INTERNATIONAL UNIVERSITY

School of Computer Science and Engineering

PROJECT REPORT
Course IT541 - E-COMMERCE
Date: November 11, 2013
Student Name: Do Nhu Tai

Topic (4.3):

E-commerce Payment Systems in Viet

Nam

Student ID:

MITM05016

1. Introduction
Traditional payment occurs when a customer selects products and then pays cash to the seller. In the
development of the global economy, e-commerce and e-business has become an essential element of
business strategy and a strong catalyst for economic development. In recent years, strong growth of ecommerce in the world has helped to change the business transactions. It also brings enormous benefits
to society. Online payment is one of the key issues of e-commerce. If the lack of online payment, ecommerce will not make sense.
E-commerce Payment Systems (EPS) allow a customer to pay for goods and online services by
using integrated hardware software system as Figure 1. The main goal of the EPS is to improve
efficiency, to improve security and to enhance customer convenience and ease of use. [1]
Figure 1 shows electronic payment scheme:

Figure 1: Electronic payment scheme [1]

Online payment solution allows buyers to pay cash directly to the seller via the Internet, phone
networks, GPRS, 3G, Wi-Fi. In Vietnam, the actual use of e-commerce during 2009 was 26%. It
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increased 22% compared with 2003. But the number of using credit and debit card was 3.2% of total
27.4%. There are only 21% people knowing about credit cards, 8% people knowing about the debit
card and 91% knowing about the ATM card. [2]
Figure 2 shows that the number of internet users in Vietnam:

Figure 2: Number of internet users [2]

The rise of the Internet users led to increase in buying and selling online involving commerce
websites. In 2005, the number of number of websites is 200,000. In 2009, it increased to more than
500,000 websites. Some typical suppliers of electronic payment services are: Nganluong.vn, Payall.vn,
OnePAY, DongAbank, Vietcombank, F@st MobiPay, MobiVi, Payoo, VnMart, NetCASH PayNet,
etc. [2]
Currently, there are some common forms of online payments are: credit/debit cards, electronic
wallet, phone cards, etc. The most common payment is credit/debit card. This is a popular form of
payment and is relatively widespread in the world. In this report, we will review and analyze a number
of popular payment systems in Viet Nam.
2. Details
2.1. Forms of payment through Nganluong.vn (electronic wallet)
Nganluong.vn is one of the leading products of Peace Soft with the method of payment transactions
secure, convenient. Nganluong.vn allows transaction with 40 foreign countries abroad through eBay.vn.
Figure 3 shows that the payment model of NganLuong.vn:

Figure 3: payment model of NganLuong.vn [3]

Nganluong.vn works as electronic wallet. Users register personal account or business types with 3
main functionalities: recharge, withdrawals and payments. All functionalities are entirely online
information through domestic or international card, bank account or other useful forms. Capital
investment from leading corporations such as IDG (USA), Softbank (Japan) and eBay (U.S.) helps
NganLuong.vn to ensure all financial transactions in Vietnam. NganLuong.vn built system connected
directly to most banks and financial institutions including Vietcombank, Techcombank, Vietinbank,
East Asia, VIB, SHB, Visa/Master, VinaPhone, MobiFone, etc. It quickly became commonly accepted
payment methods for the thousands of top brands websites such as chodientu.vn,
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www.nguyenkim.com, Viettel, VTC, FPT, etc. [3]

2.2. Forms of payment through credit/debit cards:
The most common way of online payment currently are to use credit card credit/debit card Visa,
MasterCard, American Express, JBC ... with card issuance of Eximbank, Vietcombank, DongABank,
etc. First of all, if you are the seller (merchant), you must create account on-line sales (Internet
merchant account). With the sales account, you can register with your bank if the bank services or to
provide software services handling process online payments as Cybercash, Paymentnet,
Merchantwarehouse, etc. The bank or the service provider for your account is known as Merchant
Acquirer responsible for processing information in the card payment process. [4]
On site sales, the seller must provide the following features:
Shopping cart: Buyers looking items on the website can choose to buy the product by clicking
the button "Buy". Items will be saved in the cart. Buyers also can select multiple items. When
buying decision, they can view cart, change the number of goods. To connect with online
payment services, shopping carts need to be developed to achieve an integration of standards.
Payment gateway: Software used to process the credit/debit card payments such as validating
valid credit/debit card information, make money transfer, etc.
Figure 4 illustrates the operation of processing credit/debit card payments:

Figure 4: Operation of processing credit/debit card payments [4]

The payment Server automatically converts the transactions to the payment credit/debit card center.
The credit/debit card payment center send to international databases of the units which issued credit
card. The units which issued credit card verify transactions and transfer results, the money to pay an
international credit/debit card center. The credit/debit card payment center transfer of the results and
cash transactions to the payment Server. The payment Server transfer transaction results to the sale and
transfer to the bank account of the seller.
Some sites for credit card payments, such as www.megastar.vn, www.airasia.com, pnj.com.vn,
www.lazada.vn, www.vinabook.com, etc.
2.3. Onepay.vn
OnePAY is the market leader about card payment processing on online financial transactions in
Vietnam. It was founded in 2006 in the new e-commerce step of the first steps in Vietnam.
Figure 5 shows that onepay.vn payment process:

Figure 5: Onepay.vn payment [5]

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This is collaboration between onepay.vn and Vietcombank with electronic payment services. In
particular, Vietcombank has the role of payment bank and customers can pay by credit or debit cards
such as Master, American Express, and JCB. Vietcombank is paid by businesses providing goods and
services (POS units). Enterprise using Onepay payment gateway services will open an account at
Vietcombank to get sales.
The buyer (cardholder) will make payments online by filling in the card information at Onepay
payment gateway. Buyers information will be transferred to the issuing bank through the system of
international card organizations for licensing transactions. The transaction will be paid back to the
Onepay payment gateway with accepting payment cards and card holders. If the transaction is
successful, Vietcombank will advance revenue credited to the account of the unit which accepted card
payments.
Some websites use OnePay such as www.travel.com.vn, www.ivivu.com, www.dulichtet.com
(websites providing tours, hotels, and airfare), www.chodientu.com, www.25h.vn (online stores
offering a wide variety of products and services), www.vnsupermark.com (providing game cards,
flowers, and gifts), www.gamecardsvn.com (providing online game cards), etc.
3. Conclusion
Through electronic payment, users will not use the cash to pay the payment activities of their
transactions. They use credit/debit cards authenticated by bank. It is safe and convenient with high
security. Electronic payment of purchases, online transactions in Vietnam has different forms and
provides convenient security services with not limited by space, geography. Users may also purchase
goods quickly everywhere.
References
[1] wikipedia.org, E-commerce credit card payment system,
http://en.wikipedia.org/wiki/E-commerce_credit_card_payment_system
[2] web.hanu.vn, E-Payment in Vietnam,
http://web.hanu.vn/fmt/file.php/1/moddata/forum/124/10644/E-Payment_in_VN.ppt
[3] help.nganluong.vn, Gii thiu v NgnLng.vn,
http://help.nganluong.vn/chi-tiet-49/2/419/Gioi-thieu-ve-NganLuong.vn.html
[4] www.bin.vn, Thanh ton in t, http://www.bin.vn/thong-tin/thanh-toan-dien-tu.html
[5] onepay.vn, Gii thiu v OnePAY, http://www.onepay.vn/home/vi/san-pham-dich-vu.html

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