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This is the second part of a two‐part paper on the future of electronic payments. Part 1, which was published in the last issue of this journal, examined the various electronic forms of payment that are likely to emerge in the future, and considered some of the main technological and economic factors that will shape this evolution. This second part focuses on major regulatory and institutional issues that will influence the wider acceptance of electronic payment.

Reviews the payment environment and “proliferation” of new payment services on the market. Highlights the cost reduction benefits to financial institutions of cash replacement. Defines the scope of digital money as encompassing both electronic purse money and software money. The fundamental differences in basic philosophy, design principles and technical choices of the variety of approaches to electronic cash are evaluated. Three key directions are identified to accelerate the take‐up of digital money. Urges that the regulatory regime necessary to ensure financial integrity of non‐bank issuers is developed without stifling innovation and competition or consumer confidence. EU commission directives and the findings of a multinational alliance of banking institutions are reviewed and recommendations given for new electronic purse products. Pinpoints several useful lessons which have been learnt from electronic purse experiences to date.

The discussion of online payments, while ultimately being a key issue for the future Information SuperHighway, is as significant now as it ever will be. The explosive increase in the use of the Internet has seen the emergence of commercial services and pressures previously restricted to Compuserve and the like. Many predictions see this burgeoning electronic marketplace becoming a significant component of the world economy. However this can only happen once two key problems have been addressed, namely, protecting property rights and Making payments. This has led to a frantic battle for payment mechanisms that can provide the new medium with the means of conducting transactions. Briefly examines the inexorable evolution of money into electronic forms and discusses the alternative types of payment mechanisms proposed, on trial or in use on the Internet. Identifies the key commercial requirements that successful use of the Internet will impose on a payment mechanism, and use these requirements to evaluate each of the mechanisms to determine which (if any) are really suitable for electronic commerce.

There is a substantial lack of the need for adopting interface between accounting systems of companies and banks in Vietnam. The purpose of this paper is to bring out the benefits and lacunas in the adoption of interface for companies as well identify the factors that possibly could be crucial in making the interface adoption a success or failure.

The study is set in the context of case analysis and has adopted a mixed method approach. In this study, a contrast between successful adopters of interface and non-adopters of interface is discussed to identify the motivating factors for interface as well as the factors which form the barriers for non-adopters.

By conducting a case study-based analysis for intensive data comparison of two companies as interface adopters and two as non-adopters in Vietnam, it is found that the success of the interface adoption is influenced by inter-related factors such as the manager characteristics, industrial environment, company characteristic and innovation characteristics. Particularly, the effectiveness of the interface can be well demonstrated by cost saving, manpower reduction, data consistency, accuracy, and speed of the process.

The impact on the banker is not analyzed. Furthermore, this research only focuses on the effects of interface on the electronic banking system and accounting modules in the form of electronic payment, while in reality, banks provide a variety of services which can also be explored by other researchers.

This is one of the first studies in the context of Vietnam. This study is highly relevant in the current context, given the significant growth in the number of industries and export markets in Vietnam.

Addressing the challenges of financial sustainability in tertiary institutions through the adoption of technology was the central motivation of this study. Hence, the authors assessed the direct effect of the adoption of electronic payment system (EPS) on financial sustainability and the indirect mediating influence of technological capabilities on this relation.

Sample of 223 non-academic employees in twelve higher institutions were selected. The authors used primary data through the use of a questionnaire for data collection. Partial least square structural equation model (SmartPLSv3) was used for the analysis of the study.

The adoption of electronic payment system was shown to have a significantly positive effect on financial sustainability of tertiary institutions. It was also found that technological capabilities affect financial sustainability of tertiary institutions and technological capabilities mediate the relationship between the adoption of electronic payment solution and financial sustainability of tertiary institutions.

The study advances the need for incorporating technology as a measure in advancing the internal financial management practices of tertiary institutions in developing economies.

The authors developed a model that advances a new perspective to higher education financial sustainability through advocating for technological capabilities development as a channel to ensure liquidity and solvency of higher education, most especially in developing economies.

This purpose of this paper is to provide an overview of the status of e‐finance and discuss related issues and challenges. Provides data about growth of e‐finance in the last decade. Introduces advances and innovations in e‐finance and challenges facing the financial services and IT industries.

The paper employs the archival method of reviewing related literature (theoretical, applied and empirical) and organizing and presenting the topics to provide an overview of e‐finance status.

The major contributions and finding of this paper include all areas of e‐finance, application of technology to e‐finance, growth of the e‐finance in the financial services industry.

The paper provides areas of e‐finance that face many different challenges and calls for further research in a number of areas related to e‐finance technology and the interface of financial services and IT.

The paper brings all scattered information and data about e‐finance under one umbrella that would make scholars and practitioners aware of advances in e‐finance and applications of innovations and new technology to financial services provided.

The main value or contribution of this paper is bringing together most of available literature, advances, innovations, application of IT in the financial services industry and showing how organizations could benefit from such innovations. It also provides ideas to scholars for further research in this area.

In this chapter, to explore the past and understand the present scenario in financial market, a comprehensive literature review (LR) is performed, in which 809 articles from the database of Scopus for the last 10 years are extracted and analyzed using VOSviewer software for bibliometric analysis. Citation analysis of the popular identified factors is highlighted that will help the future researchers to focus on the identified popular factors for research in the financial market. The chapter also presents a conceptual model of financial market, to uncover the future of financial markets.

Suggests that the discussion of online payments, while ultimately being a key issue for the future Information SuperHighway, is as significant now as it ever will be. The explosive increase in the use of the Internet has seen the emergence of commercial services and pressures previously restricted to Compuserve and the like. Many predictions see this burgeoning electronic marketplace becoming a significant component of the world economy. However, this can only happen once two key problems have been addressed, namely, protecting property rights, and making payments. This has led to a frantic battle for payment mechanisms that can provide the new medium with the means of conducting transactions. Identifies the key commercial requirements that successful use of the Internet will impose on a payment mechanism. Identifies the different types of mechanisms that are proposed, on trial or in use on the Internet. Evaluates each of these mechanisms against the requirements to determine which (if any) are really suitable for electronic commerce.

Smart card-based E-payment systems are receiving increasing attention as the number of implementations is witnessed on the rise globally. Understanding of user adoption behavior of E-payment systems that employ smart card technology becomes a research area that is of particular value and interest to both IS researchers and professionals. However, research interest focuses mostly on why a smart card-based E-payment system results in a failure or how the system could have grown into a success. This signals the fact that researchers have not had much opportunity to critically review a smart card-based E-payment system that has gained wide support and overcome the hurdle of critical mass adoption. The Octopus in Hong Kong has provided a rare opportunity for investigating smart card-based E-payment system because of its unprecedented success. This research seeks to thoroughly analyze the Octopus from technology adoption behavior perspectives.

Cultural impacts on adoption behavior are one of the key areas that this research posits to investigate. Since the present research is conducted in Hong Kong where a majority of population is Chinese ethnicity and yet is westernized in a number of aspects, assuming that users in Hong Kong are characterized by eastern or western culture is less useful. Explicit cultural characteristics at individual level are tapped into here instead of applying generalization of cultural beliefs to users to more accurately reflect cultural bias. In this vein, the technology acceptance model (TAM) is adapted, extended, and tested for its applicability cross-culturally in Hong Kong on the Octopus. Four cultural dimensions developed by Hofstede are included in this study, namely uncertainty avoidance, masculinity, individualism, and Confucian Dynamism (long-term orientation), to explore their influence on usage behavior through the mediation of perceived usefulness.

TAM is also integrated with the innovation diffusion theory (IDT) to borrow two constructs in relation to innovative characteristics, namely relative advantage and compatibility, in order to enhance the explanatory power of the proposed research model. Besides, the normative accountability of the research model is strengthened by embracing two social influences, namely subjective norm and image. As the last antecedent to perceived usefulness, prior experience serves to bring in the time variation factor to allow level of prior experience to exert both direct and moderating effects on perceived usefulness.

The resulting research model is analyzed by partial least squares (PLS)-based Structural Equation Modeling (SEM) approach. The research findings reveal that all cultural dimensions demonstrate direct effect on perceived usefulness though the influence of uncertainty avoidance is found marginally significant. Other constructs on innovative characteristics and social influences are validated to be significant as hypothesized. Prior experience does indeed significantly moderate the two influences that perceived usefulness receives from relative advantage and compatibility, respectively. The research model has demonstrated convincing explanatory power and so may be employed for further studies in other contexts. In particular, cultural effects play a key role in contributing to the uniqueness of the model, enabling it to be an effective tool to help critically understand increasingly internationalized IS system development and implementation efforts. This research also suggests several practical implications in view of the findings that could better inform managerial decisions for designing, implementing, or promoting smart card-based E-payment system.

The purpose of this paper is to stimulate some reflections on the potentially contradictory relationship between the adoption of innovative payment instruments and the prevention and fight against financial crime. The ideal addresses of the paper are regulators in these two fields (Central Banks; Financial Intelligence Units).

The paper is largely based on reflections coming from the author's background as a central banker with a long experience in the statistical analysis of financial data with an anti‐money laundering (AML) focus.

The paper takes the move from the present and prospective characteristics of the payment means and moves on to analyse briefly the possible implications of their evolution in the fight against money laundering and the financing of terrorism. The analysis shows how some factors that make innovative payment instruments desirable may, at the same time, represent elements of weakness in the prevention of financial crime.

The paper addresses a number of theoretical and systemic issues but no specific data or calculations are provided to evaluate alternative regulatory scenarios. Further studies could offer a more quantitative approach, in an attempt, for instance, to estimate the costs and benefits of the evolution of the praxis and legislation in the field of payment system and AML.

The paper openly tackles the cross effects of regulation in the financial sector, specifically addressing the potential risk factor represented by loosely regulated innovations of the payment instruments. The argument is intended to highlight both the importance of technological evolution and the necessity of a proper supervision over potential loopholes and unguarded passages that could be exploited by financial criminals.

The paper addresses questions of particular relevance in the present, fast developing world of advanced technological payments and global financial crime. The author underlines explicitly how these two fields share some common features; an original argument is developed with reference to the possible risk of unwanted spillovers between these two areas of public interest.