735 e-Everything: e-Commerce, e-Government, e-Household, e-Democracy 14 th Bled Electronic Commerce Conference Bled, Slovenia, June 25 - 26, 2001 The Integration of SET in Australian Based Internet Payment System Products: A System Developer’s Perspective Mustafa A. Ally University of Southern Queensland, Faculty of Business and Commerce Department of Information Systems West Street, Toowoomba 4350, Queensland, Australia Mustafa.Ally@usq.edu.au Abstract The SET (Secure Electronic Transactions) protocol was designed as an open industry standard for the secure transmission of payment information over private and public networks. Anecdotal evidence suggested that SET had been slow to get off the mark in Australia for several different reasons, notably the absence of software products, its limited functionality, and cost of implementation. This exploratory study sets out, firstly, to identify the reasons for this reluctance to adopt and implement SET by a variety of Internet Payment System (IPS) developers promoting their products in the Australian e-Commerce market. This begs the question as to the level of consideration given to security and other payment system issues in these systems. To this end, the paper then analyses the alternate tools and services these vendors have utilized (if any) in order to comply with the established payment security requirements of confidentiality, authentication, integrity and non- repudiation that SET was designed to address. Keywords: SET, Internet Payment Systems, Security 1. Introduction The growing activity of business over the Internet has increased the demand for an open global framework for electronic commerce with secure payment systems, seen as a major barrier to the more widespread acceptance of e-Commerce. The main electronic payment methods for e-commerce are modeled after the paper world, such as electronic cash, electronic cheques and electronic payment cards [17]. This