ECJ research: E-payment, cards, cellphone payment or bio systems - what to use?

Nowadays the development of technologies in the sphere of payment for products and services is characterized with the impetuous pace. It is interesting to notice that analytics consider it as only the beginning and contend that the payment segment will continue to increase its scope even faster. In the course of the nearest few years Internet-banking growth is predicted at the range of 200%-400% annually. In accordance with the estimation of Jupiter company volume of the market of mobile payments may be $22 billions in four years against $77.6 millions last year. Natalya Chanysheva, PR- director of WebMoney backs up this optimism and declares: «I believe this market is on its initial stage now but it will be developing very actively».

Marketing agency Brulant also predicts growth of the electronic payment systems by 2012 year on approximately 15-20% . At this moment it is difficult to affirm something definitely about forecast of development of biometric payment systems as industry is still in the process of forming, and after gossips about bankruptcy of «Pay by Touch» recently having lent wings to the whole progressive part of humanity, dream to make payments for products and services by finger-print can come to grief.

Today all payment methods can be divided into 4 categories:

- Electronic payment systems and banks controlled from stationary computer via Internet;

- Mobile payments;

- Plastic cards, including contact less;

- Biometric payment systems.

All these 4 categories are singled out on the basis of completely different methods of user identification. And it will be useless to argue what payment tool is the most effective. The only issue is what payment instrument suits to this or that user. All people motivate their desire to use payment system differently. For the majority the use of biometric systems may be considered as unacceptable deu to conerns on confidentiality, for others, in contrary, they want to pay their purchases only by finger-print as they have nothing to conceal from the law, and they don’t want to carry along their wallet, card or keep in mind numerous  PIN codes and passwords.

We tried to analyze strength and weaknesses of discussed payment methods and to figure out if there is an obvious leader or the competitor would be distinguished basing on users’ preferences.  For this we referred to electronic finance specialists of Trainexservice.com for weighty opinions to find out their point of view on the stated above issues and to deduce average preference figures. Five experts working in the market of electronic payments from 2000 were offered to evaluate advantages and disadvantages of four payment tools by means of 5 score scale. The lowest score – 1 assigns for the lowest criteria level, the highest score – 5 is the highest one. At lack or absence of information about payment system the answer should be 0 score. Please, see the table below with mean values received from the respondents.

So, in the course of investigation, having added the figures we got the following results:

- Electronic payment systems: 42,2 (29,2%)

- CellPhone payment systems: 31,2 (22%)

- Plastic cards (including contactless): 41,6(28,8%)

- Biometric payment systems: 29,4(20%)

It is necessary to note that the results are quite natural and predictable. Today, it’s very diffifult to overestimate the role of electronic payment systems simply because they represent the foundation of virtual economy. And exactly for this reason they have gained the maximum score. Plastic cards demonstrated a lower score, however, they are considered as the main rival to electornic payments.

Of course, in view of little number of respondents it is very difficult to speak about the accuracy of this survey, however, the authority and knowledge of the polled experts can be the significant factor that influences on objectivity of survey. Almost even ratings on cards and electronic payment systems are noted in a view of their great popularity offline. However, there is an opinion that the index of such popularity will decrease each year because of the increasing popularity of electronic payment systems.

The third place is fairly occupied by payment systems based on mobile phone as this technology has just begun to develop and is quite difficult to estimate further trends.

As for the biometric payments systems despite the diversity of  experts's opinions, this young payment tool, in general, has gained a little confidence because of lack of confidentiality within payments' procesing and a little prevalence all over world.

Editorial staff of Ecommerce Journal is carrying out this research motivated by  a particular reason: we live in such epoch when possibilities offered by technologies frequently pass beyond the development of mentality of the society. People do not have enough time to acknowledge all new things appeared that’s why they need to get expert’s opinion on many issues. Hope our research assists you to find a correct path tothe market and to choose proper payment tool. And we should just wait in order to carry out the same research in a few years and to follow how payment systems changed the world.

Arthur Dunhill, Chief-Editor of Ecommerce Journal