Team Members:
Business-to-business payment system is expected to be a major driving factor of the electronic commerce market growth as well as consumer payment systems. As schemes of the business-to-business payment systems, this project studies Financial EDI (F-EDI), Value Added Network EDI (VAN-EDI) and Internet-EDI. Each scheme has advantages and disadvantages. For example, F-EDI is considered secure and reliable, but small companies hesitate to install because of high implementation cost. On the other hand, the cost of Internet-EDI is very low, but it has some concerns about security and reliability.
Based on these characteristics, major players in the business-to-business payment market began implementing their strategies to increase their benefits. Government such as the US department of the Treasury is driving the whole business-to-business payment market growth by requesting companies to send financial data to government electronically. Banks such as Mellon Bank is trying to provide the Internet-EDI to get middle and small companies as their customers as well as large companies. Industrial leaders like large automobile companies themselves began implementing EDI alliances such as ANX, although they have not implemented financial part of EDI yet.
The business-to-business payment market will be also growing in the future, but first, the growth will be mainly driven by the large companies using F-EDI systems. Then, some mid-to-small companies will follow large companies by being requested by large companies and the technological solutions for security issues.
2. Definition of Business-to Business Electronic Payment
3. Overview of Schemes of Business-to Business Electronic Payment
4. Drivers for Business-To-Business Electronic Payment
Last Updated March 19, 1998