Abstract
Payment means have evolved since the development of the E-trade. E-trade has abolished physical frontiers and entrepreneurs can meet a foreign demand even for small exchange. E-trade allows exchange between people that could not have met before the Internet. A bookseller in the US can now send his products easily in Europe and more the product is digitalized, easier and costless the exchange can be done. These new opportunities had demanded new means of payment. The traditional monetary systems are designed mainly on geographical grounds and they generate very high transaction costs on international level. E-trade demands international micropayment systems that are cost competitive. The paper explains the emergence of E-payment systems and tries to give a taxonomy regarding to their strategies. Firms such as PayPal first dominated the international micropayment markets, but the traditional banks are now entering this market. At the same time, PayPal is trying to enter the traditional market of current accounts. The emergence of mobile phone payments has brought new actors in the market. All these changes combined with a strict regulation framework lead to more cooperation and convergence than breaking strategies.
Highlights
The emergence of E-payment is an innovation from the traditional model of payment
Transaction costs and exchange rate volatility of the traditional payment systems give plenty room to innovate in order to reduce the costs for consumers
PayPal allows transactions that could not have taken place in the traditional system. These two systems, based on different strategies have something in common: PayPal and E-Gold offer a competitive solution to the traditional payment systems
Summary
The emergence of E-payment is an innovation from the traditional model of payment. The traditional model of payment has emerged in 1971. For instance prices in France between 1970 and 2009 have increased by 600%, we just remind the reader that without monetary creation and with the same productivity gains, prices should have felt This brief state of art of the “quality” of traditional currencies shows the opportunities to create better or more efficient payment systems. The bank keeps a 100 % reserve of gold in its virtual vaults, and charges some fees on deposits and on transactions This model is not as exotic as it could appear at the first glance. PayPal allows transactions that could not have taken place in the traditional system (the standard fee for a check payment between the Euro zone and the US is about 28 Euros, so micro transactions on the internet would be discouraged) These two systems, based on different strategies have something in common: PayPal and E-Gold offer a competitive solution to the traditional payment systems. The paper will analyze three main points: first the reasons of emergence for new payment systems will be developed, we will propose a typology of different payment systems regarding to their strategies and at the end we will focus on the convergence or divergence between traditional actors and new ones on the electronic payment market
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