Terry KSYee presented in PIKOM's Leadership Summit 2011 to share about the importance of Online Payment in Malaysia's E-Commerce.

1. The Importance of Online Payment
in E-Commerce
Presented by:
Terry Yee K. S.
In PIKOM’s Leadership Summit 2011

2. E-Commerce Trend in Malaysia
5 years ago Now
And more….
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3. Online Payment in Malaysia
Online Payment: A system facilitates the acceptance
of payment for E-Commerce.
The acceptance of Online payment in Malaysia is
growing slowly from year to year.
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4. E-Payment Statistic in Malaysia (2006-2010)
45
40
35
30
25
20
15
10
5
0
2006 2007 2008 2009 2010
Transaction Volume per capita (unit)
Source: Bank Negara Report
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5. Transaction Volume of Internet Banking in Malaysia
1200
1000
+57% 1100.3
800
600
699.9
624.4
400
417.8
200 334.8
259.1
0
2005 2006 2007 2008 2009 2010
RM bil
Source: Bank Negara Report
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6. Penetration of Internet Banking in Malaysia
34.8
35
29.1
30
25 22.5
20 16.9
15 12
9.8
10
5
0
2005 2006 2007 2008 2009 2010
Penetration to Population (%)
Source: Bank Negara Report
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7. Common Practices of E-Payment used in the Industry
Source: Bank Negara Report
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8. How Online Payment Helps Your Business
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9. 1. Improve Security
Hold less cash on your premises
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10. 2. Wider Customer Base
Market for E-Commerce is borderless
2.1 billion Internet users worldwide*
Customers can pay you via phone, mobile internet
devices and laptop everywhere as long as with internet
connection.
*Source: www.internetworldstat.com (Last
update on 31 March 2011)
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11. *Source: www.internetworldstat.com (Last update on 31 March 2011)
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12. 3. Ease Your Admin
It comes with online statement of transactions which
is easier to reconcile
Improve efficiency of operational job.
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13. 4. Work 24 hours
Online payment works 24 hours a day and it allows
your customers pay while you are sleeping, dining or
travelling.
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14. 5. Create Convenience To Customer
Save time and convenience for jobs people.
Online payment just requires few mouse clicks which
take few minutes to complete the transaction.
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15. The Barriers
of Online
Purchase
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16. 2
Barriers to customers completing their purchase
50% 41% 60%
of online buyers drop off think that the checkout don‘t feel secure
the checkout process takes too long
50% 41% 60%
Source: Online-Studie, Valtech, November 2006 und TNS Research, 2006
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17. 2
Customers have many opportunities to abandon purchases
Bad Design of Online Purchase Flow
1 2 3 4 5 6
Open Delivery Review Select Fill in Payment
Choose the merchant address payment payment confirmation Order
product confirmation
account option details
Confirm Pay-
KLICK KLICK KLICK KLICK Log In ment Informat.
Buyer proceeds
to checkout
Additional
sales potential
Doesn‘t want Data entry
to register too long & time Impatience Prefered payment Buyer completing
consuming method missing Security concerns
checkout
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18. 2
Customers have many opportunities to abandon purchases
Bad Design of Online Purchase Flow
1 2 3 4 5 6
Open Delivery Review Select Fill in Payment
Choose the merchant address payment payment confirmation Order
product confirmation
account option details
Confirm Pay-
KLICK KLICK KLICK KLICK Log In ment Informat.
Good Checkout Process
1 2 3
PayPal PayPal Review & → Less hassle
Choose the Login Review confirmation Order
product confirmation
→ Less time
Confirm Pay-
→ Less risk of checkout
Log In
KLICK ment Informat. Payment
abandonment
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19. An Good Online Purchase Flow - Case Study
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20. Checkout Process
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21. Online Payment
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22. Transaction Review
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23. Purchase Done!
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24. Online buyers worry about ID theft
Why haven’t you bought products or services online?
I don’t want to share my financial information online 41%
Want to see it before I buy it 40%
Prefer to research online, buy in stores 21%
20%
Don’t have a credit card or debit card
Heard about other buyers’ bad experiences online 18%
Delivery costs are too high 14%
Source: Forrester Research. North American Technographics® Retail And Customer Service Online Survey, Q2 2007
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25. Conclusion
Online Payment comes with
advantages as well as disadvantages.
When the risk is manageable, online
payment definitely will create
successful achievement in your
business.
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26. Terry KSYee
PayPal Business Consulting Partner, MY
Tel: +60163906893 (with WhatsApp!)
Email: ksyee@paysult.com
Skype: ksyee1607
MSN: ksyee1607
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