Electronic Payment Systems (EPS) Sahan Walpitagamage Created 01/10/2013

1. Electronic Payment Systems
(EPS)
Sahan Yariru Walpitagamage
Mscit/13/065

2. Agenda
What is Electronic Payment Systems
Types of electronic payments
Latest trends in EPS
Some Secure EPS Infrastructure
How to Select best EPS

3. Electronic Payment Systems
(EPS)
 EPSs enable a customer to pay for the goods and
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services online by using integrated hardware and
software systems.
An electronic payment is defined as a payment
services that utilize ICT, including cryptography and
telecommunications networks
EPS increase efficiency, improve security, enhance
customer convenience and ease of use.
Electronic transfer: small but growing
Electronic payments totaled 84.5 billion in 2009 for a
value of $40.6 trillion in the United States.
The number of electronic payments increased at
average annual rate of 9.3 percent between 2006 and
2009 in the United States.

4. Use of electronic payments

5. Types of electronic payments
Payment
Cards
Electronic
Funds Transfer
(EFT)
Electronic
Cash Systems
Electronic
wallets
Electronic
Check (Echeck)
Micro Payment
Systems

6. Payment Cards
 Electronic card payments continue to have a
meaningful impact on the world.
 Most of consumers use credit cards to pay for online
purchases.
 Card transaction volume grew at an annual growth
rate of 10.8% in 2010, compared to 8.4% growth in
2009.
 More than 85% of worldwide consumer Internet
purchases are paid for with credit cards.
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Credit Cards
Debit Cards
Web Cards
Charge Cards

7. Payment Gateway
 Service that authorizes card payments for e-
businesses.

8. Electronic funds transfer (EFT)
 EFT is used for transferring money from one bank
account directly to another without any paper
money changing hands
 It can be Direct debit payments or Electronic bill
payment in online banking

9. Electronic Check (E-check)
 An E-check is an electronic version of paper
check.
 Fast check processing and very low transaction
cost.
 Digital signatures can be seen.

10. Electronic Cash Systems
 System usually is developed based on an electronic
payment protocol which supports payment
transactions.
 Basic attributes are Acceptability, Guaranteed
payment, No transaction chargers and Anonymity
 PayPal is still growing rapidly with 78 million active
accounts (200 million total) worldwide.
 Paypal
 MyCheckFree
 Bitcoin

11. Electronic wallets
•
Allows customer to store name, address, credit card information on
the site.
• Allow high speed efficiency and high security for shoppers.
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Microsoft .NET Passport
 Yahoo!Wallet
Micro Payment Systems
 Transaction can become costly when customers purchase inexpensive items.
 Used for small payments on the Web
 Clickshare
 IBM micro-payment systems

12. Latest trends
 Growing Smartphone sales, and increasing
adoption of online card payments.
 Hybrid payments combining online and mobile
methods are expected to emerge. MasterCard
already introduced such a solution earlier this
year, while Visa entered a partnership with
Samsung to encourage development of mobile
 Multi-Channel Gateways Become Retail Payment
Hubs.

13. Social Network Payments:
 Social Network Payments : Consumers are
buying a growing number of virtual goods used in
online social network games.
 Nonetheless, this is a rapidly growing area, with
U.S. consumers spending more than $2.3 billion
on virtual goods last year.

14.  Acquirers are investing in technology
enhancement projects to make card transactions
more secure, faster, and easier to process.
 Verified Visa and Smart Cards are the some of the
new security methods introduced.

15. The Future is Mobile
 It is estimated that there are over 326 million cell
phones, the vast majority are smart phones, and
over 60 million tablets were sold in the last two
years alone.
 Another important aspect to m-commerce are
quick response (QR) codes, which encourage
consumers to scan barcodes with their camera so
they can be directed to an advert, voucher or
special offer.

16.  NFC (Near Field Communication) is the latest
payment method introduced to the world.
 It is not based on cash in the wallet but storing
card information on the phone to be used in a
mobile wallet or to use NFC.

17. SOME SECURE EPS
INFRASTRUCTURE
 Authentication
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Many tools available to confirm the authenticity of a
user.
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Passwords and ID numbers are used mostly
 Public Key Cryptography
 Use one public and one private to encrypt and decrypt
data
 Sender can then encrypt the message with the public
key and receiver can use the private key to decrypt the
message.
 Digital Signature
 An electronic one use to authenticate the identity of the
sender of a message

18. SOME SECURE EPS
INFRASTRUCTURE
 Secure Sockets Layer (SSL)
 commonly used protocol for managing the security
of a message transmission
 Uses the public-and-private key encryption system
 program layer located between HTTP and TCP
 Certificate
 The issuer verified the identity of the individual
 Symantec Certificates
 GeoTrust

19. How to Select best One
 Is it Security ?
 Is it Reliable?
 Is it Easy to Use?

20. References
 Raja, J., Velmurgan, M.S., “E-payments: Problems and
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Prospects”, Journal of Internet Banking and Commerce, April
2008, vol. 13, no. 1, (http://www.arraydev.com/commerce/jibc/)
Ecommerce, Strategy, Technology and Implementation, Gary P
Schneider
The 2010 Federal Reserve Payments Study by Noncash
Payment Trends in the United States: 2006 – 2009
The Impact of Electronic Payments on Economic Growth
February 2013.
Electronic Cash Payment Protocols and Systems By Jerry Gao

21. Thank You