Nowadays, the Indian e-commerce market prospers and grows at an enormous pace, whereas new technologies are adopted rapidly. Consumers adore being able to use various payment methods and have such payments diversified is a must-have for any e-commerce business. Customers have the choice of picking up the exact methods, which they are comfortable with hence more and more transactions online are carried out by using e-payments.
Due to the global pandemic online sales grew rapidly hence demand e-payments also was increased as well as bitcoin merchant account services. More enterprises now offer goods and services that are reaching customers via online sales.
On the other hand, any online business must ensure maximum security and transparency of its services and transactions that go with it. For that reason, it is vital to know everything that is hidden behind e-payments and their transactions. VipBox alternatives
How e-payment system is defined?
Any system that is associated with e-commerce comes closely with e-payments and uses electronic methods to execute the transactions. Those transactions are known as an online payment system. There are various methods are used to carry out e-payment transactions such as stored-value card instruments, direct debit, use of debit cards, e-checks, using credit cards. In addition, alternative methods can be used, including bank transfers, using bitcoin as well as e-wallets.
E-payment system types
Payments online may be executed by using several methods, including:
- Card payments are executed by the use of online merchants and done by store cards, debit cards, smart plastic cards, and credit cards.
- Internet banking assumes that digital payments are used to make a certain amount of funds transfer. Such transfer is done via the use of the internet directly between banks. There are several modes like RTGS, NEFT, or IMPS that are extremely popular.
- A smart card is defined as a card that has a chip with a microprocessor and is directly involved in the execution of the transaction.
- Debit card and its close relative Credit card, where the payment is made by providing details of the card that is held by the customer.
- Direct debit is the transaction that requires its execution with the help of a third party.
- Stored value cards are the method of an e-payment that involves a card where a certain amount of money has been stored. On the other hand, those are prepaid cards.
- E-checks are very similar to traditional paper checks and differ in that the transaction is done digitally.
- E-cash assumes that a person stores some cash on a certain device and then it is used to carry out an e-payment.
- Alternative payment methods evolve rapidly and altering fast. New features are constantly added and regarded to be very convenient by customers.
- Mobile wallet is a very user-friendly tool and a modernized form of an e-wallet but with the use of mobile devices. It gains lots of popularity and stores cards information too.
- An E-wallet is a very swift and precise way of e-payments. Accounts are prepared in advance and very easy to use as well as can be opened immediately.
- QR payments can be defined as Quick Response code. It contains a pixel pattern as well as squares or a traditional bar code. Information about the transaction is stored in the code and then the transaction is executed. In order to do this, the code is scanned via the use of a mobile and portable device.
- UPI is associated with the National Payment Corporation of India or NPCI. It is regarded as an instant way to make e-payments in absolute real-time. It is also a so-called Unified payment interface and provided by the use of the application stored on a portable device.
- Contactless payments are executed by using technologies such as NFC and RFID. In order to do the payment, the device must be tapped or hovered past the scanning screen. It is also known as “tap and go”
- Wearable device payments are done by smartphones these days. But in the future other devices may be used.
- Biometric payments are executed by making scans of the human body. It includes recognition of the face, a scan of fingerprints, or even an eye scan. Their biggest advantage of such a method is the PIN codes are skipped completely.
- AI-based payments are considered the most advanced and revolutionary. This is all due to the fact that Artificial technology methods are used in it. It may involve things like chatbots, learning tools, or speakers.
The way e-payment system functions
The following bodies making part of the payments system:
- The cardholder or a customer;
- The merchant;
- The acquirer;
- The bank, which participates in the payment;
- Payment gateway;
- Body, which is responsible for processions of payment.
The function of the system can be made by the following:
- Payments are initiated by the decision made by the customer who finalizes the service or a product as well as makes payment initiative. After picking up the method of payment, the customer has to go to the payment page and enter things like CCV code, PIN, personal details, expiry date, etc. then the process goes further.
- The authenticity of made payment is when all submitted information must be authorized and checked by the operator. This individual may also be regarded as the payment gateway. If all things are fine the operator gives the green light for the transaction. If there are any problems with authenticity, the transaction will not be carried out.
- The settlement of payment is when the transfer of funds is completed and money is transferred to the other bank as well as ends up on the other account.
Advantages of e-payment and its system
Shopping and banking have become more convenient and transactions are faster and more secure.
The trend of accepting e-payments has become the must-have for all online businesses and make online shopping more comfortable.
Easier integration of payments and modern solutions as well as actual processing.
Access to goods and services online is mode easier and payments can be made at any time.
It is absolutely reliable and safe as well as helps to combat fraud and crooks, so customers and merchants are the winning parties here.
e-payments are ideal for international transactions and for e-commerce environment as it is done in real-time.
By getting involved in the e-commerce business it is crucial to find out what your potential customer e-payment method is the favorite. It has to be exceptionally convenient and come closer to solutions and services that a certain business provides. You can visit for Google Picasa Alternatives