Dissertations / Theses on the topic 'Electronic commerce Australia'

Electronic marketplaces have proliferated as use of the Internet has become widespread in business. A rapid growth in the number of marketplaces, followed by a period of stringent consolidation, as market makers develop a greater understanding of effective business models, has resulted in a climate of uncertainty and confusion. As with many aspects of e-commerce the drive towards participation is fuelled less by strategy planning than by a fear of lagging behind competitors or losing first mover advantage. In this climate of uncertainty organisations often bypass effective evaluation of the benefits that can be realised from participation in e-marketplaces, thereby exacerbating the process facing them and hampering effective decision-making. Evaluation is perceived as a fraught subject within the Information System field, and particularly within the business community which adheres to tried and trusted, albeit often inappropriate, methods such as financial or technical evaluation. The difficulties involved in effective evaluation of systems are well documented; these will increase as systems become more pervasive throughout organisations and those of their trading partners. Calls for a more holistic approach to evaluation are increasing, based on a developing appreciation of interpretive methods of research within the Information Systems discipline. However, the understanding that the social, political and cultural factors affecting and organisation have an impact on the uses and advantages of systems is by no means universal, and empirical evidence of this view is only slowly emerging. This research examines the benefits that can be realised from participation in an electronic marketplace by taking an interpretive approach to the evaluation. It examines the nature of electronic marketplaces to provide clarity to a confused and dynamic environment. The study then focuses on the development of evaluation studies within the IS discipline to identify how an effective evaluation method for assessing the benefits of e-marketplace participation can be achieved. An empirical examination of an organisation’s participation in an electronic marketplace is used to identify the benefits that are realisable and the issues that impact on them. The case study is conducted through an interpretive lens, using a content, context, process (CCP) approach based on existing IS literature. This enables a crucial understanding of the internal and external environments influencing the organisation and its realisation of potential benefits. To allow for the range of interpretations and reflections required to fully address the complexity of the issues involved in such a case study, a variety of research influences such as dialect hermeneutics, critical realism and case study theory are drawn into the research model. The case study organisation’s motivation for participating in an e-marketplace was primarily cost savings. Over the two years of the study, several more potential benefits were identified, such as supply chain efficiencies, greater market awareness and a widening of the supplier base. However, the organisation’s commitments to its local and regional communities, its need to retain status and some consideration of existing relationships needed to be balanced against the gains that might be realised. In some cases the organisation chose to forgo a potential benefit in favour of socially or politically motivated actions. Cultural factors also influenced their actions, particularly as they moved towards extending participation in the marketplace to gain from a global sourcing strategy. The contribution of this research lies in two areas. Firstly, it was existing evaluation literature to development a framework for the evaluation of benefits in the complex area of electronic marketplaces, thereby extending and informing the call for more inclusive and interpretive evaluation studies. Secondly, the research contributes empirical evidence to support the recognition of benefits to be gained from electronic marketplaces and shows how the realisation of the economic benefits is impacted by the social, political and cultural factors that influence an organisation.

This study reviews the literature in relation to virtual strategic alignment models and strategies. From this the researcher develops a framework to test two new strategic alignment instruments designed to measure the espoused preparedness of organisations to operate virtually and the readiness of an organisation to collaborate virtually. These instruments are designed to assist organisations in recognising and exploiting their degree of virtuality and can support organisations in developing new organisational forms that fully leverage the value of their ICT assests. Prior research has attempted to address strategic alignment issues either internally, externally or holistically. A new approach was necessary.

The study compared the perceptions of Malaysians, representing Asian culture, and Australians, representing Western culture, for four Web design characteristics (atmospherics, news stories, signs, products and services), as part of the Integrated Internet Marketing model. Under controlled laboratory conditions, two groupings of thirty subjects evaluated eight Web sites in the retail and services sectors located equally in Malaysia and Australia. This study hypothesised that the predominant culture would not be generalised to another culture. Significant differences found for Web design characteristics were typically for one site only and not across all sites. In other words, consistent differences did not eventuate. This appears to indicate that members of both groups are citizens of the Web's global village in which consumer behaviours and values are converging. There were some specific perceptual differences between Australians and Malaysians of Web design characteristics and their impact on the overall effectiveness of Web sites. For example, differences for the Web design characteristic products and services were clearly perceived for Dewsons Supermarket (DS) and Netcard Station (NS). The graphical presentation on the DS Web site appears to encourage Australians to examine the products and services in more depth. Products were presented in bright colours and photographic views. On the other hand, for the NS Web site, products were represented in descriptive, technical words, which appealed more to Malaysians. The study found that Malaysians would emphasize the atmospherics for seeking to obtain an indication of integration (tolerance, non-competitiveness) by examining virtual presence. Australians give emphasis to articulate news stories as both products and services and news stories attracted inter-group significant differences in Café St. Tropez Restaurant and Netcard Station sites. For the extent to which the Web is used to locate products, services or information, there was no impact of these on the way Malaysians perceived the Web design characteristics and their impact on the overall effectiveness of Web sites. On the other hand, the extent to which the Web was used to locate products, services or information impacted on the way Australians perceived the Web design characteristics and the impact of these on the overall effectiveness of Web sites. The study makes recommendations for Australian Web designers, for example, that they should give emphasis to graphical and photographic pictures for attracting Australian Web users. On the other hand, Malaysians Web designers should, for example, employ technical words in order to attract Malaysian Web users. The study recognises the strength and the limitations of the controlled laboratory method of research, which are in the main that results cannot easily be generalised and that procedures may appear to be artificial. Suggestions for further study are offered.

Electronic marketplaces (e-marketplaces) have been researched over many years from the study of electronic data interchange (EDI) systems to the current internet based trading platforms. Early e-marketplaces connected a buyer and supplier using proprietary systems that established a market hierarchy. The buyer was responsible for the system, established the terms of trade and the electronically enabled supplier could connect to the system. These systems were costly to build, which limited their use, and only organisations with an integrated system could use them. The web based e-marketplaces opened up the possibility of connecting many buyers and suppliers and enabling electronic transactions. The e-marketplace offers opportunities for establishing trade relationships with many organisations across the world. Business to business (B2B) e-commerce is a significant part of the Australian economy and there are opportunities to take advantage of e-marketplace trading. One of the advantages of electronic trading is the ability of the technology to deliver transaction benefits; these can have a significant impact on organisations regardless of organisational size. However, despite the potential of the e-marketplace to deliver organisational benefits there have been limited studies which consider the strategic implementation of e-marketplace trading. Organisational strategy and the implementation of strategic initiatives involve interactions between organisational structures and agents. The analytical dualism this represents complicates uncovering the fundamental causes of e-marketplace participation. Not only does the adoption of e-marketplace trading impact on the buyer and supplier organisations, it introduces the e-marketplace vendor organisation and the e-marketplace technology into the participation decision. The complexity of the interactions across organisational structures and between organisational agents and technology adoption can produce a diversity of outcomes. The philosophical underpinning of critical realism for the study is supported by the lack of understanding as to why, and in what circumstances, organisations successfully participate in e-marketplace trading. The critical realist philosophy provides the opportunity to understand the interrelationships between context, organisational structures and agents and identify the causal mechanisms involved in producing various outcomes. It allows for the development of middle level theory as existing theories are examined to explain the perceived phenomena. Large organisations operating in Western Australia are used as case studies to uncover the causal relationships between context, structures and agents that can produce successful, strategic implementation of e-marketplace participation. Existing literature in relation to e-marketplaces and IT adoption is used to develop the research questions and formulate the interview questions. The structured case methodology is used to analyse each case and relate the findings to possible explanatory theories. Context, mechanism and outcome patterns, identified in each case, are presented. Building on economic market, institutional and network theories the research identifies organising vision theory and community discourse as explanations for organisational legitimation that can circumscribe the use of e-marketplace trading. Six types of community group that influence organisational adoption of e-marketplace technology are identified. The research suggests that the influence of these groups within the organisation, the fit with organisational culture and strategic objectives can prevent or instigate change. Further, the decision making process supported by the group (or group member) is more influential in the strategic adoption of the e-marketplace than the ability of the technology to deliver efficiency or transaction processing gains. This implies that technology adoption studies should include contextual and environmental issues and practitioners should examine how much their decision making is influenced by organisational and environmental features. The thesis contributes to the discussion on organising vision theory, e-marketplace trading and business value creation. It demonstrates the application of the structured case study methodology to research that is underpinned by critical realism.

The majority of SMEs have neither the internal expertise nor financial resources to enable in-house development of electronic commerce and therefore turn to the services of website design consultants to assist them. Unfortunately, they often engage consultants without any clear idea of their intended e-business strategy and without due care as to effective engagement processes. This frequently leads to ineffective e-business development and a highly disaffected group of small entrepreneurs. The study suggests that there is a significant gap between the intended strategies of SMEs and the actual e-business strategy implemented. The study aimed to investigate the relationship between Australian Small and Medium Enterprises, Internet strategy and the engagement of website design consultants. The objectives of the research project were firstly, to identify factors including SME engagement of website design consultants, and other factors presented in previous research that may influence the success of online organizations. Secondly, to construct a framework for analysing those factors' which may influence the success of online organizations. Finally, to provide a set of critical development factors that may be used by Australian SMEs to implement the online organisation. The research methodology chosen used an interpretivist perspective and incorporated a multiple cross-case study approach. Four research instruments were employed in the study to enable triangulation of data and to increase validity and reliability. A pilot study was conducted and the results were used to refine and develop the data collection methods, procedures and theory development for the main study. The expected outcomes of the research project included developing a framework to enhance negotiations between website design consultants and Australian SMEs; to design a set of critical development factors, in relation to Internet strategy and consultant engagement, that may be used by Australian SMEs and consultants to facilitate the implementation of the online organization; and to provide a summarised report to Dow Digital in fulfilment of the requirements of the research funding, and to publish a number of papers based on the research project.

This research was carried out between 1999 and 2003 on the use of e-business applications in ERP-based organisations. A composite research method based on structured case studies was developed for this study. It combined the application of case methods by Carroll et al. (1998], Klein and Myer (1998), and Eisenhardt (1989). This was used to provide a focused, yet flexible structure, as a dynamic approach to case study interpretive research. The research method used three distinct models at three progressive stages of the study, to provide a multi-faceted view of each case. This composite case-based method was developed to maintain the balance between research rigour and relevance. A pilot case study of nine Australian SAP sites helped ground the theory of the study. This was followed by three stages of study of eleven international cases within a diverse industry context. The method revealed the antecedents of e-business success using the findings from case analyses against three separate research models B2B interaction, e-business change, and virtual organising. A final conceptual framework was developed as new theory of e-business transformation. The theory views e-business transformation as realising the benefits from virtual organising within complex B2B interactions by utilising the facilitators of successful e-business change. The research demonstrates that successful e-business transformation with ERP occurs when value propositions are realised through integration and differentiation of technologies used to support new business models to deliver products and services online. The associated management practice evolves through efficiency from self-service, effectiveness through empowerment towards customer care, and value enhancement from extensive relationship building with multiple alliances. The new theory of e-business transformation identifies the stages of e-business growth and development as a comprehensive plan that should assist managers of ERP-based organisations in migrating their company towards a successful e-business organisation. The detailed analysis of the findings offers a foundational per11pectlve of strategies, tactics and performance objectives for e-ERP implementations. The strength of the theory lies in the synthesis of multiple case analyses using three different lenses over three separate time periods. The triangulation of the three research frameworks provides a method for study at appropriate levels of complexity. It is evolutionary in nature and is content driven. Other researchers are urged to apply similar multi-viewed analysis.

There are two main principles under which jurisdictions tax income – source and residence. The point of these two principles is to establish a ‘nexus’ or link between a taxable transaction, operation or activity and a taxing state. It is this nexus which is used to justify the imposition of taxation by the jurisdiction on a particular taxpayer. Where a taxpayer is a ‘resident’ of a jurisdiction, then that person often becomes liable to pay tax on income derived from all sources. Where a taxpayer is a ‘nonresident’ of a jurisdiction, then that person often becomes liable to pay tax on income derived from sources within a particular, relevant jurisdiction. The concept of source of income is fundamentally important to both Australia and Hong Kong. Australia adopts a worldwide tax system that taxes its residents on Australian and foreign income and non-residents on Australian income, whilst Hong Kong adopts a territorial tax system that forgoes taxing foreign income irrespective of who has derived it. The fundamental basis for taxation under a territorial tax system is the source of income; while the fundamental basis for taxation under a worldwide tax system is the concept of residence. In both jurisdictions, the decisions of the courts on the meaning of source have been crucial in defining the concept of ‘source of income’ for tax purposes. The foundations of source-based taxation are less stable today. There is no universal set of source rules that can readily be applied to every circumstance to determine the source or locality of profits. The growth in international trade, supported by the development of electronic commerce, has substantially increased source-related revenue risks. Entities are increasingly able to structure their finances and conduct their affairs without being constrained by geography or national boundaries. Anticipated profits may be shifted to a related party and from one jurisdiction to another to arrive at a reduced overall tax burden. It is becoming increasingly difficult to determine from what and where income originates. The thesis examines the nature of the current source rules in Australia and Hong Kong and analyses the fundamental adequacy of the source principle generally when confronted, especially, with the challenge of rapidly growing Internet-based commercial activities. Australia and Hong Kong have been chosen for comparative study for the following reasons: the two jurisdictions are good examples of small-medium advanced economies; they are similar in the sense that they are, primarily, knowledge capital-importing jurisdictions; their approaches to ‘source’ differ markedly; and these approaches tend towards each end of the ‘source spectrum’. The thesis identifies certain principal research questions. The basic responses to these questions are: The concept of source of income is, essentially, less clear today in the domestic tax law of Australia and Hong Kong than before. Determining the source of income in Australia and Hong Kong can be a very complex issue. The difficulty related to making such determinations is growing. Searching for the real source of income has become still more problematic with the increase in globalisation and the rapid growth of Internet-based commerce. The traditional concept of source of income has ‘lost traction’ as a fundamental basis for effectively imposing income taxation, especially, in today’s globalised economy. Existing source rules do not deal adequately with certain ‘revenue-leakage’ issues confronting us today and, even more, the likely issues of tomorrow. We need to reconsider how we can better address these issues. The thesis establishes that this is so for Australia and Hong Kong. It also reasons that this proposition generally holds true for most developed tax jurisdictions. The thesis concludes with a detailed review of three of the most prominent optional approaches for addressing the source challenge: (A) a move to a new refundable withholding-tax-based method of taxing cross-border electronic commerce; (B) a shift to far greater reliance on the use of the residence principle of taxation; and (C) a shift to notably greater reliance on (indirect) consumption taxation. Option C, it is argued, offers the best prospects for dealing in the least bad way with the identified issues.

The aim of this research was to discover the issues influencing the adoption of e-commerce by small and medium business enterprises (SMEs) in the Australian Capital Territory (ACT). The demand aspect of the theory of diffusion of innovation enabled the formulation of a number of research propositions which formed the focus for this research. Seventy-five randomly-selected SMEs within the ACT were interviewed. Of these seventy five, fifty had adopted e-commerce and twenty-five had not. Findings complemented results from other studies, but also added to them. Factors from the demand aspect of the theory of time, resources (personnel, financial, technological), business organisation, size, return on investment, push by outside agencies or clients, and communication channels were found to be of little importance. Of greater importance were characteristics of the SME operators themselves (such as their innovativeness, their relative youth and educational level), the size of their business, the number of years it had been operating, and marketing issues. A prime consideration was that of attaining and maintaining a competitive edge over their competitors. Security and privacy issues were of little consideration prior to the adoption process, but became of much greater importance once SMEs had adopted e-commerce. Some things discovered by this research that have not appeared in the reporting of other studies included: � The importance of tertiary education for the primary decision-makers in the organisation; � The role banks played in the adoption process; � The high cost and difficulty of compliance with government regulations, especially regarding the employment of staff; and � The lack of use of specifically established communication channels, set up by government bodies or associated industry organisations to educate and inform SMEs about the potential and process of e-commerce. Results of this research have implications for a large number of associated stakeholders � government, educational institutions, and trade, industry and professional associations � and as such deserve to be widely disseminated.

Small and Medium Enterprises (SMEs) have many options when purchasing goods or services. These include personal contacts and networks, familiar centralised supply sources and other ad hoc means. One purchasing possibility is to buy from and sell to other businesses within a similar geographic area. The benefits of buying and selling locally may not occur to SMEs. They seek, like other consumers, to get value for money, fast and efficient service, and a reasonable level of quality. Many factors can impinge upon an SME's decision to purchase locally. It can be assumed that, given a reasonable local option, SMEs wish to buy from and sell to other local businesses. It can also be reasonably expected that if government purchasers were willing to purchase within their geographic area, SMEs would be interested in supplying local government as well. This study investigates SMEs in the Wanneroo and Joondalup Regions of Western Australia and considers the factors that may influence their decision to use the 2Cities Business-to-Government (B2G) portal. The study is concerned with gaining an insight into particular phenomena from a participants' perspective (SME) with the researcher as the primary instrument for data collection and analysis. The study requires the researcher to get close to the natural setting of the study and interact with the small business owners. This study triangulated results from three major sources. One source of data was contemporary Wanneroo and Joondalup secondary data gathered from research reports relating to local SME matters. This was combined with the semi-structured interviews of forty SMEs and two focus groups. Participant SMEs were invited to discuss factors affecting their decision to use or not use the 2Cities B2G portal. SMEs have a clear perception of what impedes and assists them in running their business and this comes through strongly. The problem facing the 2Cities portal management board is the extent to which it can influence the SME decision to buy and sell within the local area using the portal. The results form the basis of an improved model for B2G participation.

This thesis presents a case study regarding the adoption and use of an eMarketplace in the public sector. It has been has been used to examine the factors which affected the implementation of a major information systems initiative within the Western Australian public sector, the Government Electronic Marketplace (GEM). Procurement, Purchasing and Supply Management is a complex topic as it interlinks with most areas of business. In order to understand supply management’s impact and implications, a multi-disciplinary approach is essential. The thesis addresses this context by addressing theoretical aspects of Economics, Public Sector Management, Procurement, Management Information Systems and Accounting, developing a model which provides insight into the complex interaction which occurs between these disciplines. A theoretical dual lens under which to examine institutional/organisational process is embedded within this multidisciplinary meta-theoretical model. The theoretical positioning of this thesis emphasises the complementarity of structuration theory (Giddens, 1979, 1984) and institutional theory. The former is concerned with the process of change in structures through time (Schultze & Orlikowski, 2004) whereas institutional theory examines the implications of the structures. While institutional theory provides insight in to the way institutions are at a particular point, incorporation of aspects of structuration theory provides greater insight for a study which addresses change over time. The case study examines a number of units of analysis which have a primary role in this framework as either an “institutional constituent” (source of institutional structures) or “subject organisation”. Central agencies which influenced the system are considered primarily as “institutional constituents”, government departments that used the system and suppliers to government are considered as “subject organisations”. Levels of conformity and non-conformity with information systems decisions are not easy to predict.This case demonstrates that initial acquiescence to a decision can give way to non-conformity when legitimating external forces are not present. The resulting analysis (using the dual lens) provides insight into causation in addition to outcomes. The study makes a contribution to organisational research in several related areas. It is a study of the use of systems to deliver a public sector agenda that involves a government agency acting as a technology champion. It is also a study of conformity and nonconformity in an institutional environment and the reasons why and how institutional response changes over time. It also establishes an integrated model for the investigation of enacted technology over time which is particularly suited for public sector organisations.

This thesis describes the initiation and evolution of an action research project, which investigates the adoption and diffusion of Internet technologies in a regional Australian tourism network. The research evolved out of a portal development consultancy. The aim of the study was two-fold: to investigate the nature of the change process when a collaborative network seeks to adopt e-commerce; and to determine how the change process differed in the face of incremental change (adding some e-commerce solutions to the network), or radical change (changing the overall business model). The purpose of the study was to gain a better understanding of the economic, strategic and social potential of regional business networks in the current techno-economic climate. The study builds on Rogers' (1995) seminal work on the diffusion of innovations and makes a unique contribution to existing diffusion studies by its focus on the nature of the network links as the unit of analysis; and by its application of an action-oriented methodology to untangle the effects of the embedded network structure on diffusion. The study suggests a strong relationship between diffusion and network positioning, both in terms of place (status and position in the network) and space (the geographic make-up of the network). Diffusion further hinged on network cohesion, actors' trust in and engagement with the network. Adoption of e-commerce was obstructed by actors’ worldview; lack of time, reflexive learning, and commitment to change. The incorporation in the study’s diffusion framework of contextual moderators such as network position, worldview, trust, time and commitment considerably extends Rogers’ traditional diffusion framework. Based on its emergent analysis framework, the study introduces a dynamic change model towards sustainable regional network development. It is suggested that both the diffusion framework and the regional innovation model developed in this study may, either jointly or separately, be applicable beyond the tourism and service sector.
Doctor of Philosophy

The popularity of the Internet has been dramatically increased over recent years. The rapid growth of this technology and its international use has made it almost impossible to regulate the internet. As a result, the Internet has certainly provided freedoms to people and it has led to some abusing systems. Privacy is one of the major issues in the development of Electronic Commerce using the Internet. As an enormous amount of personal information is transmitted to several hosts connecting to the Internet, the information can be accessed by both authorised and unauthorised people. Although it is certain that there are several existing problems of using the Internet for business activities, many organisations have already started using it. It is believed that the Internet provides efficiency and effectiveness for various activities Although much research has been described the business use of the Internet in many countries, these studies have not specifically investigated Australian organisations. Therefore, this research investigates the current use of the Internet by Australian organisations and their associated privacy policies, as a means of seeking their privacy concerns. Using a benchmark provided by Australian privacy commissioners, it evaluates their privacy policies to see how well they are established to protect privacy of users. The study utilises the top 100 Australian large private sector organisations as the sample. The current practice of the sample organisations on the Internet was observed by exploring their Web sites. Privacy policies were also collected from their Web sites. Moreover, a letter requesting corporate privacy policy was sent to each organisation that collects personal information on the Internet. The result showed that the majority of Australian organisations were using the Internet today, but a surprisingly few organisations showed their privacy policy on the Internet. Also, this research showed that many organisations did not actually have a corporate privacy policy. Many organisations are using the Internet without apparent concern for customers' privacy. The organisations proactively involved in the Internet Commerce are more concerned about security side of the Internet. Hence, they appear to believe that the technology itself protects information sent on the Internet. It has become clear that technology by itself does not provide the security needed for users of the Internet as unethical act of authorised parties could harm privacy of individuals. There is an argument that the Internet needs to be regulated. However, the process of international regulation on the Internet has not been started. Thus, it is ideal that organisations proactively protect clients' personal information accessible by the use of the Internet technology. This study looks at the methods of obtaining privacy of individuals and suggests the ideal conduct of organisations.

The research undertaken for this thesis identifies the benefits, challenges and success factors of electronic commerce in Australian companies. This research was conducted in four phases: literature review; semi-structured interviews with seven well-established companies located in Melbourne and Sydney; postal questionnaire survey of top 500 Australian companies; data analysis and findings. This research identified and described the considerable benefits that companies engaged in electronic commerce have achieved. The major benefits of electronic commerce identified included improved image, competitive advantage, business efficiency, increased automation of processes and customer loyalty.

E-commerce is a new phenomenon in the financial markets. The rapid advances in the information and communications technology sector have facilitated the advent of e-commerce and has resulted in global market euphoria over technology stocks in financial markets. This thesis is based on the premise that an initial characterisation of the e-commerce sector is necessary as a precursor to a more profound understanding of the market mechanism and asset pricing process. The development of e-commerce as a consumer market is reviewed in this thesis. The issues and factors contributing to this development are identified, analysed and the implications for equity valuation of e-commerce related stocks are discussed and explained. Various economic variables that influenced Australian e-commerce stock returns from July 1999 to June 2000 are examined. A critical review of existing theories of stock valuation and their empirical relevance to e-commerce is presented.

Electronic Funds Transfer (‘EFT’) as a modern, global consumer payment method continues to expand rapidly by comparison with credit cards and traditional paper-based forms of payment. The core issue addressed in this thesis is a controversial one: the fair allocation of liability between the consumer and financial institution in the event of a disputed or unauthorised EFT transaction. The purpose of this study is considered especially apposite in view of the Australian Securities and Investments Commission’s (‘ASIC’) imminent review of the self-regulating Australian EFT Code of Conduct (‘EFT Code’) and both the increasing incidence of reported unauthorised EFT transactions and in noncompliance by EFT financial institutions with the EFT Code. It is also an important study because of the rapid recent growth in EFT transaction volume and the continued expansion of EFT products and services compared to other payment instruments, which are in a corresponding decline. Moreover, there has been no previous study or review of the current Australian EFT Code, which was revised in 2002. In the EFT payments system, consumers are exposed to risks quite different from those in traditional payments instruments. These include flaws in the various methods employed by financial institutions for the distribution of EFT cards and PINs, problems adducing unequivocal evidence in the event of unauthorised use of the instrument and systemic errors and technical malfunctions in processing EFT transactions. Furthermore, the distinct nature of electronic authentication using an electronic device and secret code makes the general common law principles dealing with handwritten signature authentication in the case of paper instruments (eg, by analogy with a forged cheque) particularly unhelpful. In order to address these controversies, this thesis presents an integrated multi-disciplinary analysis of EFT regulation in Australia in an attempt to identify the efficacy of current EFT regulatory arrangements as well as to appraise the merits of different EFT regulatory options to attain a more optimal and efficient regulatory regime for the future. The adapted multi-disciplines include comparative law method, economic criteria and regulation theory methods, as well as ethical, social and administrative considerations. The two (2) EFT regulations which are the subject of this comparative study are the Australian EFT Code and the US EFT Act. The latter was chosen for comparative purposes as it is a rare example of a formal legislative response to the above core issues and risks, which the EFT system in the USA has in common with Australia. Unlike the US EFT Act, for example, which has a relatively simple and administratively convenient approach to apportioning fault, the self-regulating Australian EFT Code essentially shares the burden of proof between the financial institution and the consumer in most instances. The consequence of the EFT Code’s ambiguous, undefined and multi-layered legal tests and guidelines for determining the allocation of liability to either consumer or financial institution is that it leaves the Australian Banking Industry Ombudsman (‘ABIO’), as the independent and preferred adjudicator of Australian EFT disputes, with the difficult and arbitrary task of hearing contrasting arguments and weighing the inconclusive evidence led by both sides before then seeking to reach a fair and equitable finding on the ‘balance of probabilities’. Indeed, the practical application of the EFT Code is extremely difficult and confusing, as the ABIO regularly observes in its annual reports and is almost always evident in its actual case examples. The task undertaken in this thesis to research and analyse these difficult and complex regulatory issues is both helped and hindered by another important issue: the lack of literature on consumer EFT regulation. Helped, because it represents a unique opportunity to embark upon such a study afresh, and, hindered, because little benefit can be derived from previous studies and hence there are no foundations upon which to build or progress the debate, the research and the analysis. Accordingly, the significant gaps in this area provide a rare occasion to explore these contemporary and contentious issues using multi-disciplinary techniques. As is argued in this thesis, the current regulatory arrangements in Australia are ineffective on several grounds. In particular, in: (i) efficiently settling disputed or unauthorised EFT transactions; (ii) ensuring compliance by financial institutions; and (iii) legal enforcement of its provisions. Ultimately, in consequence of this study, it is concluded that to improve consumer confidence and institutional compliance, as well as to arrest rising fraud and illegality, there is an urgent need for a comprehensive review and reform of EFT regulation in Australia. In order to design and formulate a more efficient or optimal regulatory regime, a more rigorous analysis beyond a straight legal studies approach needs to be undertaken. In this sense, the multi-disciplinary research and analytic approach adapted in this study is an integrated approach with the intention that it will not only drive the debate on an appropriate EFT regulatory framework forward, but ultimately with its 48 findings and 25 specific recommendations, also serve as a workable framework with some actual pragmatic criteria on which to assess different EFT regulatory and policy options.

Electronic Funds Transfer (‘EFT’) as a modern, global consumer payment method continues to expand rapidly by comparison with credit cards and traditional paper-based forms of payment. The core issue addressed in this thesis is a controversial one: the fair allocation of liability between the consumer and financial institution in the event of a disputed or unauthorised EFT transaction. The purpose of this study is considered especially apposite in view of the Australian Securities and Investments Commission’s (‘ASIC’) imminent review of the self-regulating Australian EFT Code of Conduct (‘EFT Code’) and both the increasing incidence of reported unauthorised EFT transactions and in noncompliance by EFT financial institutions with the EFT Code. It is also an important study because of the rapid recent growth in EFT transaction volume and the continued expansion of EFT products and services compared to other payment instruments, which are in a corresponding decline. Moreover, there has been no previous study or review of the current Australian EFT Code, which was revised in 2002. In the EFT payments system, consumers are exposed to risks quite different from those in traditional payments instruments. These include flaws in the various methods employed by financial institutions for the distribution of EFT cards and PINs, problems adducing unequivocal evidence in the event of unauthorised use of the instrument and systemic errors and technical malfunctions in processing EFT transactions. Furthermore, the distinct nature of electronic authentication using an electronic device and secret code makes the general common law principles dealing with handwritten signature authentication in the case of paper instruments (eg, by analogy with a forged cheque) particularly unhelpful. In order to address these controversies, this thesis presents an integrated multi-disciplinary analysis of EFT regulation in Australia in an attempt to identify the efficacy of current EFT regulatory arrangements as well as to appraise the merits of different EFT regulatory options to attain a more optimal and efficient regulatory regime for the future. The adapted multi-disciplines include comparative law method, economic criteria and regulation theory methods, as well as ethical, social and administrative considerations. The two (2) EFT regulations which are the subject of this comparative study are the Australian EFT Code and the US EFT Act. The latter was chosen for comparative purposes as it is a rare example of a formal legislative response to the above core issues and risks, which the EFT system in the USA has in common with Australia. Unlike the US EFT Act, for example, which has a relatively simple and administratively convenient approach to apportioning fault, the self-regulating Australian EFT Code essentially shares the burden of proof between the financial institution and the consumer in most instances. The consequence of the EFT Code’s ambiguous, undefined and multi-layered legal tests and guidelines for determining the allocation of liability to either consumer or financial institution is that it leaves the Australian Banking Industry Ombudsman (‘ABIO’), as the independent and preferred adjudicator of Australian EFT disputes, with the difficult and arbitrary task of hearing contrasting arguments and weighing the inconclusive evidence led by both sides before then seeking to reach a fair and equitable finding on the ‘balance of probabilities’. Indeed, the practical application of the EFT Code is extremely difficult and confusing, as the ABIO regularly observes in its annual reports and is almost always evident in its actual case examples. The task undertaken in this thesis to research and analyse these difficult and complex regulatory issues is both helped and hindered by another important issue: the lack of literature on consumer EFT regulation. Helped, because it represents a unique opportunity to embark upon such a study afresh, and, hindered, because little benefit can be derived from previous studies and hence there are no foundations upon which to build or progress the debate, the research and the analysis. Accordingly, the significant gaps in this area provide a rare occasion to explore these contemporary and contentious issues using multi-disciplinary techniques. As is argued in this thesis, the current regulatory arrangements in Australia are ineffective on several grounds. In particular, in: (i) efficiently settling disputed or unauthorised EFT transactions; (ii) ensuring compliance by financial institutions; and (iii) legal enforcement of its provisions. Ultimately, in consequence of this study, it is concluded that to improve consumer confidence and institutional compliance, as well as to arrest rising fraud and illegality, there is an urgent need for a comprehensive review and reform of EFT regulation in Australia. In order to design and formulate a more efficient or optimal regulatory regime, a more rigorous analysis beyond a straight legal studies approach needs to be undertaken. In this sense, the multi-disciplinary research and analytic approach adapted in this study is an integrated approach with the intention that it will not only drive the debate on an appropriate EFT regulatory framework forward, but ultimately with its 48 findings and 25 specific recommendations, also serve as a workable framework with some actual pragmatic criteria on which to assess different EFT regulatory and policy options.

The thesis deals with the emergence of bank and non-bank entities that provide a range of unique transaction-based payment services broadly called Mobile Financial Services (MFS) to unbanked, underserved and underbanked persons via mobile phones. Models of MFS from Mobile Network Operators (MNOs), banks, combinations of MNOs and banks, and independent Mobile Financial Services Providers are covered. Provision by non-banks of ‘bank-type’ services via mobile phones has been termed ‘transformational banking’ versus the ‘additive banking’ services from banks. All involve the concept of ‘branchless banking’ whereby ‘cash-in/cash out’ services are provided through ‘agents.’ Funds for MFS payments may available through a Stored Value Product (SVP), particularly through a Stored Value Account SVP variant offered by MNOs where value is stored as a redeemable fiat- or mobile ‘airtime’-based Store of Value. The competitive, legal, technical and regulatory nature of non-bank versus bank MFS models is discussed, in particular the impact of banking, payments, money laundering, telecommunications, e-commerce and consumer protection laws. Whether funding mechanisms for SVPs may amount to deposit-taking such that entities could be engaged in the ‘business of banking’ is discussed. The continued use of ‘deposit’ as the traditional trigger for the ‘business of banking’ is investigated, alongside whether transaction and paymentcentric MFS rises to the ‘business of banking.’ An extensive evaluation of ‘money’ based on the Orthodox and Claim School economic theories is undertaken in relation to SVPs used in MFS, their legal associations and import, and whether they may be deemed ‘money’ in law. Consumer protection for MFS and payments generally through current statute, contract, and payment law and common law condictiones are found to be wanting. Possible regulatory arbitrage in relation to MFS in South African law is discussed. The legal and regulatory regimes in the European Union, Kenya and the United States of America are compared with South Africa. The need for a coordinated payments-specific law that has consumer protections, enables proportional risk-based licensing of new non-bank providers of MFS, and allows for a regulator for retail payments is recommended. The use of trust companies and trust accounts is recommended for protection of user funds. | vi
Public, Constitutional and International Law
LLD