E Commerce Fraud in Bangladesh:

Impact on selling

1
 CHAPTER:1
INTRODUCTION
1.1 Background

With the rapid development of science, computer and network technology, electronic-
commerce (e-commerce) has become a routine part of human life. Since it can provide
new impetus to develop business in enterprises, it is convenient for customers, especially
in Business to customer (B2C) commerce. The customer can order at home and save time
for doing more things. There is no need to visit a store or a shop. The customer can visit
different stores in the Internet in a very short time and compare the products with different
characteristics. Such are price, color and quality.

Furthermore, online payment systems have a very important role in e-commerce. E-

commerce enterprises use online payment systems that refer to paperless monetary
transactions, which has revolutionized the business processing by reducing paperwork,
transaction costs, and labor cost. Being user-friendly and less time consuming than
manual processing, electronic commerce helps a business organization expand its market
reach expansion. (Yolo, 2015. Cited: 20.11.2017)

In the last decade, the online payment systems have developed and reached a high level
of security, privacy, and confidentiality and efficiency characters. (Yolo. 2015. Cited:
20.11.2017)

1.2:objectives

The purpose of this thesis is to introduce current state, the challenges and future
expectations of online payment methods in Bangladesh. The theoretical background
discusses history of e-commerce, the current situation of e-commerce and the method of
online payment systems used in e-commerce in Europe and Bangladesh. In the research
section, various types of customer opinions of online payment are studied by using
questionnaire survey.

2
The first chapter discusses the history and current situation of e-commerce in Europe and
Bangladesh. The second chapter introduces what online payment system is about, how e-
commerce and online payment systems are connected to each other during transactions
and what are the most common payment transaction platforms that are used online. The
chapter provides information on how payment systems work.

The research chapter discusses survey result. It gives answer to understand different
customers’ opinion of online payment. Questionnaire form was sent to online shopping
customers from European countries and Bangladesh. At the end of research the results
and conclusions of the research are given.

3
 Chapter 2

Literature review

E-COMMERCE

E-commerce refers to a transaction of buying and selling via the Internet. Dave (2011)
refers to different perspectives of e-commerce. The first one is communication part, to
transmit information, products, services or payment by electronic means. Secondly,
business process perspective is an application of technology towards the automation of
business transactions and workflows. The third one is service view, increasing the speed
and quality of service delivery when cutting costs at the same time. Finally, there are
online perspectives, the transaction of information and product purchase which occur
online. (Dave 2011, 10-11.)

History of E-commerce

E-commerce was introduced 40 years ago. It is still continuing to grow with new
technologies, innovations, and thousands of businesses entering the online market every
year (Miva 2011, cited 20.09.2017). Development of e-commerce is divided into two time
periods: the first period time from 1960s to 1990s, was based on Electronic Data
Interchange (EDI), the second period time after 1990 decade, e-commerce was completed
by World-Wide-Web.

EDI was generated in the end of 1960s in the United States. EDI was replaced by
traditional mailing and faxing of the document with a digital transfer of information from
one computer to another. Since EDI could reduce the use of paper, it was called no-paper
transaction. Then point of sale (POS), Electronic ordering system (EOS) and management
information system (MIS) were used to deliver data to different countries and different
enterprises in EDI. These kinds of technologies make data control more and more accurate

4
and effective. According to technical part, EDI was rented to a value added network
(VAN) to transfer data individually. (Miva 2011, cited 20.09.2017).

Despite VAN is safe, the cost of using it is high. People tend to pay more attention to use
Internet to e-commerce development. If compared to EDI, Internet-based e-commerce is
cheaper, and it also has wider coverage, and more functions and more flexible.

Timeline of E-commerce:
1979
An English inventor, called Michael Aldrich comes up with the concept of long-distance
shopping to Videotext, credited with developing the predecessor to online shopping (Miva
2011, cited
25.09.2017). Meanwhile, US has the same service called The Source and CompuServe.
1982
Minitel is introduced nationwide in France by FRANCE TELECOM and used for online
shopping, stock inquiry, search phone directory and other services, and even online chat.
However, the UK also launches but not so successfully.
1990
Tim Berners-Lee writes the first web browser, called WorldWideWeb (WWW), using the
NEXT computer.
1992
St.Martin’s publishing house publishes a book Future Store written by J.H. Snider and
Terra Ziporyn. The book indicate how new technologies will change the future shopping.
1994
Netscape releases Netscape browser and later introduces Secure Sockets Layer (SSL) to
protect technology. Pizza Hut begins selling pizza on their website.
In September 1994, Nicholas Negroponte, a professor at MIT writes a book “Digital
Survival”. He presents the view that “the basic element of the whole society will be
changed.”
1995
Jeff Bezos launches Amazon.com and establishes. Jeff founded the first 24-hour broadcast
of the non-commercial radio station. Radio of Hong Kong and NetRadio is launched. Deli
and Cisco and other companies begins to use the Internet to sale.

5
2002
PayPal launches online payment, which is acquired by eBay for 1.5 billion dollars. CSN
stores and NetShops and other online stores are founded and attention is paid to sell the
specific products.
2015
E-commerce tends to mature. Amazon.com releases the selling which almost 500 million
dollars, that is more than half of all e-commerce growth.
(Wikipedia cited 25.09.2017)

E-commerce in EU

Today, online retail in EU countries is growing exponentially, particularly in southern

Europe. The European B2C e-commerce rose from 530 billion euros in 2016 to 602 billion
euros in 2017, growth rate of nearly 14% (Ecommerce Europe 2017, cited 27.09.2017).
In Europe there are 50 countries, more than 200 different languages and 28 different
currencies. All of these facts make a huge cultural challenge in European e-commerce.
(EU Gateway 2017, cited 27.09.2017.)

According to the report of e-commerce in Europe in 2015, there are 220 e-commerce
platforms throughout all the EU countries, accounting for 31 percent of the total sales of
the world, especially in the UK, Germany, France, the Netherlands, and Switzerland.
Although Amazon and eBay are prior choices in e-commerce, there are also 39 e-
commerce platforms in Germany, 24 in France and 14 in Italy. The top ten e-commerce
platforms in Europe are amazon.de, amazon.co.uk, ebay.de, ebay.co.uk, amazon.fr,
amazon.it, allegro.pl, amazon.es, ebay.it, mobile.de. (EU Gateway 2017, cited
27.09.2017.)

A card account is the most popular in Europe, and the second most popular one is a digital
wallet. In the UK, approximately four in ten online transactions are paid by credit card.
The debit card is used in 35% of online payment method, also PayPal is the third most
popular payment method. Germans prefer to use the invoice when paying. In France, the
customer uses debit card CarteBlue, MasterCard, American Express and PayPal. The
Dutch prefers to use iDeal and Bancontact and Mister Cash is more popular in Belgium.
(Ecommerce News 2017, cited 27.09.2017.)

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In Finland, 93% of people use the Internet. 3 million of these Internet users shop online.
These online customers spend on average 2,170 euros per year. The Finnish e-commerce
sales reached 7 billion euros in 2015. In 2016, the growth was forecasted to reach 8 billion
euros.
(ecommerce europe, 2017, cited:30.11.2017.)

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 CHAPTER:3

RESEARCH METHODOLOGY

Research is something that people undertake in order to find out things in a systematic
way. Research can be seen as the collection and analysis of data from a sample of
individual or organization relating to their characteristics, behavior, attitudes, opinions,
and possessions. (Jon & Roger 2002. 7)

The quantitative approach is more than just “doing sums”, it is about making sense of
numbers within a context (Jon & Roger 2002. 7). The emphasis on testing and verification
and there is more focus on facts or reasons. Relationship are founded using variables (a
characteristic can vary within the problem context), parameters (values fixed for a given
problem) and by making assumptions (things accepted as true). The data can be from
existing sources called secondary data or may need to be collected for the purpose of the
research are primary data. Data can come from a census or from a survey. (Jon & Roger
2002. 7)

The data for this thesis was collected with a questionnaire that is one of the most widely
used data collection techniques within the survey strategy. Since each respondent is asked
to respond to the same set of questions, it provides an efficient way to collect responses.
(Jon & Roger 2002. 10)

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Research Design

The data collection method was a questionnaire (Appendix 1). The purpose of this survey
is to understand the current state, challenges and future expectations of online payment in
China and Europe. The questionnaire was consisted of 11 questions, which have 10 were
closed questions and the last one was an open question. At the beginning of the
questionnaire there were two personal questions, which defined respondents’ nationality
and gender.

The populations of the research were the students . The population consisted of the
students from four-degree programmers: Business Information Technology, International
Business, Business Information Systems and Business Economics. The amount of
students who received the questionnaire by email was 195. To send questionnaire to my
WeChat friend list one by one.

Webroot was used as a tool to build a questionnaire and to collect results.

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 CHAPTER :4

ORGANIZATION OVERVIEW
Payment Systems in E-commerce

Online payment is a form of electronic payment, which is provided by a third party

payment interface between banks for real-time payment. Compared with the traditional
payment, online payment systems are more convenient, fast, efficient and economical.
Users can use their own PC or mobile phone with Internet to complete the entire payment
process in a very short time. (Baike 2017, cited 30.09.2017.)

Online banking is a very common way of online payment systems. For example, when
users want to shop online. The user must open an online bank account. This payment is
directly paid by credit card or even debit card. And now third-party online payment
systems such as PayPal are also very popular in e-commerce. Third party payment is an
independent organization, which provides the network payment mode for transaction
platform between bank and online payment platform. Third party payment mode is like a
credit intermediaries to supervise and support between online business and the bank.
(Baike 2017, cited 30.09.2017.)

First of all, for the customer third-party online payment companies can provide a variety
of online payment systems. Especially for small and medium enterprises. Online payment
system provides a convenient payment platform to do trade with customers. For the
customer, it does not only give a chance for quick payment after shopping online, but it
also avoids the risk of money transfer. Online payment allows the banks to expand their
business and allocate the resources on development and maintenance. (Baike 2017, cited
30.09.2017.)

Online payment system also has plenty of risks. Financial risks are possible during the
transaction process. There is a plenty of competition which may cause a negative impact
on online payment. For example, in China, over 40 electronic payment companies work
on thirdparty online payment, which causes serious homogeneity in the market. The last

10
but not the least there is law and regulation problem. Legislation regarding online
payment should be established. (Yu 2015, cited 30.09.2017)

Types of Online Payment System

Net Bank

Net Bank is a virtual counter of the bank to provide network technology for the customer
to complete some traditional services such as opening an account, inquiries, transfer,
online securities, investments and financial management. By comparison with traditional
bank services, online banking cuts down operating cost. There are no time or location
limits, the bank can offer services anytime and anywhere, even anyhow. Furthermore, net
bank provides a variety of personalized services, such as insurances, securities and other
financial products. (Baike 2017. Cited: 30.09.2017)

PayPal

PayPal allows any business or individual with an email address to transfer money online
in a more secure, convenient and efficient way. The network is based on the existing bank
account and the credit card to create a real-time payment solution. (PayPal.com 2017,
cited: 30.09.2017)

PayPal is the most popular third-party online payment system in the world. It has 8 million
transactions every day and has over 137 million PayPal accounts in 193 markets and
includes 26 currencies that it can transfer all over the world. (Aki 2015, cited: 30.09.2017)

Google Wallet

Google Wallet is a peer-to-peer payments service produced by Google Company. Google

Wallet must link to an existing credit card or bank account in the US. Payment transfer is
completed by using an email address or a phone number. The most important revolution
is that Google Wallet released real card to connect to user’s accounts so customers can

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use Google wallet at retails businesses. It can also be used like a debit card to withdraw
cash at ATM. Unfortunately, Google
Wallet card was abolished on June 30, 2016. (Wikipedia 2017, cited: 30.09.2017)
Amazon Payment

Amazon Payment was launched in 2007 by Amazon Company. It is an online payment

system which is owned by Amazon.com. The customer does not have to leave the site to
complete a transaction. It is safe and fast way to buy products online. (Aki 2015, cited:
30.09.2017.)

Authorize.Net

Authorize.Net provides a payment gateway service. It allows merchants to accept credit

payment through their website and over an Internet Protocol connection. Since 1996 there
are around 375,000 merchants and more than 88 billion dollars transactions in 2015. (Aki,
2015, cited:
30.09.2017)

Wechat Wallet

Wechat payment is the most widely used payment gateway with the mobile phone, based
on Wechat app. By linking your debit cards to Wechat payment is enough to complete
transaction. In Wechat Wallet there are plenty of payment methods:

 Quick Pay: Vendors scan the QR code shown by customers on the Quick Pay
page to finish transaction.
 QR Code Payment: Vendors create different QR codes for different goods.
After users scanning these codes, customers can see related product
information and transaction guides on their phone.
 In-App web-based payment: Vendors push product messages to their
followers via the official account. With Wechat payment enabled, their
followers can purchase products on the shopping page.

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  In-App payment: Vendors can integrate Wechat Pay SDK (software
development kit) into their apps. When users make payment in other apps,
Wechat will be authorized to process the payment. Once the transaction is
done, the page will redirect to the other app. (WeChat Wallet User Agreement.
Cited: 30.09.2017)
AliPay

In 2013, AliPay overtook PayPal as the world’s largest mobile payment system. It is used
by more than 5 percent of world’s population. Up to now, there are 270 million user
accounts. The amount of mobile payment transactions peaked 1.97 million times. Alipay
is operated by Ant Financial of China, which is one of the largest FinTech companies in
the world. Alipay is a way to pay for goods and services online, but now it is more than
that. It is a global lifestyle “super app”.
(Wikipedia 2017, cited: 06.10.2017)

Online Payment Systems in Europe

When it comes to paying for the goods the customers ordered online, the shoppers in
Europe prefer to pay through third-party payment systems such as PayPal. Visa and
MasterCard are also popular followed by domestic credit and debit cards (Ecommerce
News 2017. Cited: 27.10.2017).

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FIGURE 1: Online payment methods in Europe (Ecommerce News 2017. Cited:
27.10.2017)

In Finland from 2013 to 2016, the most popular online payment systems were debit or
credit card. 31% of respondents stated that they prefer to use this system of payment for
their online purchases. Second one was direct payment via bank. The third one was
invoice with 23% followed by PayPal, Payson or similar at 12%.

FIGURE 2: Most popular online payment systems in Finland between 2013 and 2016.

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(Statista.com 2017. Cited: 20.11.2017)

15
Online Payment Systems

FIGURE 3: Online Payment methods in China (Ryan SEO Shifu Blog. Cited: 27.10.2017)

In 2017, AliPay was the leading third-party payment provider in China with 34.71%,
Union Pay ranked next with 22.44%, while Tencent Finance which provides China’s
largest internet company takes a market share of 15.37%. (Ryan SEO Shifu Blog
21.08.2017. Cited: 27.10.2017)

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 CHAPTER:5
Analysis and Findings

The response rate of this survey was 32%. 71 respondents have answered the survey. 45
respondents were students in Oulu University of Applied Sciences, 26 respondents were
answered via the link shared on WeChat. The first question about respondents’
nationality. 48% of the respondents were Finnish and Europeans, 37% were Chinese and
the rest 15% were from other countries. The Figure 4 below shows the distribution of
respondents’ nationality.

Others
; 11

Finnish
; 21

Chinese
; 26
European
; 13

FIGURE 4. Distribution of nationality (n = 71).

Next two questions dealt with the respondents’ gender and age. 45% of respondents were
male and 54% were female. Most of respondents, i.e. 73%, were between 19 and 25 years
old, 23% were between 26 and 35. Only one respondent was under 18, and also between
36 and 45 and between 46 and 59 years old. There were no respondents over 60 years old
in this survey. The table 1 below shows the percentage of the respondents’ age.

17
TABLE 1. Respondents’ age (n=71).
Age groups N Percent
Under 18 1 1.4%
19-25 52 73.2%
26-35 16 22.5%
36-45 1 1.4%
46-59 1 1.4%
Older than 60 0 0%

Fourth question was “Do you use online payment?” The large majority, 99% respondents
answered “Yes”, 1% answered “No” There was nobody without previous experience in
online payment before. The table 2 below shows the percentage of Do you have
experience of online payment before.

TABLE 2. Do you have experience of online payment before (n=71)

Yes No I will use
later
Do you use online payment before? 98% 0% 1%

The Next question was “Which online payment do you know?”. Since this question was
a multiple choice question, the respondents were able to choose one or several options.
There was also an open option for the respondents to answer if they knew other online
payment systems, which were not included in the list. Following online payment systems
were mentioned: debit card (Visa or MasterCard), Net bank, PayPal, Google Wallet,
Amazon payment, Authorize.Net, WeChat payment and AliPay.

The most popular online payment system respondents knew was Debit card and PayPal
with 93% and 85%. 79% of respondents chose Net Banking and 56 % of respondents knew
AliPay. 37% of respondents chose WeChat payment method. 30 % knew Amazon payment.
Google Wallet was known by 25 % of the respondents and 11 % knew Authorize.Net. Again
there was the open question, which gave the respondents opportunity to add some
previously not mentioned payment system systems. The answers were: Credit card, Skrill,
QIWI, Yandex Money and Steam Wallet. Figure 5 below shows the number of respondents
know the online payment.

18
FIGURE 5. Which online payment do respondents know? (n=71, selected answers=299).

In the next question respondents were asked which online payment systems they use most
regularly. 35% of respondents used debit card most frequently. PayPal and AliPay ranked
second and third, with 24% and 20%. 17% of respondents used net bank and 4% of
respondents used WeChat payment most frequently. No one chose Google Wallet,
Amazon payment or Authorize.Net. Table 3 below shows the percentage and number of
online payment systems respondents’ used most regularly.

TABLE 3. Which online payment do you use most regularly? (n=71)

Online Payment N

Debit card 25
PayPal 17
AliPay 14
Net Bank 12
WeChat Payment 3
Authorize.Net 0
Google Wallet 0
Amazon Payment 0

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 Others 0
Total 71

Next question sorted out respondents’ expenditure by online payment systems. The
question was “How much do you spend via online payment monthly (percentage of your
monthly expense”. 29% of the respondents used less than 10%, 17 used between 11% and
25% on online payment. Use between 26% and 35% and between 36% and 50% were 9
and 10 respondents separately. 6 respondents used more than 50% by online payment. Table
4 below shows the percentage of expenses used monthly via online payment.

TABLE 4. How much do you spend via online payment monthly (percentage of your monthly
expenses)
Percent

Less than 10% 41%

11% - 25% 24%
26% - 35% 13%
36% - 50% 14%
More than 50% 8%

The respondents were also asked the pros and cons of online payment. Both questions
were both multiple choice questions. The respondents were able to choose one or many
options and also had “others” as an open option if the pros or cons were not in the list. In
pros of using online payment there were 6 options in the list: convenience, efficiency,
automatic, fast transaction speed, low risks of theft and others. The number of respondents
were 71, selected answer were 247.

The most popular pro of online payment was convenience with 93%. 86% of respondents
thought fast speed of transaction is a pro of online payment. 77% of respondents selected
efficiency. Automatic and Low risk of theft ranked next with 48% and 42%. Only one
respondent chose others, the answer was “Source”. Figure 6 below shows the number of
pros of online payment.

20
 70 66
61
60 55

50

40
34
30
30

20

10
1
0
Convencience Efficiency Automatic Fast traansection
Low risk of theft Others
speed

FIGURE 6. Pros of online payment (n=71, selected answers=247).

In the list of cons of using online payment there were 8 options in the list. The options
were service fee, inconvenience of offline sales, vulnerability to cybercrime, reliance on
telecommunication infrastructure, technical problem, it may take time to get started,
learning takes too much time and others. The number of respondents were 71, and there
were 157 selected answers.

The most popular con of online payment was technical problem which had 39 respondents
chosen. 38 respondents selected vulnerability to cybercrime. 28 of respondents chose
service fee and inconvenience of offline sales. Next was reliance on telecommunication
infrastructure which 14 respondents selected. 4 respondents thought it may take time to
start and learning takes too much time. Two respondents selected “others” option. The
answers were: “authorization may be difficult” and “when you return stuff or something
goes wrong you pay twice or whatever, the refund process can sometimes be unpleasant”.
Figure 7 below gives the numbers of online payment cons.

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FIGURE 7. Cons of online payment. (n=71, selected answer=157).

After sorting out respondents’ user experience, next was asked the challenges the
respondents were facing when adopting online payment was assed. This question was also
a multiple choice question. The respondents were able to choose one or many options and
also had “others” open option if their challenge was not in the list. In the list there were
five options: Malware attack, financial issues, market regulation issues, moral issues and
others. The number of respondents were 71, selected answers were 118.

53 of respondents chose malware attack, and 29 of respondents selected financial issues.

The market regulation issues and moral issues were ranked next, which were 20
respondents and 14 respondents chose. There are 2 of respondents selected others but they
did not give the reason.
Figure 8 below gives the distribution of challenge respondents facing when adopt online
payment.

22
 60
53
50

40

29
30

20
20
14

10
2
0
Malware attack Financial issues Market regulation Moral issues Others
issues

FIGURE 8. Challenge when adopting online payment. (n=71, selected answer=118).

The last question was about what do you think should be done to address these challenges
or perspectives mentioned in the previous question concerning online payment? This
question was an open question. Respondents could write their own comments about
online payment systems. There were 16 answers for this open question. Respondents gave
their recommendation to solve the challenges of online payment. Such as announcing
online payment law, trying to know the methods and security information before use
online payment methods and technical support. Respondents also had a positive
expectations of online payment system. The comments are shown below.
“Have a secure, reliable, and trustworthy website. “
“Announce online payment law to become more normative”
“I think people may have prejudices towards online payment and are informed too little
about it.” “I have not considered this issue very much but what I’m doing to improve this,
is to buy most of my good from local brick-and -mortar shops to ensure money staying
here.”
“Try to know all the payment method and go through all the security info before start
online payment, then everything should be fine”
“Financial risks are a big problem. But in my opinion, QR code pay method will arrive
Europe soon.”

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“Keep updated with security and make your clients understand how your system work,
they'll more easily trust you and start to use it.
“I'm not sure if something should be done for example to customs because I understand
the will to strengthen homeland sales and such, I just dislike it. Then again I feel that laws
setting transaction limits kill small firms which is bad for competition.”
“Make it more secure”
“Technical support”
“Literally nothing. Financial issues are mostly because of the differences in salaries so on
European online shops prices are usually regulated only by EU market and wage gaps.”
“Educate people about online payments and bring awareness about vulnerabilities and
cyberattacks as well as highlight users own responsibility.”
“So far good”
“Allowing more block chain into the regular financial markets, simplification of fees,
removal of tracking mechanisms allowed by bank secrecy act.”
“Enhance network security”
“Install antivirus software, take care of the payment process”

Comparison of the Differences between Europe and Bangladesh

The total numbers of respondents of this survey was 71. 34 respondents were from
Europe, 26 from China and 11 were from other countries. The biggest difference between
European countries and China was which online payment they were familiar with. (Figure
9). Respondents from European countries were more familiar with PayPal, Google
Wallet, Amazon payment and Authorize.Net. On the contrary, Chinese were more
familiar with WeChat payment and AliPay.

24
FIGURE 9. Difference between Europe and Bangladesh of which online payment do
they were familiar with.

25
 CHAPTER 6
Recommendation and conclusion
RECOMMENDATION
In research part, since the number of respondents was too small for analysis to be more
comprehensive. The response rate was only 32%. In future research study I suggest that
maybe you can print the questionnaire out and ask respondents to fill the questionnaire
face to face. It is a good way to get more answers and analysis your research more exact.

After studying the theory of the online payment, I realized online payment is very popular
nowadays. I found out that there are so many online payment systems I had not heard
about before. Most of people want to shop online and use online payment to purchase.
Since I study abroad, I am familiar with both European and Chinese online payment
behavior. It seems that the process is the same both in Europe and Bangladesh, but in
Bangladesh there are some processes forbid to use by government.

I conducted a quantitative research. This was an interesting experience for me. All the
respondents answered the entire questionnaire and provided useful information. For the
purpose of this survey is to understand current state, the challenges and future expectation
of online payment in Bangladesh and Europe. I got 71 answers, 34 of respondents were
from Europe, 26 were from Bangladesh and 11 were from other countries. The biggest
difference between European countries and Bangladesh was the use of online payment.
In Europe respondents preferred to use PayPal and Net bank. Bangladesh respondents
liked AliPay and also Net bank.

Online payment will become a daily life routine in the future, so I think that a secure and
trustworthy environment is very important. The government should establish online
payment legislations to protect transaction. In China QR code pay method is very popular.
It is a very safe method to purchase by online payment, but it is not a very common way
in European countries. I hope it will become more popular in the future. Online payment
companies need to educate their customers on how to use the online payment. For
example, they should add features to their platforms that first offer a guide to users before
customer use online payment.

26
CONCLUTION
The main idea of the survey was to find out current state, the challenges and future
expectation of online payment systems in China and Europe. The number of respondents
was too small for analysis to be more comprehensive. The response rate of this survey
was only 32%.

The result of this survey shows the respondents were familiar with online payment
systems. All the respondents had previous experience with online payment before. Large
number of respondents (26%) was spending more than 36% (on their total expense) by
online payment systems. Respondents give so many useful recommendations and solution
to address the challenge of online payment. Respondents gave their recommendations to
solve the challenges of online payment. Such are announcing online payment law, trying
to know the methods and security information before using online payment methods and
the secure of technical support.

Debit card (Visa or MasterCard) and Net Bank were the most popular online payment
systems not only in Europe but also in China and other countries. Next is third-party
online payment system. PayPal is more popular in Europe. By contrast in China, AliPay
is mostly used online payment system.

All respondents think convenience and fast transaction speed are two main factors why
respondents choose online payment. Technical problems and vulnerability to
cybercriminals are main pros of online payment.

Malware attacks and financial issues are the main challenges of online payment. Having
a secure, reliable and trustworthy online payment environment is important.

According to the theory part, online retail is popular nowadays and using online payment
systems to transact has become a common behavior in e-commerce environment. In the
research, the results have proved that. All the respondents had experience in online
payment. Not only are they teenagers, but also older people. Both of them have used
online payment systems before. The most popular online payment system in Europe
countries is net bank and third-party online payment is PayPal. It is the same result

27
between theory and research result. In Bangladesh, in theory part, the most popular online
payment systems are AliPay and Union Payment. In research part, the most of
respondents use PayPal but another popular online payment system is net bank. It is a
little bit different between theory and research result.

28
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