The future depends on how we plan the present.If the planning and decisions are right, the future is definitely good.
...A renowned Economist.
Online payment refers to money exchanged between two parties like buyer and seller without direct/personal interaction. It is generally done
electronically say Internet. So, typically, when a payment or receipt is done over the internet where the money from givers account is debited and
received in the receiver’s account almost instantaneously , then it is an online payment. One may also call it as paying/accepting an online
The on-line payment systems are generally, e-commerce businesses transcations, allowing money transfers to be made only through
Internet. They function as a fast and secure electronic alternative to traditional methods as cheques, money orders or bank transfers.
The system performs payment processing for all types of business / money transactions.
" E-Commerce could not have succeded , if secure online payments are not in place."
There are many types of Online Payment mechanisms such as:
The easiest and the most common form of electronic money that is most widely used today. There are several types of credits cards
available to make online payments world over. Many international sites and mobile commerce sites allow you to pre-store your credit
card number securely so that you don’t have to key in the number each time. Currently, the largest user base in e-commerce uses credit cards
The second most common e-commerce payment medium is through Debit Cards. Very often, the customers who wants
to stay within their spending capacity, buy things online by using their debit card. With the debit card, one
can purchase goods worth the money that is available in their bank account. It is something the money/cash that is available
in your wallet, so you know how much purchases you can do with this available cash in the wallet.
National Payments Corporation of India (NPCI) has developed RuPay card to be used in the same way as the debit card.
All the member banks allow the point of sales (PoS) and e-commerce transactions.
The benefits of RuPay debit card are the flexibility of the product platform, high levels of acceptance and the strength of the RuPay
brand-all of which will contribute to an increased product experience.
Since the transaction processing will happen domestically, it would lead to lower cost of clearing and settlement for transaction.
The cheaper cost will make the transaction affordable and will drive easy usage of cards among everybody.
RuPay, being a domestic scheme is committed towards development of customized product and service offerings for Indian consumers.
Transaction and customer data related to RuPay card transactions will reside in India.
There are under-penetrated/untapped consumers segments in rural areas, that do not have access to banking and financial services.
Right pricing of RuPay products would make the RuPay cards more economically feasible for banks to offer to their customers.
In addition, relevant product variants would ensure that banks can target the hitherto untapped consumer segments.
RuPay card is uniquely positioned to offer complete inter-operability between various payments channels and products.
NPCI currently offers varied solutions across platforms including ATMs, mobile technology, cheques etc and is extremely well
placed in nurturing RuPay cards across these platforms.
Cash of Delivery (CoD):
Cash on delivery – CoD as is common, and, has emerged as one of the most sought after services for online purchases. In this users
purchase generally small items like grocery, house hold things etc. It is reported that in some cases as high as 50 per cent of orders are placed with
various online retailers with this payment option, while the remaining opt for credit card or bank payments. In India, many customers/users
prefer CoD as the online payment modes.
Recently some of the Medical Stores have started selling the medicines on-line on COD basis.
Netbanking – is another easy way to make payments for online transactions. It uses a similar method to the debit card
of paying from money that exists in the users bank account but netbanking does not require the user to have a card for the payment purposes.
Generally the payment of various utility bills like Electricity, Water, Gas and Property Tax etc. are done using Netbanking.
On initiating the payment using this method, on OTP (ont time password) is provided by the concerned bank which is sent on
the user's registered Mobile no. Using this OTP, the user can complete the payment process through Net banking.
Prepaid Cards – This is a card which is like cash in hand that means the money , you want to keep in your pocket ,
you can get it loaded onto your card(plastic card) which is a prepaid card.Typical example is a MetroRail Pass, which an individual buys from the Metro Rail Counter
and use it till the balance is available on the card. One can get the card recharged, when the balance finishes and again start using it.
Similar types of pepaid cards are becoming common now. More and more big vendors/outlets even the government has started encouraging
people to use these types of cards, which reduces headache of managing cash in your wallet. You just take care of your card, that is it.
Some companies have started issuing Gift Cards with some preloaded amount. This is a marketing strategy, because this card can only be used
in their outlets.