DevelopmentofElectronicPaymentMethodandThinking

【Abstract】This paper introduces the concept of electronic payment， the definition of the payment is illustrated to catalogue the payment method. The development of the payment is also analysed both in China and worldwide. Then the issues exist in the electronic payment is studied. By analysing the issues， better law regulations， as well as technologies， are needed for the future growth of electronic payment.

【Key Words】electronic payment； payment method； issue analysis； future development

【作者簡介】邢詩淇，成都七中萬達學校。

1. Definition and Catalogues

The Electronic Payment is an activity which achieves payment and funds transfer by secure Internet connections. Payments are generated by consumers， businesses and financing organizations， then safely transferred to banks or processing organizations. Based on the research on financing and electronic business subjects， the electronic payment includes card payment， online payment， mobile payment and so on.

As a new method of payment， the electronic payment has its specific advantages. Firstly， the electronic payment is a method to carry out contracts. Secondly， it has the technological features， the payment is processed digitally， which is the primary feature that makes the difference to the traditional payment.

2. Analysis of Electronic Payment in China and Worldwide

In the global market， the most widely used and well-regarded method is PayPal. The PayPal was founded in December 1998， and now it has over 100 million users， making it the most efficient way of global payment. PayPal supports over 190 countries with over 20 currencies. The third-party service provider Moneybookers is also widely used， users are mainly in some of the European Countries.

The concept of third-party payment platform was raised in 2005 by CEO of Ali， while in 2003， the electronic payment has already existed. The Alipay was launched in October 2003 and started a new era of payment. The Alipay solved the trust issue by holding the funds as a third-party role， making the Alipay grows quickly and became the largest service provider in China. Around 2005， more platforms started to join the market such as Tencent， Lakala and 99Bill. The growth of the market exploded in 2008-2010， the annual growth rate of payments reached over 100%. Because of the mass expansion， the third-party companies are organised into the monitoring system for a healthier market. Nowadays， the third-party payment market is the largest and most diverted market in the world. In 2017， the number of Alipay users has reached 450 million， the annual volume of Alipay in the market has reached 1.43 trillion yuan. The second largest service provider Wechat has over 900 million users， the annual payment volume has also passed 1 trillion.

3. The Issue of Electronic Payment and Future Development

As a new method of payment， the electronic payment gets a lot of attention in society， especially from general users. Meanwhile， the attention from users is also the reason that the users avoid using electronic payment. The main reason is that of the virtual properties of the payment. The second reason is the lack of social trust system. The verification process is difficult to be validated. The third reason is the lack of law regulations.

There are two ways to resolve the issues. First is to improve the technology and develop the payment platform to include the user credibility information. This requires the cooperation to financing organizations， as well as support from business and users. Second is to develop the laws and regulations to the payment platform. This is to regulate the market and punish the activities which are out of regulation.

In the future， with the development of the Internet of Things and Artificial Intelligence， the expansion of electronic payment will also be accelerated. The electronic payment will have more diversity. Meanwhile， as there is still a lack of a method to make global payment in an efficient and low-cost fashion， the decentralised blockchain technology will be a very promising solution.

The newly developed electronic payment is a challenge to us， but it is also an opportunity. We shall be continuously exploring， learning， and developing new technologies. In such way， we can ensure the rapid development of the economy and technology of China.

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