Internet virtual money under Chinese payment environment and it's efficiency analysis

Abstract

The development of e-Commerce needs suitable online electronicpayment and settlement arrangement. In China, most online virtual commodity and service providers adopt a new payment and settlement solutions which is named Webcoin by this paper. In this paper we analyze the China's online and offline payment environment, explain the reason why the Webcoin come into being now, give the definition of the Webcoin, present the Webcoin's characteristics, and introduce the concept of payment friction coefficient to discuss the efficiency of the Webcoin as a payment instrument on virtual commodity and service.