“ A STUDY ON E-

PAYMENT & E-
SECURITY IN INDIA.”
 A STUDY OF E-PAYMENT AND E-SECURITY IN INDIA.

A project submitted to

University of Mumbai for partial completion of the degree of

Bachelor of management studies

Under the faculty of commerce

By

Ms. Radhika Shrinivasan Shetty

Under the guidance of

Prof. Pooja Chodankar

Chikitsak Samuha’s Sir Sitaram & Lady Shantabai Patkar College of Arts & Science And V.P Varde
College & Commerce and Economics. Autonomous College Swami Vivekananda Rd, Piramal Nagar,
Goregaon West, Mumbai, Maharashtra 400104

March, 2022
 INDEX

CHAPTER TOPIC/TITLE PAGE

NOS. NOS.

CHAPTER-1 INTRODUCTION 1-37

1.1 INTRODUCTION 1
1.2 WHAT MAKES INTERNET SO POWERFUL 2
1.3 HISTORTY OF INTERNET 4
1.4 IMPORTANCES OF ESTABLISHING BUSINESS ON 5
INTERNET
1.5 ADVANTAGES OF INTERNET 7
1.6 E-BUSINESS 9
1.7 E-PAYMENT 11
1.8 SECURITIES OF E-PAYMENT 28
1.9 ENHANCING E-PAYMENT SECURITIES 30
1.10 E-SECURITIES 31

CHAPTER-2 RESEARCH METHODOLOGY 38-43

2.1 OBJECTIVES 39
2.2 SCOPE & SIGNIFICANT OF THE STUDY 40
2.3 LIMITATION OF THE STUDY 41
2.4 RESEARCH METHODOLOGY 42
 RESEARCH DESIGN
 DATA COLLECTION
 SAMPLE DESIGN & SAMPLE SIZE
 TOOLS & TECHNIQUES USED
CHAPTER-3 LITERATURE REVIEW 44-46

CHAPTER-4 DATA ANALYSIS, INTERPRETATION & 47-58

PRESENTATION.

CHAPTER-5 CONCLUSION & SUGGESTIONS 59-61

5.1 CONCLUSION 59
5.2 SUGGESTION 60
CHAPTER-6 BIBLOGRAPHY 62

CHAPTER-7 APPENDIX 63-64

Patkar Varde College of Commerce Swami Vivekananda Rd, Piramal Nagar, Goregaon West, Mumbai,
Maharashtra 400104.

CERTIFICATE

This is to certify that Ms Radhika Shrinivasan Shetty has worked and duly completed her Project Work
for the degree of Bachelor of Management Studies under the Faculty of Commerce in the subject of Finance
and her project is entitled, ‘A Study of E-Payment and E- Security in India.’ under my supervision.

I further certify that the entire work has been done by the learner under my guidance and that no part of it
has been submitted previously for any Degree or Diploma of any University.

It is her own work and facts reported by her personal findings and investigations.

Seal of the Name and Signature of Guiding Teacher

college

Date of submission
 Declaration by learner

I the undersigned Miss. Radhika Shrinivasan Shetty here by, declare that the work embodied in this
project work titled A Study of E-Payment and E-securities in India forms my own contribution to the
research work carried out under the guidance of Prof Pooja Chodankar is a result of my own research
work and has not been previously submitted to any other University for any other Degree/ Diploma to this
or any other University.

Wherever reference has been made to previous works of others, it has been clearly indicated as such and
included in the bibliography.

I, here by further declare that all information of this document has been obtained and presented in
accordance with academic rules and ethical conduct.

Name and Signature of the learner

Certified by

Name and signature of the Guiding Teacher

 ACKNOWLEDGEMENT

To list who all have helped me is difficult because they are so numerous and the depth is so enormous.

I would like to acknowledge the following as being idealistic channels and fresh dimensions in the
completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do this project.

I would like to thank my incharge Principal, Dr. Trisha Joseph for providing the necessary facilities
required for completion of this project.

I take this opportunity to thank our Coordinator Prof. Swati Takkar, for her moral support and guidance.

I would also like to express my sincere gratitude towards my project guide Prof. Pooja Chodankar whose
guidance and care made the project successful.

I would like to thank my College Library, for having provided various reference books and magazines
related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped me in the completion
of the project especially my Parents and Peers who supported me throughout my project.
 CHAPTER-1

1.1 INTRODUCTION

In person trading of products and services between two parties goes back to before the start of written
history. With time, as exchange turned out to be more muddled and difficult, people represented values in
an abstract manner, advancing from barter system through certified notes of money, cheques, payment
orders, debit and credit cards, and nowadays electronic payment (or E-payment) systems. Some well-
known issues or defects are found in the customary methods of payment: cash can be falsified, cheques
bounced, and signatures forged. Contrary to this, appropriately planned electronic system of payment can
really give ideal security over conventional methods of payments, with the added advantage of pliability in
usage.

With intangible transactions becoming more impactful in overall economies and their prompt transference
at little cost, conventional systems of payment have a tendency to be more expensive than the present-day
strategies. With the immense participation of the web in our everyday life, individuals feel accustomed to
online exchange in E-Commerce for selling and purchasing of products and ventures. People are paying
cash electronically over the Internet. Moreover, the rise of web-based business has led to new money-
related necessities that by and large can’t be viably satisfied by the customary methods of payment.
Following to this growing trend, related individuals are investigating different electronic systems of
payment including issues encompassing electronic system of payment and digitized currency. Every single
transaction that takes place online is made via payment gateways which act as points at which the financial
organizations can be accessed. Payment gateways authorize and validate details of payment between
different parties and the various financial organizations.

The Internet is one of the greatest creations and provides people with instant access to an endless supply of
knowledge and entertainment. The growth of the Internet as a medium of transaction has made possible
an economic transformation in which commerce is becoming electronic. The critical factor of success for
every commercial entity to implement and operate an e-business mechanism is money flow, material flow
and in-formation flow in commerce process.

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1.2 What makes internet so powerful?

 The Internet is the lowest cost system ever developed to communicate with a potential audience of
hundreds of millions of people all over the world. Even locally, the cost of a simple Web site is
usually less than the cost of a modest ad in a business telephone directory. A Web site can also give
more information than a telephone directory ad, including color photos, detailed descriptions of
products and services, and price information that can be changed at any moment, for any reason,
instead of waiting for a printed directory's next publication cycle.

 As a news medium, the Internet is faster and more flexible than a newspaper or magazine. A story
can be added to a Web site instantly at any time of the day or night. There are no deadlines (except
self-imposed ones) for Internet news. The "printing press" is always on, you might say. Even
television news, aside from a few 24-hour news channels, must usually wait for scheduled news
broadcast times instead of breaking into entertainment programming whenever a new story comes
along. Television is also constrained by its necessarily linear information delivery format. It must
tell a story, then another story, then take a break for advertising, then tell another story, and so on,
in sequence. A viewer cannot choose to view only a few stories that he or she finds interesting,
which may occupy only five minutes out of a 30-minute newscast.

 On the Internet, a reader is free not only to choose to view just those stories in which he or she is
most interested, but also gets to choose the order in which he or she sees them. If sports scores are
the highest item on today's agenda, click and there's the sports section, as easy as turning a
newspaper page. Another click and there's the score from the game that just ended, possibly with
video highlights only one more click away.

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 Corrections, changes, and updates to a story published on the Internet can be made as fast as they
come in without waiting for a printing press to roll. Breaking news alerts can be sent instantly by
email to subscribers who request this service, and a reader can instantly communicate with an online
publication's editors via email or, if the publication has this facility, post his or her comments on a
"message board" for other readers to see right away, without waiting for a fax or mail to get through
and an editor to look the message over and perhaps include it in the "letters to the editor" section
several days after the original story ran.

 An online publication can also offer an advertiser something that is not available in any other
medium: ads that link directly, with one click, to a Web page full of compelling reasons to buy the
advertised product or service. Even if only a fraction of one percent of all people who see a Web ad
click on it, that is still an infinitely higher percentage than can click on a magazine ad or TV spot
for additional information or even to buy a product directly from the advertiser right now. Even if
few readers click on an individual online ad and buy right now, a Web ad still has the same branding
and general "get the name out" effect as advertising in other media. If the cost of an online ad is
similar to the cost of one in another medium, it represents a better value because of the ability it
gives an advertiser to give an interested person an entire Web site full of information right away,
only one click removed from the online publication in which that ad is running.

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1.3 History of internet.

 The Internet started off with research into what was then known as packet switching as early as the
1960s.

 Packet switching was thought of a better and faster method to transfer data than the hardware
solution to the problem, i.e., the circuitry. The packet switching technology was essential to the
development of ARPANET by the United States Military.

 ARPANET is considered the first known group of interconnected computers aka the internet. This
system was used to transfer confidential data between the Military.

 This data sharing technology was then opened to educational institutes in the United States to allow
them to access to the government’s supercomputer, first at 56 kbit/s, then at 1.5 Mbit/s, and then at
45 Mbit/s. Com Internet service providers began to arise in the late 1980s and the internet was fully
commercialized in the US by 1995.

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1.4 IMPORTANCES OF ESTABLISHING BUSINESS ON INTERNET.

• Digital Era

Digital dominance has made it necessary for more people to rely on the internet to look for the products
and services that they need. Any online business that does not effectively use this platform risks losing new
lucrative opportunities.

 24 Hour Availability

The internet is always available and can showcase your business all day long. This enables your prospective
customers to find your products and services at any time of the day and from any location. If you run a
retail business, your online store will be accessible on a 24 hour basis and customers can conveniently make
their purchases whenever they need to. This is a key advantage over offline shopping where you have to
wait until business hours.

 Brand Building

A strong online presence allows you to build your brand and gain the credibility that you need to attract
more customers. Along with making your business readily accessible, online presence also gives your
customers an easy way to find out more about what you have to offer.

• Positive Image

Interacting with your customers and getting feedback from them through online reviews as well as regularly
updating your online posts will create a positive image for your business. This type of image increases the
likelihood of prospective customers doing business with you and boosting your sales.

• Larger Audience

The web gives you access to a much larger audience that includes people within your location and beyond.
This exposes your online business to even more opportunities and gives you the chance to operate on an
international level.

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  Positive Reviews

A credible business that values its customers can look forward to positive reviews that will result in
customer loyalty and a broader customer base. Customers often use reviews to make their purchasing
decision and it’s important to prioritize quality customer service.

 Effective Marketing

Online presence makes it easier for you to market your business and sell your products. A properly designed
and informative website with well written content enables customers to make informed purchasing choices.
The web provides a marketing platform that gives you a cost effective way to reach a wider audience than
conventional marketing techniques.

 Accessibility

It is essential for both small and large businesses to maximize on the benefits of having a strong web
presence. Aspects such as dynamic search algorithms and social networks are influential in the process of
making it easier for customers to locate different businesses online. A business that does not have an online
business is regarded as non-existent in the modern and competitive business environment.

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1.5 ADVANTAGES OF INTERNET.

 Flawless communication: The Internet offers flawless and faster communication. It has covered the
entire globe, and no matter where you are, you can communicate even from the remotest of the
locations. Getting in touch with families and friends becomes easy through it. Not just getting in
touch with loved ones, but businesses have also become more accessible through the Internet. Also,
it is only due to the Internet that today we can work from home.

 Online Education: The Internet has made it possible for students sitting in the remotest of the areas
to avail education. Many schools, educational institutions, and colleges are now conducting online
classes for such students. Also, due to Covid-19, the students can continue with uninterrupted studies
only because of the Internet.

 E-commerce and Online Services: Today, sitting at home, we can scroll all the products of an online
store and order whatever we feel like. Also, small companies and people in business are taking
advantage of the Internet to enter the global market. All of these are possible only because of the
Internet. Artisans, craftsmen, etc., sitting in remote areas can now sell their art pieces through the
Internet in the global market. Not just products, but you can also avail yourself of online services via
the Internet. Booking a taxi, ordering food, or calling a mechanic has become a lot easier only because
of it.

 Abundant of Information: The Internet provides a vital source of information. Search engines like
Bing, Google, and Yahoo contain in-depth information on financial matters, government law and
service, market information, economic affairs, technical information, educational and academic
issues, new ideas, and technical support. It offers information at various levels of study and covers
everything from scholarly articles to ones directed at children.

 Entertainment: Entertainment is another popular reason for which people prefer the Internet. Also,
it provides a medium through which fans can gain information on their favorite film stars,
sportsperson, etc. After the pandemic, all the movies, web series, television content, sports events,
and live performances of celebrities are available on OTT (over-the-top) platforms. The Internet has
made these all possible and offers non-stop entertainment sitting at home through our mobiles, smart
TVs, laptops, and tablets.

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  Social Networks: Facebook, Twitter, and Instagram are some of the social network websites. These
websites allow people with similar interests to come together and share information, photos, and
videos. Besides being ideal for staying in touch with friends and families, these websites are also
great for business endeavors. They offer the perfect platform for marketing and help to gain overseas
customers also.

 Online Banking: Online businesses have led to online money transfers, and the online banking
system has made this possible. With online banking services, receiving or transferring money and
opening accounts, granting loans, etc., has also become possible. A physical presence at the bank is
no longer required if you are availing of online banking services. The banks have also started their
banking applications through which opening Fixed deposits, recurring deposits, issuing cheque
books has become easier.

 Video Calls and Web Conferencing: If you miss your loved ones and wish to see them, you can
make a video call through SKYPE or Whatsapp and talk to them face to face. If you reside in India,
you can video call and talk and see anyone sitting in the USA with an internet connection. If physical
meetings are not possible for business, you can use Google meet or Zoom to conduct web
conferences. These platforms help you see and listen to your co-workers working overseas and share
important files, documents, and screens if necessary.

 Online Newspaper: Most of the newspapers now have an online version so that people can find their
likely newspaper any time anywhere without any cost. The online newspapers not just cover local or
national news but also cover overseas news. Through the Internet, any news spreads like wildfire.
Online newspapers save our environment because newspapers need paper and paper needs wood, and
online newspapers reduce deforestation and cutting trees.

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1.6 E-BUSINESS.

E-business is short for “electronic business.” As an overarching term, it refers to any method of utilizing digital
information and communication technologies to support or streamline business processes – from preparation to
implementation. However, it can also refer more specifically to the business processes of online stores or other
internet-based companies. E-business or Online business means business transactions that take place online
with the help of the internet. The term e-business came into existence in the year 1996. E-business is an
abbreviation for electronic business. So the buyer and the seller don’t meet personally. In today’s world, we
are exposed to various forms of e-Business. Since its emergence, it has grown by leaps and bounds. Some predict
that it may very soon overtake brick and mortar stores completely. While that remains to be seen, we cannot
ignore the immense role it plays in the current global economy.

Essential of e-business

 The development of time and technology introduced a lot many ways of improving your business.
 One of them which highly got popular among sales and transactions is E-commerce.
 Making the exact replica of the normal website used for searching and looking for any kind of
information.
 E-commerce websites allowed users to start shopping just like purchasing from a physical market.
 E-commerce websites helped consumers choose and buy any product they want without moving
from their place.
 As of today it is the most required step for customers. Not only for selling and purchasing but the
company website today represents the complete business of one’s company. It not only adds value
to the products and services of your company but also enhances its true worth.
 Technology has also greatly enhanced the world of accounting, which in turn, has revolutionized
the ways companies can do business.

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TYPES OF E-BUSINESS.

Now there are actually many types of e-Businesses. It all depends on who the final consumer is. Some of
the types of e-business are as follows :

1. Business-to-Business (B2B)

Transactions that take place between two organizations come under Business to business. Producers and
traditional commerce wholesalers typically operate with this type of electronic commerce. Also. it greatly
improves the efficiency of companies.

2. Business-to-Consumer (B2C)

When a consumer buys products from a seller then it is business to consumer transaction. People shopping
from Flipkart, Amazon, etc is an example of business to consumer transaction. In such a transaction the
final consumer himself is directly buying from the seller.

3. Consumer-to-Consumer (C2C)

A consumer selling product or service to another consumer is a consumer to consumer transaction. For
example, people put up ads on OLX of the products that they want to sell. C2C type of transactions generally
occurs for second-hand products. The website is only the facilitator not the provider of the goods or the
service.

4. Consumer-to-Business (C2B)

In C2B there is a complete reversal of the traditional sense of exchanging goods. This type of e-commerce
is very common in crowdsourcing based projects. A large number of individuals make their services or
products available for purchase for companies seeking precisely these types of services or products.

5. Consumer-to-Administration (C2A)

The Consumer-to-Administration model encompasses all electronic transactions conducted between

individuals and public administration. Some examples of applications include

 Education – disseminating information, distance learning, etc.

 Social Security – through the distribution of information, making payments, etc.
 Taxes – filing tax returns, payments, etc.
 Health – appointments, information about illnesses, payment of health services, etc.

6. Business-to-Administration (B2A)

This part of e-commerce encompasses all transactions conducted online by companies and public
administration or the government and its varies agencies. Also, these types of services have increased
considerably in recent years with investments made in e-government.

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1.7 ELECTRONIC PAYMENT

As exchanges among different partners of business keep on proffering on the e-commerce platform, the
previous cash-based system of payment was slowly replaced by the electronic payment systems. the
appearance of this advancement in the worldwide business platform prompted most business establishments
to naturally change from the customary paper-based cash exchanges to an electronic system of payment
which is generally known as the e-payment system. By and large, these electronic systems can be seen as
a method of making payments for merchandise or services which have been established online using the
internet. An Electronic Payment System can be defined as a type of inter-organizational information system
(IOS) for money related transactions, connecting numerous associations and individual clients. A need of
complex interactions may be required among the partners, the environment and the technology. The
exclusive attributes of EPS/IOS also separate it from the conventional internal based systems of
information; technologically, relationally and organizationally, it is more intricate and complicated,
highlighting the significance of cooperation and the need to unite all aspects together. Notably, the global
annual non-cash transactions facilitated by e-payment and mobile payment (m-payment) had been on the
upsurge over the years, except for 2012 where it decelerates from an annual growth rate of 8.6% in 2011
down to 7.7% in 2012. Furthermore, in 2014, volumes of worldwide non-paper exchange went upto 8.9%
reaching 387.3 billion, the most noteworthy development rate since the first publication of World Payments
Report. The growth was chiefly determined by quickened development in newly forming markets. The
higher worldwide development is anticipated to have kept up in 2015, with assessments of a development
rate of 10.1% which will make the non-paper exchange volume reach 426,300,000,000. E-payment systems
are important mechanisms used by individual and organizations as a secure and convenient way of making
payments over the internet and at the same time a gate-way to technological advancement in the field of
world economy. In addition, it has also become the major facilitating engine in e-commerce through which
electronic business success relied upon. Electronic systems of payment had likewise realized proficiency,
reduced rate of frauds environment and the technology.

VARIOUS DEFINITION OF ELECTRONIC PAYMENT.

The electronic payment is a comprehensive term, portraying various scopes of delivery through electronic
multi-channel. Its use for various purposes offers an amplified imprecision of characterizing e-payment in
literature. E-payment can be seen from its capacities as e-banking, m-payment, e-cash, internet banking,
online banking, e-broking, e-finance and so on. All things considered, recent researchers have
demonstrated a few endeavors to come up with a definition of e-payment.
The system of e-payment is characterized by8 as a type of financial commitment that includes the
purchaser and the vendor enabled by the utilization of electronic infra-structures. Additionally, e-payment
is viewed by as a type of inter-relation amongst associations and people helped by banks and inter-switch
houses that empowers financial transaction electronically.
Another point of view is put forward by who see e-payment system as any type of money exchange
through the internet. On a similar note, as indicated by, a system of electronic payment alludes to an
electronic method for making payments for merchandise obtained on the web or in markets and shopping
centers. Another definition suggests that e-payment systems are payments made in electronic exchange
conditions as exchange of money via electronic means.

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 Besides, view electronic payment is viewed by as an exchange of money that happens online between
the merchant and the purchaser. In addition, as per, electronic payments allude to money and related
exchanges actualized utilizing means of electronics. E-payment is also defined as payment by means of
electronic exchange of details of credit cards, direct credit or some other electronic means other than
payment with money and cheque.
E-payment was characterized by as an exchange of a fiscal claim by a payer on a party worthy to be
useful. E-payment is defined by as payments made via the automated clearing house, commercial card
systems and electronic transfers. According to, e-payment is characterized as any trade of money started
by means of an electronic correspondence channel. E-payment is defined by as payments made by the use
of electronic signals connected debit or credit accounts. As per, e-payment is observed as any sort of non-
money payment that does not include a paper cheque.
Likewise, e-payment was seen by as any exchange of an electronic worth of payment from the buyer
to the seller by means of an e-payment channel that permits clients to remotely access and deal with their
financial accounts and exchanges over an electronic system.
In general, an electronic payment system is an arrangement of monetary exchange amongst
purchasers and vendors on online conditions that is helped by a digital financial instrument, (for example,
electronic cheques, encoded credit card numbers, or cash in digital form) supported by a bank, a mediator,
or by a lawful associate.

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HISTORY OF E PAYMENT

As the rise of the internet popularized online shopping and other types of ecommerce, electronic payments
have evolved from a technological novelty to one of the leading payment options currently available. The
technology required to support the massive volume of electronic payments that now occur forms a diverse
payments infrastructure of cloud, legacy, and hybrid systems. These payment systems have both
influenced and been influenced by the evolution of bank debit card and credit card processing, resulting
in the modern payments industry and payments systems we know today.

In this post, we’re going to look at the history and evolution of electronic payment systems, focusing on
how payment methods developed over time, progressing from electronic to digital, mobile, and beyond.
We’ve come a long way since telegrams and charge cards, but as quickly as technology changes, modern
payments systems are far from finished evolving.

The First Electronic Payment System

For centuries, physical payment at the point of sale was typically required to complete a purchase. That
changed in a ground breaking way in 1871, when Western Union (then the Western Union Telegraph
Company) launched electronic fund transfers (EFTs) as a payment method for exchanging funds.
Otherwise known as “wiring,” EFTs became popular as quick and easy ways to send money without
requiring a physical exchange of cash between the sending and receiving parties. Not long after the turn
of the century, the Federal Reserve was transferring money via telegram, and Western Union’s primary
area of business became money transfers.

Western Union further revolutionized payments in 1914, when it introduced charge accounts that could
be used at a variety of businesses whereas previous iterations had been restricted to the individual stores
that provided them. These accounts were linked to cards that customers could then use to purchase items
on credit, which would then have to be repaid to the issuer. Known as a "charge card," this early form of
credit was a common electronic payment system throughout the first half of the 20th century.

The Evolution of Electronic Payment Systems since the 1940s

As popular as charge cards and accounts were, their limitations led to further innovation in the 1950s,
which saw the advent of credit cards. Diners Club introduced the first “general purpose” charge card in
1950, and it was soon followed by similar cards from Carte Blanche and American Express. These early
innovators set the foundation for the coming credit card revolution via their pioneering usage of charge
cards.

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The primary difference between charge cards and credit cards as we know them today is that charge cards
required balances to be completely paid off at a predetermined interval, whereas credit cards allowed for
the extension of credit usually with additional interest fees enabling balances to be carried over from a
previous pay period. This form of payment is known as "revolving credit," and it was used by Bank of
America in 1958 to create the first modern-day credit card.

Digital payments continue to increase in popularity, rewarding forward-thinking organizations for meeting
the demands of technologically-advanced customers and pushing laggards to modernize in order to remain
competitive. Examples of the further evolution of electronic payment systems include the digital
transformation of point-of-sale systems and omnichannel acceptance for payment processors. These
industry initiatives improve the ease and efficiency of accepting and processing transactions and allow for
the collection of useful business data which can lead to greater profits for merchants and higher rates of
adoption for payment service providers.

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TYPES OF E-PAYMENT.

There are quite a number of e-payment services that have been developed within the payment system
around the globe. These include electronic cheques, e-cash, credit cards and electronic fund transfers. In
general, online payment can be divided into two types: one in view of the Internet Banking Payment
Gateway (IBPG) and one in light of the outsider payment platform. The first one is a sort of a direct mode
of payment, and the client understands the online payment via an e-business framework which is connected
to the banking framework. On the other hand, the second one involves money exchange from the account
of purchaser to merchant’s account by means of an outsider or third party payment platform.
The IBPG lies amongst the banking process system and the Internet; it is a system which has been
especially made for managing payment and payment authorization. The IBPG is the link which links the
purchaser, vender and the bank. The online mode of payment which is based on IBPG cannot come into
existence without the payment gateway. According to the study of, there are four classifications of
electronic payment systems worth mentioning: electronic cash, online credit card payment, small payments
and electronic cheques.
They further stressed that every one of these systems has its own merits and demerits. It was emphasized
that each type could be assessed through these four distinct qualities viz.: Technological aspect, Economic
aspect, Social aspect and Institutional and law aspects.

In reality, we encounter two uniquely varied kinds of payment systems.

I. internet-Based Payment System

The Internet-Based payment system comes in the following four modes

a. Debit Card
One of the most generally utilized frameworks for e-payment is the debit card. The debit card
technique consolidates the elements of the Automatic Teller Machine (ATM) card with Internet
banking. A Debit card holder pays for his buys directly through the bank replacing cheque and
physical money. In this system of debit cards, clients store money ahead of time into the bank and
draw out the same at the time of buying. In the real world, there are two sorts of debit cards: i)
Online debit card, and ii) Offline debit card.

b. Credit Card
This is other type of e-payment system in which there is utilization of the card issued by a monetary
organization to the cardholder for making payments on the web or by means of an electronic gadget
without the utilization of paper money. The most popularly utilized type of e-payment is the credit
card. Contrasted with different EPS, it is not proper to use credit cards for exchanges of small value
i.e., exchanges which involve not as much as a dollar.

c. Smart Card
This makes use of a plastic card installed with the microchip on which funds can be loaded in order
to make instant payment of bills and transactions. Another name for the smart card is a chip card38.
Smart cards are able to store individual/related data about the business of client. In the same way,

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 a chip card is used for storing cash which is lessened as per its usage. Smart card can be authorized
with the help of a PIN provided to the client. These cards are secure because of the provision to
store data in an encoded form and higher processing speeds. Some examples of smart cards are
Mondex and Visa Cash cards

d. E-Cash
This technique was produced as a contrasting option to the utilization of credit cards for buys over
the Internet. It is a type of an electronic payment arrangement in which certain measure of cash is
put away on a customer gadget and made open for transactions over the internet. Electronic money
can further be alluded to as cash in digital form and it utilizes an e-cash software which is installed
on the client PC or electronic gadgets. The standout feature of electronic cash is its low cost and
hence is amongst the most encouraging strategies for smaller scale payments.

II. Electronic Transaction-Based Payment System

Electronic transaction based payment system has four modes:

a. Secure Electronic Transaction (SET)

The system of secure electronic transaction is an arrangement for online payments for guaranteeing
the security of money related exchanges on the web. The SET determination is an open, technical
standard for business, created by Master Card and VISA41. SET enables secure transactions by
payment card over the web. A trust change throughout the system is created by means of a digital
certificate, confirming vendor legitimacy and cardholders.

b. Cyber Cash

Cyber Cash is an online service that of its own processes and confirms client’s credit card
information and then charging the client’s account and depositing the money in the dealer’s account
electronically. The servers of cyber cash act as a gateway between the trader on the web and bank’s
protected monetary system. Digital signatures are used by this system in order to maintain the
security in electronic payment36. While money in electronic form (‘e-money’) is a more extensive
idea which refers to all PC based transfer of fund systems (for example ACHs, debit or credit cards)
and the hardware involved with them (for instance, point of sale terminals, ATMs), cyber cash
specially emphasizes on all money exchange systems which are being steered through the web. It
is difficult to distinguish ‘electronic money’ from ‘cyber cash’, since the latter has been derived
from the former and is currently bit by bit converging into it.

c. Net Bill

Net bill payment system utilizes the internet for obtaining merchandise and various services and is
able to make secure and economical payments for them. It is a micropayment system where the net
bill server is responsible for maintaining accounts for both buyers and sellers, which enables clients

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to pay vendors for products to be conveyed. The exchange of information goods comprises of
conveying bits to the customer. This arrangement of bits may assume any internal structure, for

instance, the search results of a database inquiry, a software program, or a page of text. Customers
might be charged based on the number of items they use, or by a membership permitting an
unlimited access, or by various other valuing models. There is a software with money tool which
checks the products’ receipts. Along these lines, net bill arrangement of electronic payment makes
the money tool communicate with the dealers’ server and net bill server.

d. First Virtual Holdings

It is one of the primary web payment frameworks that offered an outsider confirmation technique
to make payment possible over the web. The first virtual system of payment is interesting as it
doesn’t utilize encryption. It is to be utilized solely for selling data over the Internet, as opposed to
goods and services. It utilizes an automated telephone system to gather participant’s payment
information, the first virtual shuns digital signatures or cryptographic techniques of encryption and
more likely depends on careful observation of purchases and sales so as to decrease fraud and
misrepresentation. A principal viewpoint of the payment system is that some data is not supposed
to go over the web since it is an open system. This data is essentially related to the credit card
information. Rather than utilizing the numbers of credit cards, the exchanges are done by utilizing
a first virtual PIN, issued by a first virtual organization. Since these PIN numbers work like ID
they can be sent over the web and no seller can charge the client’s account without getting an
affirmation email from the client36. Since 2010, the cards as instruments of payment have shown
fastest growth, which is evident from the fact that the use of cheques has declined in the last 13
years. Debit cards standout among the other types of payment instruments and accounts for the
highest share (45.7%) of worldwide non-cash money exchanges and have proved to be the fastest
growing (12.8%) instruments of payment in the year 2014.
These statistics allude to the fact that the security and convenience provided by the cards in
comparison to other instruments of payment and the compatibility with the newcomers to build
innovative series because of their easy payment infrastructure. Furthermore, the electronic mode
of payment can be accomplished in a mobile environment as well. Various Android applications
in smart-phones like gpay, Paytm provide an online service of payment. In case of the electronic
payment system, these mobile applications work equally well on a Desktop computer. There are
other ways in which clients employ their mobile phones for paying their transactions. By making
use of the mobile internet, customers may transmit a PIN number, send an SMS message or utilize
WAP to pay electronically over the internet. For E-payment, the vendors can authenticate a
particular client’s debit or credit card transaction by assigning an instrument to their mobile phones.
In the United States, a conglomerate of late publicized Power Swipe, which is physically connected
to a Nextel telephone, has a weight of 3.1 ounces, and involves a reader for magnetic stripe, goes
through connector for charging the battery of the handset, and an infrared port for printing.

17
Advantages of E-Payment System

Electronic payment allows your

customers to make cashless payments for
goods and services through cards, mobile
phones or the internet. It presents a
number of advantages, including cost and
time savings, increased sales and reduced
transaction costs. But it is vulnerable to
internet fraud and could potentially
increase business expenses.
When we talk about electronic (or “in-
store”) payment here at CCV, we’re
referring to payments in brick-and-
mortar stores, restaurants, cafés, or other in-person physical locations. These are typically made using
credit and debit cards, digital (mobile) wallets, wearable devices, or QR codes.
And with a number of cultural, societal, and technological trends intersecting, we’re now seeing the
demand for electronic payments and cashless commerce skyrocket.
While chip & PIN remains a popular method, the widespread availability of smartphone devices and the
growing acceptance of contactless cards and with the COVID-19 pandemic has made consumers re-
evaluate how they prefer to make payments.
So, what are the advantages of accepting electronic payments? Let’s explore how it benefits you and your
customers.

What are the Benefits of Electronic Payment for the Merchant?

1. It saves time
Paying via card, contactless, mobile wallet, or wearable device is almost always faster than using cash.
Valuable time is saved as customers simply swipe or tap to pay. No more digging through wallets or purses
looking for coins – and you don’t need to painstakingly count out the correct change when someone pays
for a low-value item with a €50 note.

2. It’s more efficient

By processing payments faster, you can keep queues shorter. And with shorter queues, you’ll need less
staff to manage your store at peak times. You may even consider redeploying staff into different customer-
facing roles to improve service and keep your store in tip-top shape.

3. It takes cash out of the equation

You’ll soon discover that your need to handle cash (and the costs and security concerns associated) is
greatly reduced when you start accepting electronic payments. With less processing and cash handling,
transactions can be completed quickly, and this could have a positive impact on turnover.

4. It’s more secure

With less cash in and around your business, the risk of robbery, costly human error, and/or fraud decreases.
You also don’t need to worry about transporting large sums of money to deposit at the bank.
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5. It generates more revenue
Multiple studies have shown that consumers tend to spend more when using electronic methods of
payment compared to when they’re paying with cash.

6. It’s easier to administer

By accepting fewer cash payments – or by going completely cashless – you’ll have an easier time with
administration, accounting, and auditing. There’s less (or no) cash to track or bank; instead, every
transaction is recorded digitally on your platform of choice.

7. There’s a certainty of payment

When you process an electronic transaction and it’s approved by your terminal, you know with certainty
that the payment will show in your business account very soon. There’s no time-consuming extra step
required, unlike with cash, which requires you to transport it and deposit it at the bank.

And How Can Accepting Contactless Payments Benefit the Merchant?

While the above applies to electronic payments in general, there are some very specific benefits you’ll
notice when you start accepting contactless electronic payments:

8. It saves even more time

Aside from the Amazon Go model, where customers walk out of a store and get billed automatically (an
unrealistic prospect for SMEs in the short-term), contactless payment is currently the fastest available
method. It helps you receive payments quickly, and keep queues short and customers happy.

9. It’s lower risk

When your customer pays with contactless, the card or smart device doesn’t leave their hand. This
minimises the risk of fraud or user error on the part of your staff. And the technology used for contactless
is also more secure than other forms of payment.

10. It helps to reduce your carbon footprint

With modern payment apps, the need for paper receipts can be minimised or removed entirely. Instead of
issuing a traditional receipt, you can send your customers a digital equivalent, saving you money on paper,
ink, and printers and boosting your green credentials in the process.

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11. There are no extra costs involved
You don’t have to worry about any additional fees when you start accepting contactless payments if you
already accept chip and PIN. You’ll simply pay the same as you would for regular card transactions. There
are plenty of packages out there to cater for businesses of all sizes, budgets, and transaction volumes.

12. It could offer a competitive advantage

Governments across Europe are encouraging their citizens to use contactless in the face of COVID-19. To
that end, consumers will soon come to expect contactless payment as the norm. If your business offers it
and your competition doesn’t, it could be another vital point of difference.

What are the Advantages of Electronic Payments for Your Customer?

It’s not just you who’ll benefit from implementing electronic payments. Your customers will, too:

13. It removes potential obstacles to purchase

As we’ve discovered, electronic transactions are faster, more secure, and effortless, and this means there’s
less friction in the sales experience.
Your customers won’t be deterred by long queues or held back by the amount of money they have on their
person. Instead, their electronic payment method of choice helps them get exactly what they want, quickly
and without restrictions.

14. It increases confidence and security

Consumers don’t need to carry large amounts of cash around with them. This makes them feel safer and
more confident shoppers, knowing that the impact of theft or loss can be offset by quickly blocking their
cards or mobile wallet.

15. It’s speedier and more convenient

Tap & go contactless payments are, on average, 7 seconds faster than Chip & PIN, and 15 seconds faster
than cash – and this is a major plus point for your customers.

16. It’s more hygienic

As we alluded to earlier, the COVID-19 pandemic has brought contactless payment into sharp focus as a
means of minimising contact and the spread of the virus. Using contactless, consumers don’t need to touch
PIN pads or swap physical cash, making it a more hygienic and health-conscious payment method.

17. It offers a better experience

By ensuring your checkout process is fast and smooth, you can spend more time improving the experience
for your customers. And if you keep them happy and engaged, they’re more likely to return.

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Issues Of Electronic Payment .

While most of us prefer the convenience in transactions that electronic payment systems offer, some
dislike the idea or are not very comfortable with it. The discomfort is primarily due to the security risks
involved in electronic transactions. Though e-payment systems have turned out to be very useful, the
privacy and security concerns raised by them, cannot be ignored. In spite of the numerous advantages of
the electronic payment systems, they have their own difficulties and challenges even in today’s
technologically advanced world. The challenges which have been identified by previous researchers are
Infrastructure, Regulatory, Legal issues and Socio-Cultural issues.

infrastructure

regulatory &
legal issues.

socio-culteral
issues.

1. Infrastructure
Infrastructure is fundamental for the effective execution of electronic payments. Appropriate infrastructure
for electronic payments is an issue. For electronic payments to be fruitful, it is necessarily required to have
a financially savvy and reliable infrastructure that can be availed by dominant part of the populace. In
developing nations, large portions of the country don’t have banks and have no access to basic
infrastructure that drives electronic payments. In connection to this, a research work by reveals that in
Nepal, Electricity and Telecommunication are not accessible all through the nation, which contrarily
influences the advancement of e-payments.

2. Regulatory and Legal Issues

National, provincial or global arrangement of laws, standards and different other directions are imperative
prerequisites for the effective execution of e-payment plans. A significant portion of components
incorporate guidelines on tax evasion, supervision of e-money organizations and commercial banks by
supervisory specialists; central banks should keep an oversight on payment systems, buyer and information
protection, participation and rivalry issues. As indicated by, the worldwide and virtual nature of e-payment
additionally brings up legal issues, for example, which laws are relevant in debated cases and which
jurisdiction will be competent, legitimacy of digital signatures and electronic contracts. A legitimate and
administrative structure that builds confidence and trust helping technical endeavors is a vital issue to be
tended to in executing e-payments.

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 3. Socio-Cultural Challenges
Social and cultural dissimilarities in outlooks and the utilization of various types of cash (e.g. utilization
of credit cards in North America and utilization of debit cards in Europe) muddle with the job of building
an electronic payment system that is relevant at a global level. As indicated by, discrepancy in the level of
the security required and productivity among individuals of various societies and the degree of
advancement worsens the issue. Buyer’s trust and confidence in the customary methods of payment make
clients more averse to embrace new innovations. New innovations won’t rule the marketuntil clients are
sure that their privacy is ensured and satisfactory confirmation of security is safeguarded. New advances
likewise need to stand the test of time so as to secure people’s confidence, regardless of the fact that it is
simpler to use and less expensive than the more established techniques.

Popularly Used E-Payment Systems

One of the best apparatus that the Internet offers in today’s world is the ability to shift one’s business
wherever they want by means of a website. This is the reason it became noticeably vital to buy by means
of the Internet through numerous payment service providers. Payment Service Provider is an organization
that offers online services related to marketing; it recognizes electronic payments by overseeing exchanges
amongst vender and purchaser.
The most well-known payment techniques that are typically provided are by bank transfer, real time orders
and credit card. Some popular systems of Online payments are:

10 Types of Digital Payment Methods in India

1. Banking cards
2. USSD
3. Aadhaar Enabled Payment System (AEPS)
4. UPI
5. Mobile Wallets
6. Bank pre-paid cards
7. Point of Sale (PoS)
8. Mobile Banking
9. Google pay
10. Amazon pay

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 1. Banking cards: Cards are among the most widely used payment methods and come with various
features and benefits such as security of payments, convenience, etc. The main advantage of
debit/credit or prepaid banking cards is that they can be used to make other types of digital
payments. For example, customers can store card information in digital payment apps or mobile
wallets to make a cashless payment. Some of the most reputed and well-known card payment
systems are Visa, Rupay and MasterCard, among others. Banking cards can be used for online
purchases, in digital payment apps, PoS machines, online transactions Banking, etc.

How to get Banking cards?

 Apply with your respective bank and provide Know Your Customer (KYC) details
 The card will get activated within a week and you will be allotted a 4-digit pin, which can be used for all
transactions

2. USSD: Another type of digital payment method, *99#, can be used to carry out mobile transactions
without downloading any app. These types of payments can also be made with no mobile data facility. This
facility is backed by the USSD along with the National Payments Corporation of India (NPCI). The main
aim of this type of digital payment service is to create an environment of inclusion among the underserved
sections of society and integrate them into mainstream banking. This service can be used to initiate fund
transfers, get a look at bank statements and make balance queries. Another advantage of this type of
payment system is that it is also available in Hindi.

How to Use *99#?

 This service can be used by dialling *99#, after which the customer can interact with an interactive voice
menu through their mobile screen.
 To use the service the mobile number of the customer should be the same as the one linked to the bank
account
 The next step is to register for USSD, MMID (Mobile Number Identifier) and MPIN

23
3. AEPS: Expanded as Aadhaar Enabled Payment System, AEPS, can be used for all banking transactions
such as balance enquiry, cash withdrawal, cash deposit, payment transactions, Aadhaar to Aadhaar fund
transfers, etc. All transactions are carried out through a banking correspondent based on Aadhaar
verification. There is no need to physically visit a branch, provide debit or credit cards, or even make a
signature on a document. This service can only be availed if your Aadhaar number is registered with the
bank where you hold an account. This is another initiative taken by the NPCI to promote digital payments
in the country.

How to use AEPS?

 It is very simple to use AEPs, all you need to do is to provide the accurate Aadhaar number and the
payment will be successfully made to the concerned merchant.

4. UPI: UPI is a type of interoperable payment system through which any customer holding any bank
account can send and receive money through a UPI-based app. The service allows a user to link
more than one bank account on a UPI app on their smartphone to seamlessly initiate fund transfers
and make collect requests on a 24/7 basis and on all 365 days a year. The main advantage of UPI is
that it enables users to transfer money without a bank account or IFSC code. All you need is a
Virtual Payment Address (VPA). There are many UPI apps in the market and it is available on both
Android and iOS platforms. To use the service one should have a valid bank account and a registered
mobile number, which is linked to the same bank account. There are no transaction charges for
using UPI. Through this, a customer can send and receive money and make balance enquiries.

How to use UPI?

Download the app on Android or iOS platform
Register for the service by providing bank account details
Create a VPA, get an MPIN

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 5. Mobile Wallets: A mobile wallet is a type of virtual wallet service that can be used by downloading
an app. The digital or mobile walletstores bank account or debit/credit card information or bank
account information in an encoded format to allow secure payments. One can also add money to a
mobile wallet and use the same to make payments and purchase goods and services. This eliminated
the need to use credit/debit cards or remember the CVV or 4-digit pin. Many banks in the country
have launched e-wallet services and apart from banks, there are also many private players. Some of
the mobile wallet apps in the market are Paytm, Mobikwik, Freecharge, etc. The various services
offered by mobile wallets include sending and receiving money, making payments to merchants,
online purchases, etc. Some mobile wallets may charge a certain transaction fee for the services
offered.

How to use a mobile wallet?

 Download the app
 Register for the service by following instructions and providing all details
 Load money

6. Bank pre-paid cards: A prepaid card is a type of payment instrument on to which you load money to
make purchases. The type of card may not be linked to the bank account of the customer. However, a debit
card issued by the bank is linked with the bank account of the customer.

How to Use a Prepaid Card?

 Apply for the card
 Get pin
 Load money from your bank account/debit card

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7. PoS terminals: Traditionally, PoS terminals referred to those that were installed at all stores where
purchases were made by customers using credit/debit cards. It is usually a hand held device that reads
banking cards. However, with digitization the scope of PoS is expanding and this service is also available
on mobile platforms and through internet browsers. There are different types of PoS terminals such as
Physical PoS, Mobile PoS and Virtual PoS. Physical PoS terminals are the ones that are kept at shops and
stores. On the other hand, mobile PoS terminals work through a tablet or smartphone. This is advantageous
for small time business owners as they do not have to invest in expensive electronic registers. Virtual PoS
systems use web-based applications to process payments.

8. Mobile Banking: Mobile banking is referred to the process of carrying out financial transactions/banking
transactions through a smartphone. The scope of mobile banking is only expanding with the introduction
of many mobile wallets, digital payment apps and other services like the UPI. Many banks have their own
apps and customers can download the same to carry out banking transactions at the click of a button. Mobile
banking is a wide term used for the extensive range or umbrella of services that can be availed under this.

9. Google pay : Google Pay Send is the peer-to-peer payment function of Google Pay. Individuals. can use
the service to send money to friends or other contacts by inputting their email address or phone number
into the application.Whoever receives the money must link the phone number or email address to a bank
account. Or if they have an existing Google Pay account, funds will post directly to that account. Payments
can be sent without fees through the app for Android, iOS or through one’s Google Pay account on the web.

26
10. Amazon pay: Amazon Pay speaks well to mobile users because it reduces the number of form fields
but at the same time also has the trust of Amazon behind it. Amazon is a company where consumers’
payment information has been stored for a long time. They trust where it is and they see no risk.

How to use amazon pay ?

1. Select amazon pay
2. Confirm information
3. Confirm purchase .

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1.8 SECURITY OF E-PAYMENT SYSTEMS

In all information systems, the security of data and information is of significant importance. Data Security
involves methodology, technology and practices which guarantee that data is secured from
i. alteration or unintentional change (integrity),
ii. ii. unauthorized access (confidentiality)
iii. iii. promptly accessible (availability) to approved clients on demand.
The electronic payment systems need to have all the above security features; an e-payment system which
is not secured will not be trusted by its clients. And, trust is extremely important to guarantee acceptance
from the clients. As indicated by, e-banking and e-payment applications have security issues as they rely
upon basic ICT frameworks that make vulnerabilities in economic organizations, businesses and can
possibly hurt clients.

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Security Requirements in E-Payment Systems

A safe economic exchange electronically needs to meet some prerequisites. They may be stated as
follows:

1. Integrity and Authorization

Integrity may be characterized as the validity, accuracy and completeness of data as per business qualities
and desires. In payment systems, integrity implies that no cash is taken from a client lest a payment is
approved by the client. Additionally, merchants need not accept any payment without the absolute
permission of the clients; this is alluring when clients need to keep away from unwanted briber.

2. Confidentiality
Confidentiality may be defined as the safety of private or sensitive data from unapproved divulgence. A
few organizations included may want to have confidentiality in their exchanges. Confidentiality in this
setting implies the confinement of knowledge about different snippets of data which are related to the
exchange; the verification of payer/payee, buy content, sum and so forth. Commonly, members included
want to guarantee that transactions are secret. Where untraceabilty or anonymity is sought, the
prerequisite might be to make available this information to only certain specific subsets among the
participants.

3. Availability and Reliability

Availability is guaranteeing that data frameworks and information are prepared for utilization when they
are required; regularly communicated as the rate of time that a framework can be utilized for profitable
work. All factions need to have the capacity to make or get payments whenever the need arises.

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1.9 ENHANCING E-PAYMENTS SECURITY

As per, the most widely recognized strategy for securing e-payments is utilizing cryptographic-based
innovations, for example, digital signatures and encryption. On application, these innovations lessen speed
and proficiency and thus trade off must be made amongst effectiveness and security. The following are a
few means to secure e-payments:

1. Secure Electronic Transaction (SET)

This is an open standard created by Visa and Master Card to give an answer for security related
issues for online payment system involving credit cards. This is accomplished by giving both client
and dealer a digital certificate. As indicated by, this was not welcomed by people since it was
complex and both client and dealer needed to download a software of 5MB.

2. 3D Secure
It is an alternative to SET created by Visa SET and does not oblige to have a certificate for
verification.

3. Smart Card Security

Information put on a smart card is encoded in nature and can’t be availed without a PIN/password
and hence good security is ensured. It is contended by53 that smart cards are ousting cards
involving magnetic strips i.e. credit cards, debit cards and so on. Legitimate arrangements,
methodology and proper Government laws should likewise be set up to guarantee advancements,
giving best possible security

30
1.10 ELECTRONIC SECURITIES

Definition

Electronic Security refers to any electronic equipment that

could perform security operations like surveillance, access
control, alarming or an intrusion control to a facility or an area
which uses a power from mains and also a power backup like
battery etc. It also includes some of the operations such as
electrical, mechanical gear. The determination of a type of
security system is purely based on the area to be protected and
its threats.

Role of Electronic Security System:

Electronic security relates to leveraging innovation in defensive holding by anticipating unapproved
access to individuals and property. The government is a universal and major customer of such security
administrations and business sections also utilize the security systems for their workers for giving
security. These days, one can witness their usage in the range like domestic applications and small stores
moreover.
The electronic security systems extensively comprise of alarms, access controls, and CCTVs (closed-
circuit televisions), which are prominently and broadly utilized. CCTVs have picked up additional
significance from all of these products.

Importance of Electronic Security System:

The electronic security systems are broadly utilized within corporate workplaces, commercial places,
shopping centers and etc. These systems are also used in railway stations, public places and etc. The
systems have profoundly welcomed since it might be worked from a remote zone. And these systems are
also utilized as access control systems, fire recognition, and avoidance systems, and attendance record
systems. As we know that the crime rates are increasing day by day so most people are usually not feeling
comfortable until they provide a sure for their security either it may be at the office or home. So we
should choose a better electronic system for securing purposes.

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Types of Electronic Security Systems

closed circuit
television

automated access
control systems

intrusion dectection
systems

Closed-circuit television (CCTV) is the use of video cameras to transmit a signal to a specific place, on
a limited set of monitors. It differs from broadcast television in that the signal is not openly transmitted,
though it may employ point to point (P2P), point to multipoint (P2MP), or mesh wired or wireless links.
Though almost all video cameras fit this definition, the term is most often applied to those used
for surveillance in areas that may need monitoring such as banks, stores, and other areas where security is
needed. Though Videotelephony is seldom called ‘CCTV’ one exception is the use of video in distance
education, where it is an important tool. This would be like the surveillance cameras you see in stores or,
depending on which country you live in, traffic cameras you find on stoplights. The system consists of 3
main components: cameras, which are used to view the area; recorders, which are used to record the video
the cameras capture; and a workstation, located in a remote access area, where security personnel is able
to monitor the state of the area they are trying to secure.

Automated Access Control Systems (AACS) regulate access to areas by interfacing with locking
mechanisms. The system will only allow entry after the credentials of the prospective visitor are verified;
examples of such a system would be doors that require pins or biometric information to allow entry. These
systems are not only capable of allowing or denying access but can also keep a log of all attempts to enter
the secure area they may even alert authorities of unauthorized attempts to gain entry. it provides detection
and audit to limit who can go where. They can be combined with assured physical barriers to provide
delay into a secure site or can be used with demarcation barriers i.e. half height gates, to provide the only
detection.

Intrusion Detection Systems (ID) is a device or software application that monitors a network or
systems for malicious activity or policy violations. These are systems that, use sensors to detect any
breaches to the secured area, if any breaches are detected then they trigger an alarm of some sort. This

32
system consists of two components, the sensor and Premise Control Unit (PCU) which monitors the status
of the alarm system and transmits the information to a remote monitoring station. The PCU also allows
authorized personnel to activate or deactivate the system. Sounds familiar? It might as this is the type of
system used in Home security systems, with the keypad being the PCU.

Issues of e-security

A. Client-side Security Issues

From the client's perspective, customer side security is regularly the significant concern. As a rule,
customer side security requires the utilization of conventional PC security advances, for example,
legitimate client confirmation and approval, get to control, and hostile to infection assurance. Concerning
correspondence benefits, the customer may moreover require server confirmation and non-revocation of
receipt. Furthermore, a few applications may require secrecy such as unknown perusing on the Web. Most
banks utilize single figure security setting framework is powerless against infection and digital assaults.
One of the critical normal for web based keeping money is that it can offer sheltered and customized client
benefit whenever, anyplace and at any rate. Without sound security insurance will cause web based saving
money exchange fall flat. Most basic attacks, for example, spying, mitm and so on can be .In a spying
assault, an inactive or dynamic system attacker tunes in on other clients' system activity, for example,
DNS questions, HTTP asks for and responses,etc. By spying on their system movement, an attacker isn't
just ready to learn delicate, individual data, for example, charge card information, budgetary means,
usernames, passwords, substance of email messages, and so forth., yet can likewise tune in on vital Web
metadata, for example, session identifiers or as far as anyone knows mystery treats. In a man-in-the-
middle attack (MitM), a dynamic system attacker positions himself in the system, between the casualty
and the focused on Web application. This position not just enables the attacker to assess all movement that
is sent between the casualty and the objective application, yet in addition permits alteration of the activity.

B. Server-side Security Issues

Server-side security is commonly the real worry from the specialist organization's perspective.
Server-side security requires legitimate customer validation and approval, non-disavowal of origin,
sender secrecy (e.g., mysterious distributing on the Web), review trail and responsibility, and additionally
unwavering quality and accessibility.

C. Network Security Issues

Packet sniffers are bits of programming that screen organize activity. At the point when information
exchanges from the customer's PC to the internet business site, it needs to go through numerous
associations. Thus, the information can be perused by any PC it goes through and an aggressor can sniff
the system effortlessly and take individual data, for example, Visa numbers and passwords.

D. Database threats
Online business frameworks store client information and recover item data from databases associated
with the web-server. Other than item data, databases associated with the web contain important and
private data that could hopelessly harm an organization on the off chance that it were revealed or modified.
A few databases store username/watchword matches in a non-secure manner. On the off chance that
somebody gets client confirmation data, at that point he or she can take on the appearance of a honest
to goodness database client and uncover private and exorbitant data

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SOLUTION FOR ELECTRONIC SECURITIES

1. Data Encryption
It is one of the chief security mechanisms employed in payment gateways. It is the responsibility of
payment gateway to ensure the protection of information (credit/ debit card details) supplied by the
customer from various types of network attackers. This sensitive information is forwarded by payment
gateways between customers and merchants in a secure way with the help of this method. The algorithm
employed for data encryption and key value determines the transformation of data. This payment
information when received by payment gateway is encrypted using public key of the payment gateway.
The decryption is possible only with the private key of payment gateway. So, the encryption process is
secure only as long as the keys are kept secret and this keeps the unauthorized parties from decrypting the
data in encrypted form. In this way, the data integrity is enhanced between the payment gateway and
merchant as well as the payment gateway and customer since no one can perform modification of data
during its transmission through the network. Thus, this method safeguards the customer’s details from
getting misused or stolen.

2. Data Field Encryption

Also known as end-to-end encryption, this method makes use of industry standard encryption for
preventing sensitive information to be read at the entry point only. Since the decryption key is accessible
to authorized parties only, the card details encrypted by payment gateway can be read by just those who
acquire the decryption key. Therefore, the access of the customer’s details by unauthorized parties is
reduced during the data transmission from payment gateway to bank.

3. Cryptography
Cryptographic techniques can be categorized as:
i) Symmetric cryptography and
ii) Asymmetric cryptography.
In symmetric cryptography, the same key is employed for encryption as well as decryption. This security
mechanism resembles a traditional lock and key in which the encryption algorithm works as a lock and
the card details can be locked or unlocked with a cryptographic key.
In asymmetric cryptography, encryption and decryption are done using two separate keys viz. the private
key and the public key. This mechanism resembles an electronic lock on a safe where encryption is done
using public key and decryption through private key. The customer’s sensitive information is encrypted
by the payment gateway with a public key that is known to everyone. It can however be decrypted by the
acquiring bank using the private key of gateway that is kept secret. Asymmetric cryptography has some
disadvantages like the keys shared between participating entities have to be updated at regular intervals
for providing a secure service and that it is slower as compared to symmetric cryptography.

34
4. Secure Sockets Layer (SSL)
Secure socketslayer is a standard security innovation for setting up an encoded interface between a server
and a customer—commonly a web server (site) and a program, or a mail server and a mail customer. SSL
permits touchy data, for example, Visa numbers, government disability numbers, and login accreditations
to be transmitted safely. Typically, information sent amongst programs and web servers is sent in plain
content—abandoning you helpless against spying. In the event that an assailant can capture all
information being sent between a program and a web server, they can see and utilize that data. All the
more particularly, SSL is a security convention. Conventions depict how calculations ought to be utilized.
For this situation, the SSL convention decides factors of the encryption for both the connection and the
information being transmitted.

Exchange security relies upon the association's capacity to guarantee protection, genuineness, honesty,
accessibility and the obstructing of undesirable interruptions . All programs have the ability to collaborate
with secured web servers utilizing the SSL convention. Be that as it may, the program and the server
require what is called a SSL Certificate to have the capacity to build up a protected association. SSL
secures a huge number of people groups' information on the Internet consistently, particularly amid online
exchanges or when transmitting secret data. Web clients have come to connect their online security with
the bolt symbol that accompanies a SSL-secured site or green address bar that accompanies an Extended
Validation SSL-secured site. SSL-secured sites additionally start with https instead of http. This is the
most broadly perceived security strategy, open key encryption; it ensures mystery, affirmation,
information uprightness, and non-disavowal of commencement and return.

5. Secure Electronic Transaction

Another standard protocol which is used as a security mechanism is Secure Electronic Transaction (SET)
that was developed by MasterCard and Visa in collaboration with companies namely VeriSign, Netscape
and Microsoft. Any transaction through SET involves three entities – merchant, payment gateway and
customer. The security features provided by SET include:
i. A secure channel of communication between the participating entities
ii. Restricting sensitive information to authorized parties only thereby providing privacy.
iii. A provision of trust by employing digital signatures
SET employs encryption techniques such as public key encryption and symmetric/asymmetric encryption
for transferring data securely among the participating entities. SET makes use of digital signature for
sending credit card number of the customer that is kept secret from merchant. The resulting data item is
referred to as PANSecret and is known only to the gateway and customer. Thus, SET ensures the secrecy
of customer payment information from the merchant. This is because payment gateway encrypts the
hidden data received with the help of a public key. Then, the hash values are compared in order to check
if the purchase amount is valid. Furthermore, it performs verification of PANSecret and PAN for
authenticating the account of cardholder. In this way, the basic security requirements i.e. confidentiality,
integrity and authentication are satisfied using such a security mechanism. SET, therefore, provides a
higher level of privacy and security to the participating entities by making use of digital signatures, verified
messages and public key certificates.

35
 6. Certification Authority
A novel approach for enhancing the payment gateway security was presented by Stephen Kent that
authenticates the authorities using certification in order to make online transactions more secure. In this
security mechanism, the first step involves the generation of Certificate Signing Request (CSR) that is
passed to Certification Authority. The unsigned certificate is hashed by the Certification Authority
followed by its encryption with the help of asymmetric algorithm. Subsequently, a signed certificate is
issued by the Certification Authority to the customer. Therefore, as per this model, certification authority
supplies digital certificates to users generating certificate signing request after verification of the same.

7. Public Key Infrastructure

A security mechanism is essential for safeguarding the sensitive information that is transmitted through
payment gateways (like credit/debit card numbers) from unauthorized parties. Public Key Infrastructure
(PKI) is another security mechanism that is employed for enhancing the security of e-commerce systems
by taking the services of certification authorities, digital certificates and various other registration
authorities. A PKI permits clients of the Internet and other open systems to participate in secure
correspondence, information trade and cash trade. This is done through open and private cryptographic
key sets gave by an endorsement expert.

PKI regularly requires an incorporated, exceptionally accessible mediator for key administration, and
particularly for incite warning about denied key-pairs. A PKI is an establishment on which different
applications and system security segments can fabricate. Frameworks that frequently require PKI based
security instruments incorporate E-mail, different chip card applications, esteem trade with E-business,
home saving money, and electronic postal frameworks. A declaration specialist (CA) is the substance
giving the keys. The private key will be given to the individual asking for the key. People in general key
is made open in an index for clients. Nobody can ever discover what somebody's private key is, failing to
be accessible on the Internet. The private key is utilized for demonstrating client character and encoding
the advanced authentication. The computerized authentication will be unscrambled by people in general
key, which is utilized by the message recipient. There are a few organizations empowering a PKI. The
enrollment procedure for an advanced authentication starts with an enlistment expert (RA). This
registration must happen before the CA knows regardless of whether the client will be issued an
endorsement. There are numerous pieces engaged with PKI. Legitimately empowered, these give smooth,
straightforward and secure interchanges.

36
 8. Pretty Good Privacy
PGP is a procedure utilized for scrambling and decoding computerized documents and correspondences
over the Internet. PGP chips away at the general population key cryptography system, where clients
scramble and decode information utilizing their individual open and private keys. PGP utilizes a symmetric
encryption key to encode messages, and an open key is utilized with each sent and got message. Initially,
the beneficiary must utilize its private key to decode the key and after that unscramble the message through
the decoded symmetric key. PGP likewise gives information/document trustworthiness benefits by
carefully marking messages, enabling collectors to learn regardless of whether message classification is
traded off. PGP is particularly utilized for E-mail security which can give Authentication and
Confidentiality. PGP is additionally used to scramble documents put away on a PC or potentially total
hard circle drives.

37
 CHAPTER 2

RESEARCH MEHODOLOGY

Research methodology is the specific procedures or techniques used to identify, select, process, and
analyse
information about a topic. In a research paper, the methodology section allows the reader to critically
evaluate a study’s overall validity and reliability. The methodology section answers two main questions:
How was the data collected or generated? How was it analysed?

Research methodology is a way to systematically solve the research problem. It may be understood as a
science of studying hoe research is done scientifically. Research Methodology does not talk of the research
methods but also consider the logic behind the methods used in the context of research study and explain
why we are using a particular method or technique and why not others.

The major steps involved are:

a. Formulating the research problem

b. Choice of research design

c. Source of data

d. Sample design and size

e. Processing and analysing the data

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2.1 OBJECTIVES

 To create awareness about various methods of electronic payment in India.

 To create awareness about various frauds of electronic payments in India.

 To understand the history of the electronic payment how it implemented and came to force.

 To understand working of various Electronic Payment System based applications.

 To bring out solution in the form of application to strengthen electronic payment in India.

 To identify the key security threats and possible security measures.

39
2.2 SCOPE OF STUDY

Electronic payment has gained a lot of curiosity in India have started to implement the same in their day to
day working. This new way of doing business is more efficient and convenient to both the banking system
and the customers. This research study has been made with an effort to study the prospects of Electronic
payment & Electronic security in India. A key aspiration of the study is to find out the factors that influence
an Electronic payment in the India. As it will be not possible to cover all the individual using electronic
payment .Therefore, It will generally covers 80 people in western side of the Mumbai city (age 16 and
above).

2.3 SIGNIFICANCES OF THE STUDY.

 This study will redound to be useful to the general public, bankers & businesses.

 It adds value to the existing knowledge on the E-Payment and E-security.

 The findings will allow the financial intitutions, businesses & government to offer a variety of
payment option.

 Other researchers will benefit from the same and will act as the basis for the further investigation.

 To develop the researching skill of the researcher.

40
2.4 LIMITATION OF THE STUDY

The limitations of the study are those characteristics of design or methodology that impacted or
influenced the interpretation of the findings from your research. Study limitations are the constraints
placed on the ability to generalize from the results, to further describe applications to practice, and/or
related to the utility of findings that are the result of the ways in which you initially chose to design
the study or the method used to establish internal and external validity or the result of unanticipated
challenges that emerged during the study. The research was carried based on primary and secondary data.
The primary data for research objectives was collected from the samples based in India.

THE LIMITATIONS OF THIS STUDY WERE:

• Demographic constraints: This is due to the restricted area of research for collection of data

• Unawareness: All people were not clear about E payment producure .

• Time constraints: The duration of the research is very limited. The topic being broad and which
requires in depth research, time allotted is very limited

• Difficulty in survey: Due to untimely response of the respondents, the surveying process was
Difficult

• Lack of prior research studies on the topic: There were very limited sources from where
secondary data could be obtained

41
2.5 RESEARCH METHODOLOGY

 Research Design:

Research design is the framework or Blueprint for conducting the research project. It specifies the methods,
procedure for collection of data, measurement and analysis to arrive at a meaningful conclusion of the
proposed study

This project is much of exploratory research as it provides insights into the problem. It is regarded as a
tentative or input for further research. It is flexible, and consists of secondary as well as s primary data

 Data Collection

METHODS OF DATA COLLECTION

Information accretion is a mid of the road organize among information gathering and examinations.
Information accretion includes characterizations and synopsis with exact end aim to make information
agreeable to examinations.

THE DATA PRESENTED IN THE RESEARCH CONSIST OF BOTH:

1. Primary data information
2. Secondary data information

1) PRIMARY DATA: These data are those which are collected a fresh and for the first time, and thus
happens to be original in character. Primary data has been collected during the course of doing experiments
in research and performing surveys
Here primary data is been collected by means of preparing questionnaires and getting it filled by a large
sample space.

2) SECONDARY DATA: it means the data that are already available i.e. They refer to the data which
already have been collected and analysed by someone else.Here the secondary data is collected from the
information available by various analysts through research
papers and internet

42
  Sample Design And Sample Size

Sample design is a definite plan for obtaining a sample from a given population. It refers to the technique
or the procedure the researcher would adopt in selecting items for sample

Here sample design- Random sampling

Sample size: This refers to the number of items to be selected from universe to constitute a sample. An
optimum sample is one, which fulfils the requirements of efficiency, representativeness, reliability and
flexibility

Here the sample size – 80 people

 Tools And Techniques Used

Questionnaire technique: A questionnaire is a list of questions or items used to gather data from respondents
about their attitudes, experiences, or opinions. Questionnaires can be used to collect quantitative and
qualitative data.

Here the questionnaire was form with the help of google forms and was forwarded to the respective
respondents.

43
 CHAPTER -3

LITERATURE REVIEW

MISS. R. ELAVARASI(2014) in her study on Customer Awareness and Preference towards E-Banking
Services of Banks studies about way us to customer awareness & to find out what they most preferred e-
banking services of banks. The researcher has identified which commercial bank provides better service
with regards to e-banking services to customers and also identified satisfaction level of customer view about
internet banking website of banks. The data analysis shows that age, educational qualification, occupation,
income level of customer are significant factor that decide usage of e-banking services of various banks in
the study area.

ANUSHU PREMCHAND (2015) In the modern society, no economic activity is possible without payments
and settlements. In this sense, it could probably be said that payment systems are one of the most imperative
and significant social infrastructures that we have. E-Payments are an increasingly important part of
payment systems. They allow for quick international connectivity in the payments world. E-Payment can
be looked as a panacea for most ills in payment world, if not all – financial inclusivity for unbanked, fast
across the world transactions, safety and security of payments and cost savings over traditional payment
systems. In this paper, we look at e-Payments, what they entail and basic payments infrastructure.

Sanghita Roy, Dr. Indrajit Sinha (2014) stated that E- payment system in India, has shown tremendous
growth, but still there has lot to be done to increase its usage. Still 90% of the transactions are cash based.
Technology Acceptance Model used for the purpose of study. They found Innovation, incentive, customer
convenience and legal framework are the four factors which contribute to strengthen the E- payment system.

Deepak Mathur (2017) E-commerce provides the capability of buying and selling products, information
and services on the Internet. In an ecommerce environment, payments take the form of money exchange in
an electronic form, and are therefore called Electronic Payment. E-Payment system is secure, there should
be no threat to the user credit card number, smart card or other personal detail, payment can be carried out
without involvement of third party, It makes E payment at any time through the internet directly to the
transfer settlement and form E-business environment.

STATE BANK OF INDIA, (2012) State Bank of India has initiated a new Electronic payment service
called the SBI Direct; this facility brings all the operations and transactions of the bank under the mobile
banking facility. According to State Bank of India, this facility allows its customers access to their accounts
any time and provides all the banking facilities with more facilities being added, available to its customers
any time of the day.

INDIA TODAY, (2012) In India, most of the leading banks provide internet banking facilities. In the
country, there are forty-two banks and the sector is led by National Microfinance bank but ICICI is currently
leading in the field of IT enabled banking services

44
Slozko & Pello, (2015) E-payment systems are important mechanisms used by individual and organizations
as a secured and convenient way of making payments over the internet and at the same time a gateway to
technological advancement in the field of world economy.

Rakesh H M & Ramya T J (2014) in their research paper titled “A Study on Factors Influencing Consumer
Adoption of Internet Banking in India” tried to examine the factors that influence internet banking adoption.
It is found that internet banking is influenced by its perceived reliability, Perceived ease of use and
Perceived usefulness. In the process of internet banking services expert should emphasize the benefits its
adoption provides and awareness can also be improved to attract consumers‟ attention to internet banking
services.

Kartikeya Bolar (2014) In his research paper “End-user Acceptance of Technology Interface In Transaction
Based Environment “stated that Creators and investors of technology need information about the
customers‟ evaluation of their technology interface based on the features and various quality dimensions
to make strategic decisions in improving technology interfaces and compete on various quality dimensions.

Nitsure (2014) in his paper observed that the problem being faced by developing countries like India in the
adoption of E-banking initiatives due to low dissemination of Information Technology. The paper
highlighted the problems such as security concerns, rules, regulation and management. In India there is a
major risk of the emergence of a digital split as the poor are excluded from the internet and so from the
financial system.

BERGER, ALLEN N, (2003) Electronic commerce can be described as any kind of commercial
transactions that comprise of exchange of information on the internet. Organizations engaged in e-
commerce exchange information related to their business through different means of electronic mediums
like internet, telephones and other information facilities. Electronic payment thus can be seen as a part of
electronic commerce that offers products and services like account information, payment options, transfer
of funds and opening and closing of accounts and other banking services.

AASTHAGUPTA (2013) describes that RBI played a significant role in developing the payment system in
the nation through its establishment. ATM also provide better alternative to traditional payment system.
RBI also enhance the payment system by introducing MICR, RTGS, Card based clearing etc. Rachna
(2013) describes that electronic payment system is the basis of on line payments and it make electronic
payment at any time through the internet directly to manage the e -business environment. The risk to the
on line payments are theft of payments data personal data and fraudulent rejection on the part of customer.

SINGH SUMANJIT (2009) highlighted that as payment is an integral part of mercantile process, electronic
payment system is an integral part of ecommerce. The emergence of e-commerce has created new financial
needs that in many cases cannot be effectively fulfilled by traditional payment systems.

Bradley and Steward, 2002) The banking institutions that have not upgraded their technology from time to
time have lost their market share by a considerable amount to other financial institutions. With the
advancement of technology, the data could be transferred from one country to the other within a short period
of time. Thus, it is becoming vital for successful banking because the work of the banks is more of
informational in nature.

45
 Lee (2003) states that the very common and practical technology acceptance model suffers from deficit in
providing adequate guidance to researchers. In spite of having an estimating power, it is not been able to
provide orderly assistance to scientists on how they can manipulate the mindset of people, so that they can
adopt e-payment.

Venkatesh and Bala (2008) have added to the technology adoption model and categorized the interventions
into two elements:
Pre-implementations
Post-implementations

Briggs and Brooks (2011) sees e-payment as a form of inter-connections between organizations and
individuals aided by banks and inter-switch houses that enables monetary exchange electronically.

Maryam Barkhordari, Zahra Nourollah, Hoda Mashayekhi, Yoosof Mashayekhi, Mohammad S. Ahangar
(2017) .The study investigates factors influencing trust in e-payments systems in Iran. Reviewed the
literature and decided on a set of factors influencing security and trust. Then they are tested by empirical
work using SEM. Potentially determinant factors of trust are developed which are technical and transaction
procedures, usability and access to security guidelines Findings revealed that technical & transaction
procedures, and access to security guidelines are significant factors for improving consumers’ perceived
security, while the most important factors influencing trust are access to security guidelines and security.
Finally, consumers’ perceived trust also has a positive impact on EPS adoption.

(Lietaer, 2002) 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.

46
 CHAPTER -4

DATA ANALYSIS, INTERPRETATION AND PRESENTATION.

Present chapter deals with conducted the presentation and interpretation of data. The data is presented as
per the requirement of the study, so as to fulfil the objectives of the study. One significant observation made
from the study was that the people do think that E-payment and E-security are important.
Thus, it is believed that this research to find out the how people know about the electronic payment and
security. Also find out what all barriers are faced by them while using e-payments.

SURVEY OBJECTIVE
• To investigate how convienent is electronic payment to the people.
• To examine whether electronic payment is better than cash.

47
Q.1 Age

 16- 20
 21-25
 26-30
 31 & above

7.50%
6.30%
27.50%

16-20
21-25
26-30
31 & ABOVE

58.80%

Interpretation

According to the survey conduced the maximum of respondents age range were between 21years - 25
years with 58.80%.
Between 16-20 years there were 27.50% and 26-30 years there were 6.30%.
Between 31 and above there were 7.50% people.
The very less age group were 16-18 years.

48
Q.2 Gender

 Male
 Female
 Other

45%, 45% female

55%, 55% male

Interpretation

From the above figure we can say that the maximum number of respondent participated were female with
55%.
And male participation were 45%.

49
Q.3 What do you prefer?

 Banking in personal
 Online banking
 Mobile banking

Mobile banking 57.50%

Online banking 60%

Banking in personal 63.70%

0.54 0.56 0.58 0.6 0.62 0.64 0.66

Interpretation:

From the above figure, we can understand that maximum people prefer banking in personal more.
As banking in personal has received 63.70% of the vote.
Online banking is preferred by 60% of the people and mobile banking is used by 57.70% of the
respondents.

50
Q.4 How often do you use internet banking?

 daily
 weekly
 monthly
 yearly
 never

7.50%, 8% 1.20%,
0, 0% 1%

21.30%, 21% Daily

weekly
monthly
yearly
never

70%, 70%

Interpretation

When the question was asked to the respondent that how often they use internet banking 70% of the
respondent answered for daily.
21% use weekly and 8% use monthly.
None of them use internet banking yearly.
Only 1% of the respondent never uses internet banking.

51
Q.5 How concerned are you about security on E-payment?

1=VERY MUCH
5=NOT AT ALL
80

70

60

50

40
71.3
30

20

10
8.8 11.3
6.3 2.5
0
1 2 3 4 5

Interpretation.

On the scale of 1-5 where 1 indicated very much and 5 indicated not at all, 71.3% of the respondent
answered that they are highly concerned about the securities on E-payment.
8.8% rated for 2 in the scale.
11.3% of respondent rated for neutral answer.
6.3% people rated for 4 in the scale & 2.5% respondent were not at all concerned about the security.

52
Q.6 According to you , would security be a factor at all in your choosing whether to business with an
internet?
 Yes
 No
 Maybe

11%

yes
no
may be

89%

Interpretation

From the above figure, we can understand 89% of respondent choose business with internet to be a factor
of security.
11% of people disagree to choose business with internet.

53
Q.7 Do E-Payments saves your time and money?

1=strongly agree
5= strongly disagree.

5 5%

4 0

3 2.50%

2 27.50%

1 65%

0% 10% 20% 30% 40% 50% 60% 70%

Interpretation

From the scale 1-5 where 1 being strongly agree and 5 being strongly disagree, 65% strongly agreed
that E-payment saves there time and money.
27.50% respondent raed 2 in the scale.
2.50% respondent rated to neutral that is 3 in the scale.
0% people rated to 4 and 5% strongly disagreed that e- payment save there time and money.

54
Q.8 How much do you trust electronic security?

1=highly trusted
5=not at all trusted
45.00%

40.00%

35.00%

30.00%

25.00%

20.00% 41.30%
35.50%
15.00%

10.00% 18.80%
5.00%
3.80% 3.80%
0.00%
1 2 3 4 5

Interpretation

From the scale of 1 to 5 where 1 indicated highly trusted and 5 indicated not at all trusted, 41.03%
respondent rated for highly trusted electronic security.
35.05% respondent rated for 2 in the scale and 18.80% people rated for neutral response.
For the scale of 4 & 5 there was tie,3.08% people don’t trusted at all the electronic security.

55
Q.9 Are E-payment better than cash?

1=strongly agree
5=strongly disagree
50.00%

45.00%

40.00%

35.00%

30.00%

25.00%
43.80% 43.80%
20.00%

15.00%

10.00%

5.00% 8.80%
3.80%
0.00% 0
1 2 3 4 5

Interpretation.

As per survey, from the above figure we can understand 43.80% strongly agree that e-payment is better
than cash.
43.80% rated to 2 in the scale that indicates they agree that E-payment is better than cash.
8.80% respondent answered for neutral.
3.80% think E-payment is not better than cash.

56
Q.10 What for you are the major barriers of E-payment?

 No Barriers
 Don’t trust the security
 finding the technology difficult
 inconvenient (takes too long)
 Network issue sometimes

6.30%, 6%1.20%, 1%
2.50%, 3%

12.50%, 13%

no barriers
don’t trust the security
finding the technology difficult
inconvenient (takes too long)
Network issue sometimes

77.50%, 77%

Interpretation.

Out of 100%, 77% people have no barriers with e payment,12.50% respondent do not have trust
the security of the e payment .
3% of the people are finding the technology difficult, 6.30% feel inconvenient using E-payment
.
1% respondent feel network issue sometimes.

57
Q.11 Can E-payment easily understood and readily adopted?

 yes
 No
 may be

6.30%, 6%
0, 0%

yes
no
maybe

93.80%, 94%

Interpretation.

From the above figure , 94% of respondent think E-payment can be easily understood and
readily adopted .6% of people think maybe E-payment can be easily understood and readily
adopted.

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 CHAPTER-5. CONCLUSION & SUGGESTION

5.1 CONCLUSION

The significance of electronic payment systems in global trade and commerce is quite evident from the
changing modern trends. Their scope ranges from one dollar transactions to several million dollar
transactions. This study gives a wide knowledge about electronic payment systems and their security
considerations. However, it has been found that payment gateways pose some security issues despite their
growing popularity and large-scale use. By looking through previous studies, it is possible to gain valuable
knowledge about the pros and cons of currently available electronic payment systems as well as the
available security mechanisms for the payment gateway. This paper has also analyzed the electronic
payment systems from adoptability point of view with the aim to provide a better customer understanding
and satisfaction.
A great deal of research on E- Business security is going on and numerous security items and frameworks
of online business are being produced and advertised. In this circumstance, take note of that security is a
framework property of the web based business. Not exclusively should web based business locales and
shoppers judge security vulnerabilities and survey potential specialized arrangements, they should likewise
evaluate, assess, and resolve the dangers included. Security, trustworthiness, privacy and non disavowal
are primary security measurement to ensure E-business exchanges against dangers. In this research
paper diverse methodologies has been introduced that expands the level of security measurements utilizing
cryptographic strategies.

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. E-commerce has its main link in its development
on –line in the use of payment methods, some of which we have analysed in this work .The risk to the
online payments are theft of payments data, personal data and fraudulent rejection on the part of customers.
Therefore, and until the use of electronic signatures is wide spread, we must use the technology available
for the moment to guarantee a reasonable minimum level of security on the network.

With respect to the payments methods they have been analysed in this work, it is impossible to say that any
one of them is perfect, although each one of them has advantages as opposed to others. If the client wants
to maintain privacy, then they choose those payment methods which guarantee a higher level of privacy
such as E-cash or Net Bill Checks. If the priority is security, they should use, Smart Cards. Both consumers
and service providers can benefit from e-payment systems leading to increase national competitiveness in
the long run. The successful implementations of electronic payment systems depends on how the security
and privacy dimensions perceived by consumers as well as sellers are popularly managed , in turn would
improve the market confidence in the system.

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5.2 SUGGESTION

1. Provide flexible Payment Options

A study by CyberSource Corp. found that websites providing 4 or more payment methods other than credit
cards had a sales conversion rate 12 % higher than those offering just one option. So, it is highly suggested
that you accept payment in many ways ranging from COD to bank transfer, Paypal, Braintree, credit cards,
debit cards, etc.
However, it is not necessary to accept all payment methods, you need to research your target audience and
find out which payment methods preferred among the majority and implement only these methods to your
store.
Besides, like retail giants – Amazon.com or Ebay.com – they allow payment in over 100 currencies, it will
be much better if you can accept payment in different currencies, at least two in category, your national one
and an international one.
Shortly, diversifying your payment methods is one way to make your customers ready to process to
checkout.

2. Allow Guest checkout

Many consumers are not ready to register or have to fill in usernames and passwords on online ecommerce
website. Some others do not intend to let you know their emails for fear of being flooded with promotional
emails.

The above issues are usually reasonable, and you should find comfortable ways to keep your visitors to the
rest of the checkout process. A research by Invesp in September 2013 shows that 64% of the top 200
ecommerce websites allow anonymous/guest checkout. So, try being open for onsite visitors to encourage
them finish their shopping cart.
However, in the long term, encouraging your customers to register an account and checkout as a member
will help your customer relationship management and give you ways to serve them better. Let them
understand their rights when becoming a member in your community.

3. Require Essential Information Only

As mentioned above, forcing customers to fill out more fields than necessary for making a purchase may
put a bad effect on your conversion.
A report published by Forrester found that 11% of U.S. adults abandoned an online purchase because they
either didn’t want to register or the site was asking for too much information. Not only does it prolong the
purchasing process but also disturbs people when having to type more, like a long accommodation or a long
email address.

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In the case of payment process, just the card number, the expiry date and the security code are enough. If
you absolutely need the extra information, such as a phone number, make sure to include an explanation
for why it’s required.

4. Have Clear Calls to Action

Don’t let your customers have to guess what to do next. If you don’t have any suggestion, you make the
suggestion for them to leave out. Therefore, when one adds an item to her card, make it clear they can
“Continue to checkout” or “Continue Shopping.” The trick is to make it specific and avoid being
ambiguous. Keep your website design visually actionable for users. Donʼt be afraid to design big shiny
buttons that really stand out. Make it easy for the eye to tell your primary CTA apart from the rest of your
page.

5. Give Security Assurance signals

The last tip is about SECURITY. Online purchasers take serious attitude to your compromise to keep their
information safe from hackers, esp. financial data or the bank account number.
A survey by eConsultancy found that 58% of respondents dropped out of the checkout page due to concerns
about payment security. Thus, remember to always showcase the security measures you have in place. For
example, you comply with the standards of the PCI Security Standards Council (PCI SSC). This is the first
thing to gain trust from your customers’ right after their buying actions and ensure the next deals in future.

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 CHAPTER – 6 : BIBLIOGRAPHY

 https://pdfcoffee.com/electronic-payment-current-scenario-and-scope-for-improvement-1-pdf-
free.html

 https://www.vapulus.com/en/types-of-electronic-security-
systems/#:~:text=Electronic%20Security%20refers%20to%20any,power%20backup%20like%20b
attery%20etc.

 https://www.lyra.com/in/e-
payments/#:~:text=An%20e%2Dpayment%20or%20Electronic,the%20services%20via%20electro
nic%20methods.&text=Normally%20e%2Dpayment%20is%20done,transfers%20are%20also%20
gaining%20popularity.

 https://www.met.edu/uploadfile/documents/Ms_Shreya_Jain_eMBA_student.pdf

 https://www.researchgate.net/publication/2624407_Electronic_Payment_Systems

 https://money.howstuffworks.com/personal-finance/online-banking/electronic-payment1.htm

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 CHAPTER-7 APPENDIX

A study on E-Payment & E-Security in India.

1. Age

o 16-20
o 21-25
o 26-30
o 31 & above

2. Gender

o Female
o Male
o Other

3. What do you prefer?

o Banking in personal
o Online banking
o Mobile banking

4. How often do you use internet banking?

o Daily
o Weekly
o Monthly
o Yearly
o Never

5. How concerned are you about security on E-payment?

Ratings from 1-5 (1= very much, 5=not at all)

o 1
o 2
o 3
o 4
o 5

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6. According to you, would security be a factor at all in your choosing whether to business with an
internet?

o Yes
o No
o Maybe

7. Do E-Payments saves your time and money?

o Strongly agree
o Agree
o Neutral
o Disagree
o Strongly disagree

8. How much do you trust electronic security?

Ratings from 1-5 (1=highly trusted, 5= not at all trusted)

o 1
o 2
o 3
o 4
o 5

9. Are E-payment better than cash?

o Strongly agree
o Agree
o Neutral
o Disagree
o Strongly disagree

10. What for you are the major barriers of E-payment?

o No barriers
o Do not trust security
o Finding technology difficult
o Inconvenient
o Other

11. Can E-payment easily understood and readily adopted?

o Yes
o No
o Maybe

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