Analyzing Payment Systems

You Decide: Analyzing Payment Systems

Principles of E-Commerce – WEB320

Table of Contents

Introduction 3

Online Payment System Integration Plan 3

References 4

Payment Systems

Have you been to the grocery store lately? If so, then I’m sure you are aware of all the choices that we have in today’s technological age. It can be a dizzying experience, just trying to decide which kind of cereal you want. There are literally hundreds of different options of the one type of product alone (i.e. Walmart, HEB, etc.) in most major U.S. cities. Luckily, there aren’t that many payment systems but there are several and we will be discussing those during this paper. I will briefly discuss each of the options, along with my recommendation for which ones will serve RetailCo well in the future. I will also attempt to calm any possible fears about these various options as they pertain to your company.

Online Payment System Integration Plan

The first payment system that we will discuss is cash since it is still the most accepted form of payment on the planet and it has also been around for thousands of years, in one form or another. The obvious problem with cash – in regards to e-commerce, at least – is that it requires physical interaction between the buyer and seller (e.g. close proximity). This, of course, is counter-intuitive to the basic concept of global e-commerce transactions. As a result, it will not be a feasible payment solution for the e-commerce aspects of RetailCo’s business strategy.

The next payment option that we will discuss is PayPal, which I believe could be an option for RetailCo as long as you understand the pros and cons of their service. First off, what is PayPal? It is a checking transfer service that allows its members to “e-mail” money to each other once they have established and/or setup an account with them. First, the cons – possible stigma and/or negative perception of your e-commerce site due to its association with...