-signatureE-commerce Development in China22E-commerce Development in China. Distribution systemPoor distribution system is another impediment Web site: difficult to establish effective distribution system covering whole country Deferring delivery slow tra

33、nsaction process and demotivate consumers Distribution supplier: small operation scale resulting high operation cost Insufficient distribution supplier in market Credibility system Low level creditability system Lacking fundamental creditability between business and personal Uncompleted creditors ri

34、ght protection Bank creditability dominated in China creditability system Commercial creditability system developed slowly23E-commerce Development in China Individual credibility system 1999 Peoples Bank of China- increased individual consumption loan 1999/5 Shanghai Creditability company, created b

35、y People Bank of China, Shanghai information Office and 15 local merchant banks, is the first media organization taking responsibility for investigating individual creditability 2000/4 Real name system-it is necessary to use real name to open account 2000/7 “Shanghai Individual Creditability Service

36、 System” provided by Shanghai Credibility company-banks in Shanghai can check creditability of people who applying for of credit card and loan within seconds24E-commerce Development in ChinaFuture Development: Trends in 2-3 years Traditional industry begin to exploit E-commerce Online payment will n

37、ot be the focus of E-commerce Web site model will be more diversified Distribution problem will be worse Traditional game rule that only protects merchants interest and ignores consumers interest will experience challenge Legal and secure environment will be improved Credit system will be the bottle

38、neck of E-commerce25MethodologySecondary ResearchIn-depth Interview26Methodology In-depth interviewIn-depth interview help to view the whole picture of all related problems about online payment in China Interviews have been developed in Beijing, Shanghai and Guangzhou, including merchant, bank and u

39、serAchievement of in-depth interview Available payment methods Current bank services Merchant&consumers requirement Other stuff related E-commerce Secondary research Secondary materials sources. Related published sources: -government information/statistic -professional magazines -brochures of banks/

40、merchants Internet sources Professional institutionsAchievement of secondary research Related regulations Basic status of online payment Potential competitor Trends/opportunities27Project ObjectivesKey FindingsOnline payment processAvailable payment methodsMain banks involved in E-commerceDifference

41、 in Beijing/Shanghai/GuangzhouMarket survey result28Available Payment MethodsOnline payment methodsPreferred methods for online shoppingOffline payment methodsMarket share of different methods29Available Payment MethodsCurrent StatusKey IssuesFuture Development30Online Payment MethodsAvailable Payme

42、nt Methods31Offline Payment MethodsAvailable Payment Methods32Market Share of Different MethodsAvailable Payment Methods Cash on delivery: 70% Banking card: 20% Postal remittance: 9% Others 1%33Available Payment MethodsMember registrationCashier Shopping cartEnter user name/passwordCancel orderConfi

43、rming orderOrder resultPayment methodLog on web site继续购物Give up buyingWaiting responseEnter personalinformation Valid orderClub member?Delivery Waiting deliveryYesNoContinue buyingConsumer-online buying process flow Note:some web site will e-mail or call Consumer to confirm delivery time & place 34P

44、referred Payment Methods for Online shoppingAvailable Payment MethodsRankingBanking cardCash on deliveryothersPostal remittanceAlthough COD is the major payment method intodays market, most consumer prefer banking card.Moreover, certain amount of potential users aregoing to shop online by varied ban

45、king card. However, many constraints, such as security, credibility and delivery push consumers to take COD,a good supplement for online transaction35Available Payment MethodsDecision framework for consumer shopping onlineDeferring delivery 30%Unsecured online payment 30%Bad after selling service 15

46、%Complicated payment process 10%Insufficient payment methods 15%36Available Payment MethodsDecision Framework for Consumer Payment Behaviors Consumers position during online transaction In overseas market Merchant put consumer interest on the most important position. During transaction, consumer can

47、 overdraft from bank and enjoy best service provided by merchant In China market Current regulations protect not consumer but merchants interest. It is almost impossible for Chinese consumer to overdraft from bank, most merchant provide low level after selling service Factors influence consumer paym

48、ent behaviors Security of online payment Merchant credibility Consumption concept Application of computer/banking card Products attribute Diversified payment methods Convenience of online operating The following three factors have more Stronger influence Security of online payment Merchant credibili

49、ty, after selling service Convenience of online operating37Available Payment MethodsFuture Development of online payment methods Banking card 50% Cash on delivery 35% Green card 11% Postal remittance 2% Others 2%38Main banks in E-commerceCooperation style with merchantsBanks involved in online payme

50、ntBusiness scale39Main banks in E-commerceCurrent StatusKey IssuesFuture Development40Banks Involved in E-commerceMain banks in E-commerce41Cooperation Style with Merchant-Bank of ChinaMain banks in E-commerceMerchant needs to complete the following process to become an appointed business of BOC Del

51、ivery application to BOC for establishing Web site Related technology requirement: including Web site and Payment platform Informing BOC to exam Web site/payment platform Reaching agreement and becoming appointed business Downloading E-certificate from Web site three days after signing agreement Tra

52、nsferring E-certificate to payment gateway of BOC to confirm, and then dealing with banking card of BOC42Main Banks in E-commerceKey issue and future development key issue No unified and authoritative CA center No completed law and regulations for E-business Difficult to commence cross-regions opera

53、tion for relative low level of computer/Internet application within bank system Difficult to form cross-banks operation for traditional management mechanism Trend of development Establishing authoritative CA center by government Setting up related law to manage E-commerce Improving computer/Internet

54、 application level within bank system Accelerating exploration of cross-banks/cross-regions operation 43Online Payment ProcessCurrent StatusKey IssuesFuture Development44SET Transaction ProcessOnline Payment ProcessCard HolderWeb SiteE-paymentE-walletMerchants ServerMerchantBankPayment GatewayPaymen

55、t RegistryCACertificate Authority CenterInternet123334456771.Card holder: browsing web site, formulating order2.Cardholder: acting E-wallet3.CA/Payment gateway: verifying participants identity4.E-wallet: delivering order/payment data to E-payment/payment gateway separately5.Payment gateway: deliveri

56、ng payment data to Bank; bank transferring money and returning to payment result6.Payment gateway: delivering transaction result to merchant server7. Merchant server: confirming payment, arranging delivery 45Online Payment Process-B2CModel 1: SET (encryption, e-envelop, e-signature, double e-signatu

57、re, CA)Card HolderPaymentGatewayBankMerchant1/234567571 Card holder: browsing website & online shopping;2 Merchant: confirming online shopping;3 Card holder: verifying merchants identity, conveying order to merchant ( payment data is unreadable to merchant);4 Merchant: verifying payment gateways ide

58、ntity & delivering payment data to it; 5 Payment gateway: verifying merchants identity, verifying payment validity of card by traditional bank network, returning payment result to merchant;6 Merchant: confirming transaction result, arranging delivery7 Merchant: regularly asking payment information f

59、rom payment gateway, payment gateway asking card issuer to transfer money, returning result to merchant.Note: all participants can get legal identity from CA before transaction and CA will verify identify of others during the whole transaction46Model 2: NON-SET Shopping card (no bank involved) (SSL,

60、 RSA encryption, firewall)Online Payment Process-B2CCard HolderCard IssuersBankMerchant1364/5721.Card holder: buying shopping card from card issuers bank or agent2.Card holder: browsing website & online shopping3.Card holder: verifying card issuer identity, delivering order encrypted by RSA (merchan