Electronic payment refers to making payments online through digital means rather than using cash or checks. It allows buyers and sellers to conduct financial transactions electronically for goods and services over the internet. The document discusses various electronic payment systems, instruments, characteristics, classifications, and the current status of electronic payments. Electronic payment systems can be classified based on amount, time of payment, technological concept, and degree of anonymity. While opportunities are growing, electronic payment still faces challenges around infrastructure costs, lack of adoption, and implementing solutions globally.

1. Suyasha Siwakoti
Dikshya Karki
Uttar Tamang
1

2. WHAT IS ELECTRONIC PAYMENT ??
 It is a system that permits online payment between
parties using an electronic surrogate of a financial
tender.
 The electronic surrogate is backed by financial
institutions and/ or trusted intermediaries.
 It is the payment that is made electronically over
the internet.
2

3.  It is a system of financial exchange between buyers and
sellers in the online environment that is facilitated by a
digital financial instruments.
 It enable to pay for the goods and services electronically,
rather than using check or cash.
 Thus, It is a system which helps the customers or user to
make an online payment for their shopping and others
payment activities.
3
WHAT IS E-PAYMENT SYSTEM (EPS) ??

4. E-PAYMENT CHANNELS
4
New E-
payment
Solutions
Security
Infrastructure
Business
Realities
Payment
Types
Customer
Profile
Authentication
Models

5. E-PAYMENT INSTRUMENTS
 Defined as the medium in which the value is
recognized in a payment transaction card based
such as:
1. Credit and Charge cards
 Buy now, Pay later
 Debit cards
 Buy now, Pay now
2. Cash cards, Stored-valued, E-cash
 Buy now, Prepaid or pay before
 E-Cash
 E-cheque
 Smart cards
5

6. Characteristics
of E-payment
Reliability
FlexibilityAcceptability
Convertibility
6
CHARACTERISTICS OF E-PAYMENT

7. 1. Flexibility  payment should be in a position to accept
several forms of payment rather than limiting the user a
single form of currency.
2. Reliability  payment should ensure and confidence in
user. The users should be completely shielded from
systematic or one point failure.
3. Acceptability  the payment should be available and
accessible to a wide range of consumers and sellers of
the goods and services. It can be robust.
4. Convertibility  the e-payment should be
interoperable and interchangeable with other form of e-
cash, paper, currency and deposits in a bank account.
7

8. CLASSIFICATION OF E-PAYMENT
8
Classification of
E-payment
By Amount
Pico-payment
Micro-
payment
Macro-
payment
By the Time of
Payment
Prepaid
Pay now
Pay later
By the
Technological
concept
By degree of
Anonymity

9. 1. BY AMOUNT
 E-payment solutions are classified by the size of the
amount to be paid. Its categories are:
i. Pico-payment: payment solutions for small amounts i.e.
less than one cent to one Euro. Such solutions are
suitable for the operation of a fee based websites.
ii. Micro-payment: payment solutions for amounts of
between one Euro and ten Euros.
iii. Macro-payment: payment solutions for larger amount
more than ten Euros.
9

10. 2. BY THE TIME OF PAYMENT
 The time of the transaction is also used to classify the
payment solutions. Its categories are:
i. Prepaid: paid the amount in advance. Well-known non-
electronic examples are prepayments. For e.g. booking
of product.
ii. Pay now: paid the amount at the time of purchase and
also received the goods. For e.g. cash on delivery,
shopping on supermarket
iii. Pay later: paid the amount after certain time from
received. For e.g. invoices 10

11. 3. By Technological Concept
 Payment solutions can be differentiated according to the
technology employed. Possible categories differentiated
the settlement of accounts and methods used to store
electronic money. This is deposited into an account or
stored in the form of virtual coin in software or hardware.
4. By the Degree of Anonymity
 Payment solutions differ in terms of the degree or the
bank of anonymity. If a person pays for a product with
cash in a non-electronic payment process, then this is
considered an anonymous traction. When a credit card is
used, the transaction is not anonymous because the
seller knows the name of the buyer. There are
anonymous e-payment solutions that are not anonymous
11

12. CURRENT STATUS OF E-PAYMENT
12
 E-payment opportunities are growing although slowly
 New players are entering E-payment marketplace
 Variety of E-payment mechanisms and devices – creating
state of disorder
 Infrastructure for E-payment is complex and expensive to
deploy
 Lack of critical mass adoption and acceptance
 Online payment is hard to implement globally
 Defined as ‘touch points’ where a payment transaction is
originated or initiated

13. 13