The Increasing Popularity Of Electronic Payment Solutions
Payment for goods and services electronically instead of cash or check constitute the electronic payment system. Credit cards and debit cards are examples of the electronic payment solutions. Most online transactions are paid for electronically. Various payment systems have evolved to help consumers make internet transactions securely. There are four main kinds of electronic payments, namely credit card and debit card, micropayment systems, electronic cash, and session level protocols with secure communications. Some of the other popular methods of online payment include direct debit, standing orders, prepaid cards, and internet or phone banking.
Factors For Increasing Use Of Online Payment Solutions
Online payment modes need to be secure to encourage more people to use it. The first criteria for a secure financial transaction are that all communication must be secure. The client as well as the server must be genuine and what they claim to be. Moreover there must be no change in communication as well as transmission. Finally the data that is transferred must be done by the actual signatory. Online payment service providers therefore provide encryption as well as using digital certificates. The encryption algorithm changes original text to ciphertext which is then decoded by the receiver back into clear text. Ciphertext ensures the information is coded and locked to be unlocked only the actual receiver.
Advantages Of Using Electronic Payment Solutions
Online payment service providers serve most industries like banking and insurance, healthcare services, government services, transportation, learning services, HR services, automotive services, and the communication services too. Payment processes when done manually often led to clerical errors and frauds with loss of funds. These service providers use software and a single payment gateway for merchants for different payment methods. The service providers manage all technical connections as well as bank accounts and relations with external network themselves making it easy for merchants especially with international sales.
Transformation In Payment Solutions In China
Online payment solution in China has become extremely popular with the thriving economy and has transformed the purchasing behaviors of the people. There has been a greater liking for electronic payment methods with greater demand for credit and debit cards and third party payment providers. These third party payments providers make it easy for businesses and their consumers to make internet transactions in China. Cash on deposit is another popular method of payment of online purchases in China although it is expected that more people will turn to online payment systems once they become more confident.