Question

E-commerce Question

Question 1
Discuss the concepts of payment gateways and payment processing service providers.

(b) Discuss the concept of stages of customer loyalty and the role this concept could play in the
usage of a website.

(c)Discuss the concept of cryptocurrency and the viability of its adoption.

Answer 1

a) Payment gateways and payment processing service providers :

Payment gateway:

• Payment gateway is a technology that is used by the E-business sellers/owners. This technology is used by them to allow their customers to make the payment online for products purchased.
• When customers purchase the product they can make the payment online like through credit card, debit card etc..In this technology, there is no need of physical appearance or presence of any object. All processes are done in online.
• This technology makes the payments faster and easier to the customers.
• In this technology, payments are verified by applying authorized methods.
• It is very useful in E-business and helps in transactions between sellers and buyers.

Payment processing service providers :

• Payment processing service providers are defined as who maintains and manages the payment processes.
• It involves both payment processors and payment service provider.
• Payment processor means handles the transactions between seller and buyer.
• Payment service provider means the organization who provide a platform or application to make payment.
• Payment processing service providers offers the service to the customers to make payment by various online payment methods.And they also offer services to merchants to make sure that payments are transferred from customer account to merchant account (managing transactions).
• So they manage transactions between merchants and customers.

b) Stages of Customer loyalty :

Customer loyalty is building strong relationship between company's products and customers. There are stages of customer loyalty towards products are following as :

• Get an idea : This is first stage of customer loyalty towards your products. When they heard or saw about your products from their friends they will notice.
• Research : This is second stage loyalty towards products. In this stage , customers will research about your products and their information to make sure that is genuine or not.
• Purchase : This is third stage that shows loyalty to your products. Finally , they trust and buy the product of your organization.
• ​​​​​Use : This is fourth stage where customer use the product to fulfill their needs.
• Repeat : This is the fifth stage where if customer satisfied with their first purchase, they can repeat the purchase of your products.
• Refer : This is the sixth stage where customer advices, suggest to buy your products if they are satisfied.

Therefore, this stages of customer loyalty to your products helps in your business growth and make customer's strong bond on your products. By this stages , E-business persons can improve their business based on the customer expectations and their needs.

c) Cryptocurrency :

• Cryptocurrency is a form of digital currency which is secured by cryptography methods.
• It is created by Digital code.
• By Cryptocurrency we can pay payments by exchanging digital information.
• Example of cryptocurrency is Bitcoin.
• Cryptocurrency stores large amounts of currency records of information in a coin. So it is maintained digitally and secured by cryptography which can't stolen by any hacker.
• Therefore, cryptocurrency is a digital money.
• Generally this is used by billionaires , to store their large amounts of money in a single coin .
• For this system, there is no involvement of banks, accounts, currency notes etc..
• This cryptocurrency is adopted because it handles the large amounts of money.
• And it is stored in a single coin to avoid risk in handling large amounts of money.
• It is best option to secure the money by cryptography methods which can't steal even by the hackers.
• By this System, users can secure their transactions.
• Therefore, it become successful so it is adopted.