Strengthening Consumer Protection

Among the more common trust-related issues

that SMEs take note of in considering whether to engage in e-commerce are:

where and how payment takes place (whether real or virtual); when settlement

takes place (before, during or after the transaction); who settles; whether the transaction

is B2B or B2C; and whether settlement can be traced. Generally, however,

among e-commerce users in developing countries, including SMEs, there is very

low willingness to provide sensitive financial information over the Internet. On the

other hand, consumers have reservations about transacting with SMEs through the

Internet due to the lack of a clear policy on returns and use of data. To address this

concern, government can encourage companies/ SMEs to make their privacy policy

explicit in their Web sites.