ECommerce/ E-payments

ECommerce/ E-payments

1. Definition

   • The commercial transactions conducted electronically on the internet, typically through the buying and selling of products

2. Application of ecommerce

   • - Supply chain management: A network of facilities and distribution options that perform the procurement of materials and distribution (Location, inventory, production and transportation)
     • - Online marketing and advertisement
       • - Online Auction
         • - Online Banking

3. Benefits and Limitations of E-Payments

   • + Mobile payment using 'Digital wallet' allows users to make contactless payments without needing their physical card with them
     • + Works with most banks and in many countries
       • + Obline payment systems allow users to safely transfer money from accounts, buy and sell
         • + TRansferring money online is usually a quicker process than bank transfers
   • - Some restrictions e.g. Number of transactions per day and amount being outputted
     • - Lack of Anonymity: User details, transactions (time, amounts and receiver) all stored in epayment darabase therefore the intelligence agency has access to this information. CHALLENGED BY TOKENISATION
       • Many E-Payment systems do not work together. Users can usually only transfer to other users within the same application
         • The necessity of internet access

4. What is the economic significance?

   • + Ecommerce removes the geographical boundaries between companies, which increases revenue
     • + Users can shop from the comfort of their home, which could lead to increased spending
       • + Companies with ecommerce services have been able to boost trade and therefore increase profits
         • Countries which are not as economically sound have been able to boost trade with ecommerce as the majority of companies now use this

5. Current issues/ trends

   • + Multi channel shopping e.g Advertising products on company website and external site
     • - Social Media. Twitter and Pinterest are 2 companies which allow businesses to now buw and sell their products
       • - Click and collect is becoming more widely available to consumers