1.

0 INTRODUCTION

Electronic payment, also known as e-payment, refers to the process of making financial
transactions electronically, without the need for cash or physical checks. In recent years, e-
payment has become increasingly popular among consumers due to its convenience, speed,
and security. In this article, we will discuss how consumers can make electronic payments.
Electronic payment, also known as e-payment, refers to the transfer of funds or payment for
goods and services through electronic channels such as the internet, mobile devices, and other
electronic systems1.

The history of electronic payments can be traced back to the 1960s when credit cards were first
introduced. The first credit card, called the Diner's Club card, was created in 1950, but it was
not until the 1960s that credit cards became widely used. In the 1970s, electronic funds transfer
(EFT) systems were developed, enabling the transfer of funds between different accounts
electronically.

In the 1980s, the first automated teller machines (ATMs) were introduced, allowing customers
to withdraw cash and conduct other banking transactions without the need for a bank teller. In
the 1990s, the internet emerged, and with it came the development of online payment systems
such as PayPal and other digital wallet services.

In the 2000s and beyond, the growth of e-commerce and mobile devices has led to an explosion
of electronic payment options, from contactless payments using near-field communication
(NFC) technology to mobile payment apps such as Apple Pay and Google Wallet. Today,
electronic payments are widely used, and many businesses and individuals prefer them for their
convenience, speed, and security2.

2.0 MAIN BODY

1
Electronic Payment Systems for Competitive Advantage in E-Commerce. (2014). United States: IGI Global.

2
Ansar, S., Klapper, L., Demirguc-Kunt, A., Singer, D. (2018). The Global Findex Database 2017: Measuring Financial Inclusion
and the Fintech Revolution. United States: World Bank Publications.
Basically there are different ways under which Customers can make electronic payment and
these includes the following herein under;

2.1 Credit and Debit Cards: Credit card is a plastic card which contains name and identity of the
owner on its surface. There exists a magnetic tape which contain identity and owners address,
in the back computerized financial issuings like ATM use this information to distinguish identity
of a card owner when drawing money. However they are limited at a certain time. Commonly a
customer has to pay a rate of 2% in month for used credit 3. For example in Iran are rarely used
and are not more than 3% of active bank, though the Debt Cards are mostly commonest way to
pay in Iran. Using the electronic payment channel one should settle money to his account and
then use it. The aim is to develop electronic machine instead of branches offices and give cash
to customers. Credit and debt card businesses cards accept credit or debt cards payment from
customer using a point of scale system or an online payment gateway4.

Credit and debit cards are the most common method of electronic payment. Consumers can
use their credit or debit cards to make online purchases, pay bills or make payments in-store.
To make an electronic payment using a credit or debit card, consumers need to provide their
card details, including the card number, expiration date, and security code 5.

2.2 Mobile Wallets: A mobile wallet is a digital wallet that allows consumers to store their
credit and debit card information securely. Consumers can use their mobile wallets to make
payments in-store or online. To make an electronic payment using a mobile wallet, consumers
need to link their credit or debit card to their mobile wallet application. The payment process is
completed by simply tapping or scanning the mobile device at the point of sale. A good example
that operates in good manner is Google Pay or Android Pay is basically a mobile application for

3
Washington, M. (2020). Felix Gets a Credit Card. (n.p.): MDW Credit Solutions.

4
https://tfig.unece.org/contents/payments-types.htm

5
https://tfig.unece.org/contents/payments-types.htm
the Android operating system. The digital wallet stores credit and debit cards in one place. All
user data is safe in these digital wallets6

2.3 Online Banking: Online banking allows consumers to transfer money between accounts,
pay bills, and make purchases online. To make an electronic payment using online banking,
consumers need to log in to their online banking account, select the payment option, and
provide the necessary details such as the recipient's account number and the payment amount.
Online payment include online banking, customers can conveniently make purchase by paying with, a
bank account directly.The user does not need a debit card to use this electronic commerce payment
system but they still need to register with their bank for a net banking facility .

The customer only needs to provide their net banking ID and PIN in order to complete a
purchase.customers can transfer funds between bank accounts banking services provided by their
bank .Also done through various methods such as credit /debit card,Electronic payment, Bank
transfer,cryptocurrencies7. Though there are some problem facing this method Hackers. It’s the
thing you most dread in today’s digital landscape. The word alone sounds like a horror flick. The
possibility of someone stealing money from your bank account makes your skin crawl.

But there’s one easy way to prevent this: Make sure your online bank has freaking good
security features.

2.4 Digital Currencies: Digital currencies, such as Bitcoin, are becoming increasingly popular as
a method of electronic payment. Consumers can use digital currencies to make purchases
online or transfer money. To make an electronic payment using digital currencies, consumers
need to have a digital wallet that supports the currency they wish to use. The payment process
is completed by transferring the digital currency from the consumer's wallet to the recipient's
wallet.

2.5 Electronic Checks: Electronic checks, or e-checks, are a digital version of paper checks.
Consumers can use e-checks to make payments online. To make an electronic payment using e-
checks, consumers need to provide the necessary information, including the recipient’s name,
bank account number, and routing number. For example a customer named John purchases a

6
https://geniusee.com/single-blog/top-digital-wallets

7
www.inworld online.com
product from a business called XYZ Inc. The product costs 100 USD, John pays for the product
using a cheque . The business receives the cheque and records the payment as a credit of 100
USD in thier account. The business also record the sale as debt off 100 USD in the their sale
revenue account . Once the cheque clears, the business conform the payment by reconciling
their bank statement and updating their accounting records accordingly.

3.0 CONCLUSION

In general, electronic payment methods offer consumers a fast, convenient, and secure way to
make transactions. Whether using credit or debit cards, mobile wallets, online banking, digital
currencies, or e-checks, consumers have a range of options to choose from based on their
needs and preferences. Though, electronic payments faces some difficulties including,

Question 1(b)

Electronic payment, also known as e-payment, refers to the process of making financial
transactions electronically, without the need for cash or physical checks. In recent years, e-
payment has become increasingly popular among consumers due to its convenience, speed,
and security. In this article, we will discuss how consumers can make electronic payments.

1. Credit and Debit Cards: Credit and debit cards are the most common method of electronic
payment. Consumers can use their credit or debit cards to make online purchases, pay bills or
make payments in-store. To make an electronic payment using a credit or debit card,
consumers need to provide their card details, including the card number, expiration date, and
security code.

2. Mobile Wallets: A mobile wallet is a digital wallet that allows consumers to store their credit
and debit card information securely. Consumers can use their mobile wallets to make payments
in-store or online. To make an electronic payment using a mobile wallet, consumers need to
link their credit or debit card to their mobile wallet application. The payment process is
completed by simply tapping or scanning the mobile device at the point of sale.
3. Online Banking: Online banking allows businessman to transfer money between accounts,
pay bills, and make purchases online. To make an electronic payment using online banking,
consumers need to log in to their online banking account, select the payment option, and
provide the necessary details such as the recipient's account number and the payment amount.
This method of online payment has several advantages among other things includes; lowering
of costs, convinience and time saving,This advantage of electronic checks may not be cost
related (although time certainly is valuable), but may in fact be one of the most attractive
benefits. Also ensures security and reliability 8. Though it is observed that there are some issues
related to online banking like increase of insecurity though hackers ability. Also the issue of
deposit limits, again there is limited services scope9

4. Digital Currencies: Digital currencies, such as Bitcoin, are becoming increasingly popular as a
method of electronic payment. Consumers can use digital currencies to make purchases online
or transfer money. To make an electronic payment using digital currencies, consumers need to
have a digital wallet that supports the currency they wish to use. The payment process is
completed by transferring the digital currency from the consumer's wallet to the recipient's
wallet.

5. Electronic Checks: Electronic checks, or e-checks, are a digital version of paper checks.
Consumers can use e-checks to make payments online. To make an electronic payment using e-
checks, consumers need to provide the necessary information, including the recipient’s name,
bank account number, and routing number.

6. Virtual payment

Virtual payment is a unique financial address using which you can send and or receive money
in your bank trough unified payments interface (UPI) when you create unified payment
account on the Paytm app your virtual payment account is automatically gets created ,Paytm
creates the unique virtual payment address for your banks details in simplest manner the

8
Paysimple.com

9
Gaikwad, N. (2021). Arihant CBSE Computer Application Term 2 Class 10 for 2022 Exam (Cover Theory and
MCQs). India: Arihant Publication India Limited.
benefits of virtual payment account. There are multiple benefits for using virtual payment
account such as to transfer money from one bank account to another unlike other payment
methods you don’t need to share complex details like your bank account number ,branch name
you can simply share your virtual payments to receive money in your bank account moreover
virtual payment offers additional safety and security of your transaction since neither the
sender nor the receiver can find out your bank or any other confidential details. Though digital
solution are not immune to hackers and security bleachers most electronic payment providers
also have a host data experts and engineers working to keep your payment information safer.

3.7

In conclusion, electronic payment methods offer consumers a fast, convenient, and secure way
to make transactions. Whether using credit or debit cards, mobile wallets, online banking,
digital currencies, or e-checks, consumers have a range of options to choose from based on
their needs and preferences.