E-commerce: the perpetual impetus of banking innovation

"In the modern economy, knowledge economy is becoming the real capital and the first wealth," says Drucker, an American management authority. "Knowledge-based economy in the real economic activities of the main performance of two kinds of development trends: first, information, and the second is globalization." As the hotspot of informationization and globalization, e-commerce is becoming a huge economic power.

The symbiotic relationship between electronic commerce and financial industry is becoming more and more important, not only can the financial industry reduce costs, increase revenue and enhance competitiveness, but also let the financial industry exceed the limitation of time and space, and thus further consolidate the payment and settlement status of the financial sector, and promote the development of finance institutions to all-round service To further change the traditional management mode of financial industry, and make the financial industry turn to the networked finance gradually.

In the logistics and information flow is basically resolved, electronic payment is now the bottleneck of E-commerce, we focus on the elaboration and analysis of electronic payment links.

The development course of electronic payment

1. Introduction to development at home and abroad

Turning to the development of electronic payment, we would like to mention the first Internet bank for Security in America (SFNB), October 18, 1995, SFNB as the first online bank open to the public, with the impetus of the world's more and more banks began to provide online financial transactions services. SFNB was acquired by Royal Bank of Canada in 1998. Other internet banking businesses are also becoming popular, such as Bank of America, Citigroup, JPMorgan Chase, and other financial value-added services that have been paid online.

China was involved in online banking in 1996, and in 1999 the first Chinese merchants Bank launched a card dialing function; the same year opened the first domestic Interbank self-service bank; 2000 China Merchants Bank first launched a card online payment function. ICBC has also launched an online banking service, and a large number of third-party electronic payment companies emerged from 2002 to 2004.

2, domestic and foreign application comparison

According to data, in 2004, the United States E-commerce transactions, through electronic payment of the total amount of transactions were 280 billion U.S. dollars. Of these, 1/2 are charged by banks and the rest are collected by non-bank organizations. In 2004, the total number of U.S.-related paid-income markets accounted for $780 billion trillion in global electronic payments and 1/3. The U.S. pay-for-income market will grow at 8% a year, and in 2005 Q4 US E-commerce retail sales are estimated at $22.9 billion, up 3.3% (±2.1%), Q4 increased by 23% (±3.8%) compared with 2004. Overall retail sales for Q4 in 2005 were estimated at $960.3 billion trillion, up 0.3% per 6% (±0.3%) compared to the Q3, compared with 2004 Q4 (±0.3%). 2005 Q4 E-commerce Retail sales, accounting for the overall retail sales of 2.4%, is expected to reach 411 billion U.S. dollars in 2008.

According to Eric's data, the amount of money paid by Chinese people on the Internet is increasing every year. The market size of Chinese personal online payment has developed rapidly. 2001 China Online payment market size of 900 million yuan, 2004 the size of the growth of 7.5 billion yuan, the annual compound growth rate (CAGR) for the 102.7%.iresearch forecast, the next few years our online payment market scale continues to expand, 2007 China's online payment market will reach 60.5 billion yuan a year. 2001 China Online Payment users per capita annual online payment of 234 yuan, 2004 the amount of the increase of 408 yuan, the annual compound growth rate (CAGR) for 20.4%.iresearch forecast, people will pay more and more online, 2007 China's online payment of users per year online payment will likely reach 1136 yuan.

The online payment scale of the 2004 gaming point card accounts for the largest proportion of the total online payment scale. 2004, individual users through the online payment of 7.5 billion total turnover, game point card accounted for up to 22.7%, followed by air tickets, the proportion of 20%, internet shopping accounted for 17.3%, education, online generation of fees, digital publishing and other share of the proportion of 14.7%, 13.3% , 5.3% and 6.7%.

Ii. bottlenecks in electronic payment development

China's electronic payment market shows six features, the first is the rapid development of the market scale, but the direction is not clear, innovation seriously backward, industry competition is increasingly fierce, the market concentration is more and more high, the speed of new product development is relatively simple, can not meet the needs of customer diversification, not to mention tailor-made, on demand.

It is gratifying that the regulatory environment is becoming more perfect. Although in very early times, China's electronic payment development is very rapid, and has accumulated a certain scale, but, with the development of mature electronic payment market There is still a big gap. From an objective point of view, the development of China's electronic payment industry also needs to cross five barriers, including: security issues, legal issues, financial regulatory issues, standards and social and consumer attitudes.

1. Security issues

With the popularization of network technology and information level, at the same time accompanied by a certain system security risks, network technology is faced with the challenge of hackers and Trojans and other network virus threats, which leads to the test of operating risk of online banking. The transmission of data is also an important part of online banking, in addition, electronic payment is a new type of industry, some new products and financial value-added services will be generated, which also gives the current financial management system in the blank and blind spots to bring challenges.

2. Legal Issues

The first is the lack of electronic payment transaction risk laws and regulations, in e-commerce transactions, if there is a risk problem, there is no legal basis to be able to clear the bank, electronic payment companies, merchants, consumers among the three rights, obligations and responsibilities, In particular, third-party electronic payment companies and merchants when signing a regular meeting on the risk of the embarrassment of WHO, in the end what kind of risk is the responsibility of the bank, what kind of risk is the responsibility of the electronic payment company, what kind of risk is the responsibility of the merchant, etc. Only in accordance with the actual situation to balance the interests and responsibilities of several parties. Especially in the foreign card settlement, relative to the domestic bank card more complex, how to solve the phenomenon of non-payment is a thorny issue.

The benign development of electronic payment calls for the regulation of electronic payment business behavior, since E-commerce and electronic payments are relatively new industries, the two business laws and regulations are relatively small, and of course, a number of legal provisions have been enacted, for example: the Electronic Signature Act, the electronic Banking business management measures, the E-Banking safety assessment guidelines, etc. However, these provisions are far from enough, in the face of the rapid development of electronic payment also requires a more comprehensive legal provisions to restrain transaction behavior, but also need to be responsible, rights, obligations, compensation, fines and credit mechanisms to refine the laws and regulations.

3. Financial supervision and standard norms

The rise of the electronic payment industry has made banking services more diversified, banks are already aware of the importance of electronic payment, so whether it is online banking or mobile banking, telephone banking, telephone payments are active with third-party electronic payment companies to strategic cooperation, but how to give the electronic payment company a legal identity, Or to give them a fair access rule. Is it worth pondering whether to apply existing banking regulatory mechanisms or to redesign a regulatory regime? The question may be what regulators are considering.

At present, the status of electronic payment companies are not clear, even the operators of electronic payment companies do not understand whether they are located in Non-bank Financial services or financial value-added business, perhaps they have their own answers, but can not rely on the business or the heart drums. Therefore, we wait for the central bank's electronic payment industry regulatory policy.

In business operations, we also hope that in the industry self-discipline, product prices, value-added services related to the introduction of laws and regulations, if the law, then the bank and electronic Payment company's cooperation is more market-oriented, and its mutual benefit and the integration of more strong; the smoke of the industry's price war will not be white-hot or even developed to the trend of unfair competition.

Price-oriented competition will be replaced by value-oriented competition.

In addition, in the security and technical operation of the lack of unified planning, in terms of internet banking security technology is not the same, some use the SSL protocol, some use set protocol, is generally a variety of security and authentication technology mixed use of the entire industrial development is also an unfavorable factor.

4. The problem of social concept

The problem includes two aspects, one aspect is that consumers have been accustomed to cash payments, coupled with China's national conditions, it is difficult for consumers to accept and choose the Electronic Payment tool; On the other hand, is also in the electronic payment is not believed that the fundamental problem is that China's social credit system has not been established, This also leads directly to the consumer does not actively use the electronic payment The important reason, to compare, the United States to do a better social integrity system, personal consumption is almost all using credit cards, whether it is to buy tickets or shopping malls or e-commerce sites to buy books, almost completely can use credit cards to solve life needs.

III. Electronic Payment: Promoting banking innovation

The global financial network of the tide has been unstoppable, the banking industry to increase the investment in intermediary business is also an indisputable fact, in the face of the electronic financial era of user demand diversification, banks to continue to introduce new products and value-added services to meet the needs of the market.

On the one hand, banks actively adapt to the needs of the market, but also through the cooperation with electronic payment companies to launch innovative products, for example, Yeepay Yeepay with ICBC, China Merchants Bank and other banks of the telephone payment.

Telephone payment is an off-line payment tool, when consumers in the shopping and consumption, whether through the network, telephone or other means to submit orders, just have a bank account number or card number, you can call the bank's special service number such as ICBC 95588, CMB 95555, People's livelihood 95568, Payment can be done anytime, anywhere, based on voice prompts. No need to use the Internet, no need to mention, more safe and convenient. Telephone payment has become a new function of telephone bank, which has a positive effect on enriching the product variety of the bank.

As a new payment method after cash, credit card and online payment, the telephone payment integrates the Internet, mobile phone and fixed telephone into a platform, and turns every ordinary telephone into a virtual POS consumer terminal, and realizes the electronic payment without internet restriction. Businesses only need to access the telephone payment business, they can provide consumers with integrated purchase, pay a full set of services, expand the multi-dimensional three-dimensional market space. As an effective complement to online payments, telephone payments have set up electronic payment highways for more traditional industries and have become the best tool for E-commerce to penetrate the traditional business world.

With the advent of the 3G era, mobile phones will be the most popular terminals, the future of mobile payment will be one of the most popular electronic payment tools, banking how to better integrate with 3G will appear to be very important, so, mobile phone payment business so that banks better serve their customers, while, Cooperation with third party payment companies will also promote the industry chain. In a way, electronic payment is not only the reserve army of the banking industry, but also the engine of the traditional economy, it is one of the biggest demand that China has not been satisfied at present, it is of great significance to construct the innovative economy.