Payment Method Determination Factors in International Trade E-marketplace: Focused on

무역거래알선사이트에서의 결제방식 선택요인 : 알리바바를 중심으로

  • Lee, Yoon (Institute of international Trade, Sungkyunkwan University) ;
  • Jung, Hong-joo (Business School, Sungkyunkwan University)
  • 이윤 (성균관대학교 무역연구소) ;
  • 정홍주 (성균관대학교 경영대학)
  • Received : 2019.10.12
  • Accepted : 2019.10.23
  • Published : 2019.10.31


Recent studies on trade payment methods have suggested various alternatives to replace remittance payments. However, these studies theoretically provided the possibilities and limitations of each alternative. To check recent changes in trade practices, our research analyzed payment methods in international trade e-marketplace. Using company and product information obtained from, we analyzed payment methods used in this e-marketplace and examined determination factors for new payment methods. According to the results of logistic regression analysis, we found a relationship between new payment method and factors such as market competition and the age of the company. Also, providing Paypal payments showed a correlation with market competition and price level of products as well as e-commerce infrastructure. Though these study results feature limitations in the generalization of results, it contributes to the research on payment method trends in international trade.



  1. Antras, P. and C. F. Foley (2015), "Poultry in motion: a study of international trade finance practices," Journal of Political Economy, 123(4), 853-901.
  2. Bae, Sang-Pil, Yong-Min Kim, Beom-Chul Park (2013), "A Study on the Relationship between Non-L/C Based Transaction Share and Payment Risk Management of Korean Exporters", Korea trade review, 38(5), 139-157.
  3. Bilkey, W.J. and G. Tesar (1977), "The export behavior of smaller-sized Wisconsin manufacturing firms," Journal of International Business Studies, 8(1), 93-98.
  4. Choi, Chang-Youl and Hyung Bum Ham (2018), "A Study on the Utilization of Non-Financial Institution Payment Services in Response to Changes in Trade Payment Methods", Journal of International Trade and Insurance, 18(3), 169-191.
  5. Choi, Kwang-Ho (2018), "A Study on Determinants of Export Payment Terms in Korean Small & Medium Enterprises", Korea trade review, 43(2), 159-180.
  6. Choi, Seok-Beom, In-Kyung Kim, Tae-Hwan Kim, Kun-Sik Park (2007), "An Empirical Study on the Determinants of the Export Payment Term of Export Firms", Korea trade review 32(1), 163-184
  7. Chung, Jason and Keun-Sik Park (2012), "An Empirical Study on the Product Catalog and Reliability of e-Marketplace", E-Trade Review, 10(1), 67-84
  8. Dedman, E., & Lennox, C. (2009), "Perceived competition, profitability and the withholding of information about sales and the cost of sales", Journal of Accounting and Economics, 48(2-3), 210-230.
  9. Griffith, R. (2001), "Product Market Competition, Efficiency and Agency Cost: An Empirical Analysis", Working Paper, Institute for Fiscal Studies.
  10. Grullon, G. and R. Michaely (2007), "Corportate Payout Policy and Product Market Competition", AFA NewOrleans Meetings Paper.
  11. Huh, Eun Soog (1996), "An Empirical Study on the Determinant of the Export Payment Term of Korean Firms", Korea trade review, 21(1), 437-457.
  12. Kang, Heoung-Jung and Jae-Jin Ahn (2005), "An Empirical Study on Primary Factors of Electronic Payment Utilization for International Trade", Korea trade review, 30(5), 115-139.
  13. Kim, Sung-Kuk, Se-Eun Jhang, Byung-Jo Kim (2018), "The Impact of FinTech on Transactions in International Trade", Korea trade review, 43(2), 127-157.
  14. Lee, Bang-Sik and Suk-Jae Park (2017), "A Study on the Merits and Practical Use of Trade Service Utility (TSU)/Bank Payment Obligation (BPO) as a New Payment Method", Journal of International Trade & Commerce, 13(5) 293-307.
  15. Lee, Sang-Jin (2005), "An Empirical Study on the Selection of Electronic Payment Method in International Trade", Korea trade review, 30(1), 195-221.
  16. Lee, Sang-Jin (2005), "An Empirical Study on the Selection of Electronic Payment Method in International Trade", Korea trade review, 30(1), 195-221.
  17. Lee, Sang-Jin and Hyoung-cheol Kim (2012), "A Study on the Adoption of Credit Card for E-Trade Micro Payment", E-Trade review, 10(3), 1-18.
  18. Lee, Sang-Jin and Jason Chung (2011), "An Empirical Study on the Marketing Performance of e-Trade using Search Engine Optimization", International Commerce and Information Review, 13(1), 3-28.
  19. Lee, Yong-Keun and Chong-Suk Park (2003), "An Empirical Study on Decision Factors of Export Payment System", Korea trade review, 28(4), 59-78.
  20. Lee, Yong-Keun and Seung-Soo Kim (2016), "A Study on Determinants of Import Payment Methods in Korean Small & Medium Enterprises", Korea International Commerce Review, 31(1), 3-19.
  21. Martinez Miera, D., and R. Repullo (2010), "Does competition reduce the risk of bank failure?", The Review of Financial Studies, 23(10) 3638-3664.
  22. Mazzeo, M. (2003), "Competition and service quality in the U.S. airline industry", Review of Industrial Organization, 22(4), 275-296.
  23. Park, Kwang-So (2017) International payments, Seoul, Samyoungsa.
  24. Raith, M. (2003), "Competition, Risk, and Managerial Incentives", American Economic Review, 93(4), 1425-1436.
  25. Ryu, Won-Woo (1997), "An Empirical Approaching the Rational Selection of the International Terms and Condition in Korean Export Firms," Journal of Korea Trade, 1, 175-195.
  26. Shi, Yin-Zhu and Seung-Chul Kim (2010), "A Study on the Revitalization Korean B2B e-Marketplace for the Export Competitiveness Reinforcement", E-Trade Review, 8(4), 53-72.
  27. Shin, Seung-kwan (2001), "A Study on Causes for Trade Payment Terms Changes", Korea trade review 26(3), 127-148.