The digital age has ushered in a new wave of cashless payment methods, and e-payment systems are the most modern of these.
Tangible forms of currency such as coins and notes have been largely replaced by electronic transactions, which are usually processed via a credit or debit card.
E-payment systems include Paypal, Google Wallet and Apple Pay – all online services that allow customers to make payments easily and securely using a VPA (Virtual Payment Address). As well as being convenient, they are also cost-effective; e-payment systems charge lower fees than traditional payment methods, including cash and cheques.
Advantages of E Payment systems:
E-payment systems are much faster than conventional cash or cheque payment systems. This means that you can handle more customers in a given period of time, and you can save on labour costs by reducing the number of tellers who need to be on duty.
Payments made online are more secure than those made via cash or card. This is because, unlike cash, online payments are generally processed through a secure server, which means your payment details can’t be stolen by a third party. And as most online transactions with credit or debit cards come with a PIN verification for larger purchases, you can be confident that even if someone does steal your card number and PIN, they won’t be able to use it to make large purchases because the transaction will fail.
In addition to this, some e-payment methods offer an extra layer of security by requiring a fingerprint or face ID biometric verification before making a purchase. So even if someone steals your device, they still won’t be able to make any payments without your biometric details.
As well as being more secure than cash and card payments, e-payments also have the advantage of being fluid. Data is encrypted and fluid so it can’t be taken from a stolen device, unlike credit/debit card numbers which are static and therefore easily stolen from their magnetic strips.
Accept payment from anywhere
Other advantages include the fact that e-payment systems allow you to expand your business worldwide easily and that you can develop a large customer base very quickly. You can also offer new services through e-payment systems which wouldn’t be possible if you were only offering traditional payment methods, such as cash or checks
Disadvantages of E-Payment systems:
Risk of fraud
The disadvantages of e-payment systems are that they are vulnerable to fraud. Fraudsters use phishing methods to obtain important information such as passwords and credit card details by disguising themselves as trustworthy entity. Due to these concerns many people are still apprehensive about the e payment systems.
Increases the cost of doing business
Companies that rely on electronic funds transfers must pay for all the costs associated with maintaining these services. Financial institutions will charge you for the privilege of using their electronic payment system, as well as charge fees for each transaction made by your customers. These charges can amount to a sizable portion of your operating expenses every year, especially if your business does a high volume of transactions. Additionally you also need to adjust your payments according to the UPI payment limit. Click here for more info.