An e-payment system is a way of making transactions or paying

for goods and services through an electronic medium, without

the use of checks or cash.
It’s also called an electronic payment system or online payment
system. 
7 Amazing benefits of using electronic payments
1.Instant Payment. Electronic payments are much faster
than the traditional methods of payments such as cash
or cheques. ...
2.Higher payment security. ...
3.Better customer convenience. ...
4.Saves processing costs. ...
5.Low risk of theft. ...
6.Transparent. ...
7.Contactless.
Steps for e-payment
 Steps for Electronic Payment The process of electronic payment
system can be divided into following two phases:
1.Authorization:
Step 1: The first step is to create an account on the merchant
website and login to it. The customer is then required to select
the products or services to be purchased and add them to carts.
Once the customer will checkout, he or she will be asked to
select a payment method. The required information as to be
entered by the customer.
Step 2: The merchant website will receive the payment
information like details of the credit or debit card and then direct
it to a payment gateway.
Step 3: The information is then transferred by payment gateway
to the processor.
Step 4: The processor redirects the information to the issuing bank or
the bank of the customer for verification.
Step 5: The issuing bank sends the transaction information (accepted
or declined) to the processor.
Step 6: The transaction information is then routed to the payment
gateway.
Step 7: The payment gateway passes on this information to the
merchant or the merchant website.

2) Settlement: In this phase, money is actually transferred from the of

the customer to the bank account of the merchant, if the transaction
is accepted.
Electronic Payment Processing-Settlement
Step 1: The payment gateway is requested by the merchant to settle
the transaction. Examples of payment gateway include PayPal,
CCAvenue.
Step 2: The payment gateway uses all necessary information and
transfers it to the processor to settle the transaction.
Step 3: The processor sends the settlement information
to the issuing bank of the customer. The payments
details are also sent to the accepting bank (merchant's
bank account).
Step 4: The card issuing bank then makes the final
payment to settle the transaction and customer's
account is debited while the merchant's account is
credited with the payment amount. Some charges are
taken from the merchant.
Advantages of Electronic Payment Systems
1) Customer Support: 24 hours customer support provided in e-
payment system enhances the customer service specially
shopping experience by reducing the lead time. E-payment
system also increases the efficiency of e-commerce models like
B2B and B2C by processing and delivering the order so fast.
2) Convenience: e-payment system allows the customer to pay
anytime from any location just by storing some data like credit
card, debit card information only once. This information can be
used anytime in future. Even transaction's logs can be checked
easily by customer anytime. It makes the purchasing for
customer convenient.
3) Reduced Cost of Transactions: Due to the reduction of
technology cost (like paper and postage cost, staff cost, etc.), it
offers less transaction cost.
Disadvantages of Electronic Payment Systems
1) Security: Although strict measures are being taken through symmetric encryption
while making e payment, it can be still vulnerable to security threats. The worse
situation can take place when the system of processing organisation is breached
which may lead to the leakage of all confidential data and the owner's information.
Even hackers can copy your password and other important information by recording
keystrokes. Moreover, hackers can steal all the funds from online applications such as
PayPal.
2) Payment System Collision: Generally, most of the electronic
system of payment does not coordinate with each other, as they
operate on a universal basis. There can be a situation when the
mode of payment may not be available within a country, while
the customer may get an option from another country. The
problem arises when the system tries to convert the currency of
different bank accounts.
3) Lack of Trust: One of the disadvantages of this system is that
all the information about the transaction, such as amount, time
and user information are stored in the database of the system.
Therefore, even if protected software or firewalls are used
properly, the private information of the user might be revealed
to hackers or could be used for money laundering. As a result of
which, many users do not trust the use of electronic payment
systems. Sometimes the wrong or faulty product delivery also
loses the customer's trust over online purchasing.
Applications of Electronic Payment System

1) Online payment portals can be accessed by customers through their

laptops, desktops or mobile devices 24 x 7. Customers can log into the
system and simply pay their bills without any cheque books in hand and
also without waiting in queues for paying bills.
2) Online payments accept a variety of payment options including cards,
ACH payments and also e-cheques. This provides customers with several
choices and increases the likelihood of the service providers being paid on
time.
3) Customers can access their records any time they want and check their
balances, payment history and track future payments.
4) Recurring payments can be set by customers to ensure that their bills
get paid on time.
5) Alerts can be generated by online payment portals to remind customers
about their bills that are due. This enables easy and efficient payment
processing.
6) For companies, it is easy to access records of all customers since these
are stored at one place. This also eliminates the need for maintaining
paper records and inconsistencies.
 Types of Payment Systems Electronic payment systems are grouped
into:
1) Banking and Financial Payments
i) Wholesale or large scale payments for example, bank to bank paymen
ii) Retail or small scale payments like ATMs.
iii) Home banking like bill payment.
 2} Retailing Payments
i) Credit cards such as Visa and MasterCard.
ii) Private Label Credit/ Debit Cards like JC Penny Cards.
iii) Charges Cards like American Express.
How is American Express different from other cards?
What makes American Express different is that it is both a card issuer and a
card network. Unlike card issuers such as Chase or Bank of America and card
networks such as Visa or Mastercard, American Express serves both the role of
servicing accounts and processing transactions.
3) Online E-Commerce Payments
i) Digital Token based Payment Systems
a) Electronic cash like Digi Cash.
b) Electronic cheques like Net Cheque.
c) Smart Cards or Debit cards like Modex e-currency cards.
ii) Modern Payment Systems
a) Debit Cards
b) Credit Cards
c) Net Banking
d) Mobile Banking
 Digital Token Based Systems
Digital token is an entity which has a stored value in a bank or a
financial institution. A digital token allows a user to make online
payment to merchants instantly depends on the value stored in the
bank account. Electronic token or digital token is like any other
payment device used by many banks and These guarantees that a
specific amount will be deposited to bank accounts tokens are used
similar to e-cash and e-cheques.
Electronic/Digital Cash known as Cash is generally used for
almost all types of payments. Currency notes and coins are in
printed form and issued by the government. Digital form of this
cash is digital cash or e-cash. It is also called as e-currency, e-
money, digital money, electronic cash, cyber currency etc. and is
most commonly used mode of payment in e-commerce systems.
In electronic cash system, unique tokens are transmitted from
the customer to the merchant over the Internet. Working of
Digital Cash Digital cash is represented in the form of tokens that
are created using a string of digits . The customer can purchase
e-cash as online currency from banks. The process consists of
two steps:
1) Creating account
2) Maintaining proper amount in the account for purchasing.
The bank issues cash as an entity and deducts that such
amount of money from customer's Bank account. To
generate a random number which is a form of note, e-
cash software is used. The user requests to pay for the
purchase using e-cash. This amount is transmitted by
the software to the merchant. The merchant then make
a request to the bank to pay money with respect to
such token amount. The bank records the token
number in its database and used it only for once. If a
bank finds that the same token is being used again, it
informs the merchant that token has no value.
Payer what to do
Payee what to do
 What is Electronic Money?
Electronic money refers to the currency electronically stored on electronic
systems and digital databases, as opposed to physical paper and coin money,
and is used to make it easier for users to transact electronically. The value of
the electronic currency is backed by fiat currency.

What is Electronic Money?

Over the last couple of decades, the essence of electronic money can be
witnessed in various economies, including in India. It was not long ago that
the Government of India announced demonetisation of its currencies to
make the nation a cashless economy.
Electronic money a.k.a e-money can be transferred through smart cards
(credit or debit cards), smartphones, and computer systems, among others.
In order to facilitate transactions from bank accounts, financial firms and
banks sign deals with e-money networking processors to give customers
access to smart cards with which electronic transactions will be possible.
Also, with most e-commerce platforms allowing e-money transactions,
consumers can now shop for almost the goods and services available online.
 Why is Electronic Money Important?
The Reserve Bank of India (RBI) regulates the field of electronic money under
the Payment and Settlement System Act (PPS Act) 2007 in India. The act
allows banks and financial institutions to issue pre-paid payment instruments
in India once the regulatory authority has authorised the use of such
instruments.
Thanks to significant advancements in the field of technology; digital
transactions through smart cards, digital wallets, and mobile wallets have
been picking up among consumers.
Features of Electronic Money
Just like physical paper currency, electronic money also includes
the following four features:
Store of value: Just like physical currency, electronic money is
also a store of value, the only difference being, that with
electronic money, the value is stored electronically unless and
until withdrawn physically.
Medium of exchange: Electronic money is a medium of
exchange, i.e., it is used to pay for the purchase of a good or
when acquiring a service.
Unit of account: Just like paper currency, electronic money
provides a common measure of the value of the goods and/or
services being transacted.
Standard of deferred payment: Electronic money is used as a
means of deferred payment, i.e., used for the tools of providing
credit for repayment at a future date.
Advantages of Electronic Money
Electronic money offers several advantages for the global economy, including:
 
1. Increased flexibility and convenience
The use of electronic money brings increased flexibility and convenience to
the table. Transactions can be entered into from anywhere in the world, at
any given time, with one click of a button. It removes the hassle and
tediousness involved with the physical delivery of payments.
 
2. Historical record
The usage of electronic money is becoming increasingly popular because it
stores a digital historical record of each and every transaction made. It makes
tracing back payments easier and also helps with making detailed
expenditure reports, budgeting, and so on.
 
3. Prevents fraudulent activities
Since electronic money makes available a detailed historical record of each
and every transaction made, it is very easy to keep track of transactions and
trace them back through the economy. It increases security and helps prevent
fraudulent activities and malpractices.
 
4. Instantaneous
The use of electronic money brings with it a kind of
instantaneousness that has not been experienced before in the
economy. Transactions can be completed in split seconds with
the click of a button from virtually anywhere in the world. It
eliminates problems of physical delivery of payments, including
long queues, wait times, etc.
 
5. Increased security
The use of e-money also brings with it an increased sense of
security. To prevent loss of personal information while
transacting online, advanced security measures are
implemented like authentication and tokenization. Stringent
verification measures are also employed to ensure the full
authenticity of the transaction.
Disadvantages of Electronic Money
Electronic money comes with the following disadvantages:
 
1. Necessity of certain infrastructure
To use electronic money, the availability of certain infrastructure is necessary.
It includes a computer or a laptop, or a smartphone, and a stable internet
connection.
 
2. Possible security breaches/hacks
The internet always comes with the inevitability of possible security breaches
and hacks. A hack can leak sensitive personal information and can lead to
fraud and money laundering.
 
3. Online scams
Online scamming is also possible. All it takes for a scammer is to pretend to
be from a certain organization or a bank, and consumers are easily convinced
to give away their bank/card details. Despite the increased security and
presence of authentication measures to counter online scams, they are still
something to be looked after.
 
Digital currency
What is cryptocurrency?
Cryptocurrency is a digital payment system that doesn't rely on banks to
verify transactions. 
It’s a peer-to-peer system that can enable anyone anywhere to send and recei
ve payments
. Instead of being physical money carried around and exchanged in the real
world, cryptocurrency payments exist purely as digital entries to an online
database describing specific transactions. When you transfer cryptocurrency
funds, the transactions are recorded in a public ledger. Cryptocurrency is
stored in digital wallets.
Cryptocurrency received its name because it uses encryption to verify
transactions. This means advanced coding is involved in storing and
transmitting cryptocurrency data between wallets and to public ledgers. The
aim of encryption is to provide security and safety.
The first cryptocurrency was Bitcoin, which was founded in 2009 and remains
the best known today. Much of the interest in cryptocurrencies is to trade for
profit, with speculators at times driving prices skyward.
Cryptocurrency features

1.Anonymity
Transactions are tied to a random sequence of characters and not to the owners identity,
including personal or company data. The popularity of some virtual currencies indicates the
scale of demand and supply. It is practically impossible to link contracts with people or
companies.

2.No intermediary or supervisory bodies

The absence of governmental control and regulations eliminate fees and restrictions that could
be disadvantageous for users. The flow of cryptocurrency transactions is unregulated by
authorities or financial institutions. This limits unfavourable fees and restrictions. However,
cryptocurrency owners do not benefit from the protection of financial authorities.

3.Security
Cryptocurrencies can be stored in special virtual wallets, secured with a private key. This means
that only the holder has access to the accumulated funds. In order to increase security, the
virtual currency owner should incorporate encryption technology on their storage devices.
4.No centralization
There are no authorities controlling cryptocurrency flow or quotations.
Virtual currency trading is not located in one single place. This prevents
trading disruptions after hacking attempts. Transaction data is dispersed
across the network as it is stored directly by cryptocurrency holders.

5.Irreversable transactions
Due to the lack of institutional supervision over the virtual currency market
commissioned transactions cannot be reversed. If error occurs, for example,
incorrect recipient details, there is no organisation that can help with the
mistake.

6.Fast development
Holders can use their cryptocurrencies through the rapidly developing tools
and services. Converting and exchanging cryptocurrencies into dollars or
euros is now possible. These currencies can be funded directly from the
cryptocurrency wallet through solutions that enable conversion and
exchange.
The main crypto currencies are as follows: intention to replace currency

1) Bitcoins: Bitcoin is credited as the original and most well-known crypto J

currency. Satoshi Nakamoto, a person or group of people under the name,
created it in 2009. Arguably, its characteristics more closely resemble
commodities rather than conventional currencies. This is reflected in that fact
that it is now used more as a form of investment than a method of payment.
22 Boring offel, Alternate Sovery of payment → + transperent

2) Ethereum: Ethereum is relatively new in the crypto currency world,

having launched in 2015. It operates in a similar way to the bitcoin network,
allowing people to send and receive tokens representing value via an open
network. The tokens are called ether, and this is what is used as payment on
the network. Ethereum's primary use, however, is to operate as smart
contracts rather than as a form of payment. Smart contracts are scripts of
code which can be deployed in the ethereum blockchain. The limit on ether
also works slightly differently to bitcoin. Issuance is capped at 18 million ether
per year which equals 25% of the initial supply. So, while the absolute
issuance is fixed, relative inflation decreases every year.
3) Bitcoin Cash: Bitcoin cash (BCH) is a crypto currency and payment network
created as a result of a hard fork with Bitcoin in December 2017. A hard fork
occurs when members of the crypto currency community have a
disagreement, usually regarding improvements to the software used within
the network. In this case it was a disagreement around a proposal to increase
the block size. After a fork, the blockchain splits in two and it is left to the
miners and the wider community to decide which crypto currency to align
themselves with. When the bitcoin hard fork took place, one bitcoin cash
token was typically awarded for every bitcoin held
4) Litecoin: Litecoin (LTC) is a peer-to-peer crypto currency that was set up by Charlie
Lee (a former Google employee) in 2011. It was an early bitcoin spinoff, or 'altcoin'
and initially intended for smaller value transactions than those made using bitcoin.
Technically speaking it was created to be almost identical to bitcoin, but it has some
notable differences and improvements. For example, litecoin can process blocks up
to four times quicker than bitcoin. It also requires more sophisticated technology to
mine, but the total number of coins available has a much larger cap - it is currently set
to 84 million, which is four times greater than bitcoin.
 5) Ripple: Ripple (XRP) is a network that allows the
transfer of any currency (including both fiat currencies
and crypto currencies) around the world. It aims to
ensure secure, fast and low cost transfers across the
network, with no risk of fraud or chargeback. The
network is considerably faster than bitcoinit is able to
settle transactions in just a few seconds. The minimum
transaction cost is also much lower, which is one of the
reasons that ripple has been increasingly adopted by
banks for settlement. Ripple is also the name given to
the native crypto currency (XRP) used on the ripple
network.

6) Stellar: It is an open blockchain network designed to

provide enterprise solutions by connecting financial
institutions for the purpose of large transactions. Huge
transactions between banks and investment firms -
typically taking several days, involving a number of
intermediaries, and costing a good deal of money - can
now be done nearly instantaneously with no
intermediaries and cost little to nothing for those
making the
Tether (USDT): Tether was one of the first and most popular of a group of
socalled stablecoins, crypto currencies that aim to peg their market value to a
currency or other external reference point to reduce volatility. Because most
digital currencies, even major ones like Bitcoin, have experienced frequent
periods of dramatic volatility, Tether and other stablecoins attempt to smooth
out price fluctuations to attract users who may otherwise be cautious.
Tether's price is tied directly to the price of the U.S. dollar. The system allows
users to more easily make transfers from other crypto currencies back to U.S.
dollars in a more timely manner than actually converting to normal currency.
Modern digital payment trends
DEBIT CARDS

CREDIT CARDS

QR CODE SCANNER

RTGS

NEFT

MOBILE POINT OF SALE

CONTACT LESS PAYMENT-SAMSUNG PAY/APPLE PAY

 Debit Cards-A debit card is also called a bank card or a cheque card and is prepaid in nature. When a debit card
is used to purchase a product, the amount is transferred to the account of the merchant from the account of the
customer. To get a debit card, an individual has to open a bank account or in a financial institution. The bank
then issues a Personal Identification Number (PIN) number which is a 4-digit code that needs to be entered
whenever a purchase is made. The debit card does not allow the customer to overspend because every time
overspending takes place, the transaction is declined.
Types of Debit Cards
1) Online Debit Cards: These cards make use of ATMs as the underlying
technology. A PIN number is given to the cardholder that authenticates the
transaction. PINS can be used only where the POS (point of sale) terminal is
properly installed and equipped to allow customers to enter the PIN using a
separate keypad and also choose the bank from which funds have to be
transferred.

2) Offline Debit Cards: Offline debit cards usually carry a logotype and can be
used in similar manner like a credit card like Visa or MasterCard. The use of
such debit cards may have a limit on the daily amount of the money that can
be used. These are secure card transactions.
Offline Debit card
Online debit card
ADVANTAGES
1) No Issues of Creditability: Receiving credit cards are not easy because the issuing banks check the
credentials of customers. Also the process of obtaining a credit card is a long one which is not the case with
debit cards. Most banks issue a debit card when a customer opens a bank account.
2) No Racking of Debts: Debit cards are prepaid in nature because the consumer account which is linked to
the card is debited with the amount as soon as the product is purchased. So, a customer is not
overburdened with any late fees or interest which may have to be paid in case of a credit card.
3) Less Identification: In case of debit cards, not much verification is required on the part of the bank and
the transactions are speedier and also less interfering.
4) ATM Transactions: With the help of debit cards, ATM transactions are also possible and the customer
does not require paying anything extra.

DISADVANTAGES
1) Grace Amount is not Available: Consumers who use debit cards cannot borrow funds from banks.

2) Check Book Balancing: A customer needs to record all transactions so that it is easy to maintain the
balance.

3) Extra Fees: When debit cards are used for transacting with other banks, extra feed may be required to be
paid.
Credit Cards
Credit card is another common way of making electronic payments.
Credit card is a plastic card that contains all information related to the
customer like the account number and credit limit. A credit card is
issued by a bank or a financial institution. Customers can purchase
products and services within the credit limit or the card value. Credit
card is a post-paid card where a customer can first purchase and then
pay later. The processing of online credit card transaction is same as
that of store purchases; the different being that the merchant does not
get to view the card and does not need to take the signature of the
card holder.
Parties Involving in Credit Card Processing Following are the five
parties who involves when customer pay using credit card:
1) Consumer,
2) Merchant,
3) Clearinghouse,
4) Merchant Bank also known as Acquiring Bank,
5) Card Issuing Bank. A merchant must have an account in a bank to
accept payments by credit card.
3 types of credit card based on payment
1) Payments Using Plain Credit Card Details: Exchanging unencrypted credit
cards over a public network such as telephone lines or the Internet is the
easiest way of using plain credit cards. However, these transactions are not
secure making the use of these cards problematic. The hackers can easily read
credit card details and misuse the card. Authentication is also a significant
problem, and it is the vendor who must make sure that the person using the
card is the actual owner.

Steps of Payments Using Plain Credit Card Transaction processes using a

plain electronic credit card are as follows:
Step 1: The customer accesses vendor server to get a list of products and
services.
Step 2: The customer on purchase of products offers to pay via a credit card
by typing in the credit card number in a HTML form provided by the vendor's
server.
Step 3: The vendor server then accesses the credit card acquirers for
authenticated consumer's credit card number and the amount of purchase.
Step 4: Then the request is forwarded to the credit card issuer.
Step 5: The credit card is then authenticated and the credit status of the
customer is also informed.
Step 6: Now vendor get the information from the acquirer whether to proceed with
the sale or not.
Step 7: The vendor then informs the customer whether the transaction has been
completed or not.
Step 8: The vendor then sends the details of the various electronic credits he has
given.
Step 9: The acquirer then obtains the money on behalf of the vendor.
Step 10: The issuer charges the customer for the credit amount within the specified
credit days.

2) Payments Using Encrypted Credit Card Details: In this case when

the credit card information is entered into a browser or any other e-commerce:
Step 1: A customer presents his or her credit card information with the authentic
signature or other information in a secure manner to the merchant.
Step 2: The customer's identity is validated by the merchant.
Step 3: In this step merchant relays the credit card charge information and
digital signature to their bank or online credit card processor.
Step 4: The processing party (or bank) forwards this information for
authorization of the payment to the customer's bank.
Step 5: The customer's bank then returns the credit card information such
as data, authentication, and authorization to the merchant.
Type 3.Payments Using Third-Party Verification: The third party
is independent of the customer and the merchant, and cannot
gain anything from the transaction. The customer can process
some activities for customers and merchants which reduces the
load on the merchant as well as the customers. For this type of
processing, a customer needs to register with a third party on
the internet.

Step 1: The customer sets up a Third Party (TP) account that

holds C customer information and is backed by the credit card of
the customer
Step 2: The customer quotes the TP number to buy the products.
Step 3: The seller interact with the TP payment server with the
customer information (e.g., account number).
Step 4: The customer account number is verify for the sufficient funds
by TP payment server.
Step 5: The TP payment server then sends an e-mail to the customer
and the buyer to confirm or denies the purchase.
Step 6: After the deal in authenticated, the merchant completes the
transaction.
Step 7: The TP debits the customer's account after getting confirmation
of the purchase completion.

Advantages of Credit Cards

1) To Card Holder
i) Shopping Ease: Credit card is very easy to carry and can be
substituted the burden of carrying lots of cash.
ii) Credit Facility: Credit card is a great credit facility and the customer
does not need to visit the bank or financial institution to get the card
and also can pay at a later date.
iii) Safety: Credit cards allow the safe transactions and also decrease
the risk of theft.
2) To Merchant
i) Easy Validation: Merchants can easily verify the details of the customer leading to an increase in
sales transactions.
Ii)Increased Sales: Credit card is easy and convenient way for buying process and increases the
buying power of consumer.
3) To Issuer Bank
i) Market Growth: Credit card can be used by banks to grow their market visibility.
Ii)Source of Earning: These are the sources of earning income for the bank as banks can charge an
interest on extended credit to customers.

Disadvantages of Credit Cards

1) Waste of Money: If not properly utilize the credit card can lead to wastage of a lot of money.
2)Overuse: The overuse of credit cards enables the companies to charge huge interest on credited
amount.
3) Financial Problem: If a credit card holder is not able to pay within the credit period, he or she
may have to face financial problems like overdraft.
4)Mental Distress: The customer might suffer from mental distress because the pressure imposed the recovery agents
appointed by few credit card issuers.
5) Expensive: Many Merchants charge higher than the real price of the product. So cardholders pay more compared to a
customer who is paying by cash.

QR Code Scanners
QR codes are the future of all online industries, and ecommerce is no exception. They have the potential to revolutionise
the way we shop, or at very least make the process a lot more convenient for everyone involved.An abbreviation of
"Quick Response code", QR codes are 2D images made up of either lines, dots or other formats that can be read by
smartphones and other devices. You can scan them with your screen and be linked directly to a website, provided with
particular information, linked to a phone number or text and various other functions.E-Commerce businesses are using
QR codes today in convenience-oriented and commercial tracking applications targeting smartphone users and other
Wi-Fienabled device users.
 Following are seven creative ways that the E-Commerce
industry is leveraging QR codes to bring back users:

1) Product Packaging: Merchants

are adding QR codes on product
packaging, which allows shoppers to
scan and learn more about the
products. They can also encourage
repeat purchases as customers scan
them and are directly taken to the
checkout page on their mobile
devices. Special discount codes can
be availed through the codes to
reward current clients for their
loyalty.
2) Pop-ups, Events, and Storefront
Displays: With a QR code, your
customers can learn more about your
products and purchase them much
faster. Some businesses could be
running brick and mortar stores in
parallel, in which case you can display
the code on the windows. It's a great
way of encouraging mobile shopping,
which brings more users back to your
store.

3) Online and Offline Ads: QR codes

can be used with online ads such as
those running on social media
platforms, and offline ads as well such
as package inserts, posters, and other
marketing materials.
4) Video Marketing: One can apply QR
codes to video marketing by adding them
to business cards, which when scanned,
link to short intro videos on Vimeo or
YouTube. This brings back users as it
reminds them about your online store
and products.
5) Mobile Layaways: Mobile layaways
allow customers to scan the QR codes
and "put away" or reserve items they
intend to buy later on. If your store
allows for this, the QR codes ease the
process for customers, and in turn. bring
them back thereby increasing sales for
your store. This is especially helpful for
customers on the move, who will check
out your store later when they are online,
and purchase the items when they are
ready.
6) Mobile Rebates: Instead of putting
customers through the hassle of
mailing in a rebate, or redeeming
them online, QR codes can smooth
this process. With mobile rebates, you
can offer customers discounts on
items once purchased by placing them
on e-receipts or signage around your
store's site. The customers just scan
the rebate QR code and instantly
receive their discounts even while at
your store.
Advantages of QR Code Scanner
1) Low-Cost: Reduce the cost of printing brochures, instructions for product
purchases, and marketing materials.
2) Green: Less waste for the environment by reducing printing materials
3) High Conversions: Increase conversions using QR Codes. People will take
more action if it is easy for them to do so without typing anything in.
4) Engaging: Use QR codes for customers to interact with company. For
example, they can enter a contest or take part in a survey to provide
feedback.
5) Customer Satisfaction: QR codes on packaging and tags can be used to
provide instructions for product care or installation. This will increase
customer satisfaction. Packaging will not be cluttered, and customers will
have the product information on their mobile devices so they can find it later.
This is in contrast to printing instructions that might get lost.
6) Trackable: Use dynamic QR codes to keep track of how often your code is
being scanned and other performance metrics. A QR code creator app is
required to support QR code management. This will allow you to access
analytics and download statistics.
7) Contactless: Visitors can use QR codes to make contactless payments and
pick up orders.
Disadvantages of QR Code Scanner
1) It requires phone with camera which makes it costly for the common users to afford.
2) It requires installation of QR code reader software or application in order to scan the QR code image. This is
not possible in all the types of mobile phones.

NEFT (National Electronic Funds Transfer)

National Electronic Fund Transfer (NEFT) is designated as a nationwide payment system allowing the transfer of
funds from one bank account to another.

NEFT is a nation-wide money transfer system. It allows the customers with the facility to electronically
transfer funds from their bank account to any other account of the same bank or another bank. Funds to be
transferred via NEFT require a transferring bank and a destination bank.

Before transferring funds, one needs to register the person receiving funds as the beneficiary. For this, the
name of the recipient, the bank name, account number as well as the IFSC code of the bank must be required.
With a maximum capital of *10, 00, 000 any sum of money can be transferred by NEFT.
NEFT is a countrywide system by which an individual, firm or company can electronically transfer
funds from any bank branch to another individual, firm or company having an account with any
other bank branch in the country. The funds transfers take place at a particular period of time. All
transfers are held till that time. In other words, NEFT transactions are settled in batches.

During the weekdays NEFT transactions take place 6 times a day (9:30am, 10:30am, 12:00 noon,
1:00pm, 3:00pm and 4:00pm). On Saturdays NEFT transactions take place 3 times a day (9:30am,
10:30am, and 12:00noon).Any NEFT transaction initiated after a designated settlement time has to
wait till the next designated settlement time.
The main features of NEFT are as follows:
1) A bank branch must be NEFT enabled to become a part of the NEFT
funds transfer network.
2) An individual, firm or company can make use of NEFT even without
having a bank account by depositing cash at a NEFT enabled bank branch.

3) In order to receive funds through the NEFT system, an individual, firm

or company must have an account with a NEFT enabled bank branch.
4) In case one does not have a bank account, the maximum amount that
can be transferred through NEFT system is Rs.49,999.
5) There is no minimum or maximum amount that can be transferred
through NEFT when one has a bank account.
6) NEFT transactions take place in batches.
7) NEFT cannot be used to receive foreign remittances.
8) The sender of funds has to pay the following charges for NEFT:
i) For an amount upto 1 lac - 5 plus Service Tax.
ii) For an amount above 1 lac and upto 2 lacs 15 plus Service Tax.
iii) For an amount above 2 lacs - 725 plus Service Tax.
9) The receiver of funds has to pay no charges.
Advantages of NEFT
1) The sender is not required to send a physical cheque or a demand draft to the
receiver or beneficiary, thereby reducing the effort and time and making the process
seamless and efficient
2) The beneficiary does not have to visit the bank for depositing the cheque or
demand draft for receiving the payment
3) It is a safe and secure payment method in which both the parties can be assured of
the security without any worry of loss or theft of the physical instruments
4) Under the NEFT system, the confirmation of credit of the transfer is sent by the
bank through SMS or email to both the parties
5) The national electronic fund transfer method of initiating a transaction is cost-
effective and any individual can initiate or receive it directly at the convenience of their
home or workplace through internet banking
6) It is almost a real-time fund transfer system to the beneficiary account in safe way.
Disadvantages of NEFT
1). NEFT is a highly technical alternative of transferring funds which might not
be easy for everyone to operate. A person having little computer or internet
knowledge might find it difficult to operate and access this method.
2) Despite the bank taking proper steps to ensure the security of NEFT
transactions using an unsecured browser makes information prone to be
hacked or passed onto a hacker.
RTGS (Real Time Gross Settlement)
This is a real time funds transfer system. Using this method one
can transfer the amount from one account to another on a real
time and gross basis.
The transaction is not put on the waiting list but is cleared in an
instant manner. The RTGS payment gateway is maintained by
Reserve Bank of India. The transferred amount is instantly
deducted from the bank account of the person paying the funds
and credited to the other bank account. There is no upper cap
on the amount that can be transferred using RTGS.One can use
the RTGS facility if transfer amount is 2 lakhs or more.The RTGS
service is available to customers from 9:00am to 3:00pm on
week days and from 9:00am to 12:00 noon on Saturdays. This is
the fastest possible system for transfer of money through the
banking system.
The main features of RTGS are as follows:
1) RTGS is not available at all the bank branches in India. This
facility is *provided only by CBS enabled bank branches.
2) RTGS transactions are processed individually and continuously
throughout banking hours rather than in batches.
3) The minimum amount in a RTGS transaction is 2 lacs. There is
no upper ceiling for a RTGS transaction.
4) The receiving or beneficiary bank must credit the customer's
account within So two hours of receiving the funds transfer
message.
5) Fees charged for RTGS transactions vary from bank to bank.
Advantages of RTGS
1) It is one of the fastest and the safest mode of interbank money
transaction RTGS facility is available to the customers on all the
business days with the timings varying from bank to bank
2) It is designated as an immediate fund transfer mechanism which
involves the paperless transfer of the funds.
3) For depositing the money, the beneficiary does not have to visit
the bank, and the funds through RTGS can be transferred with the
use of internet banking services as well
4) It does not involve any credit and settlement risk for the
recipients as every payment or transaction is settled instantly or in
real-timeThrough the RTGS facility, the customers are enabled to
predict the cash flows by knowing when their accounts will be
credited and debited
5) RTGS is beneficial for the economy as it involves an instant
transaction ensuring fast commerce secure and irrevocable
settlements of the business and financial market transactions
Disadvantages of RTGS
1) In the real-time gross settlement system, the facility of tracking
transactions by the customers is not available. The
2) The Reserve Bank of India has only implemented the positive confirmation
feature in which the remitting bank receives a message of fund transfer to the
beneficiary Bank from the Reserve Bank of India.
Point Of Sale
Point of Sale A POS system is a tool which allows company to accept payments from
consumers and track sales.. Mobile An mPOS (mobile point-of-sale) is a smartphone,
tablet or dedicated wireless device that performs the functions of a cash register or
electronic point-of-sale terminal (POS terminal) wirelessly. mPOS is useful for
businesses that will take transactions on the go. For example, any business, from
market vendors to food trucks, that would interact with customers from anywhere
outside the organisations' geographic location would find mPOS useful.To implement
an mPOS, a business needs an internet connection, a credit and debit card reader,
and an application downloaded to whatever device it wants to use for the
transactions. A user can then download a POS app and connect the reader to their
mobile device. An mPOS can also be paired with additional POS hardware like a
barcode scanner and a cash drawer. A Working of Mobile Point of Sale(mPOS)
Pos apps
Pos with barcode scanner
Following shows how transactions work on an mPOS system:a
1) Customer Selects Products: A shopper chooses the items they had like to buy and
brings them to a sales associate. With a mobile POS, the associate begins the
transaction by scanning the item's barcode with a barcode scanner, the tablet's or
smartphone's camera, or by searching for it in the system.
2) mPOS Calculates the Total Price: After all the items have been scanned, the mobile
POS system calculates the total price of the purchase, including applicable sales tax
and discounts.
3) Customer Pays: Now the customer pays with a credit or debit card, cash, digital
wallet, gift card, or loyalty points. If the customer is paying with cash away from the
register, the associate will need to bring them change.
4) Transaction is Completed: The sale is finalised after the mPOS processes payment.
After the shopper decides if they want an emailed or printed receipt, they're free to
leave with the items they bought. At this point, the POS updates the store's inventory
count, factoring in the newly sold items.
E-Money and E-Payment Systems
NFC transactions take place over a specific radio frequency that enables the card or
smartphone to communicate with the payment reader when they are close together
(usually 10 centimeters or less).

This payment method works by tapping a payment card or other device near a point-of-
sale terminal equipped with contactless payment technology. Contactless payment is also
referred to as tap-and-go or tap by some banks and retailers. Contactless payment is
available through banks and other financial institutions. But other companies have also
jumped on board offering their own versions of contactless payment. For example,
Google and Android introduced pay systems compatible with their devices using NFC in
2011 while Apple jumped on board with Apple Pay - its own version of the digital wallet -
in 2014.Some contactless payments are like:
1) Apply Pay
2) Samsung Pay
3) Google Pay
Working of Contactless Payments Contactless payments are made using two types of
contactless payment technology:
1) Radio Frequency Identification (RFID): Contactless credit, debit, and smartcards have
microchips inside (similar to the visible one scanned by the machine when a card is inserted).
When a contactless payment is made, the antenna on the credit card reader pings. RFID
technology inside the contactless card makes contact with the antenna and the payment is
processed wirelessly.
2) Near-Field Communication (NFC): Smartphones store a shopper's credit card information in
a mobile wallet. These smartphones use NFC technology to find a nearby payment terminal,
send an encryption key to accept the payment from the mobile wallet, and process a receipt.
This is how Apple Pay, Google Pay, Android Pay, and Samsung Pay work. It is also how payment
fobs and wearable devices process contactless card payments.
Types of Contactless Payments
There are few different options for customers when it comes to contactless payments,
including: cards with NFC technology, mobile wallets, and QR codes:
1) Cards with NFC Technology: Popular banks are building contactless technology into their
customers' credit and debit cards. Visa, MasterCard, and American Express all have EMV chips
in their smartcards. Customers can find whether their card is contactless by looking for the
contactless symbol.
2) Mobile Wallets: Another popular contactless payment method is mobile wallets. Most
mobile devices - including Samsung, Apple Pay, and Google Pay - have radio-frequency
identification (RFID) built in. All a shopper needs to do is add their credit or debit card to the
digital wallet, open up the app, and tap their phone onto a POS terminal to make a purchase..
3) QR Codes: Retailers can use QR codes for touch-free payments. These are small , square
graphics that look like barcodes. Shoppers can use their mobile devices to scan the QR code
and make online purchases through a personalized checkout page on your ecommerce site.
Apple Pay
Most Apple devices already come equipped with the Apple Wallet app. It allows users to
store credit and debit card information onto their device-notably an iPhone or iWatch-to
make purchases in stores. The system also allows purchases to be made online and
through other apps. Users can also send money to friends and family through their text
message system using Apple Pay. Apple Pay is a mobile payment app designed for Apple
devices. It allows users to make purchases in stores with their phone or Apple Watch at
contactless payment terminals by employing near-field communication, as well as in apps
and online. Users in the U.S. can send payments via Apple Cash through the Messages app
using their iPhone or Apple Watch. The new Apple Card is also deeply integrated with
Apple Pay.Working of Apply PayTo pay with Apple Pay using your iPhone's Face ID
function, double-click the side button and then look at your iPhone's screen to
authenticate the transaction. Or, one can enter passcode instead. Next, hold the top of
phone close to the contactless reader. When the transaction goes through, the display will
say "done” and show a check mark. To use Apple Pay with iPhone and Touch ID, rest finger
on Touch ID and then follow the same process of holding your phone near the reader. To
pay with an Apple Watch, double-click the side button and hold the display of Apple Watch
near the contactless reader. One will feel a tap when the transaction goes through.
Advantages of Apple Pay
1) Payment: After shoppers have their credit card stored on the iPhone, they
only need to keep the phone near an NFC scanner, use the iPhone's Touch ID
to accept the purchase using their fingerprint, and the payment is processed
within a few seconds. The approach is easier than the conventional swiping
procedure for credit cards, which normally involves: swiping a card and then
choosing debit or credit, providing a different id, and affixing a signature.
2) Convenient: For customers, more payment choices equal more ease. Apple
Pay will be a more seamless means of transacting business with you for
customers who are already using an Apple computer, so there is less delay in
the buyer's path. They would also enjoy the quick Apple Pay checkout; there
is no need to enter the detailed information of the credit card.
3) Secure: Since there is no requirement for a credit card to be present, the
risk of a stolen number is smaller. In comparison, Apple does not use the
credit card number to make the purchase, but uses a token to complete the
transaction called the "device account number," which further decreases the
likelihood of stolen credit card information. Apple Pay is an adaptation of the
EMVCO standard that is regarded as the most reliable payment system by
many industry experts.
4) No Internet Required: For anyone to use Apple Pay, he/she does not
require an internet connection. It can be used anywhere and roaming charges
should not accumulate. It can still be accessed even if phone is in airplane
mode.
5) No Extra Fees: Apple is not charging fees for this new program to retailers
or customers
.Disadvantages of Apple Pay
1) Software Failure: A product release bug may often impact the running of
the payment service or some other issue with the installed software may
arise.
2) Stability: Shoppers are unlikely to wait while the iPhone attempts to
validate the purchase.
3) Acceptance and Pop-up Texts: Not all distributors use a mobile payment
terminal, so one has to hold wallet for shopping. Also, after making the
payment, an embarrassing text can pop up on phone screen.
4) Adoption: It may be difficult to get customers and retailers to use the app,
as it requires customers to have an iPhone 6 and NFC terminals to help
retailers.
Samsung Pay
Samsung also launched a digital wallet, allowing users to store
their payment card information onto the app to use at
merchant terminals. Samsung Pay users can also earn cashback
and other rewards by using their phones to make purchases.
Users simply take a photo of their card or of a barcode and tap
to check out. This contactless payment provider is used by
Samsung mobile users. It enables you to carry credit, debit, gift,
and membership cards all in one place. This allows you to pay
in person, online, or in an app. Samsung Pay also send
notifications about discount and coupons for local merchants.
It provides a great user experience that encourages people to go
out and shop.
When you Samsung Pay, you can feel confident that transactions
are protected. Each transaction requires to be authenticated
with your fingerprint, pin number, or iris scan. This protects
account and helps you feel secure about making purchases.
For example, Samsung Pay uses facial recognition technology to
verify that the person using the mobile phone is the owner of it.
Similarly, Apple Pay prompts people to enter their fingerprint ID
to complete a contactless sale.
Samsung Pay Benefits
1.Immediate Activation. The service is pre-installed on most Samsung devices to allow
users to make cardless payment transactions. ...
2.Affordable Digital Wallet. ...
3.Fast and Secure Online Payment. ...
4.Rewarding Application. ...
5.Online Tokenization.
Disadvantages of samsung pay
1.Eligible Samsung device 2.Not all bank offers Samsung pay
3.Privacy policy of a account not best
Advantages of Contactless Payment 
From the Consumer’s perspective
1.Ease of use
Quicker transactions and shorter queues at the checkout are the most significant
advantages of contactless payment. Handling cash is not a concern at the checkout. You
also don’t have the hassle of punching in your PIN.        
2.Safer transactions
Tap-to-pay technology is more reliable and secure than other forms of payment. The
chip technology protects you against any fraudulent purchases through encryption and
dynamic data technologies.
the contactless payment feature.
3.The flexibility of payment devices
Say goodbye to bulky wallets once you go cashless. Your NFC-enabled smartphone is
all you need to make your payments.     
4. Loyalty benefits
Most loyalty programs offered by stores are in sync with the tap-to-pay smartphone
that you use for payments. They automatically confer discounts and loyalty points at
the time of payment. Some banks also offer cashback and incentives when you use
From the Business’s perspective
 Better operational efficiency
Adopting tap-to-pay technology is faster, with lesser workforce requirements.
Contactless payments reduce the time that businesses spend on operating card
machines or counting cash. 
 Better customer experience
Studies have shown that businesses offering contactless payment facilities provide a
smoother and quicker checkout experience to the customers, hence earning their
loyalty. Stores can also optimise their loyalty programs and improve customer
relationships.
No extra cost
Providing a contactless payment facility does not attract any additional processing fee.
Businesses pay the same fee applicable for a transaction with a regular credit card. 
 Fraud protection
Contactless payment technology is secure and encrypted to discourage any hacking
attempts. Better transaction security means that businesses get their money without
any disputes  . Besides, contactless payments are protected against fraud by most
issuing banks. 
Challenges of Contactless Payments
Concerns for Consumers
 Limited acceptance
Retailers are slowly facilitating contactless payments, but the consumers continue to remain
dissatisfied with the spotty coverage, especially among the independent retailers. However, there
is an uptick in the last couple of years.
Low transaction limit
As per RBI ruling, contactless payments carry a capping limit of INR 5000* per contactless
transaction in India. For higher  value transactions, entering a PIN becomes necessary to protect
against fraud. Some of  the consumers may find this rule to hinder their overall shopping
experience.
 Technical limitations
Consumers face certain technical barriers in case of mobile contactless payments. The mobile tap-
to-pay system needs you to have an NFC compliant smartphone. 
Limited international availability
Mobile Contactless payment devices may not work internationally. Despite similar technology,
some mobile wallets used for contactless payments do not get accepted abroad. You may also
incur an additional foreign transaction fee.
 Security concerns
Since the transaction with a contactless card does not need any PIN authorisation, there is a fear
of fraudulent purchases in the event of it being lost or stolen  . In such a case, it is always a good
idea to let the issuing bank know about this. Most banks give you a 100% fraud guarantee,
relieving you of any responsibility, provided you were careful with its use. 
 
NFC Technology
Near-field communication and Its Uses
Near-field communication (NFC) is a short-
range wireless technology that makes
smartphone, tablet, wearables, payment
cards, and other devices even smarter.
Near-field communication is the ultimate
in connectivity. With NFC, one transfer
information between devices quickly and
easily with a single touch whether paying
bills, exchanging business cards,
downloading coupons, sharing a research
paper.
FC technology enables contactless
payments using a smart phone or payment
care almost anywhere, from the
supermarket check-out line to the parking
garage
 a NFC chip works in combination with a rolled antenna. This spiral generates electromagnetic field which NFC
chips can use for wireless communication data via inductive coupling. This data often includes telephone
numbers, linky contacts and access data. The device receiving the data is given access - receives instructions
on what it should do with the data - for example make phone call to someone, open a web page, store data or
establish a the connection. In general NFC chips work a passive or active mode. However, they only generate
an electromagnetic field when in the active mode. The electromagnetic field can be used not only for data
transmission, but also generate electricity. When a device is held close to an NFC tag, the magnet field in the
active chip generates a voltage in the coil of the passive chip.

Today the majority of NFC transactions take place in passive mode, i.e. with an additional
power supply in an NFC card or a wearable device. An other inherent benefit is the low
level of power consumption, a highly important aspa for long battery cycles in consumer
devices.
Examples of devices with active tags:
1) Reader terminals in retail stores
2) Smartphones
3) Credit cards
4) Wearables such as smartwatches
Examples of devices with passive tags:)
Bank cards and debit cards
Uses of NFC Technology Some of its uses are as follows:
1) Digital Keys: In addition to contactless payment, NFC
technology can be utilized in the Smart Home. Users can
unlock and open house doors NFC-capable devices
without using a physical key. Many companies function
for example to limit building access to authorized
employees technology is on the job in digital car keys.

2) Representing Information: Although still rather rare,

there are also advertising posters and places of interest
equipped with NFC tags that provide relevant information
on the smartphone at the user's request. For example, if
held up to an NFC-capable poster advertising a concert,
the telephone can then open a web page where a ticket
can be purchased.
Digital Business Cards: There are even more ways to
integrate NFC technologies in our everyday lives and
Smart Homes. Individual commands and functions
can be programmed on write-capable tags in the
form of stickers or pendants. For example, the users
can store WIFI access data or their business cards on
the tag. When a visitor holds his smartphone up to
the tag, he is automatically logged into the network.
It's not even necessary to open the phone's camera
to do so, as with a QR code.

Hospital: NFC in the hospital setting lets medical

staff track where people are, and who's done what.
Staff can know, in real-time, where a patient is, when
the nurse last visited, or what treatment a doctor just
administered. NFC-enabled wristbands can replace
patients' traditional hospital identification bracelets
and can be updated with real-time information, such
as when a medication was last given, or which
procedure needs to be performed when.
Airlines: In 2012, Japan Airlines became the first commercial airline worldwide
to allow passengers to tap standard NFC phones to pass through boarding gates
in lieu of paper boarding passes. The customer experience in airports that use
NFC technology is enhanced significantly, as NFC can shorten the boarding of a
450-person plane to just 15 minutes - a process that normally takes 40 minutes
without the use of NFC.
UPI stands for Unified Payment Interface and is primarily
available for use via smartphone applications. It has
received an overwhelming response from the users due
to its easy availability and stress-free banking,UPI was
an initiative that was undertaken by the National
Payments Corporation of India (NPCI) along with the
Reserve Bank of India and the Indian Banks Association
(IBA).The National Payments Corporation of India
holsters the responsibility of handling the RuPay
payment infrastructure by allowing different banks to
interconnect and transfer the

UPI (United Payments Interface) is a real-time payment

solution that links bank accounts with UPI platforms on
mobile phones. It eliminates the need for a third-party
wallet and enables the direct transfer of money from
one bank account to another. Currently, UPI services are
integrated with over 120 banks. Consumers can also use
UPI for P2P transfers to family and friends.
Funds can be transferred via the following methods:
1) Virtual Payment Address (VPA): Send or request money from/to bank
account mapped using VPA.
2) Account number & IFSC: Send money to bank account.
3) QR code: Send money by scanning QR code with enclosed VPA or Account
number & IFSC.
4) Mobile number: Send or request money from/to the bank account mapped
using mobile number.
5) Aadhaar: Send money to the bank account mapped using Aadhaar number.

Once the fund transfer is initiated, money is debited from payer's bank
account and deposited in the recipient's bank account in real-time. This system
works 24x7, including weekends and bank holidays.

It is the cheapest way to transfer funds. The user can transfer as low as Re 1
using the UPI payment system. There are various other benefits of the UPI
system that funds transfer becomes faster, easier, and smoother in India. It
even facilitates Online Mobile, DTH, and other recharges ranging from 1 to
10000. The user can also pay utility bills using the UPI gateway via apps like
Phone Pe, Paytm, Google Pay, and others.
Mobile Wallets
A mobile wallet is a way to carry cash in digital format. One can link
credit card or debit card information in mobile device to mobile wallet
application or one can transfer money online to mobile wallet. A
mobile wallet is a type of virtual wallet that stores credit card
numbers, debit card numbers, and loyalty card numbers. It is
accessible through an app installed on a mobile device, such as a
smartphone or tablet. Mobile wallets are safe apps for storing financial
instruments and other documents such as credit cards, bank
information, and even driver's licenses.

Instead of using physical plastic card to make purchases, you can pay
with your smartphone, tablet, or smart watch. An individual's account is
required to be linked to the digital wallet to load money in it. Most
banks have their e-wallets and some private companies. For example,
Paytm, Freecharge, Mobikwik. Oxigen, mRuppee, Airtel Money, Jio
Money, SBI Buddy, itz Cash, Citrus Pay, Vodafone M-Pesa, Axis Bank
Lime, ICICI Pockets, SpeedPay eto.
Types of Mobile Wallets
1) Open Wallets: An open wallet is used directly by a bank or through a third
party, Open wallets allow customers to use the funds in the mobile wallet for
making payments for transactions or withdrawing the funds deposited to the
account in cash. An example of an open mobile wallet is PayPal, which allows
users to make payments for in-store and online purchases and still withdraw
the funds in cash.
2) Closed Wallets: Closed wallets are linked to specific merchants, and users
can only use the funds to make payments for transactions initiated with the
specific merchant. Users cannot use the money to make payments for
transactions with other merchants and third-party service providers or
withdraw the funds in cash. An example of a closed wallet is Amazon Pay.
3) Semi-Closed Wallets: Semi-closed mobile wallets allow users to use the
funds in the wallet to make payments for transactions with multiple
merchants, as long as there is an existing contract between the merchant and
the mobile wallet company. Users can also withdraw the funds into a bank
account. However, semi-closed wallets do not allow users to withdraw funds
in cash.
Advantages of Mobile Wallets
1) Cashless Transactions: Mobile wallets help customers go cashless and
cardless. There is no need to carry money and search for change. This offers
consumers the convenience factor.
2) Secure and Safe: It is not always wise to carry a lot of money as there is a
chance one might lose it. Embracing mobile wallets mean that one does not
have to carry credit/debit cards or money. Money can be stolen, cards can be
stolen or misused but this is not the case in mobile wallets. Digital wallets are
secure because they use only encrypted data.
3) Convenient: Mobile wallets are fast becoming the most convenient form of
payment mechanism. It is very simple to use, there is no need to carry
anything but your smartphone and all payment information is already on the
phone.
4) Fast and Streamlined Payments: All mobile wallet based transactions are
always much faster, be it online or offline payments. All you have to do is "tap
and pay'. Not just this, a single mobile wallet app can be used for all kinds of
purchases.
5) Multiple Accounts: The main advantage of a mobile wallet is that one can
store multiple card and account information in one single app and choose
whatever payment mechanism you want to use.
Disadvantages of Mobile Wallets
1) Mobile network connectivity is the biggest impediment. Network problems
and reliable and fast internet connectivity is not available in most of the
developing countries
.2) More than connectivity, security issues are at the forefront nowadays.
People are always under the fear of misuse of their money by hackers and
frauds.
3) Prough support infrastructures is not available. In countries $ not enough
financial inclusion and financial literacy. Unless that builds up , in bringing in
more and more advanced technologies.like India there usethere is no
4) It also does not cater to needs of the entire population. It's an app on a
smart simple cell phones. Plastic money and mphone. Most of them are using
commerce has not yet caught up completely throughout the entire nation. 5)
India does not have a solid dispute resolution processes. Experiences of
people with the customer service agents to are not encouraging.