E-commerce payment model using blockchain
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ORIGINAL RESEARCH
E‑commerce payment model using blockchain Shee‑Ihn Kim1 · Seung‑Hee Kim1 Received: 6 March 2019 / Accepted: 4 September 2020 © Springer-Verlag GmbH Germany, part of Springer Nature 2020
Abstract The current e-commerce payment systems for credit or check cards require a payment gateway (PG). This incurs PG fees, which in turn increases the cost of engaging in e-commerce. This paper proposes a simple payment model that uses basic cryptocurrency features, such as public key, private key, and digital signature, to eliminate the need for transaction intermediaries such as public key certificate and PG. This model can process e-commerce payments without registering additional public key certificate, public key, or private key. The use of a digital signature guarantees the integrity and nonrepudiation of electronic payments, besides eliminating the fees for intermediary services such as PG, thereby reducing the overall cost of operating e-commerce services. This proposal is crucial as it is the first attempt to apply blockchain technology to e-commerce payment services. In addition, our model is important because it not only supports the evolution of e-commerce payment technology but also enhances the competitive advantage of using e-commerce. Keywords Blockchain · e-commerce · Payment gateway · Digital signature
1 Introduction Prevalence of smartphones and credit cards, evolution of wireless telecommunication networks, and expansion of online shopping are factors propelling the continued growth of the e-commerce market. With this trend, purchasing behaviors are diversifying, along with product sales and delivery, whose methods are evolving into the future. e-commerce is a system comprising suppliers, products, web domains, online shopping malls (websites), servers, payment systems, product delivery systems, and consumers. As the key determinant of consumers’ purchase intent is trust (Thompson et al. 2019), the payment system is a crucial and essential factor of e-commerce. A reliable electronic payment system requires mutual authentication, through which the transacting parties can confirm each other’s identity; confidentiality, which ensures that the transaction details are * Seung‑Hee Kim [email protected] Shee‑Ihn Kim [email protected] 1
Department of IT Convergence Software Engineering, Korea University of Technology and Education, F411, Engineering Building 1, 1600, Chungjeol‑ro, Byeongcheon‑myen, Dongnam‑gu, Cheonan‑si, Chungcheongnam‑do 31253, Republic of Korea
not disclosed to third parties; integrity, which indicates that messages have not been tampered with during transmission; and nonrepudiation, which prevents groundless repudiation of completed transactions. Most consumers use credit or check cards when purchasing items via e-commerce. In such cases, a payment gateway (PG) is used to ensure integrity and nonrepudiation of card payments. This inevitably generates transaction fees as intermediary entities such as PG or value-added network companies intervene in the payment
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