香港电信-大陆支付系统咨询报告ppt课件

1、E-commerce Online Payment AAAA Consulting 1Content 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 cities53-71Market survey result.72-77An

2、alysis & Recommendation.78-82Issue & Concern83-852Project OutlineE-commerce developmentMethodologyKey findingsAnalysis & RecommendationIssue & Concern3E-commerce Development in ChinaCurrent StatusKey IssuesFuture Development4E-commerce Development in ChinaE-commerce Development Process in ChinaSourc

3、e: 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, online declare of balance of in

4、ternational 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 payment methods, for example:

5、 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-commerce development is still i

6、n 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 exceeded 17m By March 2000,

7、 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 GatewayInformationCard Issue

8、rs BankPaying BankCollecting SystemCollecting 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 gateway4.Payment gateway: delivery pa

9、yment 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, informing distributor to arrangin

10、g 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 Note: Such kind of Web site only

11、 provide very basic communication service between supplier and buyer Example: alibaba9E-commerce Development in ChinaWeb site public platformBusinessBusinessBusinessConsumerBusinessBusiness Model-B2B Model 2: Online Shopping City Function: Web site providing business with E-commerce platform & helpi

12、ng 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 519610BusinessBusiness Web siteRaw MaterialSupplierPurchasingBusinessBusinessWeb siteDistributorDis

13、tributionE-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: business buying online by i

14、ts own Web site Example: haier11E-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 . Purchasing process: Buyer-issuing i

15、nquiry, 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 model For example-gaining more

16、business opportunities, reducing transaction time, lowering operating cost Example: lalashou12SupplierWeb siteDistributorE-commerce Development in ChinaBusiness Model-B2B Model 5: Product/Service Agent Platform Function: Business who have become agents of certain product or service develop wholesale

17、 online Note: Agent online develop traditional offline wholesale activities through Internet Example: 884813E-commerce Development in ChinaBusinessBusinessTechnology requestTechnology serviceBusiness Model-B2B Model 6: Technology Support Platform Function: Web site online providing technology soluti

18、on 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: 14E-commerce Development in ChinaBusiness Model-B2C Model 1Online ShoppingSupplierWeb siteConsumerDealSupplyDemandFor examp

19、le: it163Competitive PurchasingSupplier1Supplier2Supplier3ConsumerWeb siteDealDemandSupplySupplySupplyDealing with supplier who offers competitive priceFox example: lalashou15E-commerce Development in ChinaBusiness Model-B2C Model 2Individual QuotationConsumer1Consumer2Web siteSupplierConsumer3Suppl

20、yDealDemandDemandDemandDuring 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 : yabuyGroup QuotationSupplierDealConsumer1Web siteConsumer2Consumer3SupplyDemandDemandDemandDealDealDuring this kind of trans

21、action, to deal with allconsumers, supplier will give Cheaper offer,so price flows from high to low in group quotationFor example : yabuy16E-commerce Development in ChinaBusiness Model-B2C Model: Individual E-bankConsumerConsumerWeb Site of BankExpense account: for example, gas bill, mobile phone fe

22、esChecking/transferring accountOnline shopping paymentFor example: wwwbchina17Basic E-commerce Transaction ProcessE-commerce Development in ChinaNotifyConsumerCredit card organizationBank MerchantCA CenterOrderDeliveryTransferTransferPaymentBillTransfer123456781.Consumer: formulating order, deliveri

23、ng 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 result to merchant8.Merchant: arrangin

24、g 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 gateway software for bank server: G10be

25、Set 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 Begist 1.2 (1998.11.17) E-wallet soft

26、ware 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-commerce Development in ChinaCase one-I

27、BM 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 automatic transfer information under SE

28、T-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 objectives with payment gateway of bank &

29、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 system21 Bandwidth Slow online transa

30、ction 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 transaction time increasing communicat

31、ion 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, contract law accept E-contract but does

32、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 transaction process and demotivate c

33、onsumers 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 right protection Bank creditability

34、 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 by People Bank of China, Shanghai

35、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 System provided by Shanghai Cred

36、ibility 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 not be the focus of E-commerce Web

37、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 bottleneck of E-commerce25MethodologySec

38、ondary 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 , Shanghai and Guangzhou, including merchant, bank and userAchievement of in-depth interview Avai

39、lable 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/merchants Internet sources Professional i

40、nstitutionsAchievement 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 in /Shanghai/GuangzhouMarket survey resu

41、lt28Available Payment MethodsOnline payment methodsPreferred methods for online shoppingOffline payment methodsMarket share of different methods29Available Payment MethodsCurrent StatusKey IssuesFuture Development30Online Payment MethodsAvailable Payment Methods31Offline Payment MethodsAvailable Pay

42、ment 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 orderConfirming orderOrder resultPayment methodLog on web

43、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 or call Consumer to confirm delivery time & place 34Preferred Payment Methods for Online shoppingAvailable P

44、ayment 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 banking card. However, many constraints, such as security,

45、 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%Complicated payment process 10%Insufficient payment me

46、thods 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 overdraft from bank and enjoy best service provided by

47、 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 payment behaviors Security of online payment Merchant credi

48、bility 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 credibility, after selling service Convenience of online operati

49、ng37Available 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 paymentBusiness scale39Main banks in E-commerceCurrent Statu

50、sKey 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 Delivery application to BOC for establishing Web site Rela

51、ted 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 Transferring E-certificate to payment gateway of BOC to co

52、nfirm, 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 operation for relative low level of computer/Internet applic

53、ation 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 application level within bank system Accelerating expl

54、oration of cross-banks/cross-regions operation 43Online Payment ProcessCurrent StatusKey IssuesFuture Development44SET Transaction ProcessOnline Payment ProcessCard HolderWeb SiteE-paymentE-walletMerchants ServerMerchantBankPayment GatewayPayment RegistryCACertificate Authority CenterInternet1233344

55、56771.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: delivering payment data to Bank; bank transferring money and re

56、turning 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-signature, CA)Card HolderPaymentGatewayBankMerchant1/234567571

57、 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 identity & delivering payment data to it; 5 Payment gatewa

58、y: 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 from payment gateway, payment gateway asking card issuer

59、 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, RSA encryption, firewall)Online Payment Process-B2CCar

60、d 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 (merchant can not read the payment data)4.Merchant: conveying p