E-Commerce, Business E-Commerce, Business Methods and Evaluation Methods and Evaluation of Payment Methods in of Payment Methods in
NigeriaNigeria
Written by Michael Adeyeye
Department of Electrical and Information Engineering, Covenant University, Ota, Nigeria
Presented byKareem Herbert & Daison Lowe
ContentsContents
Introduction Payment MethodsE-Commerce Methods In Nigerian BanksEvaluation of e-Commerce participation by the pu
blicPresentation of ResultsAnalysis and Discussion Conclusion and Recommendation
IntroductionIntroduction
What is e-Commerce? The integration of communications, data
management, and security capabilities that allows organizations to exchange information on sale of goods and services.
An act of conducting transaction via electronic medium such as though the TV, Fax, or the internet.
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Introduction (Cont’d)Introduction (Cont’d)
Security a major problem with many payment methods in Nigeria.
Some of these security problems are: Trust Non-repudiation Confidentiality Authentication
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Introduction (Cont’d)Introduction (Cont’d)
Other e-commerce business models◦Business to Affiliate model (B2A)
◦Business to Portal model (B2P)
◦Consumer to Consumer model (C2C)
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Introduction (Cont’d)Introduction (Cont’d)
Conducting e-commerce over the internet
requires Servers
Online merchant accounts
Payment gateways
Web host accounts
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Introduction (Cont’d)Introduction (Cont’d)
In-house web front/private hosting All requirements are provided or controlled by the
investor .Instant web front solution
Very few requirements are provided or controlled by the investor.
Instant storefront Requires a shared or dedicated web hosting plan
provided by a firm.
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Payment MethodsPayment Methods
Most common payment methods Digital cash
It entails the use of a digital wallet where invoice or receipt of payment is kept and cash is withdrawn.
Credit cards A card whose holder has been granted a revolving credit
line. Online check/electronic fund transfer
A buyer enters the digits or numbers found on the check to carry out transactions
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Payment Methods (Cont’d)Payment Methods (Cont’d)
Other payment methods Debit card
Micropayment
Money orders
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e-Commerce methods in Nigerian e-Commerce methods in Nigerian banksbanks
Types of business methods in Nigeria Electronic banking
Internet banking
Telephone banking
Mobile banking
Other transaction method Automated Teller Machine (ATM)
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E-commerce methods by online E-commerce methods by online service providersservice providers
Web merchants Are those individuals or organizations that
conduct transaction and make it possible for
people to buy goods or render services to people
via their websites.
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E-commerce methods by online E-commerce methods by online service providers (Cont’d)service providers (Cont’d)
Payment gateway providers Process card information used online or at point of
sale (POS) terminals. These terminals act as an
interface to the banking system.
Present gateways in Nigeria: Interswitch
Etranzact
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Evaluation of E-commerce Evaluation of E-commerce Participation By The PublicParticipation By The Public
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Evaluation of E-commerce Evaluation of E-commerce Participation By The Public Participation By The Public (Cont’d)(Cont’d)Other Research Materials Used
Daily Newspaper Articles Face to Face Conversation with staff of some
banks E-commerce Service Provider
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Research Questions Asked
Do you conduct your transaction on the internet ? If yes, what payment method do you use ? Your job description Your computer competence level Should you want to make payment method online
what payment method would you prefer ?
Research QuestionsResearch Questions
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Analysis and Discussion Analysis and Discussion
Analysis of Current Payment
84% of the total sample do not conduct. transactions on the internet (Misguided Figure).
16% practice e-commerce. 65% use prepaid cards. 25% conduct transaction by using a credit card. 20% use direct payment.
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Analysis and Discussion (Cont’d) Analysis and Discussion (Cont’d)
Analysis of Prefer Payment
27% prefer direct payment as a payment method. 43% prefer the prepaid/debit card method. 18% prefer credit card payment method. 3% of the sample did make a choice on a prefer
method.
Suggested Payment Method
Biometric Payment
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Conclusion and RecommendationConclusion and Recommendation
Conclusion
Direct payment and prepaid/debit card payment are the appropriate methods for e-commerce in Nigeria.
Recommendation
Having a card system that hides a user’s sensitive data by using a PIN and it is based on smart card technology.
E-commerce service provider should provide a reliable payment gateway to banks.
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Conclusion and Recommendation Conclusion and Recommendation (Cont’d) (Cont’d)
Recommendation Payment gateway should be connect regardless of
their proprietary technologies. A regulatory body containing members of banks
and e-commerce service provider should be created so as to ensure a standard e-commerce system in Nigeria.
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