Google Checkout charges merchants in E-Payment

Name: Grendy Segolden NIM: 2301870211

E-Payment is an online payment system that uses internet facilities and electronic devices as an intermediary means in Indonesia itself there are various types of E-Payment that can be used following several E-Payment lists that exist.

• Payment card

A payment card is a transaction that uses a card for example someone shopping for daily necessities in a supermarket and then he issues his ATM card to be swiped into an EDC machine.

• Electronic Wallet

An E-wallet is an electronic wallet that works like our wallet but is non-cash so that users no longer have to bother carrying banknotes.

• Electronic Cash

E-cash is electronic money that is specifically used for online buying and selling transactions and remittances for the appropriate purposes that have been arranged by the sender.

• Electronic check

E-check is the latest innovation from the Bank as the name E-check is a digital check that can be used for transactions and can be disbursed into cash as the holder wishes through the Bank.

In modern times, global companies and startups have flocked to add a way to pay with E-Payment. The company ensures the security, practicality, and fast pace of this online payment system by working with banks. Reasons why companies want to implement E-Payment systems:

• A system of transactions that are easy and can be done universally between sellers and buyers as long as they are in the same region.
• Transaction security is more maintained because it has been guaranteed by a responsible official party compared to transactions that use cash or transaction to a personal account.
• The use of time and energy becomes more efficient and simple.

But behind the benefits received from the implementation of E-Payment there are also problems faced, namely:

• It’s likely to have been hit by a hacker attack.
• Lack of privacy for buyer information
• It takes the internet to make transactions.

Parties involved with e-payment facilities:

• The buyer who makes the payment by e-payment method
• The seller who receives the e-payment
• Issuer, in the form of bank institutions or non-bank institutions
• Regulators, usually the party that oversees and regulates the e-payment process are the government.

For example, the company that implements this E-Payment system is Google. Google is an American multinational company engaged in internet services and products, Google products include search technology (Google search), web computing, software, and online advertising. In one of google’s own markets, Google Play implements E-Payment as one the payment system, Google Play itself is a digital distribution service operated by Google. In Google play, developers can put the applications they have created that will then be traded on the platform, on Google play itself there is a transaction fee charged to application developers of 30% of the total purchases.

(purchase of applications and in-app) from the price paid by buyers in other words the application developer will receive 70% of the purchase proceeds while the other 30% will be given to distributing partners, namely Google Play as an example there is a game application called DOTA 2 application for 10,000 rupiahs so the division is divided into RP 7000 for developers and RP 3000 for Google Play.

Reference

Pram. (2016, 03 17). E-payment services will be rife in Indonesia. Retrieved from Bethel News:  http://www.beritabethel.com/artikel/detail/892

https://support.google.com/paymentscenter/answer/7159343?hl=id

youngssir masihuddin,Indian Journal of Science and Technology, Vol 10(20), DOI: 10.17485/ijst/2017/v10i20/113930, May 2017