subject: What is e - Payment System? [print this page] Rapid development of communication technologies as well as the Internet in the 1990-ies led to reconsideration of the very essence of money, their form and aim. "Shopping without leaving your computer" requires simple, profitable, mobile and quick way of distance payment for goods and services. Resolution of the set problems is the goal of the e-Payment prototype system developed within this project.
An e - Payment system is a system (including electronic infrastructure and associated procedures and protocols) used to transfer funds between the Payer and the Payee within this system.
At present there are several e- Payment systems successfully functioning at the market: e-Cabbage, PayPay, Moneybookers.
In case of traditional ways of payment, including paper money which we take out of the wallet or any other established equivalent suitable for settling of accounts, the direct exchange takes place: the buyer gives a certain amount of money receiving the desired product from the seller. This process is illustrated by
Figure 1.
An e- Payment system could act the following parts in the course of a purchase illustrated by Figure 1:
Each Currency transaction takes place within the system; the system simultaneously delivers the money to the payee at that.
As is evident from Figure 2 to perform a transaction between the seller and the buyer each party shall do one action only. The seller informs the system about who shall pay and how much, and the buyer controls and confirms the seller's payment request, thereby allowing the system to transfer the assets from his account to the seller's one.
What is e - Payment System?
By: Denis Steinmueller
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