Internet Payment and Banks

Abstract:     
In the context of the development of e-commerce on the Internet, a lot of electronic payment systems have been set up in order to secure online payments. To understand the success of Internet payment systems it is necessary to analyze the strategies of e-commerce players: consumers, "cyber merchants", managers of networks (telecommunications and payment), suppliers of electronic payment services and banks.

Our results provide objective explanations of the success factors of Internet payment systems, and the domination of SSL card payment in the market (Treese and Stewart, 1998; Sahut, 2001; Turban and alii, 2006). Moreover, unsuccessful experiences show that it is necessary to consider network effects (Shapiro and Varian, 1998; Shy, 2001) and which business models to implement in order to avoid killing a new Internet payment system before it is even launched.

This article also investigates the stakes for the banking environment of the Internet payment
systems and the problem of money creation.

Number of Pages in PDF File: 21

Keywords: E-commerce, Electronic Payment, Electronic Money, Banks, Network effects, Security, Customer Behavior

JEL Classification: E42, E51, G21, G29

Accepted Paper Series