E-Payments: Modern Complement to Traditional Payment Systems

E-Conomics Working Paper No. 44

8 Pages Posted: 12 May 2004

See all articles by Stefan Heng

Stefan Heng

Baden-Wuerttemberg Cooperative State University

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

Heng, Stefan, E-Payments: Modern Complement to Traditional Payment Systems (May 6, 2004). E-Conomics Working Paper No. 44, Available at SSRN: https://ssrn.com/abstract=542523 or http://dx.doi.org/10.2139/ssrn.542523

Stefan Heng (Contact Author)

Baden-Wuerttemberg Cooperative State University ( email )

Coblitzallee 1-9
Mannheim, Baden-Wuerttemberg 68163
+49 621 4105 1183 (Phone)
+49 621 4105 1245 (Fax)

HOME PAGE: http://www.mannheim.dhbw.de/profile/heng

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