Online payments: An introduction (2024)

FAQs

What is the introduction of online payment? ›

What are online payments? Online payments are payments that are initiated over the internet for goods or services purchased either online or offline. Common methods to facilitate this include: Bank Debits via online mandate (often referred to as Direct Debit - which is the terminology we'll use in this guide)

Online payment allows you to pay money via the internet. Buyers will use this type of payment when they purchase goods online or offline. They can use different types of online payment methods, including debit/credit cards, wire transfers, net banking, and digital wallets.

A mode of payment is the way that consumers choose to pay for their purchases. Modes of payment may refer to transactions taking place in a physical location like a store or market stall, online via your ecommerce site or over social channels like Instagram.

The online payment systems allow the seller to accept payments and the buyer to send payments over the internet. Examples of online payment companies include PayPal, Alipay, WeChat Pay, Paytm, Google Pay, and Apple Pay.

The benefits of online payment for MSMEs and businesses

Customers can easily make transactions to purchase products or services without carrying physical cash. This not only provides convenience to customers but also speeds up the checkout process, enhances service efficiency, and reduces queues at the cashier.

After the internet became available in 1991, the first online payment was made by a consumer in 1994. Following the establishment of Amazon, Google, and PayPal, the e-commerce sector became considerably more accessible. Online payments were simpler, more convenient, and more secure.

Offering easy online payments reduces or removes manual tasks like data entry, managing customer disputes, and paper invoices. In fact, some online payment methods automatically generate online invoices, which saves time and money.

From credit cards and debit cards to e-wallets, bank transfers, mobile payments, cryptocurrency payments, prepaid cards, and cash on delivery, there are numerous options available to suit different needs and preferences.

Payment processing refers to the handling and facilitating of financial transactions between a customer and a business. It involves the authorization, authentication, and settlement of payments for goods or services.

What is mobile payment system introduction? ›

What Is a Mobile Payment? A mobile payment is a money payment made for a product or service through a portable electronic device such as a tablet or cell phone. Mobile payment technology can also be used to send money to friends or family members, such as with the applications PayPal and Venmo.

A payment method refers to the various options available for customers to make payments when purchasing a product or service. Whether in a physical or online store, payment methods cover a range of choices. Commonly accepted payment methods include cash, credit cards, debit cards, gift cards, and mobile payments.

A payment system is a set of instruments, bank procedures and, usually, interbank fund transfer systems that guarantee the circulation of money. Payment systems are traditionally classified as either high value or low value.

An online transaction refers to the process of conducting financial or non-financial activities over the internet, such as banking, bill payments, shopping, or participating in online forums, by accessing virtual accounts through web browsers.

The customer first chooses an item to purchase and completes the checkout process. They'll choose to pay via credit/debit card and enter their card details on your payment page. 2. Next, the card information is transferred to the payment gateway.

The customer authorises payment via an online form allowing the business to automatically collect the funds when due. The business' bank and the customer's bank communicate and action the payment request when the payment is due, ensuring the correct amount is debited from the customer and credited to the business.

Online transaction is a payment method in which the transfer of fund or money happens online over electronic fund transfer. Online transaction process (OLTP) is secure and password protected. Three steps involved in the online transaction are Registration, Placing an order, and, Payment.

An electronic payment system is a digital infrastructure that enables the electronic transfer of funds between individuals or entities. It replaces traditional cash or check transactions with the digital equivalent, offering convenience, speed and security.

Card payments are a cashless payment method where customers pay for their purchases with their debit or credit card, either via a point of sale (POS) or online. The amount is debited directly from their bank account, or if they pay via credit card, they're charged at a later date.