e-payment system is defined by Sandra Wrobel-Konior (2016) as “a way of making
transactions or paying for goods services through an electronic medium without
the use of check or cash”. It is also called online payment system.
2.1.1. Benefits of electronic payment
be clearly seen that many types of cash have been issued and used all over the
world because of its numerous advantages: increased speed and convenience,
increased sales, and reduced transaction costs.
Firstly, compared to traditional payment methods such
as cash and check, e-payment is overwhelming useful and convenient that is the
greatest advantage. E-payment helps
people flexibly pay for goods or services online at any time of day or night.
Moreover, customers do not have to queue in banks or merchant offices to wait
their turn to transact when using this e-system. Individuals can purchase products,
send money to the others at unconventional locations such as home or on road.
This leads to the second strong point of e-payment
is saving time. After completing an account on e-payment system, customers can
pay their bills in a flash. In a research study Marketwatch.com found that the
average American writing checks and mails for payment spends over 24 hours
during a year paying bills. Using e-payment system contributes to reducing the
amount of time spent on bill management or payment by about 60%.
The nominal cost of e-payments is yet another
benefit. Many merchants, vendors, and businesses make use of it with no fees or
charge to pay online. Thank to this point, individuals paying their bills
online can save hundreds of dollars per year that is quite important for many
Finally, this payment method basing on encryption
may even be more secure than the old fashion day of mailing check. According to
a science article, an individual’s personal financial data is allowed to be
scrambled before it is sent electronically. Hence, by reducing the number of
people touching the payment once it leaves the payer, it also lowers the risk
of human error.