The major international online payment means are credit cards, which are also dominant in many national transaction markets. Some estimates put their use at over 90% of all e-commerce transactions. In some countries debit cards and payments via online banking are widely used alternatives to credit cards. There is also a large diversity of other payment means such as mediating services, mobile payment systems and electronic currency which may be appropriate for different transactions. International transactions have become more important, and much of the initially predicted growth has been attained if not surpassed. The introduction of new payment systems faces significant barriers given infrastructure market characteristics, with high initial investment costs and positive network externalities favoring established incumbents with a wide user base. The development of mobile payments may also allow greater payment convenience. Such modes of payment are increasingly important with the rapid growth of digital content markets, although total transaction values are low in comparison with the volume of transactions. A number of issues around online payment systems were often used as one of several key factors to explain slower than predicted e-commerce growth. According to these arguments, the lack of appropriate online payment mechanisms, consumer confidence in electronic payments and/or issues with the perceived security of payment mechanisms partly explained the weak uptake of online shopping. In other words, payment-related difficulties were seen as one key explanation together with other factors such as products not being appropriate, sellers being unknown, delivery being uncertain, and consumers not being interested.
Classification of online payment systems:
Mobile device systems are being developed for small offline payments (transport tickets, parking fees) as well as for online e-commerce purchases. Mobile payments are potentially attractive for ecommerce merchants because of the large mobile phone user base and installed billing and payment systems. Services such as PayPal and now PayMate, has made the consumer aware of the fact that the scope of e-shopping through these models is quite beneficiary.
The biggest catchment for these models is the benefits that they provide to the customer; Easy: a transaction undertaken on your hands is something anyone would prefer. Secure: Such is the mechanism of these models that they can never be questioned for their violation possibilities. Convenient: No need to go all the way to a shop to pay for your shopping.
The retailer will have to make an exhaustive study of the market that allows him to know who is his target market, because this way he will know the reluctance and fears that can be involved in a purchase on-line. Depending on the market he will be able to use systems which are more complex, offer more guarantees with smaller technology set-up