The impact of payment service quality on market share expansion of NAPAS

The purpose of the study was to assess the factors that affect the quality of NAPAS e-payment gateway services, thus assessing the need to expand the market share of the company's servic

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH

-

ĐINH THỊ BÍCH HẠNH

THE IMPACT OF PAYMENT SERVICE QUALITY

ON MARKET SHARE EXPANSION OF NAPAS

ẢNH HƯỞNG CỦA CHẤT LƯỢNG DỊCH VỤ CỔNG THANH TOÁN ĐIỆN TỬ

ĐẾN VIỆC MỞ RỘNG THỊ PHẦN CỦA NAPAS

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

Hà Nội - 2017

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH

-

ĐINH THỊ BÍCH HẠNH

THE IMPACT OF PAYMENT SERVICE QUALITY

ON MARKET SHARE EXPANSION OF NAPAS

ẢNH HƯỞNG CỦA CHẤT LƯỢNG DỊCH VỤ CỔNG THANH TOÁN ĐIỆN TỬ

ĐẾN VIỆC MỞ RỘNG THỊ PHẦN CỦA NAPAS

Chuyên ngành: Quản trị kinh doanh

Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: PGS.TS NGUYỄN NGỌC THẮNG

Hà Nội - 2017

DECLARATION

The author confirms that the research outcome in the thesis is the result of author‟s independent work during study and research period and it is not yet published in other‟s research and article

The other‟s research result and documentation (extraction, table, figure, formula, and other document) used in the thesis are cited properly and the permission (if required) is given

The author is responsible in front of the Thesis Assessment Committee, Hanoi School of Business and Management, and the laws for above-mentioned declaration

Date………

ACKNOWLEDGEMENT

I would like to express my deep gratitude to the teachers of the Hanoi school of Business and Management, Vietnam National University, especially the teachers who imparted to me a lot of knowledge and helped me carry out this thesis

I would like to express sincere gratitude to Dr.Nguyen Ngoc Thang has spent a lot of time, dedicated guidance, only told me during the course of the topic

I would like to express my sincere thanks to the Board of Directors of National Payment Corporation of Viet , help me in collecting data and information needed for the study of this thesis

I sincerely thank family, friends and colleagues for encouraging and supporting me

in the process of study and research

Hanoi, date 22 month 5 year 2017

Student DINH THI BICH HANH

THE IMPACT OF PAYMENT SERVICE QUALITY

ON MARKET SHARE EXPANSION OF NAPAS

1 Summary of the results

The study was an interview with 300 clients in Hanoi who were using NAPAS payment gateway services, ages 15 to 50 The purpose of the study was to assess the factors that affect the quality of NAPAS e-payment gateway services, thus assessing the need to expand the market share of the company's service delivery After studying and analyzing, the author makes conclusions on the factors affecting the quality of NAPAS e-payment gateway services such as stability, efficiency, safety, security and an interface friendliness level is the factor that has the greatest impact on stability It affects the level of satisfaction of customers with the quality of services provided by company, thereby affecting the company's ability to expand its market share However, the level of interface friendliness is also a major factor that customers interested Most customers are not satisfied with the stability of the e-payment gateway services They expected that NAPAS card service will be more stable and friendly interface in the near future

In addition, when conducting the research on the quality of e-payment gateway services and NAPAS's ability to expand its market share, most of the customers interviewed highly valued the services From that, it will be decided to use the e-payment gateway service and will recommend it to their friends and relatives to use In addition, customers are also relatively confident in NAPAS's ability to grow its market share as well

as expand its customers They found that NAPAS is on the rise to enhance its ability to serve more customers in the future and e-payment gateway services provided by NAPAS have superior advantages over competitors

2 Applicability in practice

Research will be a valuable reference resource to help NAPAS managers find out the factors that affect the quality of e-payment gateway services as well as the company's ability to expand its market share

In addition, the research also helps the management know that customers are evaluating the quality of the products they provide, so that they can adapt to the needs of their customers The research is based entirely on the practice of the company, so

management can consider and apply solutions to improve service quality as well as expand market share in delivery service

3 Further research orientations

Firstly, future research can be conducted with the majority of customers currently using the company's e-payment gateway services to gain a broader understanding of customer expectations

Secondly, it will conduct surveys to assess the opinions of both customers who do not use e-payment gateway services and who are using this service of other companies for gaining specific information to having a better problem solving, while also facilitating the expansion of new market share

Thirdly, carrying out research on legal documents related to e-payment system so that the people of our country in general and customers of the company in particular are aware of the problem of using the payment gateway service is safe and protected by law

In addition, research can continue to develop in the direction of the impact of social factors of customers (trends, ) on the e-payment gateway services

TABLE OF CONTENTS

DECLARATION i

ACKNOWLEDGEMENT ii

TABLE OF CONTENTS v

ABBREVIATION viii

LIST OF FIGURES ix

LIST OF TABLES x

INTRODUCTION 1

1 Rationale- 1

2 Literature review 2

3 Aims of research 5

4 Objects of research 6

5 Scope of research 6

6 Research methodology 6

7 Thesis structure 8

CHAPTER 1: THE THEORETICAL BACKGROUND 9

1.1 Overview of the service quality, electronic payment service and market share 9 1.1.1 The basic definitions 9

1.1.2 Characteristics of service quality of electronic payment 11

1.1.3 Factor affecting the service quality of electronic payment 11

1.1.4 Factor affecting the market share expansion 13

1.2 Assessment models for service quality of electronic payment and relationship of the service quality with a extended section 14

1.2.1 Assessment model for service quality of electronic payment 14

1.2.2 The relationship between service quality and market share expansion 18

1.2.3 Research modeling 19

1.3 Indicators to assess market share expansion 21

1.3.1 Revenue 21

1.3.2 Market Share 21

1.3.3 The number of business cooperation partners 22

1.4 Practical experience on improving service quality to expand the market share

of some enterprises 23

1.4.1 The experience Lazada of e-commerce business 23

1.4.2 The experience of Hung Phat manufacturing enterprise 23

1.4.3 The lessons learned for Napas 24

CHAPTER 2: ANALYSIS THE CURRENT SITUATION 25

2.1 Introduction about NAPAS.JSC 25

2.1.1 The process of formation and development 25

2.1.2 Introduction about electronic payment gateway service (NAPAS Payment Gateway) 26

2.1.3 Business operation results of the company 27

2.2 Actual situations on market share of NAPAS JSC 29

2.2.1 Actual situation on the revenue of NAPAS JSCin comparison with other companies in the same field 29

2.2.2 Market share in rendering services of NAPAS JSCin the market 31

2.2.3 Number of major partners of NAPAS JSC in comparison with other companies in the same field 32

2.2.4 Activities of NAPAS JSC in the market share expansion 33

2.3 Analysis of survey results 35

2.3.1 Descriptive Statistics 35

2.3.2 Scale test 38

2.3.3 Factor Analysis 41

2.3.4 Correlation and regression analysis 43

2.3.5 Assessment on survey results for the factors in the model 48

CHAPTER 3: SOLUTIONS AND RECOMMENDATIONS 59

3.1 Solutions to improve the quality of electronic payment service 59

3.1.1 Training the technical staff of the company 59

3.1.2 Completing the system interface gateway payment services of the Company to raise the level of customer friendliness 60

3.1.3 Expanding cooperation, linking with organizations large e-commerce, popular with users of Vietnam 61

3.1.4 Investment and application of modern technology, advance to the work raising, improve the quality of the system's electronic payment gateway company

to avoid limiting condition system crash 62

3.1.5 Other solution 62

3.2 Solutions expand market share of NAPAS 63

3.2.1 Solution to attract customers using NAPAS e-payment portal 63

3.2.2 Group solutions to improve the security of electronic payment of NAPAS 64 3.2.3 Solutions for the development of customer support services 65

3.2.4 NAPAS brand building and development solutions 66

3.3 Recommendations to relevant units 67

3.3.1 Information technology infrastructure 67

3.3.2 Legal infrastructure 68

3.3.3 Training and promotion of electronic payment development cooperation 69

CONCLUSIONS, LIMITATIONS AND RESEARCH IMPLICATIONS 70

REFERENCES 73

APPENDIX 74

ABBREVIATION

NAPAS JSC National Payment Services Joint stock company

LIST OF FIGURES

Model 1.1: Scale for service quality assessment SERVQUAL 16

Model 1.2: The assessment model forquality of online banking service 17

Model 1.3: Research model under ISO 9126 standard 17

Model 2.4: Research model of the author Liliana Solís (2011) 18

Model 2.5: Proposed asessment model of quality of electronic payment gateway of the topics 19

Figure 3.1: Electronic wallet technology model 65

LIST OF TABLES

Table 2.1 : Business operation results of the Company 28

Table 2.2 Revenue of NAPAS JSCin comparison with other companies 30

Table 2.3 Market share in rendering services of NAPAS JSC 31

Table 2.4 Major partners of NAPAS JSCin comparison with the ones of other companies 32 Table 2.5 Activities to expand market share of NAPAS JSC 33

Table 2.6: Descriptive Statistics on the characterization of survey samples 35

Table 2.7 Results of testing the reliability of the scale 38

Table 2.8 Results of factor analysis with independent variables 41

Table 2.9 Results of factor analysis with two dependent variables 42

Table 2.10 Correlation matrix of the factors 43

Table 2.11 Analysis results of the impact of factors on service quality of NAPAS 44

Table 2.12 Analysis results of the impact of service quality on market share expansion 46

Table 2.13 General results of testing research hypothesis 47

Table 2:14 Impact of efficiency on the quality of company‟s electronic payment gateway 48 Table 2:15 Impact of the stability on the quality of electronic payment gateway of the company 50

Table 2:16 Effectiveness of safety, security, quality of electronic payment gateway 51

Table 2.17 Consistency influence to the quality of the electronic payment gateway 53

Table 2.18 Influence of the level of the friendly interface to the quality of the electronic payment gateway 54

Table 2.19 Evaluate service quality through electronic payment gateway 55

Table 2.20 Evaluate expanding market share 57

INTRODUCTION

1 Rationale-

Nowadays, electronic payment has been a very common payment type in developed countries The online payment service has been made very easy by bank transfer and credit card For developing countries as Vietnam, electronic payment service has entered into the first stage of the development process

The application of electronic payment service in enterprises has been growing rapidly with a lot of improvements There are enterprises providing electronic payment service, typically Paynet and Vnpay Banks also pay more attention to electronic payment service , most of banks have online banking services such as Vietcombank, Vietinbank, Techcombank Besides, payment service are also being gradually improved, typically National Payment Services Joint stock company (NAPAS) and Banknetvn

NAPAs is managing and operating a system interconnect network of 16,800 ATMs and 220,000 POS machines, more than 90 million cards of 43 commercial banks in the country and internationally active in Vietnam NAPAs provide payment services with over

200 firms in the airline sector, telecommunications, hotels, tourism and electronic payment services for other utilities customer

This is one of the successes of NAPAs, however the fierce competition and quality of payment service is limited, such as:Risk warning system, Risk Management System Beside, NAPAs has not friendly connected many popular e-commerce websites As a company providing and developing payment service, NAPAS JSC also needs to assess the effect of the quality of payment service system on their expansion in market share Therefore, the model for quality assessment of electronic payment service system of the company has been researched and considered This model has been applied to find out the advantages and limitations of payment service quality of the company and then find out solutions in order to expand the company‟s market share in the next time

From this fact, I choose the topic: " The impact of payment service quality on

market share expansion of NAPAS " for my graduation thesis In Vietnam, there is no

report on the effectiveness evaluation of payment service quality on the market share expansion of NAPAS, so this thesis is one of the first reports which learns about the quality assessment of the NAPAS‟ payment service Hope that this thesis will contribute to the improvement and the development of the payment service of NAPAS

2 Literature review

To research my thesis, I focus on studying related documents for my research process There are three groups in literature: (1) Thesis that relates to payment service and payment service quality of online business; (2) Case study on assessing the payment service quality (in Viet Nam and abroad); (3) Experimental studies on the relationship between service quality and market share

(1) Thesis

Hung, Nguyen Tran (2010) completed a thesis named as “Payment in electronic

commerce” The thesis includes three chapters providing basic theories of payment

activities in electronic commerce as well as current e-payment system In addition to payment in electronic commerce, this thesis also provides perspectives on security technology in electronic payment This thesis also emphasizes the importance, benefits and limitations of payment in electronic commerce Besides theoretical basis of payment in electronic commerce for seizing the growth of electronic commerce in our country today, the thesis also provides illustrations of e-commerce in some developing countries, etc It can be said that the thesis has clearly depicted the concept of electronic payment and its importance in the current integration economy

Hy, Le Van (2009) with the thesis of “Online payment and electronic wallet”

This thesis is one of the important documents which provides me basic theories of electronic payment as well as electronic wallet Firstly, the author confirms that in Vietnam, electronic commerce has achieved enough conditions to develop to a new altitude Along with electronic commerce development, the system of electronic payment service also develops in order to cater for this development In which, the author highlights the concept of e-payment (online payment) and electronic wallet and the author lists companies currently providing electronic payment service in Vietnam and their advantages and limitations The application of this document in assessing quality of electronic payment service shows that to improve service quality of electronic payment , the companies in this new field must have specific strategies and plans to overcome the limitations as well as promote the obtained advantages in the next time

Tyree, A (2000) published a thesis that named as “Virtual Cash - payment on the

internet” This thesis provides basic and clear concepts of online payment method

Besides, the thesis gives basic criteria to assess the quality of online payment service

systems and online payment models which are being applied popularly today This is an important content in analyzing and assessing the effect of service quality of electronic payment on the development, expansion in the market of companies providing this service

In my thesis, I will use the collected knowledge in the thesis to build the research model to assess service quality of electronic payment of NAPAS JSC

In 2011, a group of researchers at University of Economics Ho Chi Minh City

finished a research with the title of “Research actual situation of electronic payment

system in Vietnam and propose solutions and recommendations to provide Website nganluong.Vn” The contents of this work focus on the concepts of electronic payment

system, characteristics of each system and their advantages and disadvantages The research presents the development of electronic payment form in the world and in Vietnam, at the same time, the research also provides some popular electronic payment models which are often applied today Besides, the thesis highlights factors affecting electronic payment service system in Vietnam and conducts research on successful intermediary website about electronic payment in foreign countries and in Vietnam Its purpose is to find out the way of development of electronic payment in our country Therefore, companies providing electronic payment service must always be active in their business activities, building appropriate business strategies and overcoming the limitations

to create premise to increase revenue and expand market share The job is one of the effective contributions to NAPAS JSC in improving their service quality of electronic payment

(2) Case study

So, in recent years, there have been many research projects on the quality of electronic payment service as follows:

Choi, Stahl & Whinston (2010) carried out a study with the topic of “Assess the

quality of electronic payment service system” The topic is presented quite specifically

and in details the concept of electronic payment system as well as the factors affecting the quality of electronic payment of companies providing this service in the United States Through the presentation of the theoretical basis for electronic payment service, by using SPSS software to process collected data, the authors analyze and point out advantages and limitations in the quality of electronic payment service in the United States Based on this actual situation, the authors have proposed solutions to improve and enhance the quality of

this electronic payment However, some measures which the authors propose are still general, not specific

Craig D.Mason (2011) has completed a research named as “Effect of the quality of electronic payments service to increase the sales of service companies” This topic is the application of previous theoretical basis in analyzing the effect of electronic payment service quality on the market share expansion of service companies Besides analyzing the actual situation of the electronic payment quality of service companies in the UK, the author also focuses on analyzing the effect of the quality of electronic payment service on the development, increase in revenues of the companies providing this service The data are collected by interviewing customers who have used electronic payment service of the companies providing this service in the UK The research results have a great contribution

to the quality improvement of electronic payment service for the companies in the UK Hung, Le Duy (2013) ran a study about “The payment in electronic commerce in Vietnam” The research has focused on presenting the main theoretical basis of payment problem in electronic commerce, payment process in electronic commerce Thereby, the research also strongly focuses on presenting actual situation of developing electronic payment in some enterprises in Vietnam for the period of 2010-2014 Based on the results

of the actual situation analysis and surveys, customer evaluations, the authors build strategic solutions for electronic payment development in Vietnam during the period of

2015 -2020 However, because the research topic is quite general and research problem is quite broad, the topic cannot be in the details and delve into research problem

Tung, Le Duc (2014) has done a study about “Project on electronic payment for Vietnam enterprises” The topic focuses on researching the project on electronic payment development for enterprises in Vietnam The research has also focused on presenting some basic problems about electronic payment service at enterprises in our country and the actual situation of the quality of this electronic payment The research results also present that the safety and security of customer financial information are important contents affecting the quality of electronic payment of enterprises in Vietnam However, the solutions proposed by the authors are not specifying and in details for the orientation of improving the quality of electronic payment in Vietnam in the next time

(3) Experimental studies that relate to issues of service quality and expand market share

In fact, the author did not find any research that shows directly the content of the relationship between service quality and expand market share However, some of following studies may useful in interpreting this relation

Zeithaml et al (1996) with the research of "The behavioral consequences of service quality" that was published in the Journal of Marketing show many instructions for this relation In this research, the authors said that “…Findings from these studies show that

companies offering superior service achieve higher-than-normal market share growth

(Buzzell and Gale 1987), that the mechanisms by which service quality influences profits

include increased market share and premium prices (Phillips, Chang and Buzzell 1983)”

This means that the higher service quality that company offer, the larger market share they achieve

Rust, Roland T and Anthony J Zahorik (1993) have a study named "Customer satisfaction, customer retention, and market share” In this study, the authors cited the conclusion of Fornell and Wernerfelt (1997, 1998) that “marketing resources may be better spent keeping existing customers than attracting new ones” This means that, if companies spend on improving the service quality (one of marketing strategy) to keep their current customers, they could be more beneficial than attracting new customers (and thus, maintain the market share)

On the other hand, many researchers (Trang, 2006) support for the conclusion that

“the customer satisfaction and customer loyalty are positive relation” Therefore, increase the service quality will lead to increase the customer satisfaction and, thus keeping the current customer (because of increasing in the level of loyalty), and maintain the market share In addition, when the customers have more satisfied, they will introduce to others and lead to expansion of market share for the company

In summary, through the reviewing some related studies around the world and in Vietnam, the documents that author conducted research as above has provided the author with the most basic knowledge about services of electronic payment, and the impact of service quality of electronic payment to expand the scale, the share of the company provides this service Through this thesis, the author will use to build models of assessing service quality of electronic payment of NAPAS; simultaneously, that gives the author an important theoretical basis to apply in this research

3 Aims of research

3.1 Overall aims

Do research on the actual situation of the quality of payment service at NAPAS JSC to find out solutions to improve quality of payment service which helps expanding the company's market share

Location scope: The research is carried out at NAPAS JSC

The research is carried out from Aug, 2016 to Dec, 2016 Solutions applicable until

2020 for NAPAS JSC

6 Research methodology

Proposed research model:

The model of the topic is synthesized and built from previous researches In which:

Reliability

Based on Paret and Lyapunov, 2000

Stability of the system

Based on Paret and Lyapunov, 2000

Safety and security of the system

Safety (confidentiality) based on Nguyen Ngoc Hien, 2003

The security based on Gary P.schneider, 2000

Consistency

This is characteristic to ensure the accuracy of electronic payment system, including pricing, tax, product information, etc (Nguyen Ngoc An and Nguyen Van Hoang, 2003)

Friendliness of the interface

Friendliness of the interface is the way to lay out products on the website, provides users with product information or services, which are provided by electronic payment system (Tran Ba Thai, 2005)

Service quality

The author builds a model to assess the effect of factors on the quality of the electronic payment service based on original assessment model of service quality of Parasuraman (1988)

Method

Qualitative research: Qualitative research is used through group discussion In group

discussion, the author will run a survey of 30 people as follows:

- 3 managers,

- 2 customer service staffs

- 25 customers who use payment services of NAPAS

The purpose of qualitative research is to discover, adjust and supplement the concepts of research scale Interview results show that all interviewees agree with the factors given by the author about the effect of payment service on customer satisfaction Therefore, the author uses this factor group to conduct research

Quantitative research: The results of qualitative research will be used for

quantitative research When determining the factors affecting customer satisfaction and market share expansion of NAPAS, the author continues to quantitative research To carry out this research, the author builds questionnaires and does surveys The numbers of customers that the author surveys are 300

Sample size: Roger (2006) presents that minimum sample size for practical

researches is about 150-200 observations According to the opinion of Hair, Anderson, Tatham and Black (1998), the minimum sample size required for the research is calculated

by n*5 (n: number of questions)

In this research, based on the proposed model, there are about 30 questions in the questionnaire Then, the minimum number of samples required is 30 * 5 = 150 observations To have a high generalization, the author selected a sample size of 300 observations

The author intends to interview customers by meeting them directly and interviews via telephone In addition, the author also collects information on customer conference of the company which is annually held This is a good opportunity for the author to collect many ideas of customers at the same time

Data and time:

+ Secondary data: secondary data will be collected at NAPAS in the period from

2011 to 2015;

+ Primary data: The research will focus on collecting primary data within 3 weeks from 2nd September, 2016 to 20th September, 2016

7 Thesis structure

The intended thesis structure as following:

(Not include Introduction and Conclusion)

CHAPTER 1: THEORETICAL BACKGROUND

CHAPTER 2: ANALYSIS THE CURRENT SITUATIONS

CHAPTER 3: SOLUTIONS AND RECOMMENDATIONS

CHAPTER 1: THE THEORETICAL BACKGROUND

1.1 Overview of the service quality, electronic payment service and market share

1.1.1 The basic definitions

1.1.1.1 Service quality

Up to now, there have been a lot of different concepts and definitions of service quality as well as measurement about it Although it is not easy but there are some concepts which are often mentioned about service quality in researches as follows:

Each customer usually has different sense in quality, so the involvement of customers in the development and assessment of service quality is very important In service field, quality is a function of customer awareness In other words, service quality is determined based on awareness or sense of customers relating to their individual needs

(Bui Nguyen Hung and Nguyen Thuy Quynh Loan, 2010)

There are two components of service quality: (1) technical quality is what the customers perceive; (2) function quality interprets how the services are provided (Grönroos, 1984)

Service quality is different level between the expectation of consumers about service and their perception about service ressult (Grönroos, 1984, Parasuraman et al, 1988)

Service quality is overall the characteristic properties of services It express capable

of satisfying the needs of users in production conditions - economic - given society (Ngo Thi Thu, 2002)

1.1.1.2 Electronic payment and Electronic payment service

be processed to the bank at the end of the day) With the non-cash payment via two above

mentioned methods, e-payment is compulsory and necessary requirement for the promotion of electronic commerce (Nguyen Tran Hung, 2010)

Electronic payment gateway

Electronic payment gateway is the connection system among banks, buyers and sellers with the final goal for the seller to be able to receive money once online transactions are done Buyers just need to know that they have paid to the sellers via e-commerce website with their own registered online accounts in the most convenient way (Le Van Hy, 2010)

Electronic payment gateway is a software system that allows e-commerce websites to connect to payment channels such as banks Its purpose is to provide tools to help customers with credit accounts or other types of credit cards to make payments of goods and services on the websites when buying them Thus, instead of transferring money or directly depositting cash at banks, customers only need to confirm their payments It saves costs and travelling time Electronic payment gateway is as a selling location (Le Duc Tung, 2011)

1.1.1.3 Service quality of Electronic payment service

Quality of electronic payment gateway service is related to the quality of the interface, the quality of service required by customers because all interactions with users are via i computer interface with people The quality of electronic payment gateway systems can be regarded as the software quality or the quality of Websites (Vu Dinh Thu, 2010)

The principal components forming the electronic payment system is the networked computers, communications, computers connected client-sever types, multimedia services and other services Thus, the quality of electronic payment gateway services is quality of the system to meet the requirements of end users, these users are using the computer interface (HCI) From the impacts of electronic payments with PC, interface quality should follow the principles of software quality (Kalakota, Winston, 2007)

Quality of electronic payment gateway service includes 6 quality factors, functionality, reliability, efficiency, availability, maintenance and portability The similar works involving quality of electronic payment system is regularly reviewed the quality factor of the availability because it's the most important factor in the quality of electronic paymen (ISO 9126 standard)

1.1.1.4 Market share and market share expansion

Market share

Market share is the market segment of the business has occupied In essence, it is the market segmentation of the business to competitors in the industry (Vuong Van Dao, 2013)

Market share expansion

Expanding the market share is the sum of the measures of enterprises so that the volume of products consumed by the enterprise reaches the maximum level Expanding the market share of the business is not only about developing new markets but also increasing market share of products in the old markets (Nguyen Van Anh, 2013)

To assess the extent of market share of a business, the manager can rely on a number

of indicators, such as broadening the geographic scope of the market, creating new customers

1.1.2 Characteristics of service quality of electronic payment

+ Electronic payment services are not limited space

The first characteristic of the quality of electronic payment services is that the parties may make payments at any time and under any condition

Electronic payments allow payment partners to narrow geographic distances, widen the scope of their payments globally Electronic payment is a component of the digital economy

+ Electronic payment services are not limited in time

Electronic payment service is the payment service system through the computer network and telecommunications to achieve real-time payment speed Through LANs, the internet allows making payments on a global scale, 24/24 hours a day, 7 days / week + Electronic payment service is a payment method has many advantages

Electronic payment services have accelerated the trend of developing non-cash payment methods, restricting the use of cash in traditional payments and will be the inevitable trend of the times

Electronic payment services to expand into new fields: exchange of electronic financial datas, electronic money, digital wallet, electronic sec, smart card, payment cards

1.1.3 Factor affecting the service quality of electronic payment

The effectiveness of the payment gateway

The efficiency of the e-payment gateway system is the efficiency of handling the requests of customers using the service This is reflected in the speed of transaction processing quickly, the information processing accuracy

If the electronic payment system works more efficiently, the quality of the system of higher and the more satisfied the customer

The stability of the system

Stability of electronic payment gateway is also a determining factor in the quality of service The stability of the system is reflected in the ability to maintain the stability of transaction processing speed as well as ensuring accurate information in the transaction Electronic payment system is evaluated with high quality when the system ensures high stability, less problems, the system does not generate errors or hangs to interrupt the transaction of customers

The safety and security of the system

Security and security are the prerequisite for any electronic payment system This factors are to ensure confidential information, the privacy rights of the account holder to use the service

Customers usually have the essential information such as address, phone number, account number, hobbies, etc Electronic payment systems can allow users to decide openly or concealed their information, or maybe add some other information

The electronic payment system is more secure and secure, the quality of the system

of higher and the more satisfied the customer

The more consistent the e-payment system is, the better the quality is and vice versa

The friendly level of the interface

The interface is full of the images that the user can see on the Web pages of electronic payment

Some characteristic is accompanied by electronic payment Website name and time of the Website download, this is where we create the first impression to the user Website where everyone can go and browse, as well as places where people can visit An attractive interface, compatibility with all browser programs, support for multiple languages, and

contain accurate information are the things that are important to improve the quality of electronic payment systems thereby improving satisfaction of customers using the service Some features of the interface such as: The name of electronic payment website and time download of Website, Interface is the first place to create impressions for users Website is a place where everyone can go and browse, also where people can visit An attractive interface, compatibility with all browser program, multilingual support, and accurate information are important things to improve the quality of e-payment systems Thus enhancing the satisfaction of customers using the service

1.1.4 Factor affecting the market share expansion

The competitiveness of enterprises

The competitiveness of enterprises or the potential of the business is the factor reflects the strength, position and strength of the business in the marketplace The competitiveness of the business is constantly changing can be stronger or weaker, can change the whole or each element The competitiveness of enterprises expressed in the following three factors:

Quality products and services that enterprises provide

According to the international quality standard (ISO): "Quality is the totality of the criteria, its characteristics reflect the satisfaction of the demand in certain conditions of consumption, in accordance with the wishes of the customer

Product quality is a matter of competition for businesses operating in the same field

If the enterprise has good products quality, ensuring reliability, the volume of products and services sold out of the business increased This becomes an effective advertising tool, creating prestige for businesses Therefore, businesses must constantly improve the quality

of services and products to serve the needs of consumers to create conditions the expansion

of market share in the provision of services

Product pricing and services

Price has a great impact on the volume of products and services provided It often is the standard in the purchase and selection of products and services of customers Businesses use the price as a sharp competitive weapon Establishing the right pricing is a very important condition for profitable, fruitful In order to do so, enterprises must have a flexible price mechanism, in accordance with the needs of society

Marketing measures

Marketing activities aim to enhance the power and expand the market share of the business before the competition This activity includes the ability to grasp new needs: measures for advertising, promotion, after-sales services These measures help businesses create the credibility of the customer, helping to direct customers towards them

Business management skills

The dynamic, lightweight management system helps businesses change to adapt to new business conditions, easily overcome difficulties in competition The solidarity organization helps businesses mobilize resources and collective intellectual capabilities for the common purpose of the business This will create favorable conditions for expanding the market share of the business

Customer tastes

Tastes are factors that businessman especially interested not only in the stage of product and service pricing but also in the process of developing business strategy and development strategy This is an important factor in the supply of products and services The enterprise captures the tastes of customers will have the advantage of expanding

its market share

Technical and technological factors

This is a big influence factor and directly affects the business strategy of many sectors as well as many businesses The fact that the world has witnessed technological change shook many areas but also appeared new business areas, more complete 21st century is the century of science and technology, so judging technological change is more important and urgent than ever Businesses in the maintenance and expansion of the market need to regularly and constantly monitor this issue for adaptation strategies

1.2 Assessment models for service quality of electronic payment and relationship of the service quality with a extended section

1.2.1 Assessment model for service quality of electronic payment

1.2.1.1 Assessment model for service quality of Parasuraman 1988

Parasuraman (1988) is regarded as the father of service field because he is one of the first people who builds SERVQUAL model to assess service quality SERVQUAL model

is built based on perspective that perceived service quality is the comparison between expectations and the value that customers perceive

5-component SERVQUAL model has been used widely (Asubonteng et al., 1996; Buttle, 1996; Robinson, 1999) It would seem that there are little doubts that SERVQUAL

is a common tool to assess service quality, which is not only accepted by researchers but also is used to measure service quality in many different fields And it is perhaps used more than any method of quality assessment It is used in many fields, industries and organizations in many different countries: USA, UK, Singapore, Korea, Malaysia, Saudi Arabia, Kuwait, etc

In Which:

Difference 1 Difference between expectation of customers and awareness of managers on

expectation of customers Difference 2 Managers incorrectly transmit or can‟t transmit expectation of customers

into procedure, specifications of quality

Difference 3 Staff don‟t work under proper procedure

Difference 4 Advertise and introduce incorrectly

Difference 5 Total of above difference, difference between received service and

expectations of customers 5-different model is general model with its theoretical nature of service quality To

be able to practice, Parasuraman et al tries to build the scale used to assess the quality in service field According to him, for any service, customers perceive quality basing on 10 following components: Reliability, Responsiveness, Competence, Access, Courtesy, Communication, Credibility, Security, Understanding customer, Tangibles

Advantage of this model is covering almost every aspect of the service but it is very difficult to assess and analyze In 1988, Parasuraman et alre adjusted and formed new model, including five components as follows: Reliability, Responsiveness, Competence, Sympathy, Tangibles

Model 1.1: Scale for service quality assessment SERVQUAL

Source: Parasuman (1988)

Based on the research model of Parasuraman (1988), there are many researchers taking out assessment model of the service quality of different service fields When applying to actual research, number of factors that make up service quality may be less or more than above 5 factors and the factors can be changed depending on the industry and research fields, specifically prominent research models in the following service fields:

1.2.1.2 Assessment model for service quality of online banking of Broderick and

Vachirapornpuk 2002

In their research, the two authors have observed participants, analysis and reports of social Websites of UK to learn how customersare aware of internet banking and factors of this model In the context of banking service business via Internet, the two authors point out five important factors which are considered to have major effect on perception of service quality,including customer expectation, photos, reputation of the organizations, set

up service, contactservice and customer participation

Model 1.2: The assessment model forquality of online banking service

Source: Broderick and Vachirapornpuk (2002)

1.2.1.3 Assessment model for quality of electronic payment of ISO 2005

About assessing quality, ISO-International Organization for Sandardization and International Electrotechical Commission has launched ISO/IEC ISO 9126 standards It is monitored by project ISO 25000: 2005 and along with it, there is definition on a model of software product quality, the characteristics of quality and calculation relations

IEC-Under ISO 9126 standard, there are 6 groups of factors affecting the quality of electronic payment gateway, including factors as following model:

Model 1.3: Research model under ISO 9126 standard

Source: ISO 9126 standard (2005)

Image, reputation of the

(Functionality) (Reliability)

Base on model 2.3, we can see that research model under ISO 9126 standard includes

6 factors: functionality, reliability, efficiency, usability, maintainability and portability The research results show that all these factors have positive effect on the quality of electronic payment gateway service

Similar jobs which are related to electronic payment system are often to consider the quality factor of usability as the most important factor ofthe software quality However, usability is not the only factor in the quality of electronic payment, the quality factors of operation, reliability and efficiency are aslo factors affecting users

1.2.1.4 Assessment model for quality of electronic payment of Liliana Solís 2011

Author Liliana Solís (2011) is a British economist, he has greatly contributed to the researches on the quality of electronic payment gateway service of the UK enterprises Research of the author about the factors affecting service quality is be synthesized as following model:

Model 2.4: Research model of the author Liliana Solís (2011)

Source: Liliana Solís (2011)

1.2.2 The relationship between service quality and market share expansion

The factor of service quality has a closed relationship with the ability of market share expansion of the enterprises In the case of high service quality, the enterprises have more chance to expand its market share through attracting more customers (and vice versa) Curry and Sinclair (2002) stated that if the service quality of the enterprises meet the expectation of customers, it lead to the satisfaction of customer And, thus the enterprises could gain more market share

Maintainability

Friendliness of the interface

Operation

Consistency Safety and security of the system

Quality of electronic payment gateway

19

Wicks and Roethlein (2009) suggested that, improving the service (and product) quality would lead to increase the customer satisfaction (and the loyal of customer) Thus, the customer will absolutely continue to use the company services in the future, recommend to others and then, the company has more chance of increasing the revenue Arcording to Al-Wugayan et al (2008), the service quality is the necessary condition

in order to keep the customer and attract the new ones By that, the company will increase the business operation efficiency and market share

In the e-commerce market, this relationship has been confirmed in many experience research such as: Craig D.Mason (2011), Choi, Stahl &Whinston (2010)… These researh show the importance of service quality in expanding the market share in not only the e-commerce market but also all other business sectors

1.2.3 Research modeling

Thus, we can say that base on original assessment model of service quality of Parasuraman (1988), there are a lot of researches on service quality measurement In which, many authors build assessment model of service quality of electronic payment gateway Base on previous perspectives and researches, combined with the theory of relationship between service quality and market share expansion as mentioned above, I propose model research of the topic as follows:

Model 2.5: Proposed asessment model of quality of electronic payment gateway of the

topics

Source: Author recommended

The model of the topic is synthesized and built from previou researches In which:

Expand Market share

Reliability

It is the ability of the system to provide appropriate functions to save maximum resources and increase working efficiency in certain usage conditions (Paret and Lyapunov, 2000) Base on two factors:

- Time behavior

- Utilization resource

Stability of the system

This feature describes the ability to maintain a specific level of performance under different conditions

Stability is the first requisite of an automatic system Automatic system is stable if after the impact to change, its balance status, it self-adjusts to return balance status (Paret and Lyapunov, 2000)

Safety and security of the system

Five components, which are identified in the related electronic payment are confidentiality, authentication, access control, accountability and use of data (Nguyen Ngoc Hien, 2003)

To meet above goals, means such as digital certificates and security protocol are created to ensure the security of above-mentioned transactions It also means that use encryption methods and ensure the reliability of the electronic commerce system to ensure the security of transactions even in case of system faults

The security means that electronic payment system needs to protect privacy for users(Gary P.schneider, 2000)

The users have their personal information such as address, phone number, account number, hobbies, etc… Electronic payment system can allow users to decide to publish or hide their personal information or add some information An electronic payment system, which meets the security must have such performance

Consistency

This is characteristic to ensure the accuracy of electronic payment system, including pricing, tax, product information, etc (Nguyen Ngoc An and Nguyen Van Hoang, 2003) The basis for the consistency is that quality factor of usability is related to features of the systems of electronic payment gateway service such as the preparation of the Website contents for more exact information as well as the preparation of the videos, images for

payment process instructions Meanwhile, interface is required for attracting users with

clear instructions

Friendliness of the interface

Friendliness of the interface is the way to lay out products on the website, provides users with product information or services, which are provided by electronic payment system (Tran Ba Thai, 2005)

These information can be represented in the form of text, images, videos and audios

If they are images, it is necessary to check whether these photos can be zoomed out or not and are in the form of three-dimensional images (3D) or not These characteristics must be examined carefully and thoroughly to be able to assess the system quality correctly

Some characteristics are the name of electronic payment Website and loading time of the Website, which make first impression to the users Website is the place where everyone can visit, so an attractive interface, which is compatible with all browser programs and supports for multiple languages with accurate information is important thing

1.3 Indicators to assess market share expansion

1.3.1 Revenue

Revenue is the total value of economic benefits business acquired in the accounting period, arising from the production activities, the normal business of the enterprise, contributing to development of equity "

Revenue of the business including sales, service provider revenue, financial operations and the unusual activity

Revenue from sale of goods and providing of services are all amounts received or will be earned from transactions such as the sale of goods, including surcharges and fees other than the selling price (if any)

Revenue is one of the indicators reflecting the ability to expand the market share of the business If sales of products and services of enterprises are increasing higher than competitors, the ability to expand the market share of the business is larger Comparing the revenue of a business with that of a competitor operating in the same field is essential to assess the company's competitiveness and market share

1.3.2 Market Share

Market share is the market of products and services that enterprises occupy Companies that have a large market share will have the advantage of dominating the

market This is a measure of the market's ability to expand This is a measure to assess the scalability of the business market

Market share = sales of the business / total sales of the market

Or market share = number of products sold by the enterprise / total market consumption

The market share clearly shows the services and products consumed by enterprises compared to the total products and services consumed in the market In order to gain market share in front of competitors, enterprises often have to have appropriate price policies through the necessary discount, especially when starting to penetrate new market Besides that, also consider the relative market share

Relative market share = The turnover of enterprises / The sales of competitors

or relative market share = Total product sales of businesses / Total products sold by competitors

- If the relative market share is greater than 1, the competitive advantage of the business

- If the relative market share is smaller than 1, the competitive advantage of the opponent

- If the relative market share by 1, the competitive advantage of enterprises and opponents alike

1.3.3 The number of business cooperation partners

Partners, customers refers to collaborative relationships - cooperation between business enterprises together

Partners include two or more parties work together to enhance cooperation in the implementation of common goals

Construction of channels / mechanisms resolve disagreements / disputes, measures to promote cooperation and progress evaluation methods as well as to share the achievements

of cooperation

Act together and share a common interest objective is the criteria of the partnership Number of cooperation partners the larger, the more facilitate business expansion in the business market share compared to other competitors

Partners, partners are the term referring to the relationship of cooperation - cooperation between business enterprises together

Partners include two or more parties working together to enhance cooperation by pursuing common goals

Establishing channels / mechanisms for resolving disagreements / conflicts, measures for promoting cooperative relations and methods for assessing progress and sharing of cooperative achievements

Working together for common goals and shared interests are the criteria of the partnership

The greater the number of partnerships, the greater the incentive for an enterprise to expand its market share in business compared to its competitor

1.4 Practical experience on improving service quality to expand the market share of some enterprises

1.4.1 The experience Lazada of e-commerce business

In business activities, Lazada specially focus on expanding market share through improving the quality of service provided to customers Accordingly, Lazada is interested

in improving facilities, information technology to serve customers Leadership Lazada said that improving the quality of service delivery to customers is the most effective way to expand market share The solutions have been made at Lazada as:

Lazada promotes investment in facilities, information technology and communications technology to increase the productivity and quality of service provided to customers Since establishment, the company has recognized the important role of technology in improving service quality, expanding market share Lazada owns large technology infrastructures, ensuring real-time data transmission to its members, creating seamless coordination of inventory, supply operations chemistry and forecasting The company also uses barcodes to manage and collect product information for inventory forecasting, barcode management systems Therefore, customers are served quickly, without waiting time, improve quality of service and maintaining market share

As such, Lazada's experience in improving the quality of its services to expand its market share is to focus on technology investments, infrastructure improvements and service quality improvement by reducing the number of waiting times

1.4.2 The experience of Hung Phat manufacturing enterprise

In the production and business activities, Hung Phat Trading Co., Ltd focuses on improving the quality of services in order to expand market share by improving the

responsiveness of employees Accordingly, the policy to improve the quality of human resources as well as improve the quality of services, expand market share is thoroughly understood in all activities of the company Activities to be carried out include:

The company has sent senior staff through the training center prestigious businessmen at home and abroad As a result, the staff has captured and processed information about the market, customer needs, and products to provide services that best meet the expectations of customers

The company has launched short-term training courses on quality standards for technical staff who perform quality assurance before delivery to provide customers with the best quality of service

The company has created favorable conditions for staff to learn, exchange experience, grasp customer demand, create opportunities for human resources to access new technology

All staffs were constantly trained to improve their skills Every year, the workers' skill testing competition is organized to classify the workers in order to have a plan of labor training with the aim of providing the highest quality products to the customers Thus, with the experience of expanding market share through improving the quality

of services, improving the quality of human resources, the company's revenue from providing services is constantly increasing, helping the company to stabilize its market share product level in the market

1.4.3 The lessons learned for Napas

Through the experience of the entrepreneur found that: Whatever the business activity in the field, the expansion of market share is always the target that businesses are oriented to At the same time, improving service quality is the measure used by enterprises

to expand market share Lessons learned for napas are as follows:

Focus on technology investment and implement a new system to shorten the waiting time of customers in the process of providing services

Perfecting the system of material facilities: computer, network technology

To train and improve the quality of human resources in order to better grasp the customers' demands and market demands in order to deploy the services most suitable to the customers

CHAPTER 2: ANALYSIS THE CURRENT SITUATION

2.1 Introduction about NAPAS.JSC

2.1.1 The process of formation and development

NAPAS JSC(NAPAS) is founded by Joint stock commercial Bank for Foreign Trade

of Vietnam and 15 Joint-stock commercial banks to professionalize and diversify services

of supporting and processing non-cash payment transactions under the policy of Government and State Bank

Currently, NAPAS is operating an information processing system connected to 51 member banks and financial institutions, airlines and telecommunication companies and large enterprises in Vietnam to provide products, convenient payment services on electronic transaction channels such as ATM, POS, mobile phone, Internet The main services are provided and developed by NAPAS as follows:

1 Electronic data processing service for financial transactions - NAPAS Switching includes:

- Data processing service for ATM transactions

- Data processing service for POS transactions

2 Payment gateway service - NAPAS Payment Gateway includes:

- Online payment gateway via Internet (e-Commerce)

- Electronic payment gateway for Topup, Billing

3 Service of providing solutions and payment methods for electronic wallet - NAPAS eWallet

4 Service of training, consulting and developing card services and electronic payment

5 Other services

After 6 years of operation, NAPAS has expanded the connection of ATMs, POS system for member banks with a network of 16,000.00 ATMs and 105,000.00 POS and accepted payment for 55 million domestic cardholders of domestic and foreign banks in Vietnam

With domestic partners, NAPAS has been cooperated and agreed with airline and telecommication companies, big enterprises providing goods and services in Vietnam such

as Vietnam Aviation Corporation, VietJet Aviation Joint Stock Company, AirAsia,

Vietnam Military Telecommunications Group, Vietnam Mobile Telecom Services Company, Viet Nam Telecom Services Company, Vina Group.,Jsc, etc to provide products, convenient payment services on electronic transaction channels such as ATM, POS, mobile phones and Internet for the essential payment demand of the customers About international cooperation, NAPAS is actively seeking and exchanging cooperation possibility, connecting their system to international card organizations such as Visa, MasterCard, American Express, China Union Pay, JCB, etc in order to provide banks with modern payment support service

2.1.2 Introduction about electronic payment gateway service (NAPAS Payment Gateway)

NAPAS Payment Gateway is the service to process the authentication and license electronic payment transactions on the internet environment

NAPAS Payment Gateway enables the banks to develop their payment features on the internet for international cards, domestic debit cards at the websites which enterprises connect with NAPAS payment gateway

- International cards: Visa, MasterCard, American Express, JCB…

- Domestic debit cards: Domestic payment cards (ATM) issued by the banks

NAPAS Payment Gateway is one of the leading online payment gateway in Vietnam market which is based on existing switch connection with over 30 member banks, applied the standards of best security and safety technology in Finance - Banking field and international card organization

* Advantages of the service

- Number of international cards, domestic cards which are accepted on NAPAS Payment Gateway are the biggest and widest

- Connect with many large enterprises and many customers who have online payment habit such as VietnamAirlines, VinaGames, Ngan Luong, Bao Kim, etc

- Implement with the member banks quickly, simply on existing Switch connection platform

- Transaction process is standardized, simple, unified, easy for the customers to use

- The flows of transactions are standardized to minimize transaction risks, errors, improve service quality

- Provide more diverse payment channels based on existing connection with the banks

- Tools for control, automatic settlement are under the standards of finance and banking field

- Tools for transaction report for the banks and sales units, risk management, systems for monitoring and warning fake transactions under international standards

* Service model

NAPAS Payment Gateway enables enterprises with e-commerce websites to accept online payments as following model:

+ Model of domestic card payment

- Customers purchase goods and services on the websites and choose the payment methods

- Customers will be switched to interface of NAPAS online payment gateway

- Customers fill in their card information and confirm the payments

- NAPAS online payment gateway will transfer payment request to the international card organizations to process

- After receiving notification that payment transactions are done by international card organizations, NAPAS online payment gateway will send notification to card acceptance unit and displays a message to the customers that the transaction is successful

+ Model of domestic card payment

Payment process for domestic cards is similar to international cards, after purchasing and making payment, customers will be switched to interface of NAPAS online payment gateway where customers will fill in their card information and confirm the payment transactions

Its difference compared with international payment gateway: NAPAS sends payment request to the issue bank

2.1.3 Business operation results of the company

Business operation result is a overall picture of business operation situation of the company To evaluate the results of business operation of NAPAS JSC, the author evaluates through the following table:

Table 2.1 : Business operation results of the Company

Unit: Thousand dongs

Item

2014 2015 2016

Difference between 2015 and

2014

Difference between 2016 and

2015 Amount (%) Amount (%)