E-commerce

UNIT 2

E-commerce applications in various industries

Advantage of Internet auctions

Online auction saves time and money for both buyers and sellers. Buyers do not need to travel to participate in the auction while sellers do not need to set up a live event. Products do not need to be moved to one central location for an auction to be held.

Banking : Transfer of money from one bank to another using various methods

1. Online Banking

(i) NEFT (ii) RTGS

Payment of Insurance Instalments, Payment of utility bills and others can be easly done using various methods

1. Debit Card

2. Credit Card

3. UPI App 3.1 Paytm 3.2 Mobiwik 3.3 Jio

4. Cash

5. NEFT

6. RTGS

Problems with the traditional payment systems

1.Lack of Convenience

2.Lack of Security

3.Lack of Coverage

4.Lack of Eligibility

5.lack of support for micro-transactions

Electronic Payment System (EPS)

EPS (Electronic Payment Standard) is a debit card payment solution. It was created by the Austrians major banks so to facilitate the online payment process. As for today, 80% of Austrian online merchants accept EPS as a payment method on their websites/e-stores/apps.

Features to look for in an online payment gateway

  • Security. One of the most important features to consider in a payment gateway is security. …
  • Easy integration. …
  • Detailed reporting. …
  • Invoicing options. …
  • Multiple payment options. …
  • Fast processing speed.

Types of Electronic Payment Systems

There are various kinds of payment systems available for the electronic transaction like electronic tokens, e-cash. e-chequcs.

  • Credit Card. The most popular form of payment for e-commerce transactions is through credit cards. …
  • Debit Card. Debit cards are the second largest e-commerce payment medium in India. …
  • Smart Card. …
  • E-Wallet. …
  • Netbanking. …
  • Mobile Payment. …
  • Amazon Pay.

Advantages of Electronic Payment System

  • Reduced Transaction Costs. …
  • Secure ePayment Transactions. …
  • Saved Time and Resources. …
  • Speed of ePayments. …
  • Complete Visibility into Electronic Payment Process. …
  • Improved Supplier Relationships with ePayments.

problems in implementing electronic payment system

  • Low internet bandwidth. A solvable yet common issue, low internet bandwidth is usually responsible for failed online payments. …
  • Card data security. …
  • Technical integration. …
  • Multi-currency transactions. ...
  • User experience and checkout challenges.

Risks Associated With Electronic Payments

1.Operational Risk

2.Credit Risk

3.Legal Risk

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