Online Payment Such As Paypal, Venmo Or Zhifubao From China

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Contents TOC \o "1-3" \h \z \u Chapter 1 PAGEREF _Toc499919653 \h 31.0 Background PAGEREF _Toc499919654 \h 31.1 Research Questions and Hypothesis PAGEREF _Toc499919655 \h 5Chapter 2 PAGEREF _Toc499919656 \h 62.0 literature review PAGEREF _Toc499919657 \h 62.0.1 WorldPay PAGEREF _Toc499919658 \h 62.0.1 2Checkout PAGEREF _Toc499919659 \h 72.0.2 Moneybookers PAGEREF _Toc499919660 \h 8Chapter 3 PAGEREF _Toc499919661 \h 113.0 Methodology PAGEREF _Toc499919662 \h 113.0.0 Sampling Method PAGEREF _Toc499919663 \h 113.0.1 Respondents PAGEREF _Toc499919664 \h 113.0.2 Questionnaire PAGEREF _Toc499919665 \h 123.1 Summary PAGEREF _Toc499919666 \h 12Chapter 4 PAGEREF _Toc499919667 \h 144.0 RESULTS PAGEREF _Toc499919668 \h 14Figure 1. PayPal's Total Payment Volume PAGEREF _Toc499919669 \h 14Figure 2. PayPal's Total Sales PAGEREF _Toc499919670 \h 15Figure 3. Proposition of PayPal’s Total Payment Volume from Mobile Phones PAGEREF _Toc499919671 \h 16Figure 3. PayPal's Active Account Transactions PAGEREF _Toc499919672 \h 17Figure 5. PayPal's Share of smartphone market, by OS PAGEREF _Toc499919673 \h 184.1 Discussion PAGEREF _Toc499919674 \h 184.2 Conclusions PAGEREF _Toc499919675 \h 204.3 Recommendations PAGEREF _Toc499919676 \h 214.4 Limitations PAGEREF _Toc499919677 \h 21
Chapter 1
1.0 Background
The online payment system is an internet-based method processing system for economic transactions. It facilitates a vendor to accept payments over the website or other Internet connections, such as direct database link between retail stores and their suppliers in a conventional method of maintaining just-in-time inventories (Fisher & Michelle 324). Online payment systems significantly expand the reach of a business and its ability to make sales.
Online payment systems are run by third-party companies, such as PayPal, Google or Click2Pay. These companies make a profit by taking a small percentage of every transaction, or by signing contracts with institutions or organizations that need to make a large number of transactions. An extensive online storefront, such as Amazon.com, could not operate without the ability to take online payments. Online payment systems have flattened the playing field between small and large companies, as any of them can accept the similar payment methods once they register with third-party payment processors.
Online payment is as fast as the Internet, but many payment methods are regulated by national law or by the unwillingness of some merchants and consumers to work with residents of countries where government restrictions are lax. For example, Nigeria in Africa has not enforced fraud protection, which leads many vendors to disallow transactions originating from that country.
There are very few businesses that cannot benefit from taking part in an online payment system. Diversification in the use of online payment systems is vital to ensuring that a business's cash flow is not hindered by problems with a single vendor. PayPal was founded by Luke Nosek, Max Levchin, Peter Theil and Ken Howery in 1998 under the name Confinity. It was launched as money transferring platform in 1999. It was backed and funded by John Malloy from BlueRun Ventures, an early stage venture capital company specializing in IT, mobile and consumer technology.
It was later merged with Elon Musk's online banking company X.com in March 2000, and by 2001 X.com changed its brand name to PayPal, making it public in 2002. In 2002 PayPal was purchased by eBay for $1.5 billion, and it made PayPal its default payment setting which according to Venture Beat resulted in one in four listings closing via PayPal transaction. In 2005 PayPal acquired payment service VeriSign. They aimed to bring PayPal more security and more e-commerce potentials.
In 2007 PayPal partnered with MasterCard, made away for customers to pay via PayPal on websites that did not support PayPal's infrastructure but accepted MasterCard payments, but this was to reduce PayPal's dependency on transactions generated via eBay auctions. They moved their operations into EU to Luxembourg in early 2007. Their main objective was to generate more presence across the European market but also boasted some quite handy perks. From this move, PayPal benefited from lower tax, less regulation and less data transparency. By the end of the same year, PayPal generated $1.8 billion in revenue. In 2008 PayPal acquired Israeli startup Fraud Science for $169 million. They were purchased to provide transaction verification and fraud prevention.
In 2010 their services were compromised through an attack known as Denial of Services. As a result, WikiLeaks donation payment process was stopped. In 2014 fourteen alleged members of Anonymous group were charged with attempting to disrupt PayPal's operations. By 2013 thirteen of them were charged (Health & Stephan 124).
With aim of further development PayPal acquired engagement software startup Iron Pearl and payment platform Braintree. In 2014 Former Virgin Mobile CEO Dan Schulman was announced to be the president and it was announced that eBay would split from PayPal. Due to this, PayPal became a publicly traded company after pressure from hedge fund investor Carl Icahn. In July this year, PayPal announced that it would be acquiring money transfer service Xoom. This will grant PayPal access to Xoom's 1.3 strong US user base.
This year PayPal has launched a peer-to-peer service called “PayPal.Me” that allows its users to request funds from a peer via text or email. Users will get a personal PayPal link added to their PayPal account that can be shared with friends and family members making money transfers quick and easy. In 2016 PayPal processed 4 billion payments through their 'secure payments ecosystem.'
1.1 Research Questions and Hypothesis
For this study, the following question was addressed:
Will PayPal still carry on with its traditional and conventional ways to go on with their online payment methods?
As part of this study, the investigation included one research hypothesis: The more PayPal invest in innovation and modification of its operations, services and facilitating user; there is a lot of scope for activity.
Chapter 2
2.0 literature review
2.0.1 WorldPay
It was founded in the United Kingdom in the year 1989. It is one of the major payment gateway providers. Affordability being essential characteristics of this payment gateway provider, it has competitive rates for accounts. WorldPay is famous for its debit and credit features, as it is supported by the Royal Bank of Scotland. Their website is
WorldPay is supported by the Royal Bank of Scotland, so authenticity guaranteed: One is assured of secure money transfer using WorldPay. Since the payment gateway is under a bank, all transactions and payment processing are scrutinized. WorldPay is known for favorable money transfer rates.
The Royal Bank of Scotland has assisted in establishing very affordable money transfer charges. Using WorldPay is economical since their transfer rates are flexible. The rates favor large, small and medium-sized businesses. Users from various countries can use WorldPay services without fearing about exchange rates. WorldPay is used in most countries globally, enabling international transactions with ease.
WorldPay has put in place appropriate tools against unauthorized access to customers’ data or information. Transactions are verified before they are authorized to avoid malicious payments. Apart from providing the necessary payment processing services, WorldPay has gone an extra mile to provide different services. These services include account reconciliation, custom branding, and online management. Also, its reputation has stemmed from its PCI DSS Level 1 Compliance.
An initial cost of setting up a merchant account is relatively high, and this discourages a new user from collaborating with WorldPay. As compared to other payment processing gateway providers, one would be charged more to set up an account. Ideally, a user should get his/her money instantly, but the practical case customers wait for four to six weeks for their money. If an individual wanted the money urgently, WorldPay might be inconveniencing.
The contract terms are not fixed. Once one has been confirmed as a member, the initial registration rates are not upheld. WorldPay keeps on renegotiating the rates depending on the financial status of their clients. Consequently, the rates end up favoring the most successful clients. WorldPay has not been embraced on other continents since their availability is limited. Since WorldPay is not accessible in most countries, transacting through WorldPay has not been easy globally.
2.0.1 2Checkout
This is online payment gateway company is based in America. It was established as an International company, 2Checkout has built a mark in online payment processing. It has been operating for over 10 years now. It features some favorable services which have made it one of the big payment processing industry. It has the following advantages and disadvantages.
Starting to work with 2Checkout is instant. The consumer is required to have a $ 49.97 one-time payment. There are no application fees or monthly subscriptions. The clients have a 30-day money back guarantee. This offers some level of flexibility and thus favorable to new businesses. It ensures that their clients receive quality services by providing the latest shopping cart solutions. This optimizes shopping activities (Ritchie $ Brian L 350).
2checkout users are given a wide variety of payments. A user with a major card such as a Visa, MasterCard or even PayPal can make payment to bought products. This convenience dramatically decreases the likelihood of abandoning an order due to unavailability of payment options. Merchants would find it considerably easy to navigate and use the administration features in their accounts. The administration panel requires no extensive technical know-how to manage the account transactions.
In 2checkout, the processing system screens and alerts suspicious orders and first confirms them before they are processed. In case an intruder tries to carry out illegal payments, the system would detect these attempts and carry out various measures. 2checkout refund money within 48 hours of any payment. Customers can get back their money without any charges in case a transaction is reversed within two days.
Though 2checkout has cheap setup costs, their processing system has a high processing fee of 5.5%+$0.45 per transaction. These charges affect merchants who have a small profit margin. Therefore, a business’s return on income is limited. In case of server failure, some on-demand services may be unavailable. Their technical team is not well equipped to readily handle such hurdles. This brings unreliability to their services. Via 2checkout, clients can be charged for payments that were already cleared in the past. This may lead to double payment or loss of payment. Many businesses do not entirely rely on 2checkout’s payment processing gateway services.
2.0.2 Moneybookers
Also known as Skrill, Moneybookers has established itself as a reputable online payment gateway. It serves a vast number of merchant accounts. Dealing with various geographical regions, it transacts multi-currency payments. To get started, a user must have an account. It is essential to note that funds are uploaded from one’s bank account, and no credit cards are embraced.
Moneybookers has affected both positively and negatively the financial status of its users. Some of the major advantages and drawbacks of using MoneyBookers to process online payments are as outlined below. MoneyBookers does not allow credit cards; there are no charges for making payments via credit cards. Users can also avert credit card fraud. It has been adopted in over 35 countries, MoneyBookers is one of the world’s leading online payment gateways. Unlike most payment gateways, Skrill has gone beyond western states to establish local bank relations in several continents. This has gained MoneyBookers one of the most stable payment gateway giants in the modern e-commerce world.
Since MoneyBookers is connected with many local bank accounts, one can quickly withdraw to his or her bank account from MoneyBookers. Furthermore, Skrill does not specify any account reserves. Therefore, businesses find this attractive as it doesn’t eat into their profit margins. Unlike other online payment gateway providers that apply credit cards, MoneyBookers has limited limits regarding security clearance. This makes transaction times to be short hence saving time in the long run (Roy et al. np).
Compared to other giant online payment gateways, MoneyBookers charges a maximum of $ 0.5 per transaction. New businesses see this attractive, and it does not have negative impacts on return figures. Moneybookers is not a major payment gateway in North America. This is setback especially for those members interested in making overseas transactions.
MoneyBookers is not backed by any bank concerning administration and financial aid. This, therefore,...