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)

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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It entails the use of a digital wallet where invoice or receipt of payment is kept and cash is withdrawn.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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Presentation of ResultsPresentation of Results

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Presentation of Results (Cont’d)Presentation of Results (Cont’d)

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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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ReferencesReferences

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References (Cont’d)References (Cont’d)

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Personal View of The PaperPersonal View of The Paper

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