An electronic payment is a digital transaction between two parties that includes the exchange of money through online modes of transaction. There are various modes of electronic payment on the internet.
With the increase of internet utility and rising technological scales in every field, almost all the businesses from a retailer to the huge industries, everyone is digitizing their work environments.
One example of this is the electronic modes of payment that almost everyone is adopting in today’s time. If you are a big industry, a small-scale business, a retail counter then you should accept payments online to grow your business. This is an advantage as it avoids chaos and unwanted wait time to receive the money.
In countries like India, the process of digitizing and the involvement of electronic modes of payment observed an exponential boom after the demonetization policy of 2016. Now let us have a deep look at the various modes of payment on the internet that are used on daily basis:
A credit card is a card which allows people to buy items and make payments without the use of cash. Credit cards were the first-ever known in the field of online payment and now credit cards are the most commonly used and accepted worldwide.
Customers can use credit cards to make their payments and they have to pay the total amount used from the credit card along with the minimal interest fee at the end of each billing cycle.
Debit cards are specifically issued by the banks and allow a person to make payments with the money that is present in their bank accounts. With the use of debit card, the Hassle of carrying money or cheques was removed and the only thing of concern is the spending limit provided by the bank.
This mode of payment is readily used to transfer quite a big amount of money directly from one’s bank account. Net banking is considered to be a much more efficient way of fund transfer as it allows a user to pay bills online, transfer money and reduce overhead expenses through this.
Mobile payment is the latest and very efficient way to make an online transaction. Mobile payments have made it much easier for a customer to make a payment just with the use of an OTP that comes directly from the bank or third-party service provider.
Nowadays various fintech platforms such as Paytm, BHIM, PayPal, and other private/government-based applications have made online transactions much more comfortable for everyone.
These portals also provide various other services such as applying for a credit card, payments of bills, renewal of a plan, etc. There are other fintech sources such as cryptocurrencies that are still trying to make their significance in the market and cover a larger aspect.
E-wallets are becoming really popular and are capturing customers on a large scale. In order to activate an E-wallet, a user has to register with the service provider and link their bank account with it so that they can transfer funds from their banks and keep them in their wallet account. Another use of an E-wallet account is that they can store the debit/credit card information for urgent transactions.
Smart cards are customer-based, profession-based, or purpose-based specific cards that are issued to the user to make certain payments. Smart cards usually have a refill policy as the money used from Smart cards decreases after a transaction, and subsequently, funds have to be transferred to the card from the user’s bank account. Smart cards are mostly common among youngsters that do not have a bank account.
Well, ACH must be a newly heard term for you all but in the US, it is being widely used. ACH stands for automated clearing house. This is an electronic portal which is used for processing transactions making online payments between two parties or two banks.
ACH enables both debit/credit transfers in an online mode. In India ACH has yet another name, that is ECS which stands for Electronic Clearing Services which is managed by the Reserve Bank of India.
These various modes of online payments and transactions exist due to the technological boom which is being observed in almost every industry, business, retail shops, shopping malls, etc. These online sources of payments have been proved to be time-saving and much more efficient in the process.
Advantage of E-Payments
With the help of these online payment sources, you can really grow your business as you can reach more customers worldwide and can sell your product in any part of the world.
Online payment sources are time-saving us the automated payment portal for your business can eliminate the time that is required for the processing of transactions.
Most of the consumers that shop online to buy a product usually prefer the online mode of payment as it saves time and processes quickly so it is important to shift towards the online sources of payment as more customers are demanding it in today’s time and it is important to match with the customers need.
Now we need to match the pace of the technology and grow more. While setting up an online payment portal security is the most important thing which needs to be taken care both from the buyer’s and the seller’s side.
It is the utmost duty of the organization, the industry, or the seller to check all the security lapses of the payment portal and also to improve the processing time for each transaction so as to give a smoother experience to the customer.
The customers should verify the websites and the portals on which they are making the payment. They must verify before giving all the details that are required and I asked on the payment portal of the website for their own safety.