is a financial transaction which takes place between buyers and sellers
electronically online without the use of actual cash or paper currency.
Electronic payments are far cheaper than the traditional which makes it more
easy and more reliable and more adoptable by the people.
Objectives of study:
· To understand the working of
e-payment based application.
· To understand the security
aspects of the e-payment services.
· To know the overall impact of
e-payments on the economy.
· To understand the adaptiveness of
people from traditional paper currency.
History of money:
· Barter System: It’s is the oldest system where
actual goods are exchanged for goods.
· Commodity Money: In this system, goods which has
monetary value. E.g.: Salt. Mostly it’s
gold & silver coins.
· Commodity Standard: It uses special note with a
deposits of gold and silver held by the note issuer.
· Electronic Money: In this system, traditional
currency give a way to electronic money
Advantages of E-Payments:
· E-payments reduces the overall cost
· Transacting via e-payments is very
easy and convenient.
· Reduction of overall use of precious
· There’s an instant transfer of
money, enables faster work completion.
· E-transactions can be done at any
point of time.
· E-payments are accepted globally.
Disadvantages of E-Payments:
· Transaction fee per transaction
and monthly fees are more.
· They are prone to hacking and
other another online threat.
· Not all websites support a particular
· EFT is defined as “any transfer
of funds initiated through an electronic terminal, telephonic instrument, or
computer so as to order, instruct, or authorize a financial institution to
debit or credit the account”.
· EFT utilizes computer and
telecommunication components both to supply and to transfer money.
Classification of EFT:
EFT can be segmented into three broad categories
· Banking and financial payments
o Large scale payments
o Small scale payments
o Home payments
· Retailing payments
o Credit card
o Charge card
· On-line electronic commerce
o Token-based payment systems.
o Credit card-based payments