Card PaymentsDigital Payments

Definition of Online Electronic Cash?

Online payment system quite talks of the town! Credit card payment system includes the use of the card issued by the financial institution to the cardholder for making as many payments done online or using an electronic device excepting cash here. Any e-payment system is a way to transact or pay for goods or services through an electronic device without the use of paper or plastic. It is also known as an online payment system.

The electronic cash has been growing exceptionally well over the last decades due to the growing reach of internet-based banking. With the world coming closer and technology advancing. The rise of electronic payment systems and processing devices are wiping cash and cheque payments out.

One of the best payment forms are credit, debit cards and the alternative payments are given due mileage. Apart from these, there are other payment methods too, e.g. bank transfers, electronic wallets, smart cards or bitcoin wallet (the most popular cryptocurrency ever).

Read More: Cryptocurrency: When money gets digital

E- payment could be categorized into 2 different categories- credit and cash payment systems.

Credit Card is the form for e-payment which demands the use of a card issued by a financial institution to the holder for conducting payments whether done online or offline. Usage of cash can be totally avoided.

  • E-wallet acts like a prepaid account which takes in user financial data like debit/credit cards to make an online transaction easier.
  • A smart card is a plastic card with a set in microprocessor, loaded with money to make transactions known as a chip.
  • Direct debit can be defined as a financial transaction which instructs the bank to collect particular amounts from the designated account electronically for payment of goods or services.
  • E-check/e-cash or e-cash is a virtual form of a paper cheque. It is an electronic transfer of money from one bank account without using paper.

E-payment systems have made usage and acceptance of electronic payments easy. With the increasing online transactions, e-payment systems became a new normal!

This helps to facilitate shopping and banking easier. Let us have a look at how it helps better:

  1. Reaching more people from all over the globe.
  2. Effective transactions, within seconds to make instant payments.
  3. More speed and simplicity.
  4. The convenience of making on anytime anywhere payments.
  5. Reduced transaction costs.
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