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

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…………………………..

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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

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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 epayment 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

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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.

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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

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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

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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

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ABBREVIATION

Abbreviation

Meaning of acronym

3D

Three-dimensional images

UK

United Kingdom

IEC

International Electrotechical Commission

NAPAS JSC

National Payment Services Joint stock company

ISO

International quality standard

ATM

Automated Teller Machine

POS

Point of Sale

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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

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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

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INTRODUCTION
1. RationaleNowadays, 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.

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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

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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

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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

4


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

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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.
3.2 Detail aims
- Systematize the basic theoretical issues about the electronic payment and quality of
electronic payment service.
- Assess the effect of factors affecting the quality of electronic payment service and
then find out its effect on expanding market share of NAPAS.
- Find out the advantages and limitations in activities of electronic payment service at
NAPAS.
- Propose solutions to improve quality of electronic payment service to expand
market share of NAPAS and give recommendations to relevant units.
4. Objects of research
The main object of this research is “The impact of the electronic payment quality on

the market share expansion of NAPAS company”.
5. Scope of research
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
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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.

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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

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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
Electronic payment
Electronic payment is a way of making payment via electronic message instead of
cash (Nguyen Tran Hung, 2010).
Electronic payment is a form of non-cash payment basing on the methods and
electronic means including forms such as payment card, electronic cheque, bank transfer
and electronic funds transfer. Electronic payment includes online payment (it means direct
payment via network or Internet) and batch payment (also known as offline payment, for
example, when supermarkets accept many card payment transactions, the entire batch will
be processed to the bank at the end of the day). With the non-cash payment via two above

9


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

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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.

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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.
Consistency
Consistency is the characteristic that ensures the accuracy of the electronic payment
system include issues such as pricing, taxation, product information ...
Consistency is expressed in the preparation of the content of the Website so that
more accurate information, as well as the preparation of videos, images guide the payment
process
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

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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

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