What is an Electronic Payment System?
Electronic Payment System allows people to make online payments for their purchases of goods and services without the physical transfer of cash and cheques, irrespective of time and location. The key components of this payment system are the payers and payees, financial institutions, electronic devices, communication networks, payment gateways, and mobile payment apps. As the global economy continues to evolve, the dependency on physical modes of payment is gradually giving way to digital alternatives that offer speed, convenience, and efficiency. These systems facilitate a diverse range of financial activities, from online purchases and bill payments to person-to-person transfers.
Electronic Payment System: Types, Advantages, Disadvantages and Regulatory Bodies
An Electronic Payment System is defined as a mode of payment over an electronic network, such as the Internet. The Indian economy has developed at a rapid pace since the growth of e-commerce, electronic payments, and digital payments have gone a long way. Electronic payments have been rising since the implementation of demonetization and will continue to do so with the current government ensuring that these types of payments are promoted.
Geeky Takeaways:
- Electronic Payment System allows customers to pay for goods and services electronically without the use of cheques or cash.
- Businesses need a strong and secure electronic payment system in online dealings.
- Electronic Payment System is regulated in India by the RBI.
- The system is safe, speedy, and cost-effective in comparison with paper-based payment systems.
Table of Content
- What is an Electronic Payment System?
- Types of Electronic Payment System
- Advantages of Electronic Payment System
- Disadvantages of Electronic Payment System
- Regulatory Bodies Governing Electronic Payment System in India
- Regulations Relating to Electronic Payment System
- Conclusion
- Frequently Asked Questions (FAQs)
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