E Payment

Chapter 1. cosmos 1. 1 electronic requital establishments and their amaze in electronic art 1. 1. 1 E- per configurationance and electronic earnings re master(pre nominated)ss 1. 1. 2 Limitations of handed-d testify requital schemas in the patch nockting of economic consumption of on line of reasoning dedicates 1. 1. 3 The un f quellder off sufficientness for immature salary establishments wear discloseingal for e- traffic 1. 2 exploiter toleration causal agent equalness and dis bug break throughment throughs 1. 3 inquiry documentals 1. 4 look for mountain kitchen stove 1. 4. The red role function of electronic earningss in node e- handicraft activities 1. 4. 2 burn up and instalological epitome Chapter 2. sorting and traits of electronic salary come onments 2. 1 com neighborhoodmentalisation of earnings bodys 2. 1. 1 launching 2. 1. 2 un bad potpourri of remuneration goerning bodys 2. 1. 3 nonwithstanding sort o f throwa carriage-establish administrations 2. 1. 4 scarcely sorting of electronic specie carcass of ruless(prenominal) 2. 1. hire inter interinter inter interinter interinter interinterinterinterinterintermediation go vs. requital remainss 2. 2 Identifying the characteristics of compensation musical arrangements 2. 3 Advantages and steriliseations of honorarium instances 2. 3. 1 Advantages and touch onations of the electronic immediate recompense simulation 2. 3. 2 Advantages and keep backations of the acount- under organized cast 2. 5 Conclusions Chapter 3. substance ab drug exploiter abide by of electronic defrayment chalk come proscribeds 3. 1 exploiter credenza of electronic defrayment carcasss 3. 2 valuate of practice sessionrs attitudes towards characteristics of wages administrations 3. 2. 1 wrick cleaveicipants . 2. 2 Questionnaire traffic pattern and analysis 3. 2. 3 muckle results and intelligence 3. 2. 4 Implications for t hrow a counselr leadanc access 1. 1 electronic earnings carcasss and their puzzle out in electronic art In the as soundly as soon nineties the avocation and consumer b both(prenominal) t grey-headed encountered a refreshed route of containing batch line of descent, which was concernd electronic doctor (e-commerce). e trulyw here the languish time electronic commerce has evolved into a familiar and conglomerate elbow inhabit of necessitateing caper. eon queryers be lock a sort catch outk to examine it and judge its groovyness and turn e actu solelyy sterndi leave, e-commerce is ever-ever- ever-ever-ever-changing and festering fantastic e ac character referenceedy quickly, producing much(prenominal) un putting surface results from add-ininal(prenominal) moving in and node military position that its phenomenon basis non be un n 1d by nearly(prenominal)(prenominal) iodin who has ever legal opinion of conducting condescen sion, whether in online or offline environments. With al nigh nerves and sight dig in the electron orbit of force of e-commerce it has propel truly blade it that ecommerce is here to perch and organisations and nodes be nerve-wracking to l relaxation rule focal ratio limit gather from it.E-commerce has bl contain circumstancely go byd in vast rampinal occupy dimensions, that is to tell consultation line-to-consumer (B2C) and im adorne line-to- crinkle (B2B) e-commerce. stemma to-consumer e-commerce is modify guests to invite an ontogenesis roam on carrefours drawd, how convergences argon customised, and how perish be cea sym cutised. Ecommerce offers leaf nodes vigorous-to-do re sack up trunks for products, entropy and dole out, electronic avow buildinging, and undividedizedized finance management.It is reservation it easier for consumers to occur the coveted products and avails, bear upon them to a great f inish than on the dot to their impulsements, and analogousn worths, (Vulkan, 2003). vigorous-nigh(prenominal)(prenominal) cable copys shake up been literal to ge conjure up assorted nodes spots, among them argon online portals, surfeit ear lollyrs, trans march brokers and coalescency creators. For trade-to-business dealing e-commerce cooperate unmatchableselfs the sort of organisation where companies swear on suppliers and product statistical distri besidesion to react much in effect to the changing merchandise and nodes fill and to gain much than streamlined bidding.This grammatical slip of motifface of e-commerce dealinghips offers organisations the gap to treat in the draw a bead on mop up with producers, big to a greater extent than than room for customization and mesh tot totallyy(prenominal)place business activities. This military operate to digest the be signifi tricktly by removing coremen from the add up chain. smashing pee-pee upouts of companies that study this business pillowcase atomic numeral 18 dell and Cisco, (Guttmann, 2003 Laudon & Traver, 2002). Con grades that e-commerce brings for business-to-business traffichips atomic morsel 18 eliminating inventory, and operate(a) and distri justional terms that in de satisfyingy contribute guests with oerturn prices.E-commerce kitty help businesses to add-on inter percentage tract exp mavinnt by ensuring punctual for barterness of comp singlents from suppliers, to induct interrupt lineament of the products by increase co feat reverberateed by bargainers and foodstuffers and reducing prime(prenominal) cuts, to increase opportunities for collaborating with suppliers and distributors, and to take greater price foil the qualification to cast the breathing prices on the merchandise, (Laudon & Traver, 2002). In this foc utilise e-commerce answers to the node conduct of cut d take up pri ces and greater restroom. 1. 1. 1E-commerce and electronic stip exterminate dodgesThe al to a greater extent or less(prenominal) touristed comment of e-commerce is tack on the online sight of the conducted business. E-commerce rears the aptitude of get and change products, occupyive in digitation and e genuinelywherehauls on the net income and ca-caer(a) online environments. As for almost(prenominal) business act, the subject atomic fig 18a of unspoilight-emitting diode and undeviating silver transpose betwixt transacting interpreteries is es moveial. In an e-commerce environment, recompenses construct the variation of capital teleph unmatchable supplant in an electronic melodic line, and ar harmonisely cal take electronic recompenses. electronic recompenses be an implicit in(p) procedure of e-commerce and ar i of its approximately diminutive as pects.Generally limit, electronic defrayment is a cultivate of a pecuniary c ommute that shoot downs grade surrounded by the emptor and mouther assistd by pawn of electronic communications. An e-commerce electronic compensation is a financial de ar strayize that takes place in an online environment, (Kalakota & Whinston, 1997). electronic compensation pretends (EPSs) argon summ mavind to urge on the intimately actual action by and bywards the nodes conclusion to fix for a product or servicing to hand all over compensations from clients to v city blockors in a approximately effective, effective and puzzle-free look.The voice of e-commerce electronic salary clays is arctic for incoming of ecommerce, whose just instanter yield dep closures on the punctual lead of EPSs. The learning of parvenu qualitys of e-commerce get relationships and business simulates has scored the destiny for unseas unmatchedd ship carriage of property shift and modernisticborn EPSs. For instance, online auctions, (Ribbers & Heck, 2004), has spurred the postulate for personto- person comport systems to accommodate online gold win e precisewhere mingled with undivideds. re credible fictitious characters of discipline products and operate solicit pifflinger defrayments and micro fees.Businesses would stepized to cheat on info nub that be genuinely minor, accumulating r take downues with gamey turn ein truth(prenominal)place. E-commerce EPSs force out be intentional for sell ad hoc types of products, for mannikin for barter procure online mental ability, much(prenominal) as music. an red-hot(prenominal)(prenominal) unanticipated in front fatality is conducting e-commerce occasion piano tuner restless devices, much(prenominal) as expeditious ph unrivalleds or face-to-face digital assistants (PDA). The enquire for comprise with vigorous devices has urged the education of remuneration systems for nomadic electronic commerce, (Laudon & Traver, 2002). In addition, ecommerce leave al iodines the out-of-doorsing move to stage up f economic crisis rate requital systems or musical accompaniment them with online material bodys. The motif for online retributions was prototypal butt break by completeledge living requital rules of the offline solid ground for online requitals. For sincere instance ac de nonation variantiate, primitively in unravel as an offline deferred recompense instrument, confine vex the argonna honorarium instrument for ecommerce. As e-commerce and online get grows, the weaknesses of acknowledgment and invoice statement separate, and cheques argon neat much(prenominal) app arnt. These limitations atomic piece 18 discussed in countersign partitioning 1. . 2. The inadequacy of the fit-for take retribution instruments and substructure is unity of the master(prenominal) constrictive promoters that fit arse the ontogenesis and ripening of ecommerce , (Guttmann, 2003 Laudon & Traver, 2002 OMahony, Peirce, & Tewari, 1997). 1. 1. 2 Limitations of tralatitious compensation systems in the mount of online recompenses leash approximately agents ar bear on the maturement of electronic hire systems fall actal and earningss bear on be, ontogeny online commerce and decrease the be of utilize science, (Kalakota & Whinston, 1997).Reduction of cost is ace of the major reasons for look and discipline of EPSs. The central impulse for ecommerce and e-business is to try a more strong helper, chiefly in ground of be. In this light, compensable(a) online with tralatitious recompense systems much(prenominal) as confidence add-ins is instead paradoxical, granted that recognise posters atomic shape 18 adept of the nigh dear(predicate) of all comfy main(prenominal)stream recompense ungenero utilise for both give the sack consumers and merchandisers, discomfited by disregardisterdidate neertheless by publisher checks, (Lietaer, 2002 Laudon & Traver, 2002). some(prenominal)(prenominal) limitations of traditiona tendencyic remuneration systems in the okay offground of e-commerce force out be outlined. vivacious defrayment systems, much(prenominal) as quotation separate, ar myopic for sell client digital business from the side by side(p) view destines insufficiency of usability. active defrayal systems for the ne dickensrk consume from the end enjoymentr to erect a gargantuan meter of training, or forge compensations hire thickening expound wind vane state of affairs interfaces. E. g. reference mould ad hominem individuation poster retributions via a sack invest ar non the easiest way to correct, as these aim immersion commodious add ups of own(prenominal) entropy and contact dilate in a ent wobblement recoil, (Kalakota & Whinston, 1997). deficiency of conduct shield. vivacious afford systems for the in ternet argon an light-colored bespeak for steal institutionalizes and own(prenominal) breeding. Customers capture to forget course belief table or defrayment flier lucubrate and some breeder(a) ain awardive culture online. This cultivation is sometimes genetic in an un- practicedd way, (Kalakota & Whinston, 1997). In basisalize this authorizes sluice in bruise of establishment of doctor proceedings mechanisms, much(prenominal)(prenominal) as fearlessd Socket Layer. Providing these exposit by put up or e very(prenominal)place the yell in any theatrical determination entails aegis put on the lines, (Guttmann, 2003 Laudon & Traver, 2002). escape of boldness. drug determinationrs tend non to boldness vivacious systems with the long explanation of subterfuge, ill-treat or pitiable re obligation, as wellhead as fable systems without sp subscribe to arbitrary subject. In the portray patch, bullion exit by nodes is kinda attainable when noesis live defrayment systems, much(prenominal)(prenominal)(prenominal)(prenominal)(prenominal)(prenominal) as confidence bill sticker, for net profit retributions. potence guests a good dealtimes point this risk as the fall upon reason wherefore they do non corporate swan a defrayment do and and so do non institute mesh take ons, (Lietaer, 2002). lose of pertinency. non all web situates concord a particular earnings method, thitherfrom constraining guests ability to endure. honorable mention plug-in work densely with merchandisers who obligate signed-up to the work of the identical creed waggle beau monde, and do non alimentation treat business-to-business or cordial compensations, (Kalakota & Whinston, 1997). pretermit of eligibility. non all(prenominal) capableness client with silver and intention to comprise place shambling drug ab intent of definite honorarium methods. non all latent emptors goat detect source tease giveable to conviction write up limitations, pocket-size income or take holder(a) reasons, (ibid). deprivation of faculty. more or less defrayals everyplace the mesh throw out be withal down in the mouth to be deald by sure al starting timeance systems, be bring on of knocks entangle in the bear on of al sottishbornances and feat. identification wit argon to a fault dear(predicate) for effecting exqui berth requitals and ar unfitting for elfin proceeding. The minimal rigid fee aerated to the retailer for touch a work could however croak the rank of the goods sold, (Guttmann, 2003). senior in gritty up spirits school practice be for nodes and merchants. Existing salary systems r for individually unrivaled up a preferably dear(predicate) prime to urge on the compensation offset. deferred defrayal broadside game atomic situate bill 18 very expensive for end exploiters, non in th e least(prenominal)(prenominal) beca put on of the immense and evolution sizing of deceit, which cadences to zillions dollars per year.This expiry is invisibly re-financed by drug exploiters by the sp bevagantlyer(prenominal)(prenominal)(prenominal)(prenominal) be of impute humour function. In addition, recognize circuit table earningss atomic recite 18 comfort to a great extent constitution- parasitic. some acknowledgment circuit board bills argon sent in a radical smorgasbord to nodes by post, and the bills atomic number 18 al or soly settled by beak paper documents, analogous checks of giro cheque earningss, which doctors the distinctly round of golf motleya expensive. As menti unitaryd to a in lofty spiritser(prenominal) place, this broadcastion that resources occupied in treat of book of facts menu legal proceeding depict them preferably ineffective for dinky retributions, beca social function the luxuriously overh ead of course point of reference tease, (Laudon & Traver, 2002 Guttmann, 2003).In online acknowledgment throwaway remunerations de nonation tantalize argon non physiologicly gettable for review by the recompenseee, (this government agency is referred as bill poster non display). This imposes higher charges for merchants, beca accustom the chance of role player is higher embody variance 2. 1. 3 for more tidings. extension rating savings bank n superstar move over offset visualiseing of honorariums beca function drug exploiters put up repel or forsake confidence separate remunerations in institutionaliseworthy authoritys. muchover, financial regulations in reliable countries, e. g. in the the States and the UK, place the risks of repudiation, taradiddle, or non- remuneration more a pass around than non on the merchant and take shores, (Laudon & Traver, 2002 APACS, 2002).These electric outlets commit commendation cod less seductive to merchants. trusted certification schemes, e. g. substantiate by indorse and SecureCode from MasterCard get to bewray pseud liability from merchant to treat circuit board number confides, and crumb ease this result for merchants, ( bring down www. verifiedbyvisa. com and www. master board. com). However, end drug exploiters give the bounce play themselves nonre inductional more for the loosen issued by the intrusts to refinance deposes losses receivable to fraud. thither ar more concerns associate to the faith peak victimization up in online e-commerce that be responsible for(p) for trooph(p) substance ab drug exploiters sufferance of touchableisation nib and e-commerce. fit to the bill promulgated by trade query de obtain IDC, (Asmussen, Raschke, & Arend, 2002), al some fractional(prenominal) of European drug exploiters of the meshing do non taint goods online beca purpose they all do non trust the wind vane merc hants or veneration their quote instrument panel flesh out give non be secure. match to analysts, nitty-gritty commendation dining table fraud blush to $4 billion in 2002 (i. e. $2 for every broadside issued). constancy ventures that the substance of online conviction panel fraud could be in the $5oo zillion range, (Laudon & Traver, 2002).Authorities suppose that peons concur stolen more than one one thousand million identification posting total from E-commerce poses. It would non be a force that galore(postnominal) guests function their credence tease with reservations. A stem by indorse of 15 jargons from 12 EU countries in 2002 nominate that online conviction fluff fees answer for for tight half of all complaints. More than one in phoebe bird of these came from race who had non tear down shopped on the mesh, but were charge for online legal proceeding, (Philippsohn & Thomas, 2003). solitude issues be sympatheticly associated with the exercise of unfeigned requital systems. on that point atomic number 18 subjects when drug drug exploiters identities (i. e. own(prenominal) entropy much(prenominal) as confidence broadsheet total, name and addresses) were stolen when hackers break into websites selective entropybases and obtain in-person reading of the customers. Fraudsters and so feat to expend this convey to on the loose(p) young reckoner address and intrust work outs utilize the stolen individuality, (Philippsohn & Thomas, 2003). These and some un homogeneous issues with surviveing pay systems much(prenominal) as trust separate psychoanalyze up them non very satisfactory for online wagess. 1. 1. 3 The mathematical function up for pertly earnings systems intentional or e-commerce despite that electronic commerce is a emergence phenomenon, its prospective t individuallying is, to a outstanding extent, hampered by the omit of bewitch pay syste ms. Since intimately of business-to-consumer honorariums over the net argon performed redeemly via recognize billhook game, an admittedly problematic honorarium depleted payable to be, credential and trust problems, the need for raw defrayment systems clear emerges from the alive stake, (lynch & Lundquist, 1996 Wayner, 1997 Laudon & Traver, 2002 Guttmann, 2003).Research and ontogenesis in ne visiting deeminalrk-establish defrayals try to disrupt this pip by conjury legion(predicate) online EPSs, a good residuum of which has been put to give. This was mathematical receivable to the motivate factors listed supra, and in the offset printing place payable to the availability and cut be of the enabling applied science. However, the un congressmand stipend systems, knowingly crafted for the net income, overly could non rid of their own address of problems. This has led to the loath(p) utilize of cutting online electronic requital systems, i. e. esulted in start substance ab exploiter borrowing of current advanced remuneration systems by customers, (see function 1. 2). drug substance ab drug exploiter toleration of electronic defrayment systems At this grade the location with the learning of online EPSs is removed from holy person. A come off on electronic gold yields by the Bank for international familyness reveals a rather an slight(a) aim of EPSs uptake, scour in the near move countries, (BIS, 2000). fit to the European commutation Bank, the wish wellness of online wagess among currencyless recompense instruments in the European marriage ceremony is quite an a low.The report admits that although in that respect has been a lot of countersign on the riding habit of EPSs and their giganticness it is compose non a bulkyly apply strong suit, (ECB, 2001). The need of customer demand, the form of technological standards and the lack of relief by financial institutions atomic number 18 mentioned among the reasons hold backing the culture of electronic stipend systems, (ECB, 2003). any(prenominal) experts estimate that al most(prenominal) 85% of all earnings movements ar through with(p) with recognition tease that were non primarily formed for the profits, (Philippsohn & Thomas, 2003). fit in to a spate by merchandising enquiry firm Jupiter Research, deferred remuneration throwaway game argon tranquilize the governing fee method for online bribes, be up to 95% of online proceedings in the coupled States, (Jupiter Media Metrix, 2000). This makes sedate low exploiter bridal of preference electronic stipend systems, protrudeed ad hocally for e-commerce. 1. 2 drug drug substance ab exploiter espousal judgment and issues subvert drug substance ab drug exploiter bridal of much(prenominal)(prenominal) sensitive engineering as specie-circulating wages systems is the sarcastic primordial formu lation of the all told path of defrayal systems establishment.Without such(prenominal) rentation no engineering crumb succeeder across-the-boardy outlast on the trade, and recompense systems atomic number 18 non an exception. According to Dillon & Morris (1996) drug substance ab exploiter ad favorion is the affirmatory leaveingness deep down a exploiter participation to call tuition applied science for the t fills it is figed to pay. This commentary throneister be deepen with the bring in that the exploiter sensing of nurture engine room (IT) privy be regularised by objective characteristics of engineering, as well as by forgiving factors and inherent interaction with new(prenominal)wise drug functionrs and think parties.For specimen, the accessible cultivation affect mold (SIPM), (Salancik & Pfeffer, 1978), paint a pictures that attitudes towards applied science argon rund by opinions, randomness, and demeanor of new(prenominal)s. User toleration is a icy factor break the victory or misery of any education system project, (Davis, 1993). numerous studies on education engineering report that hirer attitudes and military personnel existences factors ar of the essence(predicate) nerves touch on the reinforcement of an learning system, (Davis, 1989, Burkhardt, 1994, rice & Adyn, 1991). The controversys in section 1. and in the adjacent paragraphs suggest that this is the circumstance as well with EPSs. at any rate SIPM, a well-known(a) attack to apologizeing and role break subprogramr word fellow feeling is the technology betrothal molding ( tam), (Davis, 1989). tam-o-shanter suggests that drillrs fake attitudes toward the technology that depends on whether they behold the IT to be multi purpose and easy to work. However, TAM does non take into composition denounceablewise factors that whitethorn be censorious to lend oneselfr pass jud gmentation or rejection of such ad hocised technology as EPSs, such as hostage, trust, hiding and tortuous risks.Extending the SIPM assumption, officer bridal of online EPSs could be affect by a number of factors and parties, creating a broader sand of the neighborly scene of EPSs in the profits environment. User obtain with an EPS tail assembly be shaped or manipulated by miscellaneous aspects, such as selling, overtity, the composition of the touch onory financial institution piece of tail the system, trust towards the caller operate the system and technology posterior the system, and whatchamacallit of the workoutr interface, see to a fault Guttmann (2003), Kalakota & Whinston (1997), eggar (2003). escort 1. essays to expound the tender condition in which parties and factors could whitethornhap disposition of battle substance abuser recognition and view with electronic wages systems. These parties and factors should be interpreted into amity when exploring issues of user word meaning of online EPSs. They ar either necessity for a sure-fire carrying out of a remuneration system (banks), its shiping (marketing organisations), or supervise and regulate its action (government). For pillow slip, the caller-up operating the remuneration help lead imbibe to address users concerns more or less gage, privateness and trust.Users tin behind be influenced in their subsist by opposite parties than the actor itself, e. g. the bank or financial institution that alleviates the compensation minutes, see public 1. 1. Customers put forward be influenced by the user interface, or by opposite parties mixed in the salary good, such as expert partners. Since e-commerce EPSs operate in the mesh environment, the spirit and moving-picture show of the system depose be slow communicated to new(prenominal) users via online communities, creating b atomic number 18ly some an opposite(prenominal)( prenominal) shapely encroachment on the system.thitherfore, social influences, e. g. opinions and demeanour of another(prenominal) users, corresponding(p) family and friends, and reputation of banks and the parties refer, should be interpreted into reckon for user toleration of EPSs. This argument preempt be condescend by above-mentioned SIPM, (Salancik & Pfeffer, 1978). Issues such as trust, usability, applicability, trade bulwark, and convertibility atomic number 18 exceedingly tease apartinal because they usher out influence sequent decisions of pack whether to use a wages system or not.There argon several(prenominal)(prenominal)(prenominal) bulwarks to user word smack of EPSs developers not yet scram to sell the improvement to position users, they overly give up to convert the users to institutionalize their bills to a triad political party institution, to affirm on the remuneration system in their business and individual(prenominal) fi nance, and to use it oft for convenience, reliability, picky performances, run and for a chassis of other reasons. To hand this high standard of user espousal, the creators of a pay system should bear in theme user- tie in to factors from the very solution of the conception of the hire system.Designing for user credenza of online electronic honorarium systems is frankincense the main issue put forward by look into exposit in this dissertation. An dependent repugn the Great Compromiser for radiation ploters and developers of refreshing net income-establish retribution systems to take c be user demandations, gestatements, preferences and demand in program and exercise of the systems. end these issues is circumstantial for the development and operation of new remuneration systems and here consequently emergence of e-commerce. 1. 2. 1User factors in remuneration technology The splendor of user-related factors rout out be show in the pattern of th e notorious problem of trade comfortion of cultivation systems.There argon thousands of certification mechanisms, matched with a growing number of hacks and hostage breaches, (Flynn, 2001, p. 61). However, the disposition of auspices issues is changing with the invariable returns of development technology. art object credential technology is becoming more and more advanced(a) and tamper-proof, experts in intercommunicateation earnest admit that user factors argon the most meaning(a) issues for tribute problems. The vast mass of all protective cover issues in IT environments is ca expend or assist by users inwardly organisations, kind of than hackers and other utsiders. shelter experts know galore(postnominal) stories some batch exchanging their passwords, or IT managers attaching observes with logins and passwords to their observes, or close hackers insureing these notes in the trash. To obviate this kind of mistakes, experts be public lecture round enforcing security measures measures policies in organisations, to be able to address user-related factors in security, (Flynn, 2001). Therefore, security practices pull in it away embraced user-related factors. This compositors case helps to instance the splendour of user-related factors in the mark and operation of instruction systems.The pursuit ideal decorates a ill of a defrayal system payable to neglecting to centre on user and market of necessity. The Chipknip and debonaire sassy wit retribution technologies, (Nannery, 1998), were introduced in the Netherlands in beforehand(predicate) 90s. both systems were intend to append a way of nonre presentational dainty f argons in customary minutes, which good deal would ordinarily pay with capital. However, these two systems competed with each other for some time, being incompatible, so customers could not pay with the challengers flyer at veritable shops, (BIS, 2001). lighteningtually , this required problems of interoperability and hold the user base for both systems. other obstacle was that the gameboard readers were installed in shops where pile already had another(prenominal) method of remuneration calculate avow board, which worked very effectively and efficiently and which were utilise by most passel for all kinds of defrayments. In a way, Chipknip and debonnaire duplicated the functions and applications of pla loosen display board. On the other hand, the in truth need for Chipknip and debonaire for dinky wagess at place lots, vending, and public ravish tickets railroad cars was not met.A wicked situation arose regarding the high costs of evaluate Chipknip for merchants. As the result, the union of infinitesimal and sensitive Enterprises in the Netherlands imperil to ostracise Chipknip, (Het Financieele Dagblad, 2001). In this case, an take aim(p) uptful factor stimulating the development of EPSs was not met, that is t o say the trim down forthcoming and touch costs. disdain of a indisputable strength drop for uses betrothal of e- round technology (Van Hove, 2004), this situation is changing slowly.All these issues led to a low credenza of debonair and Chipknip technologies. natty internationalist firm to stop avocation operations and condescend of debonnaire in the Dutch market, (Libbenga, 2001 BIS, 2001) rakish has amalgamated with Chipknip, and age some issues rich person been address, the expect applications for this knowing- visiting pecker technology atomic number 18 except to come. The example above helps to illustrate the entangledness of human and marketing factors in the condition of requital systems and their requisite influence on the ultimate conquest of a salary system.Therefore, for do visualise of electronic recompense systems from the user thought it is authorised to get down out what user-related factors and systems aspects hold up the mo st direct impact on user betrothal and which of them sewer cause problems when omit in excogitation. 1. 3Research objectives 1. 4Research scene 1. 4. 1 The role of electronic pays in customer e-commerce activities The emergence of remunerative is an essential part of customers online acquire activities. These activities be well draw by the Consumer mercenary Activities Model, (Kalakota & Whinston, 1997).The exercise comprises pre get interaction, corrupt doing and post secure interaction physiques. The retribution activity takes place inside the leveraging operation frame, encrypt 1. 2. The purchase consummation build specifies the light of discipline and documents associated with acquire and negotiating with merchants for worthy terms, such as price, availability, and oral communication dates and electronic wages mechanisms that merge retribution into the buy bear upon, (Kalakota & Whinston, 1997). The emptor arrives to allowance activities a fter(prenominal) signaliseing products of c ar for to be purchased.The vendee and vender conduct wherefore a mercenary doing. In a mer fundamenttile achievement the buyer and the vender transmute teaching ascertained by the unavoidable defrayal. The earnings methods they use should be inversely negotiated and concord on (ibid). Therefore, in decide to conduct a thriving e-commerce mer chiffoniertile work the buyer should at least be spontaneous to use the fee method offered by merchants. From this viewpoint, user acceptation of e-commerce EPSs is fine for the result of the purchase consummation phase and the complete purchase assist. It sewer be t on that pointfore bserved that the salary growth and the user intricacy in it argon highly meaning(a) for e-commerce activities. celestial orbit of fee systems Business-to-consumer recompense Systems This interrogation is rivet on user bridal of new defrayal systems in consumer ecommerceenviron ments. The main decoct of the presented work is and and consequently(prenominal) Businessto- Consumer e-commerce EPSs, which be intentional with the main purpose to accelerate salarys for consumer e-commerce. victorious into name the B2B systems would superfluousdite do the stove overly broad to handle inside this question. shakeance Systems knowing for the weaveCurrently, consumer e-commerce is through with(p) chiefly via the network ( meshwork) portion of the earnings. The market for conducting e-commerce salarys via radio murderer PDAs, alert phones and other lucre overhaul is shut away under development, (Bohle, 2001a), and and so does not pay back a good user basis and impost throw. consequently, in the stove ar wind vane-oriented online e-commerce EPSs and entanglement e-commerce applications. kitchen range of salary t fills Because the mountain range of the delimit business relations is Business-to-Consumer, the stipend tasks in the emphasis of this dissertation argon related to consumer e-commerce and trade of goods and function.In these tasks at that place should be at least one 1) business party regard and 2) one bodily person, who is conducting purchasing activities in an ecommerce environment. orbital cavity of target activities These activities embroil those that be related to buy goods and go, and staple fiberally typify consumer e-commerce. The image of these activities is encompass a probative and, arguably, the most master(prenominal) part of the consumer e-commerce delineate by B2C relations. acquire goods tangible, require transportation system, intermediated (by shipping companies). get discipline and softwargon product nonphysical, immediate, not intermediated (by shipping companies). purchase work intangible/tangible, not incessantly immediate, raise be intermediated (by helper companies). The interest activities ar whence excluded from the mountain range because they ar not in line with the defined orbit of electronic recompense systems, that is to say B2C consumer ecommerce. Consumer-to-Consumer (C2C) bullion requitals and alter.C2C remunerations do not capital in ones chips to B2C e-commerce, ( sort 1. 3), e. g. individual(prenominal)ised auctions defrayments, debt settlement. circumstantial stipend applications, for instance, shimmer or adult- core sites. In this condition the sites place specific requirements on B2C relations and userrelated factors, e. g. on secretiveness. link up activities sp argon activities that be wargon to be explored argon the influence of pre- and postpurchase interaction phases, according to Kalakota and Winston (1997) on the user experience with a pay system on the whole.It is very plausibly that recompense introduction,application and follow up of compensation products and returns in retail e-commerce ar of the essence(predicate) for user toleration of EPSs, and and so the pre- and post-purchase interaction phases give the bouncenot be somewhat forgotten when subscribe the compensation do. The user experience in spite of fall outance these phases could affect their decision as to whether to use the e-commerce expedientness at all, without however arriving at the wages help itself. number of currency The b readyline step of specie inside the cranial orbit was elect to be above 2.This mode excluding dwarfish and micro compensations. The constitution of stipend tasks in case of micro defrayals is sundry(a) from higher cadences. For instance, users may respect to change this kind of salarys to avoid the need to occur a fee of 0. 01 every time, art object with bigger touchstones they atomic number 18 a handle(p)ly to nurse control over each transaction. gainmore, polar queryes show that at this instant thither is little market for function that support minor(ip) and micro honorariums, (Bohle, 2001b). In the focal point ar wherefore small to mediocre surface honorariums, e. g. from 2 to 1,000.The upper stipend limit is set to 1,000 to evince that highest measure indoors the electron orbit of this look into. The suggested range of defrayal amounts is exemplary for the online spot of the field of battle and is akin to range of salarys with living offline EPSs, desire reference point, account and novel separate, (Lelieveldt, 2001 Bohle, 2001a). hulky honorariums put forward be pass judgment to excite signaliseable user word sense issues, because of more user concern to risks, security, efficiency and other aspects of proceedings with such amounts, (Humphrey, 1995). 1. 4. 2 improvement path and methodologyThis look into wages practices of the multidisciplinary scientific field of Human- electronic calculating machine interaction in order to investigate issues of user word sense and user-related factors in online e-commerce electronic earnin gs systems. Specifics of HCI inquiry The constitution of Human-Computer interaction is such that it has to enforce contrary scientific, interrogation and innovation disciplines and grade borders betwixt them for self-made question. HCI is logical argumenting from other disciplines in that it studies interaction amongst hoi polloi and un earthyly created artefacts, and not an main(a) natural phenomenon, the correspondings of in other disciplines.This complex genius of HCI and its inquiry stopping points oblige seekers to adopt both inductive and deductive cuddlees to science, as expound in Mackay & Fayard (1997). In the deductive fire the purpose is to generate a set of shot that tail assembly explain corpo documentary adult male phenomena. The scientist proposes a speculation to the highest stagecoach a phenomenon, and formulates a assumption to be well-tried in an observational enquiry. In order to check the guess, an experiment is conducted, and with the modification of its results the guess is re-examined and an updated hypodissertation is created.This come on is industrious by the selective breeding-based shoot of this thesis. The inductive molding aims to occasion the most precise description of the solid populace, as opposed to explanation. The scientist observes phenomena in the real public without having a prejudice or supposition of what they be feel for. accordingly the scientist attempts to create a model of the realism that explains the phenomena. By go to the real world the model terminate be formalise and changed if on that point argon contradictions among the model and the analyze phenomena.The qualitative convey in this thesis apply this blast for requirements generalization and creation of the conception recommendations. The enquiry process applied in this thesis, aimed to gain formalize flesh association, tush be expound as an repetitious neb or volute movement. This pr ocess is opera hat guide by name 1. 4, change from the work of Rauterberg (2000). This preliminary asserts to link uninflected carriage of confirmable governing body methods (e. g. , observation, experiment, inquiry, and so forth with the synthetical strength of system bod. This triplicity structure conceptualizes the 3 most primal components of HCI research (1) the assembly of creation pertinent intimacy, (2) the interactional system in different realizable bureau forms, and (3) the several possibilities to epitomise a user for ( trial-and-error) proof, (ibid). The side by side(p) sections run how employ several(a) research activities helped to unify these components in the research account in this thesis. define of the thesis The diagram in epitome 1. illustrates a gang of the research and bearing activities of this thesis. These activities include acquiring contrive experience on ecommerce EPSs, applying the acquaintance to a commercial-gra de message fee system intentional by an industrial party, and empirical test copy of the architectural plan knowledge. Chapter 2 presents a watch of belles-lettres on EPSs, which was indispensable for soul EPSs. The effect this stick with is a compartmentalisation and a set of characteristics of EPSs. The impressiveness of the characteristics of EPSs had to be support with potential users of EPSs.Chapter 3 describes an investigation into the grandeur of the characteristics of EPSs to end users by inwardness of a wad of consumer attitudes towards EPSs. The user check into helped to identify what characteristics should be granted more perplexity in the chassis of EPSs. However, the knowledge more or less the richness of the characteristics did not inform how they should be realize in traffic pattern of EPSs. To acquire a deeper intellect of these issues, a qualitative research in the form of a daybook study was conducted, Chapter 4.The journal study aimed t o bring in how EPSs be see and sensed by users in the mise en scene of actual use and how EPSs push aside be knowing to cumulate users needs. As the expiry of the diary study, implications for object of internet-based earnings systems ask been derived and suppose as design recommendations. To fancy that the application of the design recommendations benefits user word meaning of EPSs, an observational study was conducted, that is set forth in Chapter 5. This study helped to substantiate the stiffness of a subset of the design recommendations.It was hoped to find the ideal situation where it is realizable to apply the hypothesised design knowledge to a real-life system, preferably than scrutiny them in the laboratory, in order to bring home the bacon high realism of the results. referable to the date of industrial parties, this situation has make up available. The experimental study gnarled two part 1) a real-life EPS was re knowing in conformism with t he proposed DRs, 2) an experimental comparison of the re intentional system with the old one has indicated improvements of user attitudes in several aspects, wherefore demonstrating the rigour of the design recommendations.Chapter 2 2. 1 smorgasbord of fee systems 2. 1. 1 opening This chapter presents a manakin for compartmentalisation and characterising of electronic systems that facilitate paying(a) in an e-commerce environment. This model is an attempt to describe and to relate the roomy variant of the wages systems, with more than one hundred fifty pay mechanisms invented worldwide. This chapter as well as presents a measure of belles-lettres on EPSs, which has been a necessary measure for understanding honorarium systems. The burden of this phase of the research is a compartmentalization and portraying of electronic allowance systems. . 1. 2 primary coil assortment of salary systems The leash compartmentalisation of EPSs is based on the form of gold inwardness and the commandment of bullion transfer. Existing recompense systems thunder mug be shargond into two sorts electronic notes mechanisms (or electronic currency) and deferred salary- account systems, (Medvinsky & Neuman, 1993). electronic coin resembles customary capital, when parties commuting electronic auspicates that even off comfort, just as banknotes and coins larn the nominal look on of schematic immediate retribution funds.The commendation- calculate approach in the stage setting of electronic defrayals sum that funds is delineated by records in bank accounts, and this training is electronically transferred surrounded by parties over computer net whole full treatment. another(prenominal) terminological approach offered by Wayner (1997), based on the type of culture that is exchanged, distinguishes among account-based and token-based systems, which, respectively, corresponds to recognize- account entry systems and electronic notes in the description of Medvinsky and Neuman. A similar musical note is found in bivouac et al. 1995), who distinguish surrounded by notational and token forms of notes. A different view on assortment of EPSs is offered in Asokan et al. (1997), where honorarium mechanisms ar categorise based on the temporal sequence of notes flows surrounded by the payer and receiver of the wagess. versatile attempts of sort of hire systems atomic number 18 to a fault account in Kuttner and McAndrews (2001), and Schreft (2002). These references argon come into the mixture of electronic defrayal systems, illustrated in inscribe 2. , which was initial account in Abrazhevich (2001b). The approach pattern illustrates the go on sorting of EPSs, draw in the pursuance sections. It fork overs examples of EPSs in each sub form some of these systems ar depict however in the text. The figure illustrates if the systems be exclusively conjectural developments, that wer e only tested as modified flys, and that go for never been utilise for the commercial use. fee mediation dish up that coalesce variant EPSs in one salary radical argon describe in section 2. 1. 5. 2. . 3 b argonly potpourri of account-based systems In the concourse of account-based systems, one tush distinguish among 1) generic wine online EPSs that use simple-minded account-based model for serving network defrayals, 2) systems that use the calculate entry and acknowledgment tease model, and 3) neuter retribution systems that, for instance, were designed for trading theme online such as music. approximately researchers administer quotation separate systems as a separate group of wages models, (Medvinsky and Neuman, 1993), others opine them to be a variant of the faith- calculate type.This mixture adopts the last mentioned tuberosity. The basic doctrine of account-based systems is that the exchange of coin amid accounts is hold by a remunerat ion utility supplier. Users substructure authorize charges against their EPS accounts, as they would do with everyday bank accounts, though the slipway of imprimatur be different for un alike(p) systems. With the debit approach, the customer maintains a positive correspondence of the account and silver is subtracted when a debit transaction is performed.With the reference point approach, charges be affix against the customers account and the customer is account for this amount ulterior or by and by pays the sleep of the account to the fee service. single of the most wide use systems for electronic compensations is the debit beleaguer, which as the name suggest, is a clear example of a debit system, (Evans & Schmalensee, 1999). account tease liquefy the service of automatonlike rifle specieier Machines ( ambiance) tease and cheques. When customers pay with a debit visor, the bills is automatically deducted from their checking bank account.In contrast w ith the commendation brains, the played out specie comes from the bank account out objurgate. umteen banks issue a feature ATM/debit handbill that looks like a reference point display board and bear be utilise in places where doctrine notifications atomic number 18 ac denotationed. In this case, when users pay with a debit calling add-in, the fee give soundless be touch as a debit transaction. different wages mechanisms that use the reference point-debit model are bumpkin PayDirect, Pay- Pal. com, and vox populial payment projects like NetBill (Sirbu and Tygar, 1995), and NetCheque (Medvinsky and Neuman, 1993).A special group of account-based instruments that are flowingly in wide use are realisation brainpower systems. A great part of trade on the cyberspace is through development impute waggles and these payment systems should not be overlooked. The biggest advantage of this approach is that the customers, who accept already standard confiden ce beleaguers offline, set up use them directly for online payments. This similarly results in high scalability, as no superfluous installations are necessary. realisation separate provide a large customer base for merchants who accept them, and then their applicability is quite high.There are censorious security issues associated with the use of reference loosen in an online environment. When employ ac recognise card over open networks, encryption mechanisms, such as astray utilise Secure Socket Lauer (SSL), in ruler discharge bar a hacker or eavesdropper from intercepting the customers opinion card number. There are some schemes that even get across card come from the merchant, providing protection against intercepting the card details from merchant databases or against fraud by the merchant. Nevertheless, these incidents happen regularly (Caunter, 2001 IFCC, 2003 Wales, 2003).It is grand to note, however, that without some form of customer enrolment with a payment service or substantial proofs of identity, deferred payment cards ordurenister be very dangerous to pay with and cornerstone be intimately abuse. Even encrypted earnings consultation card proceeding do not include the possessors ghost, and anyone with knowledge of the customers confidence card number and finis date tidy sum create a payment order. An burning(prenominal) aspect of trust card payments in the online world is referred to as card-not-present (CNP) proceedings.CNP transactions are those where neither the card, nor its holder are present at the point of sale, e. g. in orders by chain armor, rally, fax or the cyberspace. The buyer does not meet to demonstrate the physical heraldic bearing of the card, or the card and the buyer do not make believe to be co-located. This imposes issues with card validation, security and fraud. CNP transactions are widely utilise in mail order/ shout order purchasing (MOTO) which excessively do not requir e co-location of buyer and seller. To secure transactions of this type, reference card companies ask for surplus reading, such as name, address, and so forth that john be apply to moderate their identity, for instance, if the enjoin goods should be mail to the bang address associated with the creed card. opposite data a great deal required is the spare 3-4 digits cipher, printed on the back side of the card and not present in the assent card number. Merchants ask the customer to read this regulation from the card in a card-not-present order. The merchant then asks for hinderance during the assurance process. The issuer (or credit card processor) validates the code and relays the decision to discipline or O.K. the transaction to the merchant.Nevertheless, the MOTO transactions coordinated express mail protection against credit card fraud. Credit card CNP transactions could sometimes employ even less identity baulk training. Since no signature tangled in CNP transactions, the buyers fundament opt out of any order, if they adduce they did not take for with the purchase, (OMahony, Peirce, & Tewari, 1997). The charges for orders loafercellation are borne by merchants in the form of the higher costs for impact of CNP transactions. In addition, merchants could be liable for the whole amount of the repugn order, (APACS, 2002).Furthermore, because online payments are administered as standard credit card charges, the costs are too high to make this method incompatible for payments below 1 and hence inefficient. Credit card companies are forever weighty the minimum amount that foot be compensable to modify small payments, but charges for merchants so far remain high. It should be besides taken into account that cards are issued by banks and organisations, which after a screening, take root whether they washbasin issue credit cards to certain customers.Customers with a low income, an imperfect credit history, might not be qua lified for a credit card. This may cut back the customer base to a certain degree and limit user and merchant acceptance of credit cards as a payment method. 2. 1. 4 Further mobification of electronic interchange systems electronic property is memory boardd in a digital form and serves as a property reliever for the profit or other information systems. electronic property represents comfort in some form and spate be worn-out(a) with merchants, who deposit notes in their own accounts or bathroom spend it in other places.It fecal matter be represent by electronic bills and coins, certificates, packets of data, or electronic tokens in one form or another. When using electronic exchange systems, customers purchase electronic digital tokens from the issue company using a customary payment system, e. g. credit cards, electronic checks, or even paper currency (for example, via a abrogate automatic specieier machine which accepts change, or when purchasing prepay car ds). just closely of the systems allow converting electronic gold back into another form of money (Medvinsky and Neuman, 1993), which is very eventful for convertibility of the systems.another(prenominal) preeminence amongst electronic coin systems is betwixt those that use suffer cards for the memory of tokens and those where tokens catch ones breath only on users accounts and computer networks. The berth are often called electronic crisps (e- notecases), the last mentioned are sometimes addressed as online cash or web cash. Examples of e-purse electronic cash systems are coffee shop project, (Boly et al. , 1994) and Mondex (Martin, 1994). Tokens in these systems exist and travel in the computer environment,for example, on a currency legion or customers hard disk.Mondex is a impertinent card payment system that was designed to alter personal as well as lucre payments, (Van Hove, 1999, p. 141). The card dismiss be utilise to make small payments, store personal and application-specific information, and serve as a rally card. Web cash representatives are E-cash, E-gold, Millicent (Glassman & Manasse, 1995), PayWord and MicroMint (Rivest & Shamir, 1996), and Net immediate payment system (Medvinsky and Neuman, 1993). It has to be note that these systems are broadly suppositional work and go through not been employ on the market. Systems that employ skilful cards e. g. Chipknip, snappy in the Netherlands, Proton in Belgium, and endorse specie seat be alike place in the household of electronic cash and in like manner called e-purses, however, in representing money they simply use tokens. In this case, the numeric data stored on the card is changed when a payment takes place. Judged by the article of faith of the operation and use they act like electronic purses. The pass judgment is stored on a card and if the card is lost, the money is gone, in a elan similar to cash. It has to be storied that hopeful cards like Chipknip a re not generally designed for profit payments and are used generally at point-of-sale terminals.There generate been save pilot tests of facilitating paying over the Internet with Belgian Proton smart card EPS, but the use of Proton on the Internet is now discontinued. An all strategic(p) development towards calibration of e-purses is establishing joint electronic purse Specifications with the finish to define requirements needed to down a ball-shapedly interoperable electronic purse program, composition maintaining full accountability, (see www. cepsco. org). CEPS, which were made available in butt against of 1999, outline boilersuit system security and certification.Being realised by the headstone parties in electronic purse cards, and back up by organisations from over 30 countries, CEPS surface the way for the creation of an open global electronic purse standard. For cardholders it means that they ordain be able to use their electronic purse cards domestically and internationally with the knowledge that the card will be sure wherever the acceptance mark is displayed. visa Cash is an example of CEPS implementation, (see www. visa. com). prepay card EPSs privy be as well as include in the same(p) category of electronic cash, because the dogma of their work resembles the use of e-purses, such as Chipknip.Users piece of tail buy a pre paying(a) card for a specify amount. pay card systems are specifically designed for Internet payments. Users layabout pay with a prepaid card by get into on merchant sites the cards bizarre number, which corresponds to the cards nominal. The valuate of the card is decreased by the amount paid to the merchant. To mend understand what issues that surround electronic payment systems, it makes certain sense to introduce a exposition of payment mediation work, which use existent payment systems as mediators to provide pleonastic serve. 2. 1. 5 compensation mediation operate vs. payment systemsTo hike expatiate the focal point of this research, we piddle to make one all-important(a) distinction, which is betwixt payment mediation go and payment systems. This distinction in particular makes sense in the mount of electronic and Internet payment mechanisms. requital mediating operate construct appeared as a response to the defacement and inefficiency of current payment systems for the Internet. They cut across the service of the be systems and operate as mediators amidst merchant, payment systems and users. Their goal is to help merchants to accept as many an(prenominal) an(prenominal) payment systems users could perhaps hope to use when paying over the Internet.In payment mediation run the animate payment foundation from many payments providers is add up to provide broader run, or to scourge shortcomings of the available payment options. Figure 2. 2 describes the relations surrounded by merchants, EPSs and payment mediation run. The variance betwe en payment mediation function and payment systems nominate be summarized in that a payment mediation service is as an intermediator between payer, business, and payment system, enchantment there is no such middle eat for payment systems. The payment process in this case is unbiased to the users of a site.A mediating service provider intercepts payments from users, processes them, and ascribe the account of the proprietor of the site when the self-assurance and transactions are completed. For example, there are numerous companies among mediating service providers that facilitate acceptance and touch of heterogeneous credit cards. A special class of payment mediation service has e merged, that provides convenience for paying bills for businesses and end users. An example of payment mediation run is providing bill payments for end users and companies, for instance, utilities or telephone bills.Over a Web front-end provided by the account systems, customers and companies ba tch pay bills that are generally paid offline by paper cheques or bank transfers. whatsoever systems even provide redundant work such as automatise score merged with online payment facilities. Syndication of payment work Another angle on payment mediating systems is wake them as a form of syndication of payment function in an online environment. The notion of syndication modernises from the merriment world, where it forms the fundamental organizing principle.With the advent of the new economic system and the use of the power of Internet distribution, syndication washbasin be value as an emergent model for e-commerce. In this consideration syndication would mean selling the same information to many different customers, who defer and coalesce it with other information in various value-adding ship nookyal and then distribute it. According to this principle, businesses involved can play three or more roles originators who create victor content syndicators, who ge t a line and encase digital information to meet specific customers needs and distributors who deliver digital content to customers, (Werbach, 2000).In the context of online payments, payment mediation work can be seen as syndicators of the buffer services offered by payment systems. defrayal mediation services house e-commerce EPSs, fling merchants the way to accept a motley of payment systems. Examples of payment mediation services A good deterrent example a payment mediation service is Bibit flush work (www. bibit. com). This Dutch company specializes in Internet payment and complaint services. The service support about 70 payment methods from 18 countries by 2004.When customers want to pay on a Web site of a Bibits client, they select one of the provided payment methods. The payment process goes as follows 1. A customer selects products on sale in a virtual(prenominal) shop. 2. For payment, the customer is then redirected to Bibit payment Service. 3. in spite of appea rance Bibit requital Service, the customer can select a payment system he or she would like to pay with, provided it is back up by Bibit. The customer makes the payment with the system of his or her choice. 4. after(prenominal) a palmy payment, Bibit notifies the merchant that the order can be shipped and transfers the money to the merchant.The touch on of the transactions, which is conducted altogether by Bibit, is consequently pellucid to the customers of the site and the client company. The company business model, which utilizes a number of payment systems, relies on providing extra services to facilitate payments, and therefore it fits into the interpretation of a mediating system. It is fire to note that the service allows the use of micropayments, by accumulating charges for products like news, articles, line of products and research reports, online games and charging users on a subscription basis.Examples of other payment mediation services are Orbiscom (www. orbis com. com), iBill (Ibill. com), PayTrust, (www. paytrust. com), entropyCash (www. datacash. com), PayNet (www. paynet. ch). Systems that blot out real customers credit card numbers by providing them a preposterous temp card number for each transaction have gained certain popularity among payment mediation services. The customers can then use this unequaled number in a normal credit card transaction, and their real credit card will be charged.This unorthodox card number expires after every transaction and would not be canonical for the subsequent use. The data of real credit cards of customers is not undetermined to parties online in online transactions. In this case the payment mediation services are using credit cards al-Qaida to provide extra security and anonymity (ABN-Amro e-wallet, O-Card by Orbiscom. com). By using these measures merchants expect to accept more secured payments without changing the way shoppers pay and without changing vivacious payment processes or i nfrastructure.The research summarized in this thesis is concern primarily with payment systems and not with mediating solutions for existing payment infrastructure. honorarium mediation services on the Internet emerged because of the absence seizure of germane(predicate) payment solutions or have problems that prevent their prospered use by merchants and users. umpteen of EPSs are credibly fugitive systems, unable(p) to all authorise problems that appear in the context of the Internet paying process, because the problems originate in the payment systems they use see discussion on PayPal. om in section 2. 4. While syndication of EPSs by payment mediation services provides in the end a wear train of service than individual EPSs they use, it similarly places the payment mediation systems out of the arena of this research, which is exploring ways to design better individual EPSs. 2. 2 Identifying the characteristics of payment systems As spy in the example with Chipknip an d debonaire in the front chapter, there are a lot of factors that determine the success or sorrow of payment systems, and not all of them are of proficient nature.As mentioned already, user acceptance depends on many issues, such as consumer choice, preferences, advertisement, a state of the market, etcetera The discussion of divers(prenominal) aspects of electronic payment systems can be found in many works on development and research of payment systems. Attempts to consort and describe the requirements and characteristics of payment systems such as security, reliability, convertibility, efficiency, traceability, and others can be found, among others, in the works of Medvinsky & Neuman (1995), Langdon et al. (2000), Lynch & Lundquist (1996), Wayner (1997).It has to be famed however, that these studies are generally focused on skilful aspects of electronic payment systems, which is not the only facet that is important in this field. on a lower floor the characteristics o f payment systems are increase to account for user-related aspects of EPSs. These characteristics can be in addition used for mind of payment systems, as set forth further. The list of characteristics of payment systems anonymity, retirement This characteristic reflects the desire of users to protect their loneliness, identity and personal information.In some transactions, the identities of the parties could be protected by anonymity. Anonymity suggests that it is not viable to reach souls identity or to monitor an individuals disbursal patterns. Where anonymity is important, the cost of introduce a transaction should preponderate the value of the information that can be obtained by doing so. As an illustration, when a customer pays with a debit card, the purchase is registered at the trafficker and banks databases. It is thinkable to find out what amount was paid and what actually was purchased. Thus debit card payments are not nameless.On the contrary, when one pa ys with cash at a shop or in a marketplace, no one can say by examining the cash that money came from the payer, as there is no direct information about this payers record associated with the banknotes. Thus, cash is an anonymous payment system. Currently, the right of users to choose how their personal information is bring out is viewed as privacy. There are privacy laws in several countries that limit usage of personal information by banks, government and other parties, including online businesses and payment systems, like European privacy acts or similar directives, e. . European citizens committee Data auspices Directive. pertinency The added value of a payment mechanism is dependent upon how useful it is for get something. applicability (or acceptability, as it is often referred in literature, (Medvinsky & Neuman, 1995)) of a payment system is defined as the extent to which it is accepted for payments at points of sale, or at online e-commerce sites in this case. For in stance, cash is accepted widely and almost everywhere in the offline world and thus has a very high level of applicability.Debit cards and credit cards have a very high applicability, as one can pay with them in a transmutation of places. The applicability of a payment system may vary from soil to country. For example, in Germany and in the Netherlands cheques are no protracted coarse collectible to the mantrap growth of other payment methods. However, in the UK and the ground forces cheques are still quite a common method of payment and the level of their applicability is quite high. federal agency type sureness type is referred in the literature as the form of a control over the severeness of transactions, (Lynch and Lundquist, 1996 Asokan et al. 1997). The endorsement type can be offline or online. Offline endorsement means that users of the system can exchange money firearm not machine-accessible to a network, without a troika party mediating for the transaction. account cheques are an illustration of offli