Question

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E-commerce in Saudi Arabia has received a boost following the launch of several digital payment platforms in the last few years, a development that should support the growing number of online shoppers and contribute to government efforts to diversify the economy. Saudi Arabia is one of the fastest-growing markets in the Middle East for electronic payments, investments in the e-commerce market are set to rise under the government’s Vision 2030 strategy and National Transformation Programe (NTP), which both aim to improve communications connectivity and data transmission throughout the country as part of the broader diversification drive

. Answer the following questions:

1. What are the different methods of e-payment systems used in e-commerce platforms in Saudi Arabia?

2. Discuss the benefits of the multiple types of e-payment system to the customers?

3. Discuss the benefits of the multiple types of e-payment system to the e-commerce business?

4. What are some factors affecting the e-commerce business when choosing the e-payment gateways?

5. Explain some issues related to the e-payment system in the e-commerce platforms?

Answer 1

Ans 1. Different Methods Of E Payment system

(A) Credit Card -Visa,Maestro,Discovery,American Express

(B) One Card -It is just like Prepaid Card in or can say wallet card add money and use it.

(C) Mobiamo

(D) Mint - It is also a prepaid card

(E) Saudi Arabian Riyal Interbank Express - To settle Commercial Payments in Riyals

(F) Apple Pay launched few days back.

(G) Cash

And more to go.....

Ans 2 Benefits Of multiple type of e commerce payment.

(a) As variety of customers exist in the market ,for each customer it might be possible that he is not using any kind of prepaid card , and believe on credit cards payments so if that payment option available at that e platform it might be possible that he would buy anything from that .

(b)Accepting credit cards boost sales. Credit cards are becoming the most common method of payment, and your customers expect the ability to pay by credit card at any location. Studies show consumers who pay with a credit card spend more than if they were paying with cash.

(c) Customers see those credit card logos on your door, the brands they trust that are in their wallet, and strangely enough, there is a transference of confidence to your business. Merchants who are “cash-only” seem foreign and ancient in this new credit card-centric worldview.

(d)Mobile payments are secure. The POS system does not have access to the full card number so malware cannot take the information. Apple Pay, for example, does not store your card information at all.

Ans 5

(a).Trust on Security-As it requires internet or you can say internet based payment system cyber attack is possible and fraud can take place.

(b).Lack of Information to Use it - As in credit card payments it require your personal information so filling that kind of details would be irritating to customer.

(c) Trust issues - Electronic payments have a long history of fraud, misuse and low reliability as well as it is new system without established positive reputation