In tandem with the development of the eCommerce, the China online payment market has increased steadily. China online payment market will estimate to reach RMB 60. 5 billion in 2007. Many companies have seen this huge opportunity, like EBay’s PayPal, they have entered in the Chinese market. PayPal is an online payment company which has become a global leader in this market. China Online payment is currently at its beginning stage. Although the large number of internet users in China, but there are still very few adopters of online payment.
Many adopters worry about the security issues and some people are even unaware of this way to pay bills, so PayPal face a problem of accelerating the adoption of online payment. This research will focus on the factors influencing the adopting of online payment in China. PayPal is a company founded in 1998, it is owned by eBay Company. PayPal is a famous online payment company which enables the people with an email address to move money between individual and business safely and quickly. PayPal’s service uses the bank accounts, debit and credit cards as the bases.
PayPal has nearly 72 million accounts and is available to users in 56 markets around the world (PayPal 2007). When the PayPal entered in the China, the China market has not too much consumers to use online payment system. In this research, Descriptive research will be used which is to describe characteristics f a population or phenomenon. It often helps segment and target markets. A survey is conducted and I will conduct descriptive study in order to obtain a deeper understanding of the online payment.
I need to describe the factors influencing the adoption of online payment in China. PayPal is a company founded in 1998, it is owned by eBay Company. PayPal is a famous online payment company which enables the people with an email address to move money between individual and business safely and quickly. PayPal’s service uses the bank accounts, debit and credit cards as the bases. PayPal has nearly 72 million accounts and is available to users in 56 markets around the world (PayPal 2007).
When the PayPal entered in the China, the China market has not too much consumers to use online payment system. China’s information technology has huge development including internet access and personal computer sales since 1998. Although the percentage of Chinese family owning a personal computer is low (Trappey & Trappey 2001), other families would own a computer by 2010. In 2002, China has become the first largest internet market in the world; this market has owned 59. 1 millions internet users (Wong et al. 2004).
In these years, we found we can purchase everything over internet in China. Hundreds of billions of dollars in goods and services will be generated from Internet trading (Clinton 1997). Online payment is also more important in modern society. Online payment is a kind of payment via internet based on debit and credit card system (Bitpipe 2007). In tandem with the development of the eCommerce, the China online payment market has increased steadily. Although the proficiency of using online payment system is quite low and online payment is still in its infancy (AC Nielsen 2002).
Due to advantages of being convenient and efficient, Chinese online payment market are confident that electronic payment methods’ benefits are better than other traditional payment methods in the future and therefore (Guo 2002). China online payment market will estimate to reach RMB 60. 5 billion in 2007 (China Online ; Mobile Payment Market Report 2006). In general life, online payment has a huge market. Many companies have seen this huge opportunity, like EBay’s PayPal, they have entered in the Chinese market. PayPal is an online payment company which has become a global leader in this market.
China also has other main online payment operators; PayPal faced huge competition (The Economist 2007). PayPal China supply easy and fast payment service and makes online payments extremely safe. The Mathias Entenmann, vice president of PayPal International, said PayPal China was an extremely efficient online payment network that will improve the payment experience and increase the velocity of ecommerce in China, as a pioneer of online payments, we are proud to bring our global payments expertise and local business knowledge to China (PayPal 2007).
