Understanding E-Payment

19 Dec 2021

Santi, 230190784

Understanding E-Payment

Non-Cash Payment   (E-payment)  is a  means of payment in electronic form by storing  money  into technology  media to be a way of  payment  in online  transactions.   E-payment is also often referred to as Electronic Money. In online transactions, E-payment  as a means of  payment  is  often  used  to  make  transactions in  a long  range.  However,  in everyday life  E-payment began to replace cash  in spending,  especially during the pandemic,  to overcome the coronavirus.

For the use of  E-payment,  initially, the user must deposit the money first to the publisher and store in electronic media before using it for transaction purposes. When used, the value of electronic money stored in electronic media will be reduced by the value of the transaction and after that can be replenished (top-up). Electronic media to store the value of electronic money can be chips or servers.

Types of Electronic Payment Systems, classified into several groups, namely (Slade, Williams, & Dwivdei, 2013):

  • Online credit card payment system. This payment system is used after the discovery of small plastic cards on the system. Most are used in purchases over the internet and have limitations.
  • E-Cheque Payment System. This E-Cheque system was deliberately created to support and expand the function of online shopping and how it works similarly to conventional paper  checks;
  • E-Cash payment system, E-Cash is an illustration of electronic symbols that have value (bits) and are often used in transactions of goods and services. E-Cash is published by legal institutions, companies and organizations. E-Cash usually has limited acceptance (depending on how big the publishers)
  • Smartcard-based electronic payment system. A smart card is defined as an ATM-type card that is united with an integrated circuit (IC) that can process information. Smart cards are also used to store personal, health, and insurance information. Many smart cards use a combination of passwords or PINs.

One type of E-payment is online banking, online banking is a service application that provides information about banks and customer access to accounts to facilitate transfer over the internet

References

Reza,  Yuki. 2019.  Analysis of E-Payment System Success Factors. Journal of  Management Science  Research.  Vol. 3, No. 1, Hal. 31-48.  https://www.google.com/url?sa=t&rct=j&q=&esrc= s&source=web&cd=&ved=2ahUKEwjk3bSd1rbvAhUO7XMBHQEkD1sQFjAEegQIDhAD&url=https%3A%2F%2Fejurnal.id%2Findex.php%2Fjsm%2Farticle%2Fdownload%2F234%2F106%2F&usg=AOvVaw0XuYeqEbBO1AUbdu-LOTiS. (accessed  March 16,    2021)

Margaretha,  Farah. 2015.  IMPACT OF ELECTRONIC BANKING ON INDONESIA’S BANKING PERFORMANCE. Journal of  Finance and  Banking. Vol.19, No.3.  https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&cad=rja&uact=8&ved=2ahUKEwjr5vblr7fvAhVQAXIKHV3PC1YQFjAEegQIDxAD&url=https%3A%2F%2Fmedia.neliti.com%2Fmedia%2Fpublications%2F178702-ID-dampak-electronic-banking-terhadap-kiner.pdf&usg=AOvVaw3xPteojT_sa1KY2j1AjIti.

Dicky Hida Syahchari