TOPIC: THE TENDENCY OF USING ELECTRONIC PAYMENT BY OFFICE

WORKERS IN HANOI

Researching questions

1. What are some popular E-payment methods that employee often uses? How does
it work?

2. What are the benefits of E-payment methods?

3. What are the drawbacks that people may get when using e-payment?

4. What are the expectations to improve E-payment in the future?

Literature review

This chapter aims to provide the literature review of the study, which highlights the
definition of the key concepts namely:
1. E-payment
2. Traditional payment
3. Customer paying habit
Furthermore, this chapter will provide other researches which are related to the topic.
There are a quick review about the benefits and drawbacks of e-payment which will
become the theoretical framework in this paper.

I. Definition of key terms:

1. E-payment
The Fourth Industrial Revolution (Industry 4.0) has had a significant impact on the global
economy, created a new era - the era of technology and connectivity, changed the way
countries boost their economy, how organizations create value, the way we live and work
(Schwab, 2018). An electronic payment system is an outstanding instance.
It should be essential that the definition of electronic payment and related terms be
pointed out and clarified in the literature review. Firstly, it is useful to map out and
address the term “ payment’’. Payment is typically carried out to exchange for the
provision of property, goods or services to meet a legal obligation. There are various
methods of payments such as cash, checks, card and especially electronic payments
(Sinha, 2016). The following definitions are generally examined from a wide range of
perspectives in numerous fields. For instance, Hartmann M.E ( 2006) defines electronic
payments as all payments that are initiated, processed and received electronically.
Similarly, electronic payments are also viewed as payment mechanisms that make the
most of electronic media that cash is completely got rid of. It may be characterized as an
electronic advantage exchange of payment between the prayer and recipient thanks to an
electronic installment instrument. The e-payment benefit comes with a web-based client
interface that permits clients to access, manages their financial information and
exchanges remotely. Shortly, e-payment alludes to electronic payment within the setting
of e-commerce online transactions over the Web. It is summarized being as a non-cash
payment that does not involve a paper cheque ( Wahyu, Wibowo, and Ferry. 2018)
By and large, there are a great number of e-payment administrations that allow customers
to apply. According to Hsiao-Cheng, Kuo-Hua, and Pei-Jen (2002), depending on the
requirements of consumers, environmental business and expandability, they divide the
electronic payment system into four types:
 Online credit card payment
 Electronic cash
 Electronic checks
 Small payments
They also evaluate its aspects to conclude in terms of classification
 Technology aspect
 The economic aspect
 The social aspect
 The institutional aspect
 The regulatory aspect
Another perspective from Anindya ( 2017), electronic payment systems have been
gradually replaced by traditional ones like cash or cheque because of its user-friendliness.
Thus, there are currently different types of electronic payments in use:
- Credit card
- Debit card
- Smart card
- E-wallet
- Netbanking
- Mobile Payment
- Amazon Pay

2. Traditional payment

Traditional payment is the exchange between buyer and seller without electronic devices.
Traditional payment methods including cash, checks, credit cards or debit cards are
accepted when making any transaction in a certain community.
 3. Customer paying habit

Because of the advance of ICT, the transactions can take place on eCommerce platforms.
Therefore, the electronic payment solutions was create to make online exchange
convenient (Muhammad, Siti & Aidi, 2015). That development led to change in the
payment habit of consumers.

Each consumer can form the habit of payment by choosing a payment instrument for
almost their transactions (Tomi, 2007) “Payment habit is defined as the use of a
payment instrument to commit a payment.” The payment habit was formed based on
factors that budgets are in physical exchangeable form such as banknotes and coins or in
virtual currencies which can be traded on electronic payment applications. For office
workers, whose salary is delivered to their own bank account, they can choose the mobile
payment as their habit because of the convenience, speed and security (Muhammad, Siti
& Aidi, 2015)

II. Benefits of E-payment methods

E-payment is now becoming more and more popular because of the advantages that they
bring to customers. According to the research about Adoption of e-payment systems, the
e-payment systems are becoming increasingly important caused by their efficiency,
convenience and timeless (Mohammad, Siti & Aidi,2015).
E-payment can make users save more time, Alison Green had mentioned in his research
that customers don’t need to waste their time to queue up and wait for their turn thanks to
the e-payment.
Alison also wrote about the transaction costs of e-payment is less than cash payment.
When using traditional payment methods, customers need to pay the cost to go to the
store and even pay the postage when using checks. “There are usually no fees – or very
small ones – to swipe your card or pay online. In the long run, e-payment could save both
individuals and businesses hundreds to thousands of dollars in transaction fees” (Alison,
2018).
Bankrate has reported that two-third of consumers tend to use electronic alternatives
instead of using cash payment. This proves that businesses using electronic payment
methods will have an advantage over businesses that use only traditional payment
methods. (Alison, 2018).

III. Drawbacks that people may get when using e-payment (NHƯ)
While there is no doubt that both suppliers and customers may get some benefits from
this innovating technology, E-payment methods are a big concern to the socio-economists
and financials due to a plenty of downsides it may cause. The hazards to the online
payment are burglary of individual information and fake rejection with respect to clients.
Concerning the security of applying these methods, Rachna and Priyanka Singh (2013)
indicated: “Online payment systems for the internet are an easy target for stealing money
and personal information”. Clients need to give payment account details and the
requirement of personal information as well. It can be a niche for the illegal access to the
website and damage the security system.

Electronic payment systems require enormous measures of data from end users or make
transactions more increasing trouble by utilizing complex elaborate websites (Rachna &
Priyanke Singh (2013). In some cases, an online transaction is limited and the external
security threatens the usability and reliability of the feature. The priority of the applicant
is to model their applications in coherence with the fundamental principles of human
computer interaction, (Zahid halim, 2012).

Malex (2001) has addressed the issues of the view of mechanical innovations in e-
payment systems. Despite of the fact that information technology has had a positive
effect on e-paying framework, it has left significant security and usability issues to be
settled so as to take it more reliable and effective.

Silva (2005) carried a study to dive into the customer perception of e-paying methods in
shopping on both online and in-store. The findings demonstrated a tendency towards on-
site payments and in-store buying rather than utilizing internet banking services or e-
wallet to pay for everyday exchanges. The risk in e-payment transaction is partly from
the customer perception and this mode of payment is not fully provide customer with the
needed usability and security.

Failure to incorporate proper usability, security and efficiency in system design results in
complete rejection of the software product.

IV. Research gap:

The main purpose of this work was to study the tendency of using online payment
systems relating to the inevitable trend of digitizing business processes. To achieve this
purpose, a literature of the current electronic payment technologies was acquired through
academic books and papers or Internet sites.

According to Michael & Waidner (2000), various current electronic payments were
divided into some types of payment using electronic payment instruments such as Credit
Card, Debit Card, Electronic Cash, Electronic account transfer an Mobile payment. This
division relied on the mode of electronic payment transactions.
However, based on the target users of this paper, electronic payment was analyzed and
compared among the office workers in Hanoi which has not still been studied on any
reports or research thesis. In this literature, the advantages and drawbacks of electronic
payment were figured out.

References

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