Investigating the effect of privacy on Pay Pal and Bitcoin

LITERATURE REVIEW

Introduction

This chapter highlights the studies which have been conducted in the past regarding the problem of privacy prevailing world wide. It provides an understanding of the concept of privacy regarding online payments, and the issues which the stakeholders are confronted with in this regard. It provides a review of the studies and the work of the people on the issue of privacy regarding online payments. It explains the rationale of various studies along with the purpose and the findings. It also provides with other details related to the issue. It also provides an overview of the online payment options like PayPal and Bitcoin, and also, highlights the policies of these companies, and the perception of the people regarding them. As the process of online payments for purchases made, or services obtained is complex, chances of theft and fraud arise as the volume of these transactions is escalating on a worldwide basis. As these systems for online payments are evolving, consumer protection is becoming an important issue. The issue can aggravate if existing government structures fail, or new monopolies in the online payment systems arise which may lead to an increase in the systematic risk. Invasion of new technology could result to increased security threats, affecting all the stakeholders involved in online transactions. Hence, a thorough review of the existing literature is required to understand the trends prevailing in the online market, as well as the issues of securities which are a threat to all people involved in the process.

Concerns of privacy in online payments: Review and analysis

With evolution in the technology and the rapid globalization experienced in the past two decades, the use of the internet has become widespread. The world has transformed in a global economy, where people from around the world interact with each other to exchange the products and services that they require. This has given rise to the concept of electronic market places, where the transactions are being made online. Online payments are a part of the electronic markets which has fasten the process of online purchasing. However, people are reluctant to adopt this online mode of payments for the purchases that they make. Due to the fear of misuse of the information that they provide, and concerns of privacy, consumers refrain from making online transactions, reducing the actual number of people who prefer to purchase and pay online (Caudill & Murphy, 2000). Regardless of the speed with which the use of the internet is growing in the world and becoming a necessity of everyday life, the number of people making online purchases remains low. However, people can fulfil their requirements for various goods and services if they choose to purchase online. This online purchasing can be of great benefit as it would help to reduce the time and effort required to find and evaluate various products (Hughes, online).

The number of users of internet, if an equal number of people who make online purchases, can ...