Traditional payment systems continue to dominate B2C e-commerce. A host of innovative payment systems are pushing into the market. However, these systems often have a limited focus on niche segments. The only ones with massmarket promise are those innovative systems that take into account the particular features of B2C e-commerce, enjoy the support of established e-shops or service providers in payment transactions and can convey the unique added value that they offer. Some innovative payment systems fail to address the typical business situation in B2C e-commerce. Numerous systems are only geared to settling micro-payments, but most e-shops do not ever charge such small amounts. In addition, innovative mobile payment systems advertise the advantages of their portability. However, this trump cannot be played in a typical online situation. Payment systems operate in an intensively regulated, complex market environment. Policy and regulatory frameworks even outside the financial sector have a sustained influence on the market potential of payment systems. The net effect of political decisions on payment systems is not clear a priori. Given the substantial administrative expense involved, however, we believe that government regulation limits the potential of the small innovative systems in particular.
Radio frequency identification (RFID), the technology of the future, has long established itself in our everyday lives. It is already deployed in various areas ranging from efficient inventory management and road toll collection through to timing the performance of individual participants in mass sporting events. Given RFID's enormous potential it is only right that it is on everyone's lips.RFID chips combine the physical world of a product with the virtual world of digital data. The technology meets the needs of companies cooperating in a closely knit value chain. RFID will soon be considered an indispensable part of the chain.Inefficiencies in the value chain and efforts to shore up internal security are driving demand for RFID. The retail trade is playing a decisive part in the broad-based roll-out of RFID projects.RFID represents an all-encompassing structural business concept that far transcends simply superseding the bar code. Speed of processing, reading error frequency, data protection and privacy issues, progress in standardisation, and investment costs are still challenges that will ultimately decide the potential of RFID. RFID projects focussed on transparency, reliability or speed of processing are particularly successful.RFID systems will rapidly continue to gain significance. This holds especially in areas where they can be used to manage processes within the value chain. All told, the market for RFID systems is likely to grow globally from EUR 1.5 bn to EUR 22 bn between 2004 and 2010 (average growth rate: +57% p.a.). During the same period, the RFID market in the EU-15 is expected to expand from EUR 0.4 bn to EUR 4 bn (+47% p.a.).
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