Online payment is a form of electronic payment, which is an instant payment method through a payment interface between a third party and a bank. The advantage of this method is that funds can be transferred directly from the user’s bank card to the website account, and the remittance arrives immediately without the need for manual confirmation. A variety of electronic payment methods such as credit cards,online payment processors e-wallets, e-checks and e-cash can be used for online payments between customers and merchants, saving transaction overheads by using electronic payments on the Internet.
Ways of online payment
From the perspective of the supplier of online payment, non-bank financial structures and non-financial enterprises have not yet intervened, mainly some commercial banks and institutions affiliated with the Central Bank (such as bank card information exchange center).
From the perspective of online payment business development, multi purpose steam mop banks providing online payment services have intervened in B2C, B2B e-commerce. In B2C e-commerce, banks provide payment and settlement services for individual users through cooperation with B2C e-commerce platform providers; in B2B e-commerce, banks’ support for B2B settlement business has evolved from simply providing corporate users with online
In B2B e-commerce, banks’ support for B2B settlement business has developed from simply providing online transfer settlement services for enterprise users to intervening in enterprises’ procurement and distribution systems, and the means of payment settlement has also developed from simple transfer function to online letter of credit services combined with comprehensive credit lines for enterprises. From the perspective of B2C online payment technology, SSL-based payment system is the mainstream form of online payment, while the development of SET-based online payment is relatively slow. China Merchants Bank provides both SSL-based small online payment and unlimited payment based on digital certificate, and the development is good.
In general, it seems that China’s online payment system is still in the initial stage of development, and there are still many problems: most banks cannot provide online payment services with national network; in the process of transforming traditional payment system to online payment system, there is a lack of cooperation among banks, each bank works separately, no large-scale payment gateway has been formed, and the coverage of online payment settlement system is small; the standard of online payment business is poor. Data transmission and processing standards are not uniform; the legal framework of online banking needs to be improved and perfected, etc. In addition, the development of China’s online payment system is also restricted by factors such as the social credit system. Credit is one of the key prerequisites for the development of e-commerce. However, from the current situation of China’s credit system, the overall credit system of society is not sound enough, which seriously affects the market players’ awareness of e-commerce security; at the same time, the constraints of the underdeveloped basic communication facilities and the low level of enterprise informatization, the development of online payment system can be said to be a long way to go.