Online Vs. Online Payment System - 1605 Words

Along with the exponential increase in the number of online business transactions over the last decade, the popularity of the online payment system has soared with the realization among vendors and creditors of its growing importance. The growth of the online payment system has served as a foundation in the improvement of the information and in the achievement of paperless operating efficiency. However, the growth and acceptance of the online payment system is still being challenged by varying characteristics of customers and web-systems as well as perspectives on the safety and reliability of this mode of payment. Are online-based systems safe and reliable? The goal of this research paper is to find out more on the opportunities and†¦show more content†¦The percentage of people who don t trust the Internet with the security of their financial information dropped to 8 percent in 2006 from 20 percent in 2004. Meanwhile, the number of those who believe that paying bills onlin e is safer than using paper checks increased during the same period, to 37 percent in 2006 from 24 percent two years earlier (Consumers less concerned, 2006). Compared to traditional payment methods such as check payments, phone payments, or wire transfer payments, online payments are considered better in terms of time and cost efficiency, convenience, and flexibility for people and businesses. The underlying questions that we seek to answer in this research paper is what factors determine how well online clients will accept online payments, measures should be taken by e-vendors to accelerate the acceptance of this technology, and what advantages does this form of payment have over mail payments. Further, it will also be important to consider the negatives of online payments and see whether there are any threats that may affect the credibility of e-payments as alternatives to paying bills by mail. It is a fact that e-commerce cannot thrive without a robust, secure, and well-developed e-payment infrastructure. One of the main issues that have clouded the online-based payments is the issue of trust. A level of fear has always been in online-based systems. However, there are several advantages of online-based systems that