In early 1990s the business and consumer world encountered a new way of conducting trade business which was named electronic commerce.
Payment for the products and services purchased is an obvious and vital set of processes in electronic commerce transactions.
Electronic payment systems have become necessary to enable the internet commerce.
The benefits to an economy of information technology applications in the payment system are apparent in the speed, traceability, and liquidity that the technology can provide over and above manual processing.
The requirements of payment transactions include confidentiality, security, integrity, non-repudiation and authentication.
But payment processes are not simple, because of the near anonymous electronic nature of transactions taking place between networked computer systems of buyers and sellers, and many security issues involved. Security is a major concern in the payment system.
Electronic commerce payment processes are also complex because of the wide variety of debit and credit alternatives and financial institutions and intermediaries that may be part of the processes therefore, a variety of electronic payment systems have evolved over time.
PayPal is the electronic cash payment system. PayPal eliminates the need to pay for online purchases by writing and mailing checks or using payments cards. PayPal allows consumers to send money instantly and securely to anyone with an e-mail address, including on online merchant.
Electronic Payment System
