An electronic payment system (e-payment system) is a digital platform or mechanism that enables the transfer of funds between individuals, businesses, or organizations electronically, without the use of physical cash or checks. It facilitates payments through various electronic mediums such as mobile apps, online banking, point-of-sale (POS) terminals, credit/debit cards, digital wallets, and other online payment gateways

. How it works:

• The payer initiates a transaction by entering payment information (e.g., card details, bank account, or digital wallet credentials).
• This information is sent to a payment gateway, which acts as an intermediary between the payer, merchant, and financial institutions.
• The system validates and secures the payment data using encryption and authentication protocols.
• Once approved, the transaction is processed, transferring funds from the payer’s account to the payee’s account.
• Both parties receive confirmation, and transaction records are maintained for auditing and tracking purposes

Types of electronic payments include:

• One-time payments (e.g., buying a product online)
• Recurring payments (e.g., subscriptions or bill payments)
• Credit and debit card payments
• Mobile wallets (Apple Pay, Google Pay)
• Online banking transfers
• Peer-to-peer payments (e.g., PayPal, Venmo)
• Contactless payments using NFC or RFID technology
• Cryptocurrency transactions

Advantages of electronic payment systems:

• Faster and more accurate transactions compared to traditional methods
• Reduced costs by eliminating cash handling and paper processing
• Enhanced security through encryption and multi-factor authentication
• Convenience and 24/7 accessibility from anywhere with internet
• Improved record-keeping and financial tracking

In summary, e-payment systems have transformed financial transactions by making them quicker, more secure, and accessible, supporting the growth of digital commerce and financial inclusion globally