STUDY ON THE PROTOCOL OF E-COMMERCE FOR CHINA by shuifanglj

VIEWS: 10 PAGES: 24

									 STUDY ON THE PROTOCOL
OF E-COMMERCE FOR CHINA
                    GAO Cong , LU Tingjie, KAN Kaili,
                     School of Economics & Management
    Beijing Univ. of Posts & Telecommunications (BUPT)
                                                    164#
                                   Beijing 100876, China
                 Abstract:
   This article explains small-sum payments
    should have a high priority is second-best
    solution to China’s conditions where
    business services and management
    systems are comparatively immature.
    Moreover, it demonstrates that mobile
    payment is to be promising in the
    development of China’s small-sum
    payment services.
                conclusion
   The conclusion is that the SET protocol
    does not fit China’s situation, though it
    has been the de facto standard in the E-
    commerce in the world.
              introduction
 The payment system is the crucial
  infrastructure concerning economies.
 There are three types of electronic
  payments:
 money (cash or credit card payments),

 notes (checks, cashier's checks, drafts),

 quasi-money (various kinds of payment
  cards, including phone cards).
                 credit
 SET protocol can be considered to a
  small-sum payments oriented from
  credit system
 As demonstrated in the flowchart of SET
  (Figure 1), it can be seen that two
  fundamental elements are required:
 a credit card company independent of
  banks,
 well established credit records.
Flowchart of the SET protocol
                      debit
   The bankcards based on debit are widely
    applied in small-sum payments in china .
   By the end of 2000, the number of debit cards
    increased from a year ago by 54% to reach 252
    million, while the number of credit cards
    (including quasi-credit cards) only increased
    5% to reach 25 million, with only 130 thousand
    real credit cards accounting for roughly 0.05%
    of the total.
      small-sum payment
A high priority should be placed upon
 small-sum payment is second-best
 solution to China’s E-commerce’s
 condition .
 Asymmetric information worsens the
 efficiency of the payment system in the
 exchange in China’s economy, where
 business services and management
 systems are comparatively immature.
       second-best solution
When the special restriction of lack credit
 idea in China’s payment system is taken
 into account, this kind of marketing
 efficiency remains restricted optimization.
 Hence, only the second-best solution can
 be sought to E-payment system
 applicable in China’s E-commerce
 situation.
              bottleneck
 The credit problem of exchange in China
  is a bottleneck of China’s economy.
 Not only introducing commercial bills as
  an electronic payment method for
  corporations becomes difficult, but also
  introducing credit cards in China as a
  modern payment method for individuals is
  less applicable than in many other
  countries.

								
To top