Rationale-
Nowadays, electronic payment has been a very common payment type in developed countries The online payment service has been made very easy by bank transfer and credit card For developing countries as Vietnam, electronic payment service has entered into the first stage of the development process
The application of electronic payment service in enterprises has been growing rapidly with a lot of improvements There are enterprises providing electronic payment service, typically Paynet and Vnpay Banks also pay more attention to electronic payment service , most of banks have online banking services such as Vietcombank, Vietinbank, Techcombank Besides, payment service are also being gradually improved, typically National Payment Services Joint stock company (NAPAS) and Banknetvn
NAPAs is managing and operating a system interconnect network of 16,800 ATMs and 220,000 POS machines, more than 90 million cards of 43 commercial banks in the country and internationally active in Vietnam NAPAs provide payment services with over
200 firms in the airline sector, telecommunications, hotels, tourism and electronic payment services for other utilities customer
This is one of the successes of NAPAs, however the fierce competition and quality of payment service is limited, such as:Risk warning system, Risk Management System
Beside, NAPAs has not friendly connected many popular e-commerce websites As a company providing and developing payment service, NAPAS JSC also needs to assess the effect of the quality of payment service system on their expansion in market share
Therefore, the model for quality assessment of electronic payment service system of the company has been researched and considered This model has been applied to find out the advantages and limitations of payment service quality of the company and then find out solutions in order to expand the company‟s market share in the next time
From this fact, I choose the topic: " The impact of payment service quality on market share expansion of NAPAS " for my graduation thesis In Vietnam, there is no report on the effectiveness evaluation of payment service quality on the market share expansion of NAPAS, so this thesis is one of the first reports which learns about the quality assessment of the NAPAS‟ payment service Hope that this thesis will contribute to the improvement and the development of the payment service of NAPAS.
Literature review
To research my thesis, I focus on studying related documents for my research process There are three groups in literature: (1) Thesis that relates to payment service and payment service quality of online business; (2) Case study on assessing the payment service quality (in Viet Nam and abroad); (3) Experimental studies on the relationship between service quality and market share
(1) Thesis Hung, Nguyen Tran (2010) completed a thesis named as “Payment in electronic commerce” The thesis includes three chapters providing basic theories of payment activities in electronic commerce as well as current e-payment system In addition to payment in electronic commerce, this thesis also provides perspectives on security technology in electronic payment This thesis also emphasizes the importance, benefits and limitations of payment in electronic commerce Besides theoretical basis of payment in electronic commerce for seizing the growth of electronic commerce in our country today, the thesis also provides illustrations of e-commerce in some developing countries, etc It can be said that the thesis has clearly depicted the concept of electronic payment and its importance in the current integration economy
Hy, Le Van (2009) with the thesis of “Online payment and electronic wallet”
This thesis is one of the important documents which provides me basic theories of electronic payment as well as electronic wallet Firstly, the author confirms that in Vietnam, electronic commerce has achieved enough conditions to develop to a new altitude Along with electronic commerce development, the system of electronic payment service also develops in order to cater for this development In which, the author highlights the concept of e-payment (online payment) and electronic wallet and the author lists companies currently providing electronic payment service in Vietnam and their advantages and limitations The application of this document in assessing quality of electronic payment service shows that to improve service quality of electronic payment , the companies in this new field must have specific strategies and plans to overcome the limitations as well as promote the obtained advantages in the next time
Tyree, A (2000) published a thesis that named as “ Virtual Cash - payment on the internet ” This thesis provides basic and clear concepts of online payment method
Besides, the thesis gives basic criteria to assess the quality of online payment service systems and online payment models which are being applied popularly today This is an important content in analyzing and assessing the effect of service quality of electronic payment on the development, expansion in the market of companies providing this service
In my thesis, I will use the collected knowledge in the thesis to build the research model to assess service quality of electronic payment of NAPAS JSC
In 2011, a group of researchers at University of Economics Ho Chi Minh City finished a research with the title of “Research actual situation of electronic payment system in Vietnam and propose solutions and recommendations to provide Website nganluong.Vn” The contents of this work focus on the concepts of electronic payment system, characteristics of each system and their advantages and disadvantages The research presents the development of electronic payment form in the world and in Vietnam, at the same time, the research also provides some popular electronic payment models which are often applied today Besides, the thesis highlights factors affecting electronic payment service system in Vietnam and conducts research on successful intermediary website about electronic payment in foreign countries and in Vietnam Its purpose is to find out the way of development of electronic payment in our country
Therefore, companies providing electronic payment service must always be active in their business activities, building appropriate business strategies and overcoming the limitations to create premise to increase revenue and expand market share The job is one of the effective contributions to NAPAS JSC in improving their service quality of electronic payment
So, in recent years, there have been many research projects on the quality of electronic payment service as follows:
Choi, Stahl & Whinston (2010) carried out a study with the topic of “Assess the quality of electronic payment service system” The topic is presented quite specifically and in details the concept of electronic payment system as well as the factors affecting the quality of electronic payment of companies providing this service in the United States
Through the presentation of the theoretical basis for electronic payment service, by using SPSS software to process collected data, the authors analyze and point out advantages and limitations in the quality of electronic payment service in the United States Based on this actual situation, the authors have proposed solutions to improve and enhance the quality of this electronic payment However, some measures which the authors propose are still general, not specific
Craig D.Mason (2011) has completed a research named as “Effect of the quality of electronic payments service to increase the sales of service companies” This topic is the application of previous theoretical basis in analyzing the effect of electronic payment service quality on the market share expansion of service companies Besides analyzing the actual situation of the electronic payment quality of service companies in the UK, the author also focuses on analyzing the effect of the quality of electronic payment service on the development, increase in revenues of the companies providing this service The data are collected by interviewing customers who have used electronic payment service of the companies providing this service in the UK The research results have a great contribution to the quality improvement of electronic payment service for the companies in the UK
Hung, Le Duy (2013) ran a study about “The payment in electronic commerce in Vietnam” The research has focused on presenting the main theoretical basis of payment problem in electronic commerce, payment process in electronic commerce Thereby, the research also strongly focuses on presenting actual situation of developing electronic payment in some enterprises in Vietnam for the period of 2010-2014 Based on the results of the actual situation analysis and surveys, customer evaluations, the authors build strategic solutions for electronic payment development in Vietnam during the period of
2015 -2020 However, because the research topic is quite general and research problem is quite broad, the topic cannot be in the details and delve into research problem
Tung, Le Duc (2014) has done a study about “Project on electronic payment for Vietnam enterprises” The topic focuses on researching the project on electronic payment development for enterprises in Vietnam The research has also focused on presenting some basic problems about electronic payment service at enterprises in our country and the actual situation of the quality of this electronic payment The research results also present that the safety and security of customer financial information are important contents affecting the quality of electronic payment of enterprises in Vietnam However, the solutions proposed by the authors are not specifying and in details for the orientation of improving the quality of electronic payment in Vietnam in the next time
(3) Experimental studies that relate to issues of service quality and expand market share
In fact, the author did not find any research that shows directly the content of the relationship between service quality and expand market share However, some of following studies may useful in interpreting this relation
Zeithaml et al (1996) with the research of "The behavioral consequences of service quality" that was published in the Journal of Marketing show many instructions for this relation In this research, the authors said that “…Findings from these studies show that companies offering superior service achieve higher -than-normal market share growth
(Buzzell and Gale 1987), that the mechanisms by which service quality influences profits include increased market share and premium prices (Phillips, Chang and Buzzell 1983)”
This means that the higher service quality that company offer, the larger market share they achieve
Rust, Roland T and Anthony J Zahorik (1993) have a study named "Customer satisfaction, customer retention, and market share” In this study, the authors cited the conclusion of Fornell and Wernerfelt (1997, 1998) that “marketing resources may be better spent keeping existing customers than attracting new ones” This means that, if companies spend on improving the service quality (one of marketing strategy) to keep their current customers, they could be more beneficial than attracting new customers (and thus, maintain the market share)
On the other hand, many researchers (Trang, 2006) support for the conclusion that
“the customer satisfaction and customer loyalty are positive relation” Therefore, increase the service quality will lead to increase the customer satisfaction and, thus keeping the current customer (because of increasing in the level of loyalty), and maintain the market share In addition, when the customers have more satisfied, they will introduce to others and lead to expansion of market share for the company
Aims of research
Do research on the actual situation of the quality of payment service at NAPAS JSC to find out solutions to improve quality of payment service which helps expanding the company's market share
- Systematize the basic theoretical issues about the electronic payment and quality of electronic payment service
- Assess the effect of factors affecting the quality of electronic payment service and then find out its effect on expanding market share of NAPAS
- Find out the advantages and limitations in activities of electronic payment service at NAPAS
- Propose solutions to improve quality of electronic payment service to expand market share of NAPAS and give recommendations to relevant units.
Objects of research
The main object of this research is “The impact of the electronic payment quality on the market share expansion of NAPAS company”.
Scope of research
Location scope: The research is carried out at NAPAS JSC
The research is carried out from Aug, 2016 to Dec, 2016 Solutions applicable until
Research methodology
The model of the topic is synthesized and built from previous researches In which:
Based on Paret and Lyapunov, 2000
Based on Paret and Lyapunov, 2000
Safety and security of the system
Safety (confidentiality) based on Nguyen Ngoc Hien, 2003
The security based on Gary P.schneider, 2000
This is characteristic to ensure the accuracy of electronic payment system, including pricing, tax, product information, etc (Nguyen Ngoc An and Nguyen Van Hoang, 2003)
Friendliness of the interface is the way to lay out products on the website, provides users with product information or services, which are provided by electronic payment system (Tran Ba Thai, 2005)
The author builds a model to assess the effect of factors on the quality of the electronic payment service based on original assessment model of service quality of Parasuraman (1988)
Qualitative research: Qualitative research is used through group discussion In group discussion, the author will run a survey of 30 people as follows:
- 25 customers who use payment services of NAPAS
The purpose of qualitative research is to discover, adjust and supplement the concepts of research scale Interview results show that all interviewees agree with the factors given by the author about the effect of payment service on customer satisfaction
Therefore, the author uses this factor group to conduct research
Quantitative research: The results of qualitative research will be used for quantitative research When determining the factors affecting customer satisfaction and market share expansion of NAPAS, the author continues to quantitative research To carry out this research, the author builds questionnaires and does surveys The numbers of customers that the author surveys are 300
Sample size: Roger (2006) presents that minimum sample size for practical researches is about 150-200 observations According to the opinion of Hair, Anderson, Tatham and Black (1998), the minimum sample size required for the research is calculated by n*5 (n: number of questions)
In this research, based on the proposed model, there are about 30 questions in the questionnaire Then, the minimum number of samples required is 30 * 5 = 150 observations To have a high generalization, the author selected a sample size of 300 observations
The author intends to interview customers by meeting them directly and interviews via telephone In addition, the author also collects information on customer conference of the company which is annually held This is a good opportunity for the author to collect many ideas of customers at the same time
+ Secondary data: secondary data will be collected at NAPAS in the period from
+ Primary data: The research will focus on collecting primary data within 3 weeks from 2 nd September, 2016 to 20 th September, 2016.
Thesis structure
The intended thesis structure as following:
(Not include Introduction and Conclusion)
CHAPTER 1: THEORETICAL BACKGROUND CHAPTER 2: ANALYSIS THE CURRENT SITUATIONS CHAPTER 3: SOLUTIONS AND RECOMMENDATIONS
THE THEORETICAL BACKGROUND
Overview of the service quality, electronic payment service and market share 9
1.1.1 The basic definitions 1.1.1.1 Service quality
Up to now, there have been a lot of different concepts and definitions of service quality as well as measurement about it Although it is not easy but there are some concepts which are often mentioned about service quality in researches as follows:
Each customer usually has different sense in quality, so the involvement of customers in the development and assessment of service quality is very important In service field, quality is a function of customer awareness In other words, service quality is determined based on awareness or sense of customers relating to their individual needs (Bui Nguyen Hung and Nguyen Thuy Quynh Loan, 2010)
There are two components of service quality: (1) technical quality is what the customers perceive; (2) function quality interprets how the services are provided (Grửnroos, 1984)
Service quality is different level between the expectation of consumers about service and their perception about service ressult (Grửnroos, 1984, Parasuraman et al, 1988)
Service quality is overall the characteristic properties of services It express capable of satisfying the needs of users in production conditions - economic - given society (Ngo Thi Thu, 2002)
1.1.1.2 Electronic payment and Electronic payment service
Electronic payment is a way of making payment via electronic message instead of cash (Nguyen Tran Hung, 2010)
Electronic payment is a form of non-cash payment basing on the methods and electronic means including forms such as payment card, electronic cheque, bank transfer and electronic funds transfer Electronic payment includes online payment (it means direct payment via network or Internet) and batch payment (also known as offline payment, for example, when supermarkets accept many card payment transactions, the entire batch will be processed to the bank at the end of the day) With the non-cash payment via two above mentioned methods, e-payment is compulsory and necessary requirement for the promotion of electronic commerce (Nguyen Tran Hung, 2010)
Electronic payment gateway is the connection system among banks, buyers and sellers with the final goal for the seller to be able to receive money once online transactions are done
Buyers just need to know that they have paid to the sellers via e-commerce website with their own registered online accounts in the most convenient way (Le Van Hy, 2010)
Electronic payment gateway is a software system that allows e-commerce websites to connect to payment channels such as banks Its purpose is to provide tools to help customers with credit accounts or other types of credit cards to make payments of goods and services on the websites when buying them Thus, instead of transferring money or directly depositting cash at banks, customers only need to confirm their payments It saves costs and travelling time Electronic payment gateway is as a selling location (Le Duc Tung, 2011)
1.1.1.3 Service quality of Electronic payment service
Quality of electronic payment gateway service is related to the quality of the interface, the quality of service required by customers because all interactions with users are via i computer interface with people The quality of electronic payment gateway systems can be regarded as the software quality or the quality of Websites (Vu Dinh Thu, 2010)
The principal components forming the electronic payment system is the networked computers, communications, computers connected client-sever types, multimedia services and other services Thus, the quality of electronic payment gateway services is quality of the system to meet the requirements of end users, these users are using the computer interface (HCI) From the impacts of electronic payments with PC, interface quality should follow the principles of software quality (Kalakota, Winston, 2007)
Quality of electronic payment gateway service includes 6 quality factors, functionality, reliability, efficiency, availability, maintenance and portability The similar works involving quality of electronic payment system is regularly reviewed the quality factor of the availability because it's the most important factor in the quality of electronic paymen (ISO 9126 standard)
1.1.1.4 Market share and market share expansion
Market share is the market segment of the business has occupied In essence, it is the market segmentation of the business to competitors in the industry (Vuong Van Dao, 2013)
Expanding the market share is the sum of the measures of enterprises so that the volume of products consumed by the enterprise reaches the maximum level Expanding the market share of the business is not only about developing new markets but also increasing market share of products in the old markets (Nguyen Van Anh, 2013)
To assess the extent of market share of a business, the manager can rely on a number of indicators, such as broadening the geographic scope of the market, creating new customers
1.1.2 Characteristics of service quality of electronic payment
+ Electronic payment services are not limited space The first characteristic of the quality of electronic payment services is that the parties may make payments at any time and under any condition
Electronic payments allow payment partners to narrow geographic distances, widen the scope of their payments globally Electronic payment is a component of the digital economy
+ Electronic payment services are not limited in time Electronic payment service is the payment service system through the computer network and telecommunications to achieve real-time payment speed Through LANs, the internet allows making payments on a global scale, 24/24 hours a day, 7 days / week
+ Electronic payment service is a payment method has many advantages
Electronic payment services have accelerated the trend of developing non-cash payment methods, restricting the use of cash in traditional payments and will be the inevitable trend of the times
Electronic payment services to expand into new fields: exchange of electronic financial datas, electronic money, digital wallet, electronic sec, smart card, payment cards
1.1.3 Factor affecting the service quality of electronic payment
The effectiveness of the payment gateway
The efficiency of the e-payment gateway system is the efficiency of handling the requests of customers using the service This is reflected in the speed of transaction processing quickly, the information processing accuracy
If the electronic payment system works more efficiently, the quality of the system of higher and the more satisfied the customer
The stability of the system
Stability of electronic payment gateway is also a determining factor in the quality of service The stability of the system is reflected in the ability to maintain the stability of transaction processing speed as well as ensuring accurate information in the transaction
Electronic payment system is evaluated with high quality when the system ensures high stability, less problems, the system does not generate errors or hangs to interrupt the transaction of customers
The safety and security of the system
Security and security are the prerequisite for any electronic payment system This factors are to ensure confidential information, the privacy rights of the account holder to use the service
Assessment models for service quality of electronic payment and relationship of
1.2.1 Assessment model for service quality of electronic payment 1.2.1.1 Assessment model for service quality of Parasuraman 1988
Parasuraman (1988) is regarded as the father of service field because he is one of the first people who builds SERVQUAL model to assess service quality SERVQUAL model is built based on perspective that perceived service quality is the comparison between expectations and the value that customers perceive
5-component SERVQUAL model has been used widely (Asubonteng et al., 1996;
Buttle, 1996; Robinson, 1999) It would seem that there are little doubts that SERVQUAL is a common tool to assess service quality, which is not only accepted by researchers but also is used to measure service quality in many different fields And it is perhaps used more than any method of quality assessment It is used in many fields, industries and organizations in many different countries: USA, UK, Singapore, Korea, Malaysia, Saudi Arabia, Kuwait, etc
Difference 1 Difference between expectation of customers and awareness of managers on expectation of customers Difference 2 Managers incorrectly transmit or can‟t transmit expectation of customers into procedure, specifications of quality
Difference 3 Staff don‟t work under proper procedure Difference 4 Advertise and introduce incorrectly Difference 5 Total of above difference, difference between received service and expectations of customers 5-different model is general model with its theoretical nature of service quality To be able to practice, Parasuraman et al tries to build the scale used to assess the quality in service field According to him, for any service, customers perceive quality basing on 10 following components: Reliability, Responsiveness, Competence, Access, Courtesy, Communication, Credibility, Security, Understanding customer, Tangibles
Advantage of this model is covering almost every aspect of the service but it is very difficult to assess and analyze In 1988, Parasuraman et alre adjusted and formed new model, including five components as follows: Reliability, Responsiveness, Competence, Sympathy, Tangibles
Model 1.1: Scale for service quality assessment SERVQUAL
Based on the research model of Parasuraman (1988), there are many researchers taking out assessment model of the service quality of different service fields When applying to actual research, number of factors that make up service quality may be less or more than above 5 factors and the factors can be changed depending on the industry and research fields, specifically prominent research models in the following service fields:
1.2.1.2 Assessment model for service quality of online banking of Broderick and Vachirapornpuk 2002
In their research, the two authors have observed participants, analysis and reports of social Websites of UK to learn how customersare aware of internet banking and factors of this model In the context of banking service business via Internet, the two authors point out five important factors which are considered to have major effect on perception of service quality,including customer expectation, photos, reputation of the organizations, set up service, contactservice and customer participation
Model 1.2: The assessment model forquality of online banking service
Source: Broderick and Vachirapornpuk (2002) 1.2.1.3 Assessment model for quality of electronic payment of ISO 2005
About assessing quality, ISO-International Organization for Sandardization and IEC- International Electrotechical Commission has launched ISO/IEC ISO 9126 standards It is monitored by project ISO 25000: 2005 and along with it, there is definition on a model of software product quality, the characteristics of quality and calculation relations
Under ISO 9126 standard, there are 6 groups of factors affecting the quality of electronic payment gateway, including factors as following model:
Model 1.3: Research model under ISO 9126 standard
Image, reputation of the organizations
Perception of service quality Customer expectation
Quality of electronic payment gateway
Base on model 2.3, we can see that research model under ISO 9126 standard includes
6 factors: functionality, reliability, efficiency, usability, maintainability and portability
The research results show that all these factors have positive effect on the quality of electronic payment gateway service
Similar jobs which are related to electronic payment system are often to consider the quality factor of usability as the most important factor ofthe software quality However, usability is not the only factor in the quality of electronic payment, the quality factors of operation, reliability and efficiency are aslo factors affecting users
1.2.1.4 Assessment model for quality of electronic payment of Liliana Solís 2011
Author Liliana Solís (2011) is a British economist, he has greatly contributed to the researches on the quality of electronic payment gateway service of the UK enterprises
Research of the author about the factors affecting service quality is be synthesized as following model:
Model 2.4: Research model of the author Liliana Solís (2011)
Source: Liliana Solís (2011) 1.2.2 The relationship between service quality and market share expansion
The factor of service quality has a closed relationship with the ability of market share expansion of the enterprises In the case of high service quality, the enterprises have more chance to expand its market share through attracting more customers (and vice versa)
Curry and Sinclair (2002) stated that if the service quality of the enterprises meet the expectation of customers, it lead to the satisfaction of customer And, thus the enterprises could gain more market share
Consistency Safety and security of the system
Quality of electronic payment gateway
Wicks and Roethlein (2009) suggested that, improving the service (and product) quality would lead to increase the customer satisfaction (and the loyal of customer) Thus, the customer will absolutely continue to use the company services in the future, recommend to others and then, the company has more chance of increasing the revenue
Arcording to Al-Wugayan et al (2008), the service quality is the necessary condition in order to keep the customer and attract the new ones By that, the company will increase the business operation efficiency and market share
In the e-commerce market, this relationship has been confirmed in many experience research such as: Craig D.Mason (2011), Choi, Stahl &Whinston (2010)… These researh show the importance of service quality in expanding the market share in not only the e- commerce market but also all other business sectors
Thus, we can say that base on original assessment model of service quality of Parasuraman (1988), there are a lot of researches on service quality measurement In which, many authors build assessment model of service quality of electronic payment gateway Base on previous perspectives and researches, combined with the theory of relationship between service quality and market share expansion as mentioned above, I propose model research of the topic as follows:
Model 2.5: Proposed asessment model of quality of electronic payment gateway of the topics
The model of the topic is synthesized and built from previou researches In which:
Safety and security of the system
Quality of electronic payment gateway
It is the ability of the system to provide appropriate functions to save maximum resources and increase working efficiency in certain usage conditions (Paret and Lyapunov, 2000) Base on two factors:
This feature describes the ability to maintain a specific level of performance under different conditions
ANALYSIS THE CURRENT SITUATION
Introduction about NAPAS.JSC
2.1.1 The process of formation and development
NAPAS JSC(NAPAS) is founded by Joint stock commercial Bank for Foreign Trade of Vietnam and 15 Joint-stock commercial banks to professionalize and diversify services of supporting and processing non-cash payment transactions under the policy of Government and State Bank
Currently, NAPAS is operating an information processing system connected to 51 member banks and financial institutions, airlines and telecommunication companies and large enterprises in Vietnam to provide products, convenient payment services on electronic transaction channels such as ATM, POS, mobile phone, Internet The main services are provided and developed by NAPAS as follows:
1 Electronic data processing service for financial transactions - NAPAS Switching includes:
- Data processing service for ATM transactions
- Data processing service for POS transactions
2 Payment gateway service - NAPAS Payment Gateway includes:
- Online payment gateway via Internet (e-Commerce)
- Electronic payment gateway for Topup, Billing
3 Service of providing solutions and payment methods for electronic wallet - NAPAS eWallet
4 Service of training, consulting and developing card services and electronic payment
5 Other services After 6 years of operation, NAPAS has expanded the connection of ATMs, POS system for member banks with a network of 16,000.00 ATMs and 105,000.00 POS and accepted payment for 55 million domestic cardholders of domestic and foreign banks in Vietnam
With domestic partners, NAPAS has been cooperated and agreed with airline and telecommication companies, big enterprises providing goods and services in Vietnam such as Vietnam Aviation Corporation, VietJet Aviation Joint Stock Company, AirAsia,
Vietnam Military Telecommunications Group, Vietnam Mobile Telecom Services Company, Viet Nam Telecom Services Company, Vina Group.,Jsc, etc to provide products, convenient payment services on electronic transaction channels such as ATM, POS, mobile phones and Internet for the essential payment demand of the customers
About international cooperation, NAPAS is actively seeking and exchanging cooperation possibility, connecting their system to international card organizations such as Visa, MasterCard, American Express, China Union Pay, JCB, etc in order to provide banks with modern payment support service
2.1.2 Introduction about electronic payment gateway service (NAPAS Payment Gateway)
NAPAS Payment Gateway is the service to process the authentication and license electronic payment transactions on the internet environment
NAPAS Payment Gateway enables the banks to develop their payment features on the internet for international cards, domestic debit cards at the websites which enterprises connect with NAPAS payment gateway
- International cards: Visa, MasterCard, American Express, JCB…
- Domestic debit cards: Domestic payment cards (ATM) issued by the banks NAPAS Payment Gateway is one of the leading online payment gateway in Vietnam market which is based on existing switch connection with over 30 member banks, applied the standards of best security and safety technology in Finance - Banking field and international card organization
- Number of international cards, domestic cards which are accepted on NAPAS Payment Gateway are the biggest and widest
- Connect with many large enterprises and many customers who have online payment habit such as VietnamAirlines, VinaGames, Ngan Luong, Bao Kim, etc
- Implement with the member banks quickly, simply on existing Switch connection platform
- Transaction process is standardized, simple, unified, easy for the customers to use
- The flows of transactions are standardized to minimize transaction risks, errors, improve service quality
- Provide more diverse payment channels based on existing connection with the banks
- Tools for control, automatic settlement are under the standards of finance and banking field
- Tools for transaction report for the banks and sales units, risk management, systems for monitoring and warning fake transactions under international standards
NAPAS Payment Gateway enables enterprises with e-commerce websites to accept online payments as following model:
+ Model of domestic card payment
- Customers purchase goods and services on the websites and choose the payment methods
- Customers will be switched to interface of NAPAS online payment gateway
- Customers fill in their card information and confirm the payments
- NAPAS online payment gateway will transfer payment request to the international card organizations to process
- After receiving notification that payment transactions are done by international card organizations, NAPAS online payment gateway will send notification to card acceptance unit and displays a message to the customers that the transaction is successful
+ Model of domestic card payment
Payment process for domestic cards is similar to international cards, after purchasing and making payment, customers will be switched to interface of NAPAS online payment gateway where customers will fill in their card information and confirm the payment transactions
Its difference compared with international payment gateway: NAPAS sends payment request to the issue bank
2.1.3 Business operation results of the company
Business operation result is a overall picture of business operation situation of the company To evaluate the results of business operation of NAPAS JSC, the author evaluates through the following table:
Table 2.1 : Business operation results of the Company
Net revenue from sales and rendering services
Cost of goods sold 6,861,973 8,286,779 20,300,932 1,424,806 20.76 12,014,153 144,98 Gross profit from sales and rendering services
Financial cost 200,000 603,512 1,003,395 403,512 201.76 399,883 66,26 Net operating profit 6,895,015 7,977,955 16,840,463 1,082,940 15.71 8,862,508 111,09 Other profit 590,136 743,407 718,568 153,271 25.97 -24.839 (3.34)
Earnings before tax 7,485,151 8,721,362 17,559,031 1,236,211 16.52 8,837,669 101.33 Current business income tax charge
Source: Data of NAPAS JSC
According to above table, revenue of the company has continuously increased for 3 years from 2014 to 2016, in which, revenue in 2015 increased by 23,38%, in comparison with the one in 2014, in 2016 it increased by 121.01% in comparison with the one in 2015
It proves that service-providing activities of the company are well implemented
At the time of last 6 months of 2015, the economic situation had fluctuations in prices due to the impact of global economic crisis, so many domestic enterprises have encountered difficulties in production and business NAPAS JSCis not out of this trend
Face the risk of decrease in market share because of fewer number of familiar partners, the leaders of the company made proper adjustments in service prices and incentives to increase revenue for rendering services Therefore, the profit after tax of the company remains the increase level, specifically this item increased by 16.52% in comparison with that one in 2014
In 2016, the international payment activities began developing strongly in our country, the company also seized this chance to sign a lot of contracts with some major partners such as Vietnam Mobile Telecom Services, Vietcombank, Agribank, VnExpress electronic newspaper This helps revenue for rendering services of the company in 2016 increase by 121.01% in comparison with that one in 2015 Sales expenses increased by 26.26% while general and administrative expenses increased more than 51.67%
Actual situations on market share of NAPAS JSC
2.2.1 Actual situation on the revenue of NAPAS JSCin comparison with other companies in the same field
Revenue from rendering services is the factor to exactly determine the consumption capacity of products and services of the enterprises in any field For NAPAS JSC, the author also conducts the analysis in revenue of the company while comparing with the revenue of others in the same field Its purpose is to understand the effect of NAPAS in the market The results are shown in table as follows:
Table 2.2 Revenue of NAPAS JSCin comparison with other companies
Vietnam Payment Solution JSC 23,092,154 24,112,010 28,097,189 33,089,904 47,091,023 Online Mobile
Viet Phu Payment Support Corp (Mobivi)
Base on above table, we see that revenue for rendering services in the company supporting non-cash payment has continuously increased over the years So does revenue from rendering services of NAPAS JSC It has continuously highly increased over the years from 2012 to 2016 If in 2012, revenue for rendering services of the company reached 9,908,297.00 thousand dongs, it increased to 39,727,852.00 thousand dongs in
2016 Other companies in the market are too, revenue for rendering services continuously increases Among them, Vietnam Payment Solution JSC (Vnpayment) has reached the highest revenue over the years It can be said that VNpayment is always the leading company in the field of non-cash payment It can be explained because Vnpayment is the first company in this field, so it is quite prestigious to customers in the market Revenue of Vnpayment has increased strongly, in 2012 it was 23,092,154.00 thousand dongs, in 2016, revenue of the Company increased to 47,091,023.00 thousand dongs Other companies lsuch as Onepay, Mobivi and M-service are quite strong in the market that are competitors of Smatlink in the expansion in market share
If being compared in terms of revenue for rendering services, the companies have increased market share over the years Therefore, to assess the expansion in market share, the author implements the assessment by comparing the market share among these companies
2.2.2 Market share in rendering services of NAPAS JSCin the market
Compare the market share of NAPAS JSCthrough the years and compare with the competitors is the way to learn the market expansion of the company in recent time The following table is the result of market share of NAPAS and the competitors which is built by the author after the research process and data collection
Table 2.3 Market share in rendering services of NAPAS JSC
Name of the company Năm 2012 Năm 2013 Năm 2014 Năm 2015 Năm 2016
Onepay Online Service and Commercial JSC 9.25% 11.18% 11.72% 14.85% 17.76%
Base on above table, we see that in the period of 2012-2016, Vietnam Payment Solution JSC (Vnpayment) has been the biggest competitor of NAPAS in the field of non- cash payment support Market share in rerdering services of Vnpayment reached the highest level in 2012 with 34.40%, however market share of this company has seemed to be decreased over the years In 2016, market share in rendering services of NAPAS JSCwas highest in the years with 24.93% In general, over the years, market share in rendering services of NAPAS is higher than other companies but still lower than Vnpayment in the market Therefore, the expansion and development in market share of NAPAS JSCis an inevitable trend in the strategies and activities of the company today
2.2.3 Number of major partners of NAPAS JSC in comparison with other companies in the same field
Research the number of partners of NAPAS JSCand then compare with other companies is also an effective way to assess the competitive capacity of NAPAS in the market Thanks to it, the leaders of the company can take measures to seek new partners to expand the market for consuming their products and services
Table 2.4 Major partners of NAPAS JSCin comparison with the ones of other companies
Name of the company Năm
Through the table, we can see that the number of partners of NAPAS JSCkeeps growing year by year It is considered to be one of the great success of Sales Department in increasing revenue for rendering services and expanding market share If in 2012, the company had total 32 major partners using services of the company, it increased to 51 partners in 2016 2016 is considered to be the year of success of NAPAS when NAPAS signed a lot of contracts with prestigious organizations in Vietnam such as VnExpress electronic newspaper, Vietcombank, Agribank, Mobifone However, if comparing with other companies in the market, the number of partners of NAPAS is still fewer than the ones of Vietnam Payment Solution JSC (Vnpayment) but higher than other companies
This is completely understandable because the advantages and prestige of Vnpayment are very high in the market In 2012, the number of partners of Vnpayment are 36 partners and it increases to 60 partners in 2016
Thus, from all aspects, Vietnam Payment Solution JSC (Vnpayment) is always the leading competitor of NAPAS both in prestige and market share in the market Therefore, in the next time, if NAPAS JSC wants to expand and develop their market share, they need to more study and understand strengths of the competitors, at the same time, they improve service quality to enhance their prestige in customers‟ mind
2.2.4 Activities of NAPAS JSC in the market share expansion
For market share expansion and increase revenue for rendering services, NAPAS JSC has performed many activities with positive impact However, to clarify the competitive capacity of NAPAS in comparison with other companies in the field of supporting non-cash payment, the author conducts the research on activities to expand the market share of these companies at the same time The research results are specified in the table as follows:
Table 2.5 Activities to expand market share of NAPAS JSC NAPAS
Onepay Online Service and Commercial JSC
Online Mobile Services JSC (M-service)
Viet Phu Payment Support Corp (Mobivi)
- Increase accuracy for transactions with customers
+ Improve product quality and customer service
- Design new features for users
- Ensure accuracy for transactions with customers
+ Improve product quality and customer service
- Ensure consistency for money transfer transactions
- Increase security of the system
- Improve stability of the system
- Improve efficiency of transactions + Seek new partners + Diversify products and services + Cooperate with many prestigious organizations + Invest in modern technology functions for users
- Set up a lot of language interfaces for customers + Invest modern technology for the system + Pay attention to severing close customers + Diversify products and services access
- Increase accuracy for the transactions
- Set up error notification system when having transaction error
- Ensure security of customer information
- Beautiful interface + Focus on customer service + Diversify products and services + Invest in technology
+ Promote to seek customers + Frequently upgrade the system
- Auto support customer if necessary
- Speed up money transfer transactions
- Set up a lot of language interfaces for customers + Invest in expanding transaction network + Pay attention to fostering and training staffs + Consider customer seeking activity to be the most important task
So, by researching activities to expand the market share in rendering services of the companies in non-cash payment field, it can be seen that almost companies carry out a lot of different activities to increase their market share of consuming their products and services
However, to increase market share in rendering services, the first activity that all companies always choose is the improvement of product and service quality although the way of each company will be different Hereby, we can see that service quality has significant effect on the market share expansion of the companies in non-cash payment field
Like other companies, the leaders of NAPAS JSC also choose the activity of improving service quality as the first task to expand market share To reach this goal, the company has implemented a lot of activities such as: speed up transactions, increase safety of the transactions, increase security of the system, design friendly interface, improve stability of the system and improve efficiency of transactions They are considered to be main factors affecting service quality of NAPAS in particular and the market share expansion of the company in general
SOLUTIONS AND RECOMMENDATIONS
Solutions to improve the quality of electronic payment service
3.1.1 Training the technical staff of the company
Implementation of training about professional expertise for the staff of the company, espescialyTechnical staff to advanced and diverse features give users as well as establish new risk warning systems, risk management systems, security methods Beside thatrecruiting additional technical staff to handl, troubleshoot the problem of system to shorten the time to upgrade the system as needed
When NAPAS JSC deploy to provide electronic payment gatewayservices, human problem is a difficult problem to find thesolution, to have most reasonable, a workforce with skills to operators the electronic payment gateway for business development activities is very important.The business scope and scale of the company is increasingly expanding
It also means that happened shortage of highly qualified labor with specialized training in electronic payments
Recruitment and training, improve human resource professional technical staff: to improve the quality of human resources for electronic payments, the Company can recruit from outside or training from internal resources
In the current period,to meet the immediate needs, Companies should focus primarily on training internal resources of the Company Companies should encourage and create favorable conditions for their employees to participate in short courses to improve the skills and qualifications These courses will provide amount of knowledge, which is very helpful for the company to gradually improve the quality of services electronic payment gateway and many more applications this tool to serve the lives of service users breast
For external recruitment, Companies should focus on young knowledge-based force with knowledge of specialized IT, e-commerce and communication skills with customersHuman Resources will come frome university, research institutes and graduate students are trained from abroad The company should have a reasonable remuneration policy to entice these source to the Company This is an important factor in increasing the competitiveness of companies in improving their quality of service
Training the business staff is capable of communicating with customers and implement transactions with partners in providing services
Training the skills administrator of Site and transaction processing such as:
+ Handle email: write emails, answer emails to customers
+ The basic operations for troubleshooting on the system popular
+ The administrator tasks: put images onto the system, the system administrator, updated information, the transaction processing operations,
3.1.2 Completing the system interface gateway payment services of the Company to raise the level of customer friendliness
Construction and design of the system interface port electronic payment means transaction offices on the domestic market as well as internationally However, interface system is only a necessary condition, not enough It required to continuously improving the interface on the form of presentation, updating information and enhancing the level of friendliness Therefore, the interface of payment gateway system must be attractive, the advertisement are too old, these dead links or slow reactions can cause offensive for visitors, affect to the reputation of the company so it is removed
An interface is considered to be friendly, to attract users when it satisfies the following factors:
- Present simple with easy to implement guidelines
- Number of connections is at least
- Engaging content without slowing down the operation of the system
- To ensure safety and reliability for users
In the next time, company should install some application of new technologies in the design interface, to make more modul from page system, to make interface more friendly with user
- Establish a system language: Vietnamese, English, Chinese, Japanese, French, and distinguished by IP access to express language (Eg: customers in China access the display language exam is automatically Chinese)
- Method of presentation: Currently making adjustments in the form of columns by manual methods Necessary to research, build follow the method that the large company / organizationis applied CMS (Content Management System) This is the sort program, the balance available in the format (standard default) when put 1 new content onto the system
Although the current quality of service of the company has made progress compared to the previous year, features electronic payment transactions improved outperformed competitors However, should consider the review of the system of payment gateway services is the daily work, not just an update of information, processing transactions once a month or less,the pricing information of services and products that the company offers to customers should agree, information are provided in the system must be official, exactlyto satisfy the diverse needs of customers Companies need to recognize properly the role of the interface as a channel of communication and constant interaction with customers, to help customers find what they need because customers will not stop in a system of electronic payment gateway when it is furnished in a mess, the lack of scientific So we need to create conditions so that customers can find what they want For example, the company can provide a visible link to the feature, different services, a search engine so that customers can enter the names of the features that customers want to use
In the service sector support payments without cash, the interface of the system is built mainly to introduce information and the latest updates on services offered, for customers to carry out transactions In addition, the company should also set up, update other useful information related to the service sector of the company to provide free of charge to viewers, to enhance the impression and confidence of viewers to the Company
On the system should have full address, service instructions placed by phone or the service functions by email, through the form located service
3.1.3 Expanding cooperation, linking with organizations large e-commerce, popular with users of Vietnam
The role of the organization and e-commerce website is increasing in modern society, especially in the field of business If participation linked to the organization of this e-commerce, companies have the opportunity to support each other better in the online business, sharing the cost of deploying applications and IT infrastructure, protect each other before the disputes arising in the new business environment, increased strength thanks to a common language and so on
Companies should engage in e-commerce Association of Vietnam (Vecom) One hand, to participate in the many activities bring specific benefits to members as well as for themselves, supported the security software and network securityand is focused on the development of members on a national scale On the other hand, Companies will have the opportunity to cooperate with many other companies in various business areas to create conditions to expand the scope of business
3.1.4 Investment and application of modern technology, advance to the work raising, improve the quality of the system's electronic payment gateway company to avoid limiting condition system crash
To continue to improve the system, improve the quality of services electronic payment gateway, Companies should promote the development of computer software that ensures faster transfer more accurate ballistic safer and secure against intrusion by hackers and thieves to the system to response the safety factor and security for the user services that company provides
Companies can review all the technological equipment available, utilize and upgrade the device if it can be On other hand, continue to equip new computer line with the demands of work, priority should be equipped with these machines have high processing speed for the payment
The investment in equipment and high-speed computing, compatibility between hardware and software will help companies avoid the traffic jam during transaction processing so that customers will attract more customers to use the services of the company, thereby improving the company's position in the competitive market
The company also attaches great importance to the maintenance, maintenance of computer equipment, software testing regularly check the backup device, besides, attach importance to the security and data storage
Solutions expand market share of NAPAS
3.2.1 Solution to attract customers using NAPAS e-payment portal
To be able to continue attracting more customers using electronic payment gateway services of NAPAS in the near future NAPAS should promote solutions to expand market such as:
- Open e-payment training courses and trends of e-commerce in the integration period: so that customers can quickly approach and catch up with the development of new payment methods in the time With the explosion of internet and information technology, NAPAS must actively open e-payment training courses to customers On the one hand it provides a part of the revenue for NAPAS, on the other hand will help NAPAS promote their brands and products and services that NAPAS provides
- Participating in international and domestic economic fairs: To introduce NAPAS e- payment portal to domestic and foreign customers, NAPAS must actively participate in economic fairs as a The company specializes in providing the most complete electronic payment solutions At these fairs, there are usually large businesses and organizations that will be potential clients of NAPAS in the future This involvement will make many businesses pay close attention to NAPAS, which is a good opportunity to advertise quality of service to end consumers
- Participate in economic development seminars in Vietnam: After Vietnam officially signed the TPP Agreement in 2016, Vietnam's economy has suffered from direct competition from many other countries in the world So many workshops were organized to evaluate and provide solutions for Vietnam's economic development during the integration period and NAPAS should actively participate NAPAS must proactively present its views, perspective from a young entrepreneur, and propose e-payment solutions to enhance the competitiveness of our Vietnamese enterprises in the market This will be a good opportunity for NAPAS to promote its brand to customers
- NAPAS annual meeting: As one of the leading companies in the field of electronic payment in Vietnam, NAPAS should actively hold evaluation meetings The results of our activities, both to attract media coverage, to write promotional articles for NAPAS, as well as an opportunity to focus and solicit customer feedback on the quality of NAPAS services being implemented, and to forecast the situation The development of the market in the coming years aims to help NAPAS customers make adjustments in their strategies that are better suited to the development of the market
By actively participating in seminars, fairs and active contact with customers in different channels will help NAPAS better positioned in the minds of customers and consumers Many consumers will know NAPAS as a company providing electronic payment services safe and secure and many businesses will know NAPAS is a company that provides a variety of electronic payment services, Quality, prestige in the market of Vietnam, a leading electronic payment market in Vietnam at present and in the future
3.2.2 Group solutions to improve the security of electronic payment of NAPAS
At present, NAPAS electronic payment gateway is applying the authentication programs of international card organizations such as MasterCard Security Code, Verified by Visa, J Secure, AVS These programs help banks identify cardholders and help the cardholder avoid risks Customers will be protected through a secret code issued by the issuing bank, based on the standards of the international card organization This solution helps businesses avoid risks and claim reimbursement from the cardholder
However, these programs only protect and authenticate customers after they have entered all the information in the registration page, the customers are still at risk of disclosing personal information when tagging the card account number, Password right on your computer by keylogger programs or computer worms Therefore, in order to enhance the security of customers from all stages of payment, besides securing the information transmission line, NAPAS needs to study customer security support through the following methods:
- Use virtual keyboard technology that allows customers to enter their personal information using a virtual keyboard on the payment website interface Customers fill in the account number and password information by clicking on the virtual keyboard to avoid detection of keylogger operation
- Use digital matrix technology to authenticate payment transactions for each transaction Accordingly, for each payment transaction, the website interface will display a random two-dimensional matrix number Customers will enter matrix information by column request by SMS and send to digital service provided by NAPAS to verify the payment before they provide the payment card information on the website
- Use e-wallet technology, whereby when customers register to use the service, NAPAS provides services to customers Customers only need to declare their personal payment card information once and are encrypted, stored on the NAPAS server in the form of an electronic wallet The next time customers continue to pay on different pages that are provided by NAPAS, just enter the information and password of the customer's electronic wallet, besides do not have to enter any other information Thus, customers can limit the need to hit several times the payment card information, reducing the risk of disclosure of customer information
Figure 3.1: Electronic wallet technology model
3.2.3 Solutions for the development of customer support services
Currently, NAPAS is implementing solutions to support customers to deploy e- payment gateway system on the enterprise website, such as consultancy on building electronic payment websites, consultancy on building human resources for online sales
And professional advice However, in order to become a full-service e-payment solution provider, NAPAS should step up its business support in activities such as:
- Sales regulations and policies in e-commerce
- Process and operate an online business
- Risk management in electronic payment
- Payment card and payment system
- Invoice of electronic voucher, electronic signature in electronic payment gateway
In addition to promoting electronic payment transactions, NAPAS should promote the dissemination of the benefits and safety of e-commerce in general and e-payment gateway in particular provided by NAPAS Currently, NAPAS only cooperates with VnExpress online newspaper to write popular articles on electronic payment on the newspaper's shopping section However, this method is still limited because the object can contact most quickly with electronic payment is that young people rarely care about this category Therefore, NAPAS should cooperate to disseminate knowledge of electronic payment right on the websites of NAPAS clients This will be the closest approach to those who really need electronic payment
3.2.4 NAPAS brand building and development solutions
For any e-payment gateway provider operating in a competitive market, their vital issue is to become the first choice of customers Because electronic payment services are unique, customers find it difficult to choose their own suppliers and end users have the psychological barriers to making a decision Use electronic payment method
Electronic payment gateway service providers all over the world attach great importance to building brand names such as Visa, MasterCard, JCB, Dinner Club They have created the brand value in the trust of customers Not only the major electronic payment service providers in the world need to pay attention to branding, brand building is very important for electronic payment service providers for each market Specific schools in each country In order to create a strong NAPAS brand, in addition to striving to improve the quality of electronic payment services and customer confidentiality, NAPAS must invest heavily in promoting the NAPAS brand to the public Are final consumers, they are the final decision makers themselves NAPAS needs to build absolute trust in its payment and security systems so that customers are assured of payment At the same time, the promotion of names will attract those who do not know NAPAS also trust to participate in electronic payment gateway through NAPAS system
Building a strong brand needs to focus on the unit's competitive advantage
Specifically, NAPAS is one of the leading companies in the electronic payment market in
Vietnam, however, the number of electronic payment customers is not high, so NAPAS should promote its image With unique features such as superior service quality, high level of security and information security, the number of diversified products and services suitable for various business methods, Expertise in technology consulting, professional consulting, high quality customer service with innovative solutions
Scale for service quality assessment SERVQUAL
Based on the research model of Parasuraman (1988), there are many researchers taking out assessment model of the service quality of different service fields When applying to actual research, number of factors that make up service quality may be less or more than above 5 factors and the factors can be changed depending on the industry and research fields, specifically prominent research models in the following service fields:
1.2.1.2 Assessment model for service quality of online banking of Broderick and Vachirapornpuk 2002
In their research, the two authors have observed participants, analysis and reports of social Websites of UK to learn how customersare aware of internet banking and factors of this model In the context of banking service business via Internet, the two authors point out five important factors which are considered to have major effect on perception of service quality,including customer expectation, photos, reputation of the organizations, set up service, contactservice and customer participation
The assessment model forquality of online banking service
Source: Broderick and Vachirapornpuk (2002) 1.2.1.3 Assessment model for quality of electronic payment of ISO 2005
About assessing quality, ISO-International Organization for Sandardization and IEC- International Electrotechical Commission has launched ISO/IEC ISO 9126 standards It is monitored by project ISO 25000: 2005 and along with it, there is definition on a model of software product quality, the characteristics of quality and calculation relations
Under ISO 9126 standard, there are 6 groups of factors affecting the quality of electronic payment gateway, including factors as following model:
Research model under ISO 9126 standard
Image, reputation of the organizations
Perception of service quality Customer expectation
Quality of electronic payment gateway
Base on model 2.3, we can see that research model under ISO 9126 standard includes
6 factors: functionality, reliability, efficiency, usability, maintainability and portability
The research results show that all these factors have positive effect on the quality of electronic payment gateway service
Similar jobs which are related to electronic payment system are often to consider the quality factor of usability as the most important factor ofthe software quality However, usability is not the only factor in the quality of electronic payment, the quality factors of operation, reliability and efficiency are aslo factors affecting users
1.2.1.4 Assessment model for quality of electronic payment of Liliana Solís 2011
Author Liliana Solís (2011) is a British economist, he has greatly contributed to the researches on the quality of electronic payment gateway service of the UK enterprises
Research of the author about the factors affecting service quality is be synthesized as following model:
Research model of the author Liliana Solís (2011)
Source: Liliana Solís (2011) 1.2.2 The relationship between service quality and market share expansion
The factor of service quality has a closed relationship with the ability of market share expansion of the enterprises In the case of high service quality, the enterprises have more chance to expand its market share through attracting more customers (and vice versa)
Curry and Sinclair (2002) stated that if the service quality of the enterprises meet the expectation of customers, it lead to the satisfaction of customer And, thus the enterprises could gain more market share
Consistency Safety and security of the system
Quality of electronic payment gateway
Wicks and Roethlein (2009) suggested that, improving the service (and product) quality would lead to increase the customer satisfaction (and the loyal of customer) Thus, the customer will absolutely continue to use the company services in the future, recommend to others and then, the company has more chance of increasing the revenue
Arcording to Al-Wugayan et al (2008), the service quality is the necessary condition in order to keep the customer and attract the new ones By that, the company will increase the business operation efficiency and market share
In the e-commerce market, this relationship has been confirmed in many experience research such as: Craig D.Mason (2011), Choi, Stahl &Whinston (2010)… These researh show the importance of service quality in expanding the market share in not only the e- commerce market but also all other business sectors
Thus, we can say that base on original assessment model of service quality of Parasuraman (1988), there are a lot of researches on service quality measurement In which, many authors build assessment model of service quality of electronic payment gateway Base on previous perspectives and researches, combined with the theory of relationship between service quality and market share expansion as mentioned above, I propose model research of the topic as follows:
Proposed asessment model of quality of electronic payment gateway of the
The model of the topic is synthesized and built from previou researches In which:
Safety and security of the system
Quality of electronic payment gateway
It is the ability of the system to provide appropriate functions to save maximum resources and increase working efficiency in certain usage conditions (Paret and Lyapunov, 2000) Base on two factors:
This feature describes the ability to maintain a specific level of performance under different conditions
Stability is the first requisite of an automatic system Automatic system is stable if after the impact to change, its balance status, it self-adjusts to return balance status (Paret and Lyapunov, 2000)
Safety and security of the system
Five components, which are identified in the related electronic payment are confidentiality, authentication, access control, accountability and use of data (Nguyen Ngoc Hien, 2003)
To meet above goals, means such as digital certificates and security protocol are created to ensure the security of above-mentioned transactions It also means that use encryption methods and ensure the reliability of the electronic commerce system to ensure the security of transactions even in case of system faults
The security means that electronic payment system needs to protect privacy for users(Gary P.schneider, 2000)
The users have their personal information such as address, phone number, account number, hobbies, etc… Electronic payment system can allow users to decide to publish or hide their personal information or add some information An electronic payment system, which meets the security must have such performance
This is characteristic to ensure the accuracy of electronic payment system, including pricing, tax, product information, etc (Nguyen Ngoc An and Nguyen Van Hoang, 2003)
The basis for the consistency is that quality factor of usability is related to features of the systems of electronic payment gateway service such as the preparation of the Website contents for more exact information as well as the preparation of the videos, images for payment process instructions Meanwhile, interface is required for attracting users with clear instructions
Friendliness of the interface is the way to lay out products on the website, provides users with product information or services, which are provided by electronic payment system (Tran Ba Thai, 2005)
These information can be represented in the form of text, images, videos and audios
If they are images, it is necessary to check whether these photos can be zoomed out or not and are in the form of three-dimensional images (3D) or not These characteristics must be examined carefully and thoroughly to be able to assess the system quality correctly
Some characteristics are the name of electronic payment Website and loading time of the Website, which make first impression to the users Website is the place where everyone can visit, so an attractive interface, which is compatible with all browser programs and supports for multiple languages with accurate information is important thing
1.3 Indicators to assess market share expansion
Revenue is the total value of economic benefits business acquired in the accounting period, arising from the production activities, the normal business of the enterprise, contributing to development of equity "
Revenue of the business including sales, service provider revenue, financial operations and the unusual activity
Revenue from sale of goods and providing of services are all amounts received or will be earned from transactions such as the sale of goods, including surcharges and fees other than the selling price (if any)
Revenue is one of the indicators reflecting the ability to expand the market share of the business If sales of products and services of enterprises are increasing higher than competitors, the ability to expand the market share of the business is larger Comparing the revenue of a business with that of a competitor operating in the same field is essential to assess the company's competitiveness and market share
Market share is the market of products and services that enterprises occupy
Companies that have a large market share will have the advantage of dominating the market This is a measure of the market's ability to expand This is a measure to assess the scalability of the business market
Market share = sales of the business / total sales of the market
Or market share = number of products sold by the enterprise / total market consumption
The market share clearly shows the services and products consumed by enterprises compared to the total products and services consumed in the market In order to gain market share in front of competitors, enterprises often have to have appropriate price policies through the necessary discount, especially when starting to penetrate new market
Besides that, also consider the relative market share Relative market share = The turnover of enterprises / The sales of competitors or relative market share = Total product sales of businesses / Total products sold by competitors
- If the relative market share is greater than 1, the competitive advantage of the business
- If the relative market share is smaller than 1, the competitive advantage of the opponent
- If the relative market share by 1, the competitive advantage of enterprises and opponents alike
1.3.3 The number of business cooperation partners
Partners, customers refers to collaborative relationships - cooperation between business enterprises together
Partners include two or more parties work together to enhance cooperation in the implementation of common goals
Construction of channels / mechanisms resolve disagreements / disputes, measures to promote cooperation and progress evaluation methods as well as to share the achievements of cooperation
Act together and share a common interest objective is the criteria of the partnership
Number of cooperation partners the larger, the more facilitate business expansion in the business market share compared to other competitors
Partners, partners are the term referring to the relationship of cooperation - cooperation between business enterprises together
Partners include two or more parties working together to enhance cooperation by pursuing common goals
Establishing channels / mechanisms for resolving disagreements / conflicts, measures for promoting cooperative relations and methods for assessing progress and sharing of cooperative achievements
Working together for common goals and shared interests are the criteria of the partnership
The greater the number of partnerships, the greater the incentive for an enterprise to expand its market share in business compared to its competitor
1.4 Practical experience on improving service quality to expand the market share of some enterprises
1.4.1 The experience Lazada of e-commerce business
In business activities, Lazada specially focus on expanding market share through improving the quality of service provided to customers Accordingly, Lazada is interested in improving facilities, information technology to serve customers Leadership Lazada said that improving the quality of service delivery to customers is the most effective way to expand market share The solutions have been made at Lazada as: