Introduction:

E-commerce sites use electronic payment, where

electronic payment refers to paperless monetary transactions.
Electronic payment has revolutionized the business
processing by reducing the paperwork, transaction costs, and
labor cost. Being user friendly and less time-consuming than
manual processing, it helps business organization to expand its
market reach/expansion. An e-commerce payment system (or an
electronic payment system) facilitates the acceptance of
electronic payment for online transactions. Also known as a
subcomponent of electronic data interchange (EDI), e-commerce
payment systems have become increasingly popular due to the
widespread use of the internet-based shopping and banking.
Electronic Payment System means a payment system that
generates any transfer of funds, other than a transaction
originated by cash, check, or similar paper instrument, which is
initiated through an electronic terminal, telephone, mobile
phone, computer, or magnetic tape, for the purpose of ordering,
instructing or authorizing a financial institution to debit or credit
an account. The term includes debit cards, wire transfers,
transfers made at automatic teller machines, and point-of-sale
terminals. Electronic payments have evolved from a
technological novelty to one of the leading payment options
currently available. Electronic payment systems (EPS) are
considered as useful and user-friendly and are also secure by
unique users and assorted users, who perceived the means as an
entry point towards progress in technology in terms of the
economy worldwide.
Throughout the years, the world has witnessed a
worldwide rise in cashless proceedings yearly via mobile
transactions and EPS.

a payment that is done

electronically entails whatsoever
shape of a system that
enables the interchange of money
via the internet. Likewise, [22]
expounded that a system that
enables
payment to be made electronically
related to services offered on the
web.
a payment that is done
electronically entails whatsoever
shape of a system that
enables the interchange of money
via the internet. Likewise, [22]
expounded that a system that
enables
payment to be made electronically
related to services offered on the
web.
a payment that is done
electronically entails whatsoever
shape of a system that
enables the interchange of money
via the internet. Likewise, [22]
expounded that a system that
enables
payment to be made electronically
related to services offered on the
web.
a payment that is done
electronically entails whatsoever
shape of a system that
enables the interchange of money
via the internet. Likewise, [22]
expounded that a system that
enables
payment to be made electronically
related to services offered on the
web.
a payment that is done
electronically entails whatsoever
shape of a system that
enables the interchange of money
via the internet. Likewise, [22]
expounded that a system that
enables
payment to be made electronically
related to services offered on the
web.
a payment that is done
electronically entails whatsoever
shape of a system that
enables the interchange of money
via the internet. Likewise, [22]
expounded that a system that
enables
payment to be made electronically
related to services offered on the
web.
a payment that is done
electronically entails whatsoever
shape of a system that
enables the interchange of money
via the internet. Likewise, [22]
expounded that a system that
enables
payment to be made electronically
related to services offered on the
web.
a payment that is done
electronically entails whatsoever
shape of a system that
enables the interchange of money
via the internet. Likewise, [22]
expounded that a system that
enables
payment to be made electronically
related to services offered on the
web.
a payment that is done
electronically entails whatsoever
shape of a system that
enables the interchange of money
via the internet. Likewise, [22]
expounded that a system that
enables
payment to be made electronically
related to services offered on the
web.
a payment that is done
electronically entails whatsoever
shape of a system that
enables the interchange of money
via the internet. Likewise, [22]
expounded that a system that
enables
payment to be made electronically
related to services offered on the
web.
a payment that is done
electronically entails whatsoever
shape of a system that
enables the interchange of money
via the internet. Likewise, [22]
expounded that a system that
enables
payment to be made electronically
related to services offered on the
web.
a payment that is done
electronically entails whatsoever
shape of a system that
enables the interchange of money
via the internet. Likewise, [22]
expounded that a system that
enables
payment to be made electronically
related to services offered on the
web.
a payment that is done
electronically entails whatsoever
shape of a system that
enables the interchange of money
via the internet. Likewise, [22]
expounded that a system that
enables
payment to be made electronically
related to services offered on the
web.
a payment that is done
electronically entails whatsoever
shape of a system that
enables the interchange of money
via the internet. Likewise, [22]
expounded that a system that
enables
payment to be made electronically
related to services offered on the
web.
a payment that is done
electronically entails whatsoever
shape of a system that
enables the interchange of money
via the internet. Likewise, [22]
expounded that a system that
enables
payment to be made electronically
related to services offered on the
web.
a payment that is done
electronically entails whatsoever
shape of a system that
enables the interchange of money
via the internet. Likewise, [22]
expounded that a system that
enables
payment to be made electronically
related to services offered on the
web.
EPS is a payment that is done electronically entails
whatsoever shape of a system that enables the interchange of
money via the internet. Likewise, expounded that a system that
enables payment to be made electronically related to the services
offered on the web.
Aims & Objectives:
1. To know & to discuss the importance of electronic
payment system.
2. To understand the shift with regard to online payments.
3. To reduce the burden of the cost of printing currency
and also handling them.
4. To create awareness about various methods of online
payment systems.
5. To create awareness about various frauds of electronic
payments.
6. To motivate people to use online payments systems.
7. To make online payments safe and secure.

Benefits:
1. Higher payment security:
Electronic payments systems have not become so
popular among the merchants. They are still using the same
old methods for accepting payments. Due to which, they
are missing out the opportunity for serving more customers.
Electronic payment systems offer you multiple ways of
securing your payments such as tokenization, encryption,
SSL, etc. Now your customers do not have to enter their
card details every time as they can save their card details or
complete their transactions by using a One Time Password.
2.  Contactless:
 In the times of the COVID-19 pandemic, people have
started finding ways of avoiding human touch to save
themselves from getting affected by the corona virus. Due to
this, the need for contactless payments has increased. You can
use contactless POS terminals in your business to avoid the
human touch. In this system, the payee needs to hold his phone
near the terminal and his payment will get automatically
processed. Also, you can enable your customers to make
payments by using QR codes or One Time Passwords (OTP).
3. Save time on administration:
Accounting and administration can become a
nightmare, especially when you factor in business finances. By
reducing the number of cash payments you receive you reduce
the amount of bookkeeping you and your employees have to do. 
With an e- payment platform, each transaction is digitally
recorded for easy logging and accounting. Selz Pay makes
accounting easy, and the Selz platform integrates with
many popular accounting platforms. You can have a seamless
flow between your point-of-sale and your bookkeeping
method.
4. Reduced costs:
Shopping online requires no investment in petrol in
your car to get to the physical store, or other expenses related
to getting to where you want to be. This will result in
lower transaction costs that can be beneficial for customers,
who can enjoy more savings where it matters, and spend more
wisely where they choose. Using electronic payment system
you will face no additional charges for making cash payment.
It can cost you money to get to store to purchase something
and also checks postage can be costly too. On the other hand
 you probably know that paying through unattended payment
terminal for internet or mobile bills cost customers high fees
while electronic payment system would only cost 1% of the
total amount fee in this kind of operations which is
considerable.
5. Higher speed and mobility:
With instantaneous payments taking place in the
online checkout space, there’s higher speed in terms of
transactions. Mobility is another factor that can be considered a
plus. This is because customers no longer need to carry cash but
can rather use their e-wallets or key fobs to make payments.
Meanwhile, merchants don’t need to rely on the risky aspects of
handling cash.
6. Time savings:
With electronic payment system you do not have to
spend and waste a lot of time standing in lines of banks and
post office and then your transaction would take hours or
days to be done. Using e-payment system you can make
funds transaction in few minutes with waste of no time.
7. Expenses control:
Using electronic payment system would allow you to
have your electronic wallet where all the expenses and
transactions history is recorded on your account. So it is
easy to control and manage your expenses with e-payment
system rather than paying by cash while you have no
control unless you keep a writing record of your daily
expenses which is of course difficult.
8. Small gains:
It may not seem like much of an advantage, but being
cashless makes it easy to ward off borrowers. Another plus
 is that you can pay the exact amount without worrying about
not having change or getting it back from shopkeepers.

9. Better customer experience:

Studies have shown that businesses offering
contactless payment facilities provide a smoother and
quicker checkout experience to the customers, hence
earning their loyalty. Stores can also optimize their loyalty
programs and improve customer relationships.

10. Fraud protection: Contactless payment technology is

secure and encrypted to discourage any hacking attempts.
Better transaction security means that businesses get their
money without any disputes. Besides, contactless payments
are protected against fraud by most issuing banks.

11. Maintains payments history record:

One of the best benefits which an individual gets is the
track of the transactional record. Even doing small
transactions at a merchant will get recorded and can be used
for the referential purpose in future, if needed. This will also
align your household expenses on monthly basis. The
primary benefit is the enhanced transparency and
accountability when it comes to financial transactions.

Challenges or Disadvantages:
1. Low transaction limit:
As per RBI ruling, contactless payments carry a
capping limit of INR 5000* per contactless transaction in
India. For higher value transactions, entering a PIN becomes
 necessary to protect against fraud. Some of the consumers
may find this rule to hinder their overall shopping
experience.
2. Overspending:
While there is no denying the convenience of card or
mobile wallet transactions, it could open a spending trap for
an unsuspecting population. According to behavioral finance
theorists, the pain of parting with money is felt more acutely
if you use physical cash instead of a card. Hence, using cash
instead of cards or mobile wallet acts as a natural bulwark
for people who find it difficult to control their spending.
With so many temptations available for purchase online, it’s
easy to get sucked into impulse buying. This means that
you’re unlikely to stick to a budget, in some cases, this being
an impossible goal to achieve.

3. The risk of fraud:

While merchants, issuers, acquirers and payments
processors all take stringent steps to ensure their customers’
security – online or at the checkout – this is sometimes
difficult to circumvent. For example, by using phishing
attempts, fraudsters can obtain your card, login, and account
or password information and use these details to steal money
from you. It is very difficult to prove who is on the other
side of the screen of an online purchase, and this means that
someone who may have obtained your card without your
permission can spend your money. This is why it’s essential
 to keep your private data private at all times, and to contact
your payment provider immediately if you notice anything
strange about your account or finances, which you may pick
up from your card statement each month.
4. Disputed transactions:
Disputed transactions are another area of concern
when it comes to electronic payment systems. Say, for
example, that someone else used your card to make a
purchase without your knowledge or permission. In this
case, it would be difficult for you to prove that you weren’t
the original purchaser, and it might be difficult to reclaim
your funds or get a refund.
5. Security risks:
As with any piece of technology out on the market
these days, all technological solutions are prone to some
security risks and breaches. This is why it’s crucial to protect
your private information as much as you can. Once again,
inform your bank or financial institution if you suspect
anything out of the ordinary. Servers may fail to work for
temporary periods of time, transactions may bounce back, a
payment might not be cleared, you might get double charged
– all of these factors are security risks that you need to be
aware of. Since the transaction with a contactless card does
not need any PIN authorization, there is a fear of fraudulent
purchases in the event of it being lost or stolen. In such a
case, it is always a good idea to let the issuing bank know
about this. Most banks give you a 100% fraud guarantee,
relieving you of any responsibility, provided you were
careful with its use. 
6. Lack of Usability:
Electronic payment system requires large amount of
information from end users or make transactions more
difficult by using complex elaborated websites interfaces.
For example credit card payments through a website are not
easiest way to pay as this system requires large amount of
personal data and contact details in web form.
7. Lack of Trust:
Electronic payments have a long history of fraud,
misuse and low reliability as well as it is new system without
established positive reputation. Potential customers often
mention this risk as the key reason why they do not trust a
payment services and therefore do not make internet
purchases.
8. Lack of Awareness:
Making online payment is not an easy task. Even
educated people also face problems in making online
payments. Therefore, they always prefer traditional way of
shopping instead of online shopping. Sometimes there is a
technical problem in server customers tried to do online
payments but they fails to do. As a result they avoid it.
9. Online Payments are not Feasible in Rural Areas:
The population of rural areas is not very literate and
they are also not able to operate computers. As they are
unaware about technological innovations, they are not
interested in online payments. So the online payment
systems are not feasible for villagers.
OVERCOMES OF PROBLEMS IN
ELECTRONIC PAYMENT SYSTEMS:
1. Encryption:
Online shopping are very sensitive to notion that e-
commerce is insecure, particularly when it comes to online
payments. Most online payment systems use an encryption
system to add security to the transmission of personal and
payment details. There are various encryption schemes in
use to prevent from frauds of online payments.
2. Firewalls:
A firewall is an integrated collection of security
measures designed to prevent unauthorized electronic access
to a networked computer system to protect private network
and individuals machines from the dangers of the greater
internet, a firewall can be employ to filter incoming or
outgoing traffic based on a predefined set of rules called
firewalls policies.
3. SET (Secured Electronic Transaction):
Secure Electronic Transaction is an open-source
encryption and security specification designed to protect
credit card transactions on the internet. Remember that a
secure electronic transaction is not a payment system; it is a
set of security protocols and format that ensures that using
online payment transaction on the internet is secure. Secure
Electronic Transaction is also called SET. SET provides a
secure environment for all the parties that are involved in the
e-commerce transaction. It also ensures confidentiality. It
provides authentication through digital certificates.
4. PCI Compliance:
PCI compliance is the most important security
consideration, as not following these protocols could land
you in legal trouble. So what does PCI stand for? PCI is
 short for the Payment Card Industry. This organization is
responsible for setting security standards for electronic
payment processing. 
5. SSL Protocol:
SSL stands for secure sockets layer, a fancy phrase that
refers to an internet security encryption protocol. One way to
tell a website is using SSL is to observe whether its URL
starts with https. Website URLs that start with https have an
SSL certificate. That certificate is essentially proof that the
site is using SSL encryption. Another common symbol
associated with SSL is the padlock. If a site has a padlock
that appears near its URL, its SSL certified.
6. Tokenization:
Tokenization is an extra layer of security that protects
customer payment data. Offered by some payment
processors, tokenization happens when a program converts
payment data into a random string of numbers. 
7. 3D secure:
When a customer goes to pay for a product or service
online, 3D secure adds an extra layer of authentication that is
administered by the cardholder’s bank. So, if a customer is
using a Visa card to purchase a product on your site, Visa
would be the one handling the final authentication test.
These tests can include entering pin codes or using biometric
scans and it’s performed by the card issuing bank. This extra
layer of online payment security helps ensure that the person
using the card is the actual person to whom the card was
issued.
8. Updated operating systems:
 A simple but often neglected detail that can affect
payment transaction security is whether or not your
computer operating system (OS) is current. Be sure to
regularly check for updates on your computer. These updates
often fix the security issues of previous versions.
Channels:
1. Credit Card:
The most popular form of payment for e-commerce
transactions is through credit cards. A credit card is a plastic
card issued to the users to lent money for purchase of goods
and services. The customer type the card number, expiry
date and billing address on the order form and the vendor
can verify the details and be confident of payment. To
improve the security system, increased security measures,
such as the use of a card verification number (CVN), have
been introduced to online credit card payments. The CVN
system helps detect fraud by comparing the CVN number
with the cardholder's information. Credit cards impose the
condition that cardholders pay back the borrowed money,
plus any applicable interest, as well as any additional agreed-
upon charges, either in full by the billing date or over time.
Credit cards’ growing popularity has led to disrupting
the space of lending and credits. Many new cards enter the
market frequently with a whole new range of features and
benefits. There are certain types of Credit Card, Some of
them are:

Credit Cards for Women: To ensure their female

customers get the maximum benefits, some banks have
introduced credit cards that are exclusively designed for
 women. These Women credit cards mainly focus on
shopping rewards and cashback offers. Apart from this,
cardholders can get bonus reward points, fuel surcharge
waiver, insurance, etc. They can also earn reward points
when they make purchases using their credit cards.

Gold Credit Cards: Individuals with higher income can

avail a gold credit card from any bank in India. Applicants
for any type of gold credit card should have a good credit
score. The common features of a gold credit card are:
 High cash withdrawal limit
 High credit limit
 Add-on card facility for family members like spouse,
parents or children
 Travel insurance
 Cash back offers
 Rewards program and much more

Titanium Credit Cards: Titanium credit cards are premium

cards that come with a load of privileges and benefits. The
key feature of a Titanium credit card is the Titanium
Rewards program that is offered to the customers. This
rewards program includes accrual of rewards points,
redemption for gifts and air miles, cashback offers, etc.
Other privileges that come with any Titanium credit card
are surcharge waivers, revolving credit, interest free credit
period, annual fee reversals, insurance, welcome gifts in the
form of vouchers from top retail brands, add-on card
facility, wellness and beauty offers, lifestyle and dining
benefits, etc.
Rewards Credit Card: Rewards credit cards are known for
offering multiple rewards on every card transaction.
Cardholders can earn rewards points on all their retail,
online, etc. card transactions. Apart from this, they can earn
reward points as welcome gift, birthday gift, renewal
bonus, etc. They can also earn points when they spend a
certain amount in a specific period of time. These reward
points can be redeemed for products/services mentioned in
the rewards catalogue, which includes cashback offers, air
miles, travel offers, etc. Some cards allow cardholders to
make payments for their purchases in instalments.

Business / Corporate Credit Cards: Business credit cards

are offered to business establishments, corporates and other
financial institutions where the employer can offer credit
cards to their employees and also conveniently manage the
finances on the card. These cards cannot be used by the
employees for personal transactions and are valid only
during their employment period with the company. The
privileges offered on corporate cards are hotel
accommodation and travel deals, business savings plans,
expense management, insurance, fuel surcharge waivers,
airport lounge access, rewards programs, cash advance,
add-on cards, bill payments and options to convert
purchases into monthly installments. Companies also have
the option of getting the name of the company embossed on
these credit cards.

Prepaid Credit Cards: Prepaid credit cards allow

cardholders to load a certain amount of money in it and use
that money to make the purchases. Even though these cards
do not offer a line of credit, customers can enjoy most of
the privileges that are provided by the other types of credit
cards. The outstanding balance is the amount that is left in
the prepaid card by the customer after making a certain
transaction.

Travel Credit Cards: Travel credit cards are popular

because of the unlimited travel benefits they offer. These
cards do not just offer travel benefits in India, but abroad as
well. Most banks have tied up with airline companies or
travel companies to offer travel credit cards. When
customers use this card to make travel transactions, they
can earn air miles. Apart from this, some travel cards
provide access to airport lounges to the customers. The
reward points that customers earn on these cards can be
converted to air miles, which can then be used to book
flight tickets and upgrade seats. Travel cards also provide
hotel and holiday offers, golf offers, dining offers, travel
insurance, etc.

Student Credit Cards: A student credit card is a credit card

that is offered to students at the college level. Any student
beyond the age of 18 years is eligible to apply for the credit
card as it does not have an income eligibility limit. These
credit cards have lower interest rates and have a validity
period of 5 years.

Pros of Using Credit Card:

1. One-Time Bonuses: There's nothing like an initial bonus
opportunity when getting a new credit card. Often times,
applicants with good credit or excellent credit can get
approved for credit cards that offer bonuses.
2. Grace Period: When you make a credit card purchase,
your money remains in your checking account until you pay
your credit card bill.
3. Building Credit: If you have no credit or are trying to
improve your credit score, using a credit card responsibly
will help because credit card companies will report your
payment activity to the credit bureaus.
4. Universal Acceptance: Rental car companies and hotels
want customers to pay with credit cards because it makes it
easier to charge customers for any damage they cause to a
room or a car.
5. Insurance: Most credit cards automatically come with a
number of consumer protections that people don't even
realize they have, such as rental car insurance, travel
insurance, and product warranties that may exceed the
manufacturer's warranty.

Cons of Using Credit Card:

1. Credit damage:   Missed credit card repayments and

ongoing debts are recorded on your credit file and can
impact your chances of getting a loan down the track. 
2. Overspending:  This is the classic downside. Some
individuals can get easily carried away with their credit card,
creating a debt that is beyond their means to pay off. Since
they’re so easy to use, they also make it easy to overspend.
3. Other fees can quickly add up:  Depending on your card,
you could be charged fees when you miss a payment, fees if
you spend past your credit limit, fees for overseas
transactions, balance transfer fees and even some rewards
programs fees.
4. Interest charges: If you buy something and don’t pay it off
immediately, you will end up paying not only the purchase
price but also the interest charge on that item. In other
words, if you carry a balance, all your purchases will end
up costing you a little more.  
2. Debit Card:
Debit cards are the second largest e-commerce
payment medium in India. Customers who want to spend
online within their financial limits prefer to pay with their
Debit cards. With the debit card, the customer can only pay
for purchased goods with the money that is already there in
his/her bank account as opposed to the credit card where the
amounts that the buyer spends are billed to him/her and
payments are made at the end of the billing period. Also
called “check cards” or "bank cards," they can be used to
buy goods or services; or to get cash from an automated
teller machine or a merchant who'll let you add an extra
amount onto a purchase.

Types of Debit Card:

1. Visa Debit Card: One of the most popular debit cards in

India, Visa offers the Verified by Visa platform for enhanced
security during online transactions.
2. Visa Electron Debit Card: Visa Electron Debit Cards are
similar to Visa Debit Cards and can be used for transactions,
the only difference being that they do not offer an
overdraft facility.

3. MasterCard Debit Card: Accepted at millions of merchant

locations worldwide, MasterCard is one of the most popular
cards along with Visa. Their debit cards are rich in features
and offer excellent benefits.

4. Maestro Debit Card: Owned by MasterCard, Maestro is a

popular debit card used worldwide. Maestro keeps your
money safe at all times with its state-of-the-art technology.

5. RuPay Debit Card: Launched by National Payments

Corporation of India (NPCI), RuPay is a first-of-its-kind
domestic payment network. The card is more flexible than
its competitors.

6. Contactless Debit Card: This card uses Near Field

Technology (NFC) which helps you transact more safely and
securely. To make a payment, all you need to do is tap or
wave your card at a merchant’s payment terminal.

Pros of Using Debit Card:

1. Very convenient to use:  One of the advantages of a debit

card is that it can be swiped for transactions as well as
withdrawal of cash from ATMs.
2. No More Debts: You are only able to spend the amount
that is in your account. You don’t have to worry about the
mounting credit card bills anymore.
3. Easy to Get: Unlike credit cards, debit cards are easy to get
from the bank. Just do some paper works and you will get
your debit card in 1 or 2 weeks once you are eligible to use.
4. Spent within your budget: If we have more money, we
spent more. But as long as you only have debit cards, you
never exceed the budget limits.

Cons of Using Debit Card:

1. Not help in an emergency situation: In emergency

situations credit card give you a hand while debit card does
not do so unless you maintain a good balance on your debit
card. If you don’t have money in emergency situations it will
push you to distress.
2. Fees applied in different ATMs: There are some charges
applied when you withdraw money from different bank
ATMs.
3. No benefits like a credit card: Debit card means whatever
you earn can spendable and no more. You won’t get any
benefits from your debit cards. 
4. Less Secure: Fraudulent techniques such as skimming,
phishing, SIM swap and so on have put debit cards at risk
and have questioned its security. Now, if a fraudster
manages to duplicate the details of the debit card, in most
cases, the money might be stolen forever.

3. Smart Card:
 A smart card, chip card, or integrated circuit
card (ICC or IC card) is a physical electronic authorization
device, used to control access to a resource. It is a plastic
card embedded with a microprocessor that has the
customer’s personal information stored in it and can be
loaded with funds to make online transactions and instant
payment of bills. The money that is loaded in the smart card
reduces as per the usage by the customer and has to be
reloaded from his/her bank account. Smart cards can
provide personal identification, authentication, data storage,
and application processing. Applications include
identification, financial, mobile phones (SIM), public transit,
computer security, schools, and healthcare. Smart cards may
provide strong security authentication for single sign-
on (SSO) within organizations. Numerous nations have
deployed smart cards throughout their populations.

Functionalities:
I. OTP: A Complex Card can be used to compute a
cryptographic value, such as a One-time password.
The One-Time Password is generated by
a cryptoprocessor encapsulated in the card. One-
Time Passwords generation is based either on
incremental values (event based) or on a real time
clock (time based).
II. Account Information: A Complex Card with
buttons can display the balance of one or multiple
account(s) linked to the card. Typically, either one
button is used to display the balance in the case of a
single account card or, in the case of a card linked
 to multiple accounts; a combination of buttons is
used to select a specific account's balance.
III. Transaction Security: A Complex Card being
deployed as a payment card can be equipped with
capability to provide transaction security. The card
security code (CSC) is a 3 or 4 digits number
printed on a credit or debit card, used as a security
feature for card-not-present (CNP) payment card
transactions to reduce the incidence of fraud.
IV. User Authentication: Complex Cards can be
equipped with biometric sensors allowing for
stronger user authentication. In the typical use
case, fingerprint sensors are integrated into a
payment card to bring a higher level of user
authentication than a PIN. In order to
implement user authentication using a
fingerprint enabled smart card, the user has to
authenticate him / her to the card by means of
the fingerprint before starting a payment
transaction.

4. E-Wallet:
Digital wallet is a broad term covering software that
electronically stores credit card numbers, debit card
numbers, loyalty card numbers, etc. on your laptop, tablet,
phone, or the cloud. E-Wallet is a prepaid account that
allows the customer to store multiple credit cards, debit card
and bank account numbers in a secure environment. This
eliminates the need to key in account information every time
while making payments. Once the customer has registered
 and created E-Wallet profile, he/she can make payments
faster. It has an array of functionality, that site adds,
including: the ability to pay at stores; make peer-to-peer
payments; also make online payments; hold funds, coupons,
and loyalty cards; and store IDs and transit tickets.

5. Net-banking:
This is another popular way of making e-commerce
payments. It is a simple way of paying for online purchases
directly from the customer’s bank. It uses a similar
method to the debit card of paying money that is already
there in the customer’s bank. Net banking does not require
the user to have a card for payment purposes but the user
needs to register with his/her bank for the net banking
facility. While completing the purchase the customer just
needs to put in their net banking id and pin. Bank transfers
can include any sort of electronic transfer, be it ACH, wire,
and so on. It’s a versatile and secure means of payment.
6. Mobile Payment:
One of the latest ways of making online payment is
through mobile phones. Instead of using a credit card or
cash, all the customer has to do is send a payment request to
his/her service provider via text message; the customer’s
mobile account or credit card is charged for the purchase. To
set up the mobile payment system, the customer just has to
download a software from his/her service provider’s website
and then link the credit card or mobile billing information to
the software.
7. E-Cash:
E-Cash is purely software based; anonymous,
untraceable, online token payment system, available on
 UNIX, Windows as well as Macintosh platform. When the
tokens are purchased by customers, the E-Cash software
stores the digital money on the customer’s personal
computer which is under signed by the bank. The users can
easily spend digital money at any shop accepting e-Cash
without giving credit card details to the shopkeeper. It was a
pioneer in crypto currency.
8. QR codes:
QR stands for Quick Response. For making payment,
you just need to scan the QR code with your wallet app. It
will fetch the payment details and send that to the user.
This is the method of transferring funds at the point of sale
via an online payment terminal.
9. Aadhaar Enabled Payment System:
AEPS is a new payment service offered by the
National Payments Corporation of India to banks, financial
institutions using ‘Aadhaar’. AEPS stands for ‘Aadhaar
Enabled Payment System’. Any resident of India holding an
Aadhaar number and having a bank account may be a part of
the Aadhaar Enabled Payment System. AEPS only support
transactions between Aadhaar linked Bank Accounts. AEPS
is a bank led model which allows online interoperable
financial transaction at PoS (Point of Sale / Micro ATM)
through the Business Correspondent (BC) / Bank Mitra of
any bank using the Aadhaar authentication. Currently, the
banks that are members of AEPS are ICICI Bank, Union
Bank of India, Bank of India.
10. Electronic Fund Transfer:
It is a very popular electronic payment method to
transfer money from one bank account to another bank
account via computer-based systems, without the direct
 intervention of bank staff. Accounts can be in the same
bank or different banks. Fund transfer can be done using
ATM (Automated Teller Machine) or using a computer.
Nowadays, internet-based EFT is getting popular. In this
case, a customer uses the website provided by the bank,
logs in to the bank's website and registers another bank
account. He/she then places a request to transfer certain
amount to that account. Customer's bank transfers the
amount to other account if it is in the same bank, otherwise
the transfer request is forwarded to an ACH (Automated
Clearing House) to transfer the amount to other account
and the amount is deducted from the customer's account.
Once the amount is transferred to other account, the
customer is notified of the fund transfer by the bank.

Future Scope of Electronic Payment

Systems:
According to the Federal Reserve’s Diary of
Consumer Payment Choice, debit cards are the most
frequently used form of payment, accounting for 30% of all
payments. The use of cash has stayed steady in recent
years, around 26% of all sales. But it continues to slowly
slide. Electronic Payment Systems has an extensive
potential for growth considering the growth of internet.

1. Contactless Credit Cards:

Credit card companies constantly expand what they do
for customers, and that includes the new contactless credit
 cards. They will soon replace cards embedded with the
EMV chip that makes purchases more secure (although
contactless cards still have chips). With a contactless card,
a customer simply taps a card on the register, and the
purchase is processed. But retailers must have the right
equipment to allow contactless cards to work.
2. Wearable Technology:
While still a smaller segment of the electronic
payment processing industry, wearable technology
continues to grow. Examples include FitBit Pay, Apple
Watch, AmazFit, and Kerv Ring. These payment methods
have especially become popular at large events, such as
music festivals, and at amusement parks.
3. Biometric Payment:
Visa has launched a biometric payment card pilot
program that uses fingerprint recognition rather than a PIN
or signature to authenticate a cardholder for a transaction.
According to Visa, “The cardholder enrolls the fingerprint,
which is securely stored on the card. When he or she places
the finger on the card’s sensor during a transaction, the card
senses whether the scanned print is the same as the print
stored in the card.”
4. Reward Revolution:
In order to drive more value out of their purchases,
48% of the consumers switch reward cards. 42% of the
consumers would switch cards to get signup bonuses. 66%
of the consumers prefer businesses offering rewards to
redeem/bonuses at the POP or POS. There is a reward
 revolution and an ecommerce business has to be a part of
this.
5. Voice Commerce:
Voice search, it is an invisible computer interface. In
the near future, we will be doing most of the computer
interactions through voice and this will not take more than
10 years. Google, Amazon, Apple and other giants have
launched AI-powered applications with conversational
voice interfaces. By 2021, an estimated 1.83 billion users
will have voice-enabled devices. Applications like Alexa
and Google Assistant are already an integral part of our
life.
6. Payments using AI:
The spread of AI-based payment technology such as
chat bots, speakers, deep learning softwares, and machine
learning tools has created a revolution in the electronic
payment segment. With the help of chat bots consumers
can easily get the solution of their queries. Also, they can
use chat bots for placing orders. Speakers can also be a
good source of accepting payments. Users just need to use
the mic icon to initiate. The in-built system of the speakers
will fetch the details and process the payment immediately.
Usage of AI into electronic payments has made it easier for
businesses to maintain transparency.

Conclusion:
 Technology has inarguably made our lives easier. It
has cut across distance, space and even time. One of the
technological innovations in banking, finance and
commerce is the Electronic Payments. Electronic Payments
(e- payments) refers to the technological breakthrough that
enables us to perform financial transactions electronically,
thus avoiding long lines and other hassles. Electronic
payment refers to the mode of payment which does not
include physical cash or cheques. It includes debit card,
credit card, smart card, e-wallet etc. If the client wants to
maintain privacy, then they choose those payment methods
which guarantee a higher level of privacy such as E-cash &
If the priority is security, they should use, Smart Cards.
Electronic payments are becoming a seamless, fast and
simple way for making payments. Electronic payment
systems can help businesses to save their time and money.
With electronic payments, you can process your payments
speedily. The e-payment systems will also allow you to
make cash applications instantly and let you reconcile your
financial records with great accuracy. This will eliminate
your accounting errors and help you to keep your records
more clear. Apart from the benefits, there are some
downsides like it’s crucial to protect your card data and
account details, keeping them private. It’s also important to
stick to a fixed budget if you’d like to avoid overspending
or making impulse purchases and also there is lack of
awareness in rural areas. Payment systems are backbone of
the financial infrastructure of the nation and enhance
globalization. There is need to create payment system that
are efficient reliable and affordable.