Electronic Payment Gateway in Developing Countries
What is an Electronic Payment?
E-payment is considered as a subset of an e-commerce transaction which includes electronic payments in order to sell or buy goods and services through the internet. Generally, electronic payments are referred to as online transactions on the internet, but they have a number of forms of electronic payments which are being used for different business sectors. With the advancement in the technologies, the range of technical devices and processes has also spread out in an effective manner. In the US, checks have decreased from 85 % with non-cash payments in 1979 to 59 % in 2002 while, electronic payments have been increased to 41 % respectively.
The Internet can possibly turn into the most dynamic exchange intermediary within 10 years. Additionally, Internet shopping may reform retailing by enabling buyers to sit in their homes and purchase a massive variety of items and administrations from different locations across the globe (Pande, Deshmukh & Tambakhe, 2014). Numerous organizations and purchasers are yet careful about leading broad business electronically. Therefore, it has been assumed that in near future almost everyone is going to electronic payments in an easy and secure manner.
Types of E-Payment
There are various types of electronic payment, some of the most common types of electronic payments are listed below:
ü Mobile Payments
ü Electronic Payments Networks
ü Biometric Payments
ü Television Set-Top Boxes and Satellite Receiver
ü Person-to-Person (P2P) payments
ü Financial Service Kiosks
Person-to-Person (P2P) Payments
The proposed gateway is P2P payment. By utilizing this P2P payment one can empower to pay others by using their respective accounts in an effective manner. PayPal is being used in United State, which was as of late obtained by eBay, is a standout amongst the most much of the time utilized P2P components. The Tower Group appraises that the volume of P2P payments will develop from 105 million exchanges in 2002 to 1.4 billion exchanges by 2005. P2P payments can be made through an assortment of methods, including administrations like PayPal, exchanges utilizing card perusers, or other. Later on different gadgets, for example, cell phones or PDAs could likewise be utilized to empower P2P electronic payments.
Electronic Payment Gateway in Developed Countries
Many developed countries and their cross-industry have started to provide their customer adoption of new payment technologies which will effectively be helpful for them to transfer money from one account to others in an effective and secure manner.
Advantages of US’s e-payment gateway
Each payment is facilitated on the USA ePay secure servers, and these are consequently anchored by the SSL testaments on servers. The entryway likewise underpins another layer of security with an encoded hash that keeps criminals from abusing your vendor's frame on an alternate site. These servers are amazingly solid in up time so individuals don't have to stress over their payments.
E-payment Gateway in China
ALIPAY: Alipay gives an escrow benefit, in which shoppers can check whether they are content with merchandise they have purchased before discharging cash to the vendor. This administration was offered for what the organization says is China's weak customer protection laws, which have decreased shopper trust in C2C and even B2C quality control. Likewise gives a prompt payment (IZHAR, KHAN, KHIYAL, JAVED & BAIG, 2005). This choice is regularly used to pay for lodging appointments, flight appointments or different things that do not should be dispatched.
Challenges: Some of the challenges with Chinese payment gateway are given below:
- The absence of a trusted and secure payment system, low Mastercard infiltration, no close to home checks
- Wasteful inheritance payment frameworks (COD, Bank/Postal wires)
- Bank driven, plastic driven payment condition with little trust, essentially no insurance for the shoppers
- Payment is not just a bottleneck to web-based business, yet additionally the missing connection in conventional organizations.
Electronic Payment Gateway in Developing Countries
Based on the overview led by Wondwossen Tadesse, Tsegaye G/Medhin, Solomon Atnafu, Dawit Bekele there are parcels more difficulties looked by underdeveloped nations particularly Africa, Ethiopia that are causing for executing any electronic payment portal in these nations. A few shortcomings are depicted underneath (Izhar, Khan, Khiyal & Javed, 2011).
Shortcomings: Some of weakness and reason of failures are listed below:
- Banks are not yet completely computerized
- Accessibility of the Internet particularly at peak hour is low
- Low data transmission, especially for Internet
- Inaccessibility of committed information benefit arranges and shut budgetary systems
- Visit control interruptions
- Individuals are impervious to new payment components
- No money related systems that join diverse banks
- The surprising expense of Internet
- Banks are not prepared for e-payment
- No lawful and administrative structure for internet business and e-payment
- Visit network disappointment in phone lines.
- Absence of mindfulness on the advantages of new advancements
- The absence of prepared faculty in key associations
- Inexistence of extensive pool of online business and e-payment clients gathering
E-Payment Gateway in Africa
As infiltration of credit card is low in Africa so online Visa payment or electronic payments dependent on Visa are not appropriate for Africa. Visa use depends fundamentally on ledgers. Nevertheless, for the most part, individuals of Africa do not have financial balances.
Some of the challenges with e-payment in Africa are listed below:
- Deficient media transmission framework
- Banks of Africa are not ready to establish e-payment.
- Conduct requirements
- The absence of proper legal and regularity frameworks.
- Low access to credit cards.
Izhar, A., Khan, A., Khiyal, M., & Javed, W. (2011). Designing and Implementation of Electronic Payment Gateway for Developing Countries. Retrieved from https://www.researchgate.net/publication/264160875_Designing_and_Implementation_of_Electronic_Payment_Gateway_for_Developing_Countries
IZHAR, A., KHAN, A., KHIYAL, M., JAVED, W., & BAIG, S. (2005). DESIGNING AND IMPLEMENTATION OF ELECTRONIC PAYMENT GATEWAY FOR DEVELOPING COUNTRIES. Retrieved from http://www.jatit.org/volumes/research-papers/Vol26No2/3Vol26No2.pdf
Pande, A., Deshmukh, A., & Tambakhe, M. (2014). E-payment Gateway Model. Retrieved from https://ijcsit.com/docs/Volume%205/vol5issue02/ijcsit20140502362.pdf