Guest Lecture

1. ELECTRONIC
PAYMENT
METHODS
By:
Saad Ali
BSIT 4th(M)1037
To:
Inam-ul-haq (AP)
Universtyofeducation(okara)
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2. TABLE OF CONTENT
 E-payment system
 Types of E-payment system
 PayPal, Mondex , eBay , bit coin
 Digital Wallet
 Digital cash
 Online stored value systems
 Digital accumulating balance payment
systems
 Digital credit accounts
 Digital checking 2
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3. E-PAYMENT SYSTEMS
 All business activities need the support of
payment system, so does the e-commerce.
As e-commerce process transactions
through the Internet, it requires a more
secure, stable and efficient payment system
for supporting commerce done
electronically. By the success of online
banking and online payment in recent years,
the market seems to have a solution for e-
commerce. Online payment can be
conducted in different means, such as
intelligent card (IC), e-check, e-Wallet, e-
Cash etc. 3
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4. MOST COMMON ONLINE
PAYMENT SYSTEMS
 Credit cards are dominant form of online
payment, accounting for around 80% of
online payments
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5. PAYPAL
 No set-up fee, easy to qualify
 Easy to integrate in Web site
 Chargeback protection program
 Fee at most 2.9% of sale plus 30¢
 40 million users (good or bad?)
 Requires customer registration at PayPal
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6. PAYPAL TRANSACTION METHOD
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7. MONDEX
 Smart-card-based, stored-value card (SVC)
 Subsidiary of MasterCard
 NatWest (National Westminister Bank, UK) et al.
 Loaded through ATM
 ATM does not know transfer protocol; connects with
secure device at bank
 Spending at merchants having a Mondex value
transfer terminal
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8. MONDEX WORKING
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9. EBAY
 eBay Inc. (stylized as "ebay" since late 2012) is an
American Multinational corporation and e-commerce
company, providing consumer-to-consumer and business
to consumer sale services via the internet
 The company manages eBay.com, an online actions and
shopping website in which people and businesses buy
and sell a broad variety of goods and services worldwide
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10. EBAY PAYMENT METHOD
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11. BIT COIN
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12. BIT COIN
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13. TYPES OF E-PAYMENT SYSTEM IN CURRENT AGE
 Digital Wallet
 Digital cash
 Online stored value systems
 Digital accumulating balance payment systems
 Digital credit accounts
 Digital checking
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14. 1-DIGITAL WALLETS
Concept of digital wallet relevant to many of
the new digital payment systems
 Seeks to emulate the functionality of
traditional wallet
 Most important functions:
*Authenticate consumer through use of digital
certificates or other encryption methods
*Store and transfer value
*Secure payment process from consumer to
merchant
 Most common types are client-based
software applications: Gator eWallet.com,
asterCard Wallet 14
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15. 2-DIGITAL CASH
One of the first forms of alternative
payment systems
 Not really “cash”: rather, are forms of
value storage and value exchange that
have limited convertibility into other
forms of value, and require
intermediaries to convert
 Many of early examples have
disappeared; concepts survive as part of
P2P payment systems 15
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16. HOW DIGITAL CASH WORK
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17. 3-ONLINE STORED VALUE
SYSTEMS
 Permit consumers to make instant,
online payments to merchants and other
individuals based on value stored in an
online account
 Rely on value stored in a consumer’s
bank, checking, or credit card account
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18. HOW A STORE VALUE SYSTEM WORKS
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19. 4-DIGITAL ACCUMULATING
BALANCE PAYMENT SYSTEMS
 Allows users to make micropayments and
purchases on the Web, accumulating a debit
balance for which they are billed at the end of
the month
 Examples: Qpass, Valista, Clickshare, Click &
Buy, Peppercoin
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20. 5- DIGITAL CREDIT CARD
PAYMENT SYSTEMS
Extend the functionality of existing credit cards
for use as online shopping payment tools
-Focus specifically on making use of credit
cards safer and more convenient for online
merchants and consumers
-Example: eCharge
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21. HOW A DIGITAL CREDIT CARD PAYMENT DONE
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22. 6-DIGITAL CHECKING
PAYMENT SYSTEMS
 Extend the functionality of existing checking
accounts for use as online shopping payment
tools
 Examples: PayByCheck, Western Union
MoneyZap
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23. HOW ONLINE CREDIT CARD
TRANSACTION WORK
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24. REFERENCE :
•http://www.bing.com/search?q=slideshare&form=PRUSEN&mkt=en-
us&refig=83b76a7be1be44aa995e2451b092673f&qs=AS&pq=slide&sk=AS2&
sc=8-5&sp=3&cvid=83b76a7be1be44aa995e2451b092673f
•http://www.bing.com/search?q=wikipedia+org&filters=ufn%3a%22wikipedia
+org%22+sid%3a%223b30aeb1-32ee-2dbf-e322-
4e7c55beee2b%22&qs=MB&pq=wiki&sc=8-
4&sp=1&cvid=25F9342E5D694794B5C3F61A8A1ACDBD&FORM=QBRE&ghc
=1
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