Malta has advanced in the e-commerce and e-banking sectors, but through a combination of consumer apathy and sometimes token services by the provider, this market is not being used to its full potential.

The banking sector in particular has advanced very rapidly, with private account as well as business account holders being able to access their account online, with the facility of transferring funds and even paying bills directly through the internet. Of course, the government – in particular through the IT ministry – has pulled out all the stops to try and promote e-services as well as make them accessible to business and customers alike. But there needs to be more uptake of incentives and offers.

There are a few services whereby customers can, for example, order their food shopping online and have it delivered to their door – another example of an e-service.

However, Maltese businesses are not harnessing the full potential of local e-commerce.

Shopping on line is fast growing in popularity – nowadays there are secure ways of handling transactions online and simplification of programming language allows businesses to set up an e-shop at very competitive prices.

Many of the younger generation have turned to buying items from well-established international companies such as Amazon, Play and the like. Many of them offer very competitive prices and some even offer free delivery. Maltese businesses should also bear in mind that customers may be so clued up about the product they want that they do not even need to go into a shop to 'shop around' for what they want or to actually see the item before purchasing it. A quick and simple look at an online catalogue is enough to confirm that the buyer wants that particular product. One can take software, music, DVDs, books and even electronic gadgets as an example. Then all one has to do is register as a customer (allowing him/her to return by just logging in and not having to input all information again), input card details and usually, his/her product arrives to the door within a few days. However, there is a problem whereby paypal (the most secure and well-known internet payment system, especially E-bay) does not accept payment orders from Malta – perhaps this is something that government can look into.

The fact that the pace of life, especially of the 25-40 age bracket, has increased tremendously means that people simply do not have the time to shop sometimes. That is the beauty of shopping online, one can do it at any time in their own home. Of course, we must not end up with a mad rush to opt for e-commerce because the demand for a physical shopping outlet will always remain. But the private sector, especially small and medium-sized enterprises, should invest more in e-commerce and e-services.

One can also reap tremendous benefits from simply having a good website, listing all available products and providing a contact point – effectively targeting and servicing the 'internet shopper'. However, one must also point out that a website should be well maintained and the crucial factor is being up to date. Some companies have a tendency of neglecting their websites, and this automatically gives a negative impression to the customer. Another problem in the sector is that while some companies invest very heavily in their IT infrastructure, it can often be at the expense of promotion and marketing, basically not creating enough awareness.

Bank of Valletta yesterday announced an agreement with Alert Communications whereby business account holders will be given a cost-effective package to set up their own e-commerce infrastructure, such as a website, pay centre and the like. This can only help Malta's businesses in tapping another market. Alert will also set up an online shopping mall entitled Maltaexpo which will be purposely set up to promote BOV clients' website. This is a positive move and one can only hope that businesses will take up the offer to increase their market presence and share.