The aim of this paper is to record the payment systems available on the market and to categorize them. The focus in this thesis is placed on the B2C Sector, as this is where most online transactions take place. It will then be analyzed what significance the payment methods can have for the customer on the one hand, and for the merchant in e-commerce on the other. What are the current trends in payment methods, what are the future megatrends and therefore the future possible payment methods in online shops? This are the main topics, this thesis is about.
Chapter 2 deals with the relevant definitions that are important for the thesis. The general requirements of a payment system are then discussed in Chapter 3 and finally categorized in Chapter 4. The classic and modern payment systems in the internet are discussed in chapter 5, including their respective advantages and disadvantages. Chapter 6 takes a closer look at 4 of the 10 largest online shops and analyses which payment systems are offered there and in generally, are most used today. Further in chapter 7 and 8, an outlook on possible future payment methods is given. A survey was also conducted for this seminar paper, which is discussed in chapter 9.
Table of Contents
1 Introduction
1.1 Issue and Objectives of the Thesis
1.2 Structure
2 Definitions
2.1 Definition of payment transactions
2.2 Definition B2B
2.3 Definition B2C
3 General requirements of an electronic payment system
3.1 Usability and convenience
3.2 Safety and reliability
3.3 Transferability
3.4 Confidentiality
3.5 Rentability and costs
4 Categorization of Payment options
4.1 Categorization according by payment date
4.2 Categorization according by payment amount
5 Internet payment systems
5.1 Classic payment systems
5.1.1 Invoice
5.1.2 Credit Card
5.1.3 SEPA Direct Debit
5.1.4 Prepayment
5.1.5 DIRECT banking
5.2 Modern payment Systems
5.2.1 PayPal
5.2.2 Apple Pay / Google Pay
5.2.3 Amazon Payments
5.2.4 Factoring - Using the example of Klarna
6 Currently most offered online payment methods by analyzing largest Online shops
7 Possible future payment methods on the Internet
7.1 Bitcoin
7.2 E-Euro
8 Three megatrends about the future of payment
8.1 Trend 1 – immediate
8.2 Trend 2 – frictionless
8.3 Trend 3 – transparency
9 Results of the survey
10 Final assessment
10.1 Summary
10.2 Outlook
Objectives and Topics
The primary objective of this seminar thesis is to identify, categorize, and analyze the most relevant online payment systems within the B2C sector. The paper aims to examine the significance of these methods for both customers and merchants, evaluate current trends, and explore potential future developments in online payment technologies.
- Analysis of classic and modern online payment systems
- Evaluation of customer requirements and merchant priorities
- Categorization of payment methods by date and amount
- Empirical survey on user payment preferences and behavior
- Future outlook on cryptocurrencies and e-currency trends
Excerpt from the book
5.2.4 Factoring - Using the example of Klarna
Conflicts of interest mostly arise in connection with payment methods. The customers want to receive the goods first and then pay for them, while the trader would prefer to receive the money first and then ship the goods.18 Factoring can be a good solution for this:
With factoring, a company sells its debts to a factoring company. In this way, the company receives its money earlier than waiting until the customers pay their bills and therefore paying in advance. The basis for this is a framework agreement concluded between the company (client) and the factoring company (factor). The company agrees to sell and transfer future debts against debtors to the factor. The factor, on the other hand, pays 80% of the value of the receivable directly to the company after the sale and the remaining 20% after the customer (third-party debtor) has paid. In addition, the factor also offers services such as the del credere function, which means that he also assumes the risk of non-payment. Therefore, the factor checks the creditworthiness of the buyer in advance.
The principle is simple: Klarna is a company that offers payment by invoice in many online shops. Payment by Klarna is secure and simple. As already described in the principle of factoring, the online merchant assigns his claim against the customer to the factor - in this case Klarna. The merchant is paid the outstanding amount immediately by Klarna and the customer must now pay the outstanding amount directly to Klarna.
Summary of Chapters
1 Introduction: This chapter highlights the rising trend of online shopping and emphasizes the strategic importance for merchants to offer diverse, preferred payment methods to prevent purchase abandonment.
2 Definitions: This chapter establishes foundational terminology for the thesis, specifically defining payment transactions and the distinctions between B2B and B2C business relationships.
3 General requirements of an electronic payment system: This chapter outlines the key criteria for successful payment systems, such as usability, safety, and cost-effectiveness, noting the frequent trade-offs between these factors.
4 Categorization of Payment options: This chapter classifies various payment systems based on two main criteria: the time of payment (Pre-Paid, Pay-Now, Pay-Later) and the volume of the transaction.
5 Internet payment systems: This chapter provides an overview of classic and modern payment systems, analyzing their mechanics and specific advantages for both the buyer and the seller.
6 Currently most offered online payment methods by analyzing largest Online shops: This chapter conducts a practical analysis of the most popular payment methods currently utilized by four of the largest online retailers in Germany.
7 Possible future payment methods on the Internet: This chapter explores emerging digital payment technologies, focusing on the fundamentals of Bitcoin and the potential introduction of the E-Euro.
8 Three megatrends about the future of payment: This chapter identifies the core drivers for future payment evolution, characterizing them as immediate, frictionless, and transparent.
9 Results of the survey: This chapter presents the empirical findings gathered from a self-conducted survey regarding consumer payment habits and their willingness to adopt new digital currencies.
10 Final assessment: This chapter synthesizes the main findings, offers a summary of current market requirements, and provides an outlook on future developments in the online payment landscape.
Keywords
B2C, Online Payment, Payment Systems, E-Commerce, Digitalization, Customer Requirements, Purchase Abandonment, PayPal, Klarna, Bitcoin, E-Euro, Factoring, Payment Trends, Cashless Payment, Security
Frequently Asked Questions
What is the core focus of this seminar thesis?
The thesis focuses on the B2C (Business to Customer) sector, examining existing payment systems in e-commerce and identifying their significance for both customers and merchants.
What are the primary themes covered in the study?
Key themes include the categorization of payment methods, analysis of customer needs regarding payment, current trends in the market, and future innovations like cryptocurrencies.
What is the main research objective?
The goal is to record and categorize available market payment systems and analyze how the availability of preferred payment methods influences sales and customer satisfaction.
Which scientific methodology is employed?
The paper combines a literature review of academic and industry sources with an empirical survey of 151 participants to validate theoretical findings.
What topics are discussed in the main section?
The main section covers the definitions of payment, general requirements (safety, usability), the classification of payment options, detailed analysis of specific providers, and future technology trends.
Which keywords best describe the document?
Relevant keywords include B2C, Online Payment, E-Commerce, Digitalization, Purchase Abandonment, Payment Trends, and Electronic Payment Systems.
What role does factoring play in online payments?
Factoring, exemplified by providers like Klarna, helps resolve the conflict of interest where customers want to pay after delivery, while merchants prefer immediate payment.
Why is there skepticism regarding E-Currency?
The survey indicates that user skepticism toward E-Currencies and Bitcoins is largely rooted in a lack of information, knowledge, and practical experience with these technologies.
- Citar trabajo
- Anonym (Autor), 2020, Online Payment Methods. Current Trends and Future Possibilities, Múnich, GRIN Verlag, https://www.grin.com/document/1027447
