E-Payments: Modern Complement to Traditional Payment Systems
E-Conomics Working Paper No. 44
8 Pages Posted: 12 May 2004
Date Written: May 6, 2004
The challenges of payment transactions in electronic commerce were initially underestimated, as is now clear in the light of advances in e-commerce, traditional business models are increasingly coming up against their limits. Secure, user-friendly and low-priced innovative payment solutions are urgently required to boost internationally oriented e-commerce. Value-creating market players - from payment system providers, service providers, network operators and producers of terminals to financial institutions - pin great hopes on the rapid progress with new payment systems. In the medium term, mobile phone-based payment systems will be an even more valuable channel for e-commerce than internet-based systems. Nevertheless, in the longer term, upgraded traditional solutions (credit cards and debit cards (especially in Germany) and smart-card-based electronic wallets) are likely to push aside the innovative systems.
Keywords: Technological Change, Electronic Payment System, E-Commerce, Internet, Mobile Services
JEL Classification: E42, E51, G29, O14, O33
Suggested Citation: Suggested Citation