ELECTRONIC PAYMENT SYSTEMS

MS. KRITI DHINGRA

 CONCEPT OF ELECTRONIC PAYMENT
SYSTEM

• An e-payment or digital payment system is a way of making transactions or

paying for goods and services through an electronic medium, without the use
of cheques or cash.
• EPS is a service that allows business parties to pay directly via
telecommunication system.
• The various factors that lead to make use of electronic payments are:
1. Decreasing technology cost
2. Reduced operational and processing cost
3. Increasing online commerce
 ADVANTAGES OF EPS

1. Time savings
2. Expenses control
3. Reduced risk of loss and theft
4. User-friendly
5. Easier and more convenient.
6. Waivers, discounts and cashbacks
7. Digital record of transactions
8. One stop solution for paying
9. Helps keep black money under
 DISADVANTAGES OF EPS

1. Restrictions
2. The risk of being hacked
3. The problem of transferring money between different
payment systems
4. The lack of anonymity
5. The necessity of Internet access
 DIGITAL PAYMENT REQUIREMENTS

• Atomicity
• Anonymity/Privacy
• Scalability
• Security
• Reliability
• Usability
• Inter-operability
VARIOUS METHODS OF EPS
 CREDIT CARDS

A credit card system is a credit system in retail transactions which has a preset spending limit based on the users
credit limit.

A credit card payment on the online network can be of three types:

1) Payment using plain credit card information
2) Payment using encrypted credit card details
3) Payment using third party verification
 ADVANTAGES OF CREDIT CARD

1) Flexibility
2) Accuracy
3) Convenience
4) Under certain circumstances, they allow you to withhold payments for
merchandise which proved defective
5) Cheaper
6) Can be used when we don’t have spare cash
7) Additional insurance over purchases, cash back etc.
 DISADVANTAGES OF CREDIT CARD

1) Buyers overspend
2) Interest is charged
3) Inconvenience when stolen
4) Debt as a result of use of large number of credit cards may increase
5) Risk is there when used everywhere – i.e. fraudulent cases are there
 DEBIT CARDS

Payment card that transfers funds directly from the customer bank
account to the merchants. A credit card is way to pay later but a debit
card is a way to pay at the moment.
 ADVANTAGES OF DEBIT CARDS

• Highly Convenient
• Handy Cash card
• Pin number Protection
• Anyone Can Have One
• Strong Budgeting Tool
 DISADVANTAGES OF DEBIT CARDS

• Does not help One’s Credit Score

• Fees Galore
• Instant Money Means Instant Risk
• Merchant Blocks
 SMART CARDS

• It is a plastic card of the size of a credit card with an integrated circuit

built into it.
• Contains Integrated circuit, a non volatile memory and Microprocessor.
• Contains encrypted key and is compared to secret key contained on
user's processor
• Contains private user information such as financial facts, private keys,
account information, health insurance information etc.
 ADVANTAGES OF SMART CARDS

• Data exchange through these can be seen easily due to its portability
and size and convenience
• These can store and process information and are fully interactive
• It contains stored value which provides users with the ability to make
purchases
• These are secure, compact and intelligent data carriers.
• Time saving device that can access information without use of PC or the
Internet
 ELECTRONIC WALLETS(E-WALLETS)

• Electronic wallet is like physical wallet.

• An electronic wallet has the memory for storing the balance of an account in a
financial institution.
• It can hold credit cards, e-cash, owner’s identification and address.
• Electronic wallets make online shopping a convenient one.
 ADVANTAGES OF E-WALLETS

• Ease of use
• Ease of access
• Ease for instant payments
• Enables synchronization of data from multiple platforms.
 DISADVANTAGES OF E-WALLETS

• Mobile network connectivity

• Security issues
• Enough support infrastructure is not available
• Lack of digital literacy
THANK YOU!