E-commerce Online Payment 天马行空官方博客：http:/t.qq.com/tmxk_docin ；QQ:1318241189；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 cities53-71Market survey result.72-77Analysis 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 conditionE-commerce development is still in the growth stage and experienced rapiddevelopment 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 thatinternet users in China has exceeded 17m By March 2000, there are about 1100 Web sites6E-commerce StructureE-commerce Development in ChinaE-commerce Development in ChinaNote: CA will verify identity of all participants during the course of transaction.Exchanging/clearingUserDistributionBuying/Selling/StoringCAWeb SiteTransactionData base AccountingPayment GatewayInformationCard Issuers Bank （Paying Bank）Collecting System （Collecting Bank）.Back System12123456 78 9101010117E-commerce Development in ChinaE-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 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, informing distributor to arranging delivery11/12.Distributor: deliver products8Issuing informationBusinessWeb siteBusinessDealChecking informationBusiness Model-B2B Model 1: Information PlatformE-commerce Development in ChinaE-commerce Development in ChinaFunction: Web site issuing supply bank transferring money and returning to payment result 6.Payment gateway: delivering transaction result to merchant server 7. Merchant server: confirming payment, arranging delivery 45Online Payment Process-B2COnline Payment Process-B2CModel 1: SET (encryption, e-envelop, e-signature, double e-signature, CA)Card HolderPayment GatewayBankMerchant1/234567 571 Card holder: browsing website 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 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 from 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 willverify identify of others during the whole transaction46Model 2: NON-SET Shopping card (no bank involved) (SSL, RSA encryption, firewall)Online Payment Process-B2COnline Payment Process-B2CCard HolderCard Issuers BankMerchant13 64/5 72 21.Card holder: buying shopping card from card issuers bank or agent 2.Card holder: browsing website Shanghai Credibility Company81Potential competitorsAnalysis & RecommendationSurvey result: Potential competitor in three cities and their characteristics 1.China pay.com-developed E-commerce solution in overseas, and then localized, cooperated with Shanghai baking card network service center 2.CHIC-developed E-commerce solution with many famous multinational organizations in China, established stable relationship with main banks 3.Easy pay-online payment solution developed by Bank of China 4.GNET-help Web site to connect with banks in Guangdong 5.Planet payment-help China Web sites collect money from overseas markets, created strategic alliance with financial institutions in USA Recommendation: 1.E-commerce development in China is in growth stage and has great potential market. 2.To be competitive, it is necessary to not only provide payment gateway, but also helpbusiness sign up as online merchant.82Issue & ConcernConstraintsConstraintsUnanswered questions/Unanswered questions/ Future study areasFuture study areas83Issue & ConcernConstraintsFollowing factors has influenced our understanding about online paymentSecondary research:Limited source can not find some useful information, such as governmentregulation, technology requirement and statistics about B2B In-depth interview:Bank-There are only three banks can provide some value