Today, the Indian e-commerce market is thriving and growing at an incredible rate while new technologies are rapidly adopted. Consumers love being able to use a variety of payment methods, and diversifying these payments is a must for everyone. electronic commerce business. Customers can choose the correct method, so they are comfortable using it, so more and more online transactions are done using electronic payments.
The worldwide trend of online sales is growing rapidly, increasing demand for bitcoin merchant account services as well as electronic payments. More and more businesses now offer products and services that reach customers through online sales.
On the other hand, any online business must ensure maximum security and transparency of the transactions that come with its services. For this reason, it is important to know everything behind electronic payments and transactions. VipBox Alternatives
How is an electronic payment system defined?
all systems involved electronic commerce It is closely related to electronic payments and uses electronic methods to execute transactions. These transactions are called online payment systems. There are many ways to pay electronically, including using a credit card using a credit card, making a debit payment, using a debit card, or electronic check. You can also use alternative methods, including bank transfers, using Bitcoin and e-wallets.
Electronic payment system types
Online payments can be made using several methods:
- Card payments are made through online merchants and include store cards, debit cards, smart plastic cards and credit cards.
- Internet banking assumes that you use digital payments to transfer a certain amount of money. These transfers are made directly over the interbank internet. There are several modes such as RTGS, NEFT or IMPS which are very popular.
- A smart card is defined as a card with a chip with a microprocessor and is directly involved in the execution of transactions.
- Debit and Close Relatives Credit Cards where customers pay by providing details of the card they hold.
- Direct Debit is a transaction that must be executed with the help of a third party.
- A stored value card is an electronic payment method that uses a card in which a certain amount of money is stored. On the other hand, it is a prepaid card.
- Electronic checks are very similar to traditional paper checks and differ in that transactions are performed digitally.
- E-cash assumes that a person stores cash on a specific device and then uses it to make electronic payments.
- Alternative payment methods are evolving and changing rapidly. New features are constantly added, and customers find it very convenient.
- A mobile wallet is a very user-friendly tool and is a modernized form of an electronic wallet, but with a mobile device. It gets a lot of popularity and stores card information as well.
- Electronic wallets are a very fast and accurate method of electronic payments. Accounts are pre-arranged, very easy to use and can be opened immediately.
- QR payment can be defined as a Quick Response code. Includes pixel patterns and square or traditional barcodes. Information about the transaction is stored in the code and the transaction is executed. To do this, we scan the code using mobile and handheld devices.
- UPI is associated with National Payment Corporation or NPCI in India. It is considered an instant way to make electronic payments in absolute real time. It is also a so-called integrated payment interface and is delivered using applications stored on portable devices.
- Contactless payments are implemented using technologies such as NFC and RFID. To make a payment, you need to tap the device or go through the scan screen Also known as ‘tap and go’.
- These days, payments for wearable devices are made with smartphones. However, other devices may be used in the future.
- Biometric payments are executed through a human body scan. This includes facial recognition, fingerprint scans, or eye scans. The main advantage of this method is that the PIN code is completely omitted.
- AI-based payments are considered the most advanced and innovative. This is all due to the fact that artificial technological methods are used. This could include things like chatbots, learning tools, or speakers.
How electronic payment systems work
The following institutions that form part of the payment system:
- cardholder or customer
- Banks participating in payment
- The body responsible for the payment process.
The function of the system can be made as follows:
- Payments are initiated by decisions made by customers to finalize services or products and carry out payment initiatives. After selecting a payment method, go to the payment page and enter your CCV code, PIN, personal information, expiration date, etc. to proceed further.
- The authenticity of the information paid is when all information submitted must be approved and verified by the operator. This individual can also be considered as a payment gateway. If everything is ok, the operator will give you a green light for the transaction. If there is a problem with the authenticity, the transaction will not proceed.
- Settlement Settlement is when a transfer of funds is completed, money is transferred to another bank, and ended up in another account.
Advantages of Electronic Payment Systems
Shopping and banking have become more convenient, and transactions have become faster and safer. The trend of accepting electronic payments has become a staple of any online business and makes online shopping more comfortable. It makes it easier to integrate real processing with payment and modern solutions. Accessing goods and services online is easier and you can pay anytime.
Customers and merchants win here as they are absolutely reliable and safe as well as help combat scams and scammers. Electronic payments are made in real time, making them ideal for international transactions and e-commerce environments. By participating in an e-commerce business, it is important to find out which e-payment method your prospects prefer the most. It should be very convenient and closer to the solutions and services offered by a particular business. can visit Google Picasa Alternatives