DEPARTMENT OF BUSINESS MANAGEMENT

DR. HARI SINGH GOUR A CENTRAL

UNIVERSITY SAGAR, (M.P)

ASSIGNMENT OF E-MARKETING
On

SUBMITTED TO: -
DR. BABITA YADAV
(Assistant Professor)

SUBMITTED BY:-
RONAK JAIN (Y16180509)
{BBA (HONS.)- V SEMESTER}
 TABLE OF CONTENTS

S.NO TITLE
1. WHAT IS ELECTRONIC PAYMENT SYSTEM
2. LIMITATIONS OF TRADITIONAL PAYMENT SYSTEMS IN
THE CONTEXT OF ONLINE PAYMENTS
3. IMPORTANCE OF E- PAYMENT SYSTEM
4. ADVATAGES OF E-PAYMENT SYSTEM
5. DISADVANTAGES OF E- PAYMENT SYSTEM
6. ELECTRONIC PAYMENT PROCESS
7. TYPES OF E-PAYMENT SYSTEM
8. COMPARISON OF E- PAYMENT SYSTEM
9. DIGITAL PAYMENT LANDSCAPE IN INDIA
10. FUTURE SCOPE
11. COCLUSION
WHAT IS THE ELECTRONIC PAYMENT SYSTEM?

An e-payment system is a way of making transactions or paying for goods and services
through an electronic medium, without the use of checks or cash. It’s also called an electronic
payment system or online payment system. The main purpose of the e-payment system was
growth of the economy and Indian people can do work paperless by the internet.

The electronic payment system has grown increasingly over the last decades due to the
growing spread of internet-based banking and shopping. As the world advances more with
technology development, we can see the rise of electronic payment systems and payment
processing devices. As these increases, improve, and provide ever more secure online
payment transactions the percentage of check and cash transactions will decrease.

Forexample: - Online Reservation, Online bill payment, Online order placing, online ticket
booking (movie).

Issues of trust and acceptance play a more significant role in the e-commerce world than in
traditional businesses as far as payment systems are concerned. Traditionally, a customer sees
a product, examines it, and then pays for it by cash, check, or credit card (Figure-1). In the e-
commerce world, in most cases the customer does not actually see the concrete product at the
time of transaction, and the method of payment is performed electronically.

FIGURE-1

Traditional payment scheme

EPSs enable a customer to pay for the goods and services online by using integrated
hardware and software systems. The main objectives of EPS are to increase efficiency,
improve security, and enhance customer convenience and ease of use. Although these
systems are in their immaturity, some significant development has been made. There are
several methods and tools that can be used to enable EPS implementation.

(Figure -2)
Electronic payment scheme
While customers pay for goods/services by cash, check, or credit cards in conventional
businesses, online buyers may use one of the following EPSs to pay for products/services
purchased online:

I. Electronic funds transfer (EFT)

II. Payment cards
III. Credit cards
IV. Smart cards
V. Electronic money (e-money/e-cash)
VI. Online payment
VII. Electronic wallets (e-wallets)
VIII. Micro-payment systems
IX. Electronic gifts:
Although these groups appear to be separate, there is some overlap among them. When the
industry matures, this duplication in naming and function ought to be renamed. For example,
e-wallets can be classified as payment cards when they are used to store credit card
information or as e-money when they store electronic currency.

The standardization of payment mechanisms on the Internet is essential to the success of e-

commerce. Businesses offering domestic and international services must have assurance that
payment will be received, that it is secure and that it is valid. Addressing security issues is
crucial to the acceptance of online payment standards: consumers and merchants must be able
to trust that their information is kept intact and remains secure during transmission. SET and
SSL are two standards that protect the integrity of online transactions.

LIMITATIONS OF TRADITIONAL PAYMENT SYSTEMS IN THE CONTEXT OF

ONLINE PAYMENTS

Several limitation of traditional payment system in the context of e commerce can be

outlined.

a) Lack of usability

b) Lack of security

c) Lack of eligibility

d) High usage costs for customers and merchants

e) Lack of efficiency

f) Lack of consistency
IMPORTANCE OF ELECTRONIC PAYMENT SYSTEM

With the advancement in telecommunication, electronic payment systems are rapidly

replacing the traditional modes of payment that involved personal contact between buyers
and sellers. Electronic payment systems entail online financial transactions that utilize some
form of a digital financial device, such as e-tokens, e-cash and checks. E-payment systems
present a number of benefits to both individuals and businesses.

Variety of Choices-

Electronic payment systems allow financial institutions, businesses and the government to
offer a variety of payment options to their customers. These systems include automated teller
machines, debit cards, credit cards, mobile banking and payment of bills through the phone.
Traditional business payments systems depends mainly on a limited number of the business
outlets situated in different locations. This limits the client coverage; however – through
Internet services – systems that rely on e-payment are available to a large number of clients.

Reduced Cost

E-payments systems result in reduced costs for both businesses and individuals. Businesses
save on operational and processing expenses mainly due to reduction in technological costs –
for example, the use of the Internet and the acquisition of computers and other machines.
Expenditures in paper and postage is cut down along with time spent in executing personal
transactions. These reduced costs are often passed down to customers who in turn pay fewer
fees associated with transferring money or making payments. Customers also save on time
spent in dealing with personal transactions as in traditional payment systems.

Reliability

The use of e-payments cancels out the use of drafting checks, transmitting cash and invoices
for both businesses and customers. This allows for faster execution of transactions – for
example, you do not have to wait for the 30 days required in invoicing transactions. Credit
cards also allow for customers to partake in transactions without immediate cash.
Security

The traditional payment systems mainly involved clients sending their confidential
information via post or physically visiting the transaction site. This presented a number of
security risks – for example, your mail may get lost or fall into the wrong hands.
Additionally, places where financial transactions take place are targets for criminal attacks.
E-payment systems offer encrypted services which protect the clients’ private information
during transmission and you do not even have to leave your home.

ADVANTAGES OF ELECTRONIC PAYMENT SYSTEM-

1. Time savings-

Money transfer between virtual accounts usually takes a few minutes, while a wire
transfer or a postal one may take several days. Also, you will not waste your time waiting
in lines at a bank or post office.

2. Increased Speed and Convenience-

E-payment is very convenient compared to traditional payment methods such as cash or

check. Since you can pay for goods or services online at any time of day or night, from
any part of the world, you don't have to spend time queuing in banks or merchant offices
waiting for your turn to transact. Nor do you have to wait fora check to clear the bank so
you can access the funds. E-payment also eliminates the security risks that come with
handling cash money.

3. User-friendly-

Usually every service is designed to reach the widest possible audience, so it has the
intuitively understandable user interface. In addition, there is always the opportunity to
submit a question to a support team, which often works 24/7. Anyway you can always get
an answer using the forums on the subject.
 4. Reduced Transaction Costs-

While there are no additional charges for making a cash payment, trips to the store
typically cost money, and checks also need postage. On the other hand, there are usually
no fees – or very small ones – to swipe your card or pay online. In the long run, e-
payment could save both individuals and businesses hundreds to thousands of dollars in
transaction fees.

5. Reduced risk of loss and theft-

You cannot forget your virtual wallet somewhere and it cannot be taken away by robbers.
Although in cyberspace there are many scammers, in one of the previous articles we
described in detail how to make your e-currency account secure

6. Nowadays, many types of mobile apps are also available in the play store, through e-
payment, you can easily pay anytime anywhere for shopping or paid your electricity
bill, water bill, tax, mobile bill etc

7. Where internet facility is available, you can take advantage of e-payment facility.
8. You can transfer money sitting at the home through online From one bank to another
bank.

9. If you do not have money in your bank account, you can also shop in such a situation,
if you have a credit card.
10. You can do easily online e-payment any type of medical bill, hospital bill, etc.

DISADVANTAGE OF E- PAYMENT SYSTEM

1. Restrictions-

Each payment system has its limits regarding the maximum amount in the account,
the number of transactions per day and the amount of output.

2. The necessity of Internet access-

If Internet connection fails, you cannot get to your online account.

 3. The problem of transferring money between different payment systems.
Usually the majority of electronic payment systems do not cooperate with each other.
In this case, you have to use the services of e-currency exchange, and it can be time-
consuming if you still do not have a trusted service for this purpose. Our article
on how to choose the best e-currency exchanger greatly facilitates the search process.

4. There are many mobile apps are available in the mobile play store, you can easily pay
any of your payment with the help of these apps, but in way, it is harmful as it, which
is also harmful you don’t know who made that app. And you do all the transaction s
of your bank ,by entering the ATM PIN, Credit card number and PIN and your
internet banking login password and all information can go the app developer ,if the
developer is a liar tour entire money can be stolen your bank account in one minute.

5. E-Payment is a currency that you do not see, so you spend more, without any
temptation

ONLINE PAYMENT PROCESS-

In discussing the online payment process, the example of a credit card has been taken for
transaction as this is most commonly use when making payments for the purchases made
online.

Online Credit Card Payment Process

In the processing of a credit card payment, there are several entities that play important roles
to make the online payment possible. For the payment to be successful, merchants must
connect to a network of banks (both acquiring and issuing banks), processors, and other
financial institutions so that the information provided by the customer can be routed securely.

1. Cardholder –

The individual or the entity or simply the customer that uses his credit card to pay the
purchases made online.
2. Issuing Bank –

The financial institution that issues a credit card to the cardholder. The issuing bank
establishes and verifies the cardholders’ credit line to see if he has available credit to
purchase a product/service and it provides the cardholder with the monthly billing
statements, etc.

3. Credit Card Issuer/Association –

A financial institution that provides credit cards and other products for banks who
privately brand the products such as Visa International or Master Card International. Also
they often set up programs for merchants to accept the cards. Also they are involved in
operating and managing the authorization and settlement systems worldwide.

4. Merchant –

The entity or an individual that is selling products/goods or services. Goods can be

either hard goods (tangibles) such as apparel, computer hardware any kinds of goods
that is possible to sell over the Internet or soft goods (intangibles) such as service
contracts or pay-per-view content.

5. Acquiring Bank –

An entity that is often referred to as the merchant bank or acquirer. It is the financial
institution that enables merchants to accept credit card payments. The acquiring bank
often works with the third-party processor to accept or decline the cardholder’s credit
card purchase or request, deposits funds into the merchant’s bank account, provides
the merchant with the periodic deposit statements, etc.

6. Payment Application –
The application that is used by the merchant to request credit card authorization and
settlement of funds between the merchant and the acquiring bank. This application
can either be self-managed application or can be an outsourced service.
7. Third-party Processor –
Also known as payment processing networks, frontend processors, or just processors,
the organization that works with an acquiring bank (merchant bank) to process credit
card transactions via the card issuers/associations. The third-party processor
communicates to the card associations/issuers to obtain authorizations and execute
fund transfers. In some cases, the acquiring bank and the third-party processor may be
the same entity.

8. Independent sales organization (ISO)-

An independent agent that solicits prospective merchants for merchant banks, ISOs
are also referred to as merchant account providers. ISOs assist merchants in setting up
merchant accounts and ensure that the accounts connect to the third-party processors.
ISOs may either assume partial or shared financial liability for merchant activity.
TYPES OF E-PAYMENT SYSTEM:-

1) Credit cards: -

There are two types of credit cards on the market today: • Credit cards issued by credit
card companies (e.g., MasterCard, Visa) and major banks (e.g. Is Bankasi, Ziraat
Bankasi, Yapi Kredi, etc.) Credit cards are issued based on the customer's income level,
credit history, and total wealth.
The customer uses these cards to buy goods and services or get cash from the
participating financial institutions. The customer is supposed to pay his or her debts
during the payment period; otherwise interest will accumulate. Two limitations of credit
cards are their unsuitability for very small or very large payments. It is not cost-justified
to use a credit card for small payments. Also, due to security issues, these cards have a
limit and cannot be used for excessively large transactions. • Credit cards issued by
department stores (e.g. Boyner), oil companies (e.g. Shell) Businesses extremely benefit
from these company cards and they are cheaper to operate. They are widely issued to and
used by a broad range of customers. Businesses offer incentives to attract customers to
open an account and get one of these cards.
A Credit card is a piece of plastic, 3-1/8inches by 2-1/8 inches in size that carries
information that allow you to make purchase now pay for them later. (Kaur M, 2012).
Credit cards from visa master card or any other network allow you to pay for purchase or
services by borrowing from the credit card company. To purchase goods from merchant
who accept credit card such as merchant has credit card reader to purchase the payment
transaction to withdraw cash from ATM. You then repay by making monthly payment
toward the amount borrowed ,that is you don’t have to repay the whole borrowed amount
in fill at one go.

2) Debit Card: -

Debit card is a prepaid card and also known as ATM card. An individual has to open an
account with the issuing bank which gives debit card with a personal id number, when he
makes a purchase he enter his pin number on shop pin pad.
 When the card is slurped through the electronic terminal it dial the acquire a banking
system either master card or visa card that validate the pin and finds out from the issuing
bank whether to accept or decline the transaction the customer can never overspend
because the system reject any transaction which exceeds the balance in his account the
bank never faces a default because the amount spent is debited immediately from the
customer account With almost every bank account you are issued a debit card.
The difference between credit cards and debit cards is that in order to pay with a debit
card you need to know your personal identification number (PIN) and need a hardware
device that is able to read the information that is stored in the magnetic strip on the back.
Debit cards task similar to checks in that the charges will be taken from the customer's
checking account. The benefit for the customer is the easiness of use and convenience.
These cards also keep the customer under his or her budget because they do not allow the
customer to go beyond his or her resources. The advantage to the merchant is the speed
at which the merchant collects these charges.

3) Smart card:-
A smart card is about the size of a credit card, made of a plastic with an embedded
microprocessor chip that holds important financial and personal information. The
microprocessor chip is loaded with the relevant information and periodically recharged.
In addition to these pieces of information, systems have been developed to store cash
onto the chip. The money on the card is saved in an encrypted form and is protected by a
password to ensure the security of the smart card solution. In order to pay via smart card
it is necessary to introduce the card into a hardware terminal. The device requires a
special key from the issuing bank to start a money transfer in either direction. Smart
cards can be disposable or rechargeable. A popular example of a disposable smart card is
the one issued by telephone companies. After using the pre-specified amount, the card
can be discarded.

Smart card was first introduce in Europe most of these method are known as stored
value card .A smart card is about the size of a credit card, made of a plastic with an
embedded microprocessor chip that holds important financial and personal information.
The microprocessor chip is loaded with the relevant information and periodically
recharged.
 In addition to these pieces of information, systems have been developed to store cash
onto the chip. The money on the card is saved in an encrypted form and is protected by a
password to ensure the security of the smart card solution. In order to pay via smart
credit is necessary to introduce the card into a hardware terminal. The device requires a
special key from the issuing bank to start a money transfer in either direction. Smart
cards can be disposable or rechargeable.

4) Digital Wallet (Electronic wallet):-

Electronic wallets being very useful for frequent online shoppers are commercially
available for pocket, palm-sized, handheld, and desktop PCs. They offer a secure,
convenient, and portable tool for online shopping. They store personal and financial
information such as credit cards, passwords, PINs, and much more (KaurM, 2012) .To
facilitate the credit-card order process, many companies are introducing electronic wallet
services. E-wallets allow you to keep track of your billing and shipping information so
that it can be entered with one click at participating merchants' sites. E-wallets can also
store e checks, e-cash and your credit-card information for multiple cards.

A popular example of an e-wallet on the market is Microsoft Wallet. To obtain Microsoft

Wallet, one needs to set up a Microsoft Passport. After establishing a Passport, a
Microsoft e- wallet can be established. Then, e-wallets can be used for micro-payments.
They also eliminate re-entering personal information on the forms, resulting in higher
speed and efficiency for online shoppers. Microsoft Passport consists of several services
including the following - A single sign-in, wallet and kids passport services. A single
sign-in service allows the customer to use a single name and password at a growing
number of participating e-commerce sites. The shopper can use to make fast online
purchases with a wallet service. Kids' passport service helps to protect and control
children's online privacy.
5) Electronic Cheque: -
Electronic cheque is messages that contain all the information that is found on an
ordinary Cheque but it uses digital signature for signing and endorsing and has digital
certificate to authenticate bank account. There are many websites that accept Electronic
Cheque .An electronic payment process that resembles the function of paper cheques but
offers great security and more features. Electronic checks are typically used in orders
processed online and are governed by the same laws that apply to paper checks.
Electronic checks offer protective measures such as aunthentification and digital
signatures to safeguard digital transactions.

6) Electronic cash: -
Similar to regular cash, e-cash enables transactions between customers without the need
for banks or other third parties. When used, e-cash is transferred directly and
immediately to the participating merchants and vending machines. Electronic cashes a
secure and convenient alternative to bills and coins. E-cash usually operates on a
smartcard, which includes an embedded microprocessor chip. The microprocessor chip
stores cash value and the security features that make electronic transactions secure. when
e cash created by one bank is accepted by other reconciliation must occur without any
problem cash must be storable and receivable. Most E-cash is transferred directly from
the customer's desktop to the merchant's site. Therefore, e-cash transactions usually
require no remote authorization or personal identification number (PIN) codes at the
point of sale. E-cash can be transferred over a telephone line or over the Web. The
microprocessor chip embedded onto the card keeps track of the e-cash transactions.
Using e-cash the customer has two options: a stand-alone card containing e-cash or a
combination card that incorporates both e-cash and debit. How a typical e-cash system
works: A customer or merchant signs up with one of the participating banks or financial
institutions. The customer receives specific software to install on his or her computer.
The software allows the customer to download “electronic coins” to his or her desktop.
The software manages the electronic coins.
 The initial purchase of coins is charged against the customer's bank account or against a
credit card. When buying goods or services from a web site that accepts e-cash, the
customer simply clicks the “Pay with e-cash” button. The merchant's software generates
a payment request, describing the item(s) purchased, price, and the time and date. The
customer can then accept or reject this request. When the customer accepts the payment
request, the software residing on the customer's desktop subtracts the payment amount
from the balance and creates a payment that is sent to the bank or the financial institution
of the merchant, and then is deposited to the merchant's account. The attractive feature of
the entire process is its turnaround time which is a few seconds. The merchant is notified
and in turn ships the goods.

DIFFERENCE BETWEEN E PAYMENT SYSTEMS

FEATURE CREDIT E-CASH E- SMART DEBIT

CARD CHEQUE CARD CARD
Actual payment Paid later Prepaid Paid later prepaid Prepaid
time
Online and offline Online Online Offline Offline Offline
transaction transaction transaction transfer transfer transfer
Bank account Credit card No Account Account Account
involvement account involveme makes the makes the makes the
makes the nt payment payment payment
payment
Users Any Anyone Anyone with Anyone with Anyone
legitimate a bank a bank and with a bank
card users account credit card and credit
account card
account

Party to which Distributing Store Store Store Store

payment is made bank
Small payment Transaction Transactio Allows Transactional Transaction
costs are n costs are stores costs are costs are
high. Not low, To low. Allows low.
suitable for suitable accumulate stores to Allows
small for small debts until it accumulate stores to
payments payments reaches a debts until it accumulate
limit before reaches a debts until
paying for it. limit before it reaches a
Suitable for paying for it. limit before
small Therefore, it paying for
payments is suitable for it. It is
small suitable for
payments small
payments
Transaction Can be Face value Can be Can be Can be
information face signed and is often signed and deducted deducted
value issued set, and issued freely freely in freely in
freely in cannot be in compliance compliance
compliance changed compliance with the limit with the
with the with the limit
limit limit
Limit on transfer Depends on Depends No limit Can be Can be
the limit of on how deducted deducted
the credit much is freely in freely in
card prepaid compliance compliance
with the limit with the
limit
Mobility Yes No No Yes Yes
OTHER PAYMENT SYSTEMS

1. Pre-paid Payment Systems

Pre-paid instruments are payment instruments that facilitate purchase of goods and services
against the value stored on these instruments. The value stored on such instruments represents
the value paid for by the holders by cash, by debit to a bank account, or by credit card. The
pre-paid payment instruments can be issued in the form of smart cards, magnetic stripe cards,
internet accounts, internet wallets, mobile accounts, mobile wallets, paper vouchers, etc.

Subsequent to the notification of the PSS Act, policy guidelines for issuance and operation of
prepaid instruments in India were issued in the public interest to regulate the issue of prepaid
payment instruments in the country.

The use of pre-paid payment instruments for cross border transactions has not been permitted,
except for the payment instruments approved under Foreign Exchange Management Act,1999
(FEMA).

2. Mobile Banking System

Mobile phones as a medium for providing banking services have been attaining increased
importance. Reserve Bank brought out a set of operating guidelines on mobile banking for
banks in October 2008, according to which only banks which are licensed and supervised in
India and have a physical presence in India are permitted to offer mobile banking after
obtaining necessary permission from Reserve Bank.

The guidelines focus on systems for security and inter-bank transfer arrangements through
Reserve Bank's authorized systems. On the technology front the objective is to enable the
development of inter-operable standards so as to facilitate funds transfer from one account to
any other account in the same or any other bank on a real time basis irrespective of the
mobile network a customer has subscribed to.
 3. ATMs / Point of Sale (POS) Terminals / Online Transactions

Presently, there are over 61,000 ATMs in India. Savings Bank customers can withdraw cash
from any bank terminal up to 5 times in a month without being charged for the same. To
address the customer service issues arising out of failed ATM transactions where the
customer's account gets debited without actual disbursal of cash, the Reserve Bank has
mandated re-crediting of such failed transactions within 12 working day and mandated
compensation for delays beyond the stipulated period. Furthermore, a standardised template
has been prescribed for displaying at all ATM locations to facilitate lodging of complaints by
customers.

There are over five lakh POS terminals in the country, which enable customers to make
payments for purchases of goods and services by means of credit/debit cards. To facilitate
customer convenience the Bank has also permitted cash withdrawal using debit cards issued
by the banks at PoS (point of sale) terminals.

The PoS for accepting card payments also include online payment gateways. This facility is
used for enabling online payments for goods and services. The online payment are enabled
through own payment gateways or third party service providers called intermediaries. In
payment transactions involving intermediaries, these intermediaries act as the initial recipient
of payments and distribute the payment to merchants.

In such transactions, the customers are exposed to the uncertainty of payment as most
merchants treat the payments as final on receipt from the intermediaries. In this regard
safeguard the interests of customers and to ensure that the payments made by them using
Electronic/Online Payment modes are duly accounted for by intermediaries receiving such
payments, directions were issued in November 2009. Directions require that the funds
received from customers for such transactions need to be maintained in an internal account of
a bank and the intermediary should not have access to the same.

Further, to reduce the risks arising out of the use of credit/debit cards over internet/IVR
(technically referred to as card not present (CNP) transactions), Reserve Bank mandated that
all CNP transactions should be additionally authenticated based on information not available
on the card and an online alert should be sent to the cardholders for such transactions.
 DIGITAL PAYMENT LANDSCAPE IN INDIA 2017:

India’s digital payment system will be worth around $500 billion by 2020. Their prediction
sees the digital payments sector contributing to 15% of India’s gross domestic product
(GDP) in four years’ time. Multiple factors and official & behavioural trends are fueling this
shift towards a cashless economy.

Enhanced internet connectivity and high rate of penetration of smartphones in the Indian
market has altogether shaped India’s payments landscape in favour of digital payment.
Furthermore, flagship government initiatives such as ‘Digital India’ will act as key catalysts
for this change.India’s Prime Minister Take on This ShiftThe Prime Minister of India,
‘Narandra Modi’ already proposed the ‘Digital India’ programme to transform India into a
digitally empowered society and a knowledge economy. He said, “I dream of a Digital India
where mobile and e-Banking ensures Financial Inclusion.”

“In this digital age, we have an opportunity to transform lives of people in ways that was hard
to imagine just a couple of decades ago.”“India has seen a dream of Digital India. From latest
science to latest technology, everything should be available at the tip of one’s finger.”

FUTURE OF DIGITAL PAYMENTS IN INDIA

The following trends are set to transform digital payment landscape in the coming
years:-
 Technology will make digital payments easier
 Merchant acceptance network to progress 10X by 2020
 Payments will drive consumption, not the other way around
 Merging will drive ubiquity
 Modified UPI will be a game changer
 Digital identity to accelerate customer acquisition
 Cash to Non-cash ratio will reverse over 10 years
 FUTURE SCOPE-

Throughout our experience researching online payment systems we have learned about many
recent trends and new technologies involving these systems, such as using PayPal, or using
Safety Pay’s Online Cash Payment Platform. Digital money is cheaper for the government,
a lot of money goes into making money, currency notes and coins are expensive to produce,
maintain and replace.

It is easier to track currency in digital form than in cash. If you misplace your cash, it’s gone
unless you find it back physically. But with modern payment methods like E-wallets and
currencies like Bit coin, you can never lose your money. They have taken security measures
like real time notification, tokenization, and two-factor authorization to prevent situations
like theft or fraud.

We see the development of new online mobile payment technologies, which will help make
your mobile device extremely flexible, because you will be able to store credit and debit card
information on your SIM card. When you reach the payment page on the website, your
mobile device recognizes it and suggests a type a payment. After you pick your payment
choice, authorization of the transaction is done by fingerprint recognition software on your
mobile device, and a few security questions, which will help prevent someone from stealing
your banking or personal information if your device was lost or stolen. By having your credit
or debit card information already stored on your Smartphone, it will save many steps in the
purchasing process on any website you choose to purchase from.

Also, at the same time everyone is very comfortable with their mobile device, and by having
the choice to purchase a product from your smart phone, helps the company finish the sale.
Most customers want to go with the transaction process that has the least amount of steps,
and by having your banking information programmed into your SIM card and it only taking a
press on the “Buy Now” button, this takes away many of the steps that customers have to go
through now to purchase something online. Future direction of research could be to formulate
a system with similar features that supports person to person settlement as well.
 CONCLUSION-

Technology has arguably made our lives easier. One of the technological innovations in
banking, finance and commerce is the Electronic Payments. Electronic Payments (e-
payments) refers to the technological breakthrough that enables us to perform financial
transactions electronically, thus avoiding long lines and other hassles. Electronic Payments
provides greater freedom to individuals in paying their taxes, licenses, fees, fines and
purchases at unconventional locations and at whichever time of the day, 365 days of the year.
After analysis and comparison of various modes of electronic payment systems, it is revealed
that it is quite difficult, if not impossible, to suggest that which payment system is best. Some
systems are quite similar, and differ only in some minor details. Thus there are number of
factors which affect the usage of e-commerce payment systems. Among all these user base is
most important. Added to this, success of e-commerce payment systems also depends on
consumer preferences, ease of use, cost, industry agreement, authorization, security,
authentication, non refutability, accessibility and reliability and anonymity and public policy.
The Reliable and Cashless payment system offers immunity against theft of paper and e-
money, and adopting e-payment solutions or systems for different reasons. In addition to cost
reduction, reference was made to a number of other benefits, including improved customer
service, improved working capital, increased operational efficiencies and cycle times,
processing efficiencies and enhanced compliance to organizational policies and procedures
.This opportunities e-payment operation increases different levels of risks for marketing.
More than ten Years of Internet marketing research have yielded a set of important findings.
Based on our review of these findings, it is clear that the Internet is playing a more and more
important role in the field of e payment .peoples are becoming aware of the need to measure
the collaborative effects of e-payment. The study reveals that the peoples were not aware and
educated. They have not any knowledge of e payment. The study is based on survey .The
respondent have to answer the questions on their own. Some people satisfy with our views.
But some peoples are not satisfies with us. This study states that e-payment provides greater
reach to customers. Feedback can be obtained easily as internet is virtual in nature. Customer
loyalty can be gain. Personal attention can be given by bank to customer also quality service
can be served. we came to know various strengths of e payment System such as quality
customer service, greater reach, time saving customer loyalty, easy access to information, 24
hours access, reduce paper work ,no need to carry cash easy online applications etc.
 BIBLIOGRAPHY

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