Report on E-commerce Payment Systems: Market Growth and Strategy

This report examines the e-commerce payment systems, focusing on the establishment of a money lender business in the United States. It begins with an introduction to the concept of e-commerce payment systems and the significance of establishing a business in a new market. The report analyzes the market size, growth, and changes in the market, providing insights into the Australian e-commerce sector and the growth potential for money lenders. It also discusses the impact of fintech trends and the changing dynamics of the banking sector on the business. Furthermore, the report explores the pricing strategy adopted by the business, comparing it with competitors, and concludes with a summary of key findings and recommendations. The report emphasizes the importance of market analysis, strategic pricing, and adapting to market changes for success.

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Contents
Introduction......................................................................................................................................3
Market Size......................................................................................................................................3
Market Growth.................................................................................................................................3
Changes in market...........................................................................................................................3
Pricing strategy................................................................................................................................4
Comparing pricing strategy to competitors.....................................................................................4
Conclusion.......................................................................................................................................5
References........................................................................................................................................6

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Introduction
E-commerce payments systems are the services that facilitates acceptance of electronic payments
for online transactions. In general this payment mechanism is also referred as the electronic data
inter-change (EDI). Online platforms are considered as one of the most contemporary form of
business that is gaining significance on large scale. Developing and introducing a business firm
in a new market region has been considered as one of the crucial task and the same is required to
be executed with a greater level of effectiveness and efficiency (Crane 4-12). The prime
objective of the below-presented report is to develop and establish a company in the regions of
United States. The report comprise of the market size, growth, changes in market and pricing
strategy adopted by the business firm. Money lenders are the business entity that is indulged in
helping the youngsters in making various types of monthly payments and also able them to
develop their credit score. The business entity operates business through online and offline
platforms but major focus is on online operations. The prime objective of the business entity is to
aid the individuals in making various payments and executing other money related transactions
assisting them through the official web-portal of the business firm.
Market Size
According to a detailed research executed by e-marketer, a forecast has been presented that the
Australia’s total online sales will exceed $32 billion in 2017 (webalive.com). The Australia’s e-
commerce sector is fueled by its strong economy and infrastructure. The Moneylenders are
indulged in providing financial assistance to the youngsters and other age groups while making
monthly payments through online means (Johnson 100-250). The business entity has an official
web-based portal through which the service users can make the required transactions. And as the
business organization is having a strong online presence the business entity can enjoy a large
market area. By making use of online platforms the entity can make its reach over large number
of customers in an easy manner. Online platform provides the enterprise a global level for
execution of trade and hence it has been observed that the market size of the organization is
large. On the basis of executed analysis, it has been evaluated that the potential market size of
the firm is large as each and every individual makes various monetary transactions on regular
basis (Trevino 10-35). There are several modes of payments through which the money is

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transferred and payments are done and hence the business entity will have a huge pool of
customer segments on which the entity can target (Giri 102-111). Moreover, the money lenders
will have to develop and make implementation of marketing strategies in a diversified manner so
as to attract and attain the customers on a large basis (Adelson 36).
Market Growth
As per the forecast made in Fin-tech in Australia – Trends, Forecasts and Analysis 2015 – 2020
report it has been stated that the annual growth rate of Australian Fin-tech sector will be 76.36%
and will reach A$ 4.2 billion by 2020 (invest.vic.gov). It has also been estimated that as per the
given scenario, the Money lenders will be showing a boost in growth rate by 20% as compared to
last year. On the basis of the current analysis, it has been noted that the venture capital industry
was created in the United States and this industry is supporting many of the business innovations
and companies. On the basis of the research, it has been analyzed that in 2016 a hike was
observed in the venture capital. 253 venture capital funds raised $41.6 billion, a ten-year high, to
deploy into promising startups. Venture Capital-backed companies employ 38 percent of the
U.S. workforce within public U.S. companies and account for 82 percent of private sector
research and development since 1979 (Salinas). After analyzing the whole scenario it has been
inferred that there is a high level of positivity and growth rate in the market and that will be
proven advantageous for the money lenders. The business entity is required to adopt policies and
norms imposed by the governing authorities for a smooth flow of operations and activities within
the firm (Hunter 30-143). This will aid the business entity in coming up with the growth
observed in the market and gaining the same (Bryman 180-220). Moreover, due to globalization
and modernization the concept of online business has gained high level of significance and
gradual increase in the market growth level will be noticed.
Changes in market
According to the research, it has been executed that the banking sector is closely associated with
the capital and financial market and hence there are some of the trends of the banking sector that
will have impact over the concerned sector (Li 541-556). It has been predicted that the
combination of changes that comprise of rising interest rates, less zealous regulatory
environment, tax cuts, and overall optimism among business owners will be developing a

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provision of most essential profit boost for banks. This, in turn, will aid offset swiftly by
increasing technology expenses and will also enable banking and financial institutions for
hastening transformative digitization of mediums and procedures (Burns 249-312). For instance,
banks will be developing a more disciplined environment on the process of resource allocation
(Raftery). These all are the changing trends that will have some or the other impact on the
operations and the business practices of money lenders (Hirt 1-25). One of the biggest trends is
the emergence of internet due to globalization. Excessive use of internet has been proven
beneficial for the business firm as the entity is largely dependent on the online operations in
business. Further, there are various online mechanisms and tools that are making the banking
transactions simpler and advanced thus aiding the customers and leading in high level of
customer satisfaction.
Pricing strategy
As per the given scenario the business entity is also offering some of the additional services for
free of cost if made on bulk through the official online portal. There are various options and
payments modes made available for the customers for making payments concerning to various
transactions. These modes of payments can be used easily as per the convenience of the
customers. The pricing strategy has been recognized as the tactic that can be used by the business
organizations for giving a boost to the sales and maximizes profits by selling their products and
services for relevant and appropriate prices (Kotler 15-40). This type of expenses comprise of the
expenses incurred in manufacturing a product, cost of labor, expenses incurred in promoting and
advertising products and services, competitive pricing, trade margins etc. (Burns 53-83). The
pricing strategy developed by the business corporation should be developed after analyzing the
varied range of factors such as the pricing strategies used by the competing brands, the targeted
segments and their perceptions and income level, the political environment etc. (Chiaraviglio 1-
7). These are the core elements that will stimulate the price of the products and services
developed (Krämer 125-140). After observing the above scenario it has been analyzed that as
Money lenders are start-ups and are attempting to establish in the markets, the business entity is
required to make adoption of penetrating pricing policy (Babin 18-23). Under this pricing
strategy, the business entity will quote low prices for the services offered at the initial stage and

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will bring a gradual increase in the same (Burnett 20-150). This will aid the business firm in
attracting a larger pool of customer segments (Grant 254-364).
Comparing pricing strategy to competitors
On the basis of the above-presented analysis, it has been noted that as Money lenders are start-
ups and with an objective of establishing and developing the business in the market the firm is
making adoption of penetrating pricing strategy (Fuller 271-278). Under this, the entity will be
bidding the services at low prices for attracting and attaining the customers. A rapid growth has
been experienced in the financial sector and due to which intensification in the competitive
environment has been observed. Zelle money services and Credit Carma are the two leading
names in the sector (web.nacha.org). After analyzing the pricing strategies of the competing
brands it has been evaluated that these firms are quoting high pricing range as compared to that
of the money lenders. Zelle and Credit Carma are well-established brands and hence have the
privilege of quoting higher prices as compared to Moneylenders.
Conclusion
In the limelight of the above-executed analysis, it has been inferred that introducing a business
corporation to a new market region is one of the crucial and integral tasks. There is number of
aspects that are required to be recognized as significant elements during the process of
introduction. It has been concluded that the above presented is the description is focused on
Money lenders a start-up that is offering services to the youngsters and aiding them in making
various types of payments.

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References
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Hirt, Martin, and Paul Willmott. "Strategic principles for competing in the digital age."
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Hunter, Ian, Jane Saunders, and Simon Constance. HR business partners. Routledge, 2016.
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