Developments and Challenges in Using Online Payments

by Billy Nurfaudzi NIM:                       2401989631

E-Business has been profoundly impacted by the rapid advancement of technology and information. The payment system on E-Business has been impacted by the growth of digital technology and has now been digitally altered. Many companies relied on traditional payment methods like cash or cheques prior to the rise of internet payment systems. If a buyer and seller both have a place of residence, traditional payment methods become more ineffective because of the time it takes to transfer money. As a result, cash and check payments have been supplanted by electronic payments or e-payments.

In the e-payment technique, users may purchase products or services over the internet without needing cash, hence e-payment systems tend to be more convenient. In addition to saving time and money in the transaction process, it is safe, effective, efficient, and transparent. The growth of financial technology, or fintech, is clearly intertwined with this.

When it comes to e-payment methods, credit and debit cards are among the most commonly utilized and accepted across many nations. A credit card’s key benefit is the billing method, which allows for a period of time to resolve disputes. Additionally, credit card users are able to use credit cards from any location thanks to the internet and the widespread usage of credit cards in many different nations. The most common method of payment is a debit card or ATM card. This payment option is used by business owners because of the ease with which transactions can be completed online.

Mobile wallets and E-Wallets are two of the most popular online payment methods or e-payments today, alongside credit cards and debit cards / ATMs. E-Wallets and bank accounts may both be used with these payment systems, which can move money from one to the other. The platform may then be used to conduct online and instantaneous payments. Google Wallet, Paytm, Oxigen, and Dana are a few instances of mobile wallets and E-Wallets. According to data, the usage of E-Wallets and mobile wallets is increasing, notably in online purchases.

In today’s modern era, E-Payment offers numerous benefits over traditional payment methods, but E-Payment also has its own limitations and challenges that cannot be ignored. The infrastructure of a nation is one of the key roadblocks to implementing online payments in that country. A suitable amount of resources and financial capacity are necessary for a nation to be able to meet its fundamental infrastructure needs such as having a bank, internet, and telecommunications. available to citizens. Some nations in the underdeveloped world do not even have banks, making it impossible for internet payments to function. In light of these examples, it is critical for a nation to have the suitable infrastructure for online payments.

E-Payment is more effective and efficient than traditional payment methods, and the ever-evolving technology is bringing new improvements to E-Payment, as shown by the instance and explanation above. A proper connection between the current online payment system and suitable telecommunications infrastructure may help overcome some of the challenges of the E-payment System. To ensure that the system functions correctly.

Reference

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Mukherjee, M., & Roy, S. (2017). E-commerce and Online Payment in The Modern Era. International Journal of Advanced Research in Computer Science and Software Engineering, 7(5).

Bezovski, Z. (2016). The future of mobile payment an electronic payment system. European Journal of Business and Management, 8(8), 127-132.