E payment is a subset of an e-commerce transaction to include electronic payment for buying and selling goods or services offered through the Internet”. Electronic commerce was identified as the facilitation of commercial transactions electronically, using technology such as Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT). Awareness will be key in promoting electronic payments. If a customer is well educated about the electronic payment service options, he\she definitely may get converted to the electronic habits. Electronic payment is very convenient for the consumers and can benefit ones business by extending customer base; boosting cash flow; reducing costs; enhancing customer service and improving competitive advantage. The further study will focus on the process and methods used in E Payment.
1. Introduction : E-payment is an electronic payment device that is used in modern times. In this payment is made via net for possible businesses, banks and citizens. “E- payment is a subset of an e-commerce transaction to include electronic payment for buying and selling goods or services offered through the Internet” In the present changing and competitive world, it is significant that the “E-payment” - relates to any digital financial payment transaction involving currency transfer between two or more parties. E-payment shows particular flexibility to change as per the consumer lifestyles, purchasing power and changing its preferences. In this Research Paper we will be covering factor-affecting a user acceptance of E-payment method in Indore. E-payment systems are becoming central to on-line business process innovation as companies look for ways to serve customers faster and at lower cost. Indore is a developed city and many user of E Payment live here (Business class, Service class and students) and they know about E-payment. Online payment is the faster way and is easily available in Indore.
2. History: Originally, electronic commerce was identified as the facilitation of commercial transactions electronically, using technology such as Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT). These were both introduced in the late 1970s, allowing businesses to send commercial documents like purchase orders or invoices electronically. The growth and acceptance of credit cards, automated teller machines (ATM) and telephone banking in the 1980s were also forms of electronic commerce. Another form of e-commerce was the airline reservation system typified by Sabre in the USA and Travicom in the UK.From the 1990s onwards, electronic commerce would additionally include enterprise resource planning systems (ERP), data mining and data warehousing.
The following are the factors which effect the user acceptibility of e-payment:-
1. Awareness
2. Education / knowledge
3. Accesibility
4. convenience
5. Security issue
6. Anominity .
3. E-payment method: The E -Payment methods are further divided into three broad categories:
1. Banking and financial payments
• Large scale or wholesale payments (e.g., bank to bank transfer)
• Small scale or retail payments ( e.g. , automated teller machines and cash dispensers)
• Home banking (e.g., Bill payment)
2. Retailing payments
• Credit cards (e.g., VISA card or Master card)
• Private label credit/debit cards
• Charge cards
3. On-line electronic commerce payments:
Token-based payment systems:-
Electronic cash (e.g., DigiCash)
• Electronic checks (E.g. NetCheque)
• Smart cards or debit cards
• Credit card based payment systems:-
• Third party authorization numbers (e.g. PAYPAL)
4. Electronic payment through mobile:- Awareness will be key in promoting electronic payments. If a customer is well educated about the electronic payment service options, he\she definitely converts to the electronic habits.The electronic payment industry is vast territory and covers both retail payments and large value payments, large value payments essentially deal with corporate sector payments while the retail payments cover the person to business, person to government and person to person payment. Most payment that happen today through cheques and cash are potential transaction for conversion to the electronic payments segment, from that perspective, the size of electronic payment market is perhaps gargantuan.
5. Trust and Security in Electronic Payments: (What We Have and Need to Know?) The growth of open networks created the interest to commercialize it. The establishment of an electronic business mechanism must be accompanied by a digital –electronic payment system to transfer the value of transactions. Financial organizations are requested to offer a secure e-payment synthesis with equivalent levels of trust and security served in conventional paper-based payment transactions. The paper addresses the challenge of the first trade problem in e-commerce, provides a brief literature review on electronic payment and attempts to explain the underlying concept and method of trust in relevance to electronic payment.
6. Credit card security and e-payment : (Enquiry into credit card fraud in e-payment) The emergence of electronic commerce has brought in its wake some major security concerns electronic payment has dominated and attracted much attention in recent times as all major stake holders, thus payment operators, electronic card manufacturers as well as and cardholder continue to seek for effective means of combating the threads of internet frauds and more especially credit card fraud of the security issues facing banks everywhere, prevention of credit cards frauds has always been a high priority.
Credit card frauds come in several ways, the most prevalent and commonly known type is counterfeit card fraud. Counterfeit fraud has now been overtaken as the most costly type of cards frauds by newer method, that of card holder-not present (CNP) fraud which accounts for higher percentage of frauds in e-payment in most developed country. However, as new banking channel has opened up, for example internet, phone banking and e-commerce, and the boom in credit card used. Crime has migrated to seek any opportunity to attack these new and immature transaction methods.
7. Factors affecting the user acceptance of fee-based online content: The subject of paid online content is an increasingly relevant today, not only because of the way the newspaper and magazine publishing industry is affected, but also because of the increasing number of ways that various kinds of content are being delivered using the internet. The main factors affecting a user’s intention to pay for online content are satisfaction with the content service, the perceived consequences as a result of accessing an online content service, the user’s normative beliefs or social factors and the value that the user places on the online content service as compared to free alternatives. The perceived ease of use however, was not found to be a determinant of a user’s intention to pay for content online. Further, by splitting the sample into groups based on their past experience with online paid content and then comparing results between them, one can find that even though the kind of content consumed does not affect their agreement on various constructs and their intention to pay, their past experience in dealing with an online content service does.
8. Factors Affecting the Successful Introduction of Mobile Payment Systems:
A prerequisite to carry out transactions using a mobile phone is an effective mobile payment system. However, no standardized, widely adopted mobile payment system has yet emerged, and this is believed to be one of the factors that inhibit widespread use of mobile commerce. This paper reports on a research in which the factors are examined that affect the introduction success of mobile payment systems.
In the era of consumer acceptance, there are cost and their ease of use relative to other Payment methods and the perceived risk. In the area of merchant acceptance, transaction fees compared to debit and credit card systems are important, as is, to a significant extent, the ease of use for the merchant. Finally, both customer and merchant acceptance are highly interdependent as each influences the other, especially during the early stages.
9. Conclusion:Electronic payment is very convenient for the consumer. Electronic payments can benefit your business by extending your customer base; boosting cash flow; reducing costs; enhancing customer service and improving your competitive advantage. Privacy concerns aside, some people simply dislike making electronic payments. They find the setup too time-consuming and don't want more logons and passwords to remember. Others simply prefer the familiarity of writing checks and dropping envelopes in the mail. Regardless of these concerns, electronic payment will likely continue to rise in popularity. Factor analysis resulted that the fixed cost, operating cost, and the security are the variables which affect the selection of e-payment methods. Aware people still not practicing the e-payment methods because of some security Issues.
References:
1. Kalakota Ravi, Whinston Andrew B., 2009, Frontiers of electronic commerce, Dorling Kindersley (India) Pvt. Ltd. , Ninth Impression , Pg No. 309-343.
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