Electronic Payment System

Introduction History Requirements for e payment Digital money Electronic payment systems E-cash Electronic wallet Smart card Credit card

Overview

Electronic Payment is a financial exchange that takes place on line between buyers and sellers. The content of this exchange is usually some form of digital financial instrument (such as encrypted credit card numbers, electronic cheques or digital cash) that is backed by a bank or an intermediary, or by a legal tender.

Introduction

The various factors that have lead the financial institutions to make use of electronic payments are:

Decreasing technology cost: Reduced operational and processing cost: Increasing online commerce:

introduction

Originally, electronic commerce was identified as the facilitation of commercial transactions electronically, using technology such as electronic data interchange (EDI) and electronic data transfer (EDT). These were both introduced in the late 1970s, allowing businesses to send commercial documents like purchase orders or invoices electronically. The growth and acceptance of credit cards, automated teller machines (ATM) and telephone banking in the 1980s were also forms of electronic commerce. Another form of e-commerce was the airline reservation system typified by Sabre in the USA and Travicom in the UK.

history

Beginning in the 1990s, electronic commerce would include enterprise resource planning systems (ERP), data mining and data warehousing In 1990, Tim Berners-Lee invented the WorldWideWeb web browser and transformed an academic telecommunication network into a worldwide everyman everyday communication system called internet/www.

history

Commercial enterprise on the Internet was strictly prohibited by NSF until 1995.Although the Internet became popular worldwide around 1994 with the adoption of Mosaic web browser, it took about five years to introduce security protocols (i.e. SSL encryption enabled on Netscape 1.0 Browser in late 1994) and DSL allowing continual connection to the Internet. By the end of 2000, many European and American business companies offered their services through the world wide web. Since then people began to associate a word "ecommerce" with the ability of purchasing various goods through the Internet using secure protocols and electronic payment services.

history

Atomicity Good atomicity Non-repudiation No party can deny its role in the transaction Digital signatures

Money is not lost or created during a transfer

Money and good are exchanged atomically

Requirement for EPS