What Are The Types Of Electronic Payments?

by Arjit Chalmela Finance Student

Gone are the days when cash and cheques were the only methods to pay. You now have convenience at your fingertips with online transfers. More and more people are adopting the change due to its many benefits.

There are numerous ways to make an electronic payment. These modes enable you to pay from various platforms matching the receiver's needs. It is essential to know them to opt for the correct form. You use them for shopping on e-commerce websites, paying retail vendors, money transfers, settling bills, online subscriptions, etc.

Following are some of the methods of online payments:

Mobile wallets: These are the banking apps on your phone. They store your bank credentials like the linked cards, account number, etc. This information is tokenised, which encrypts the numbers to avoid stealing. It gets activated only when you enter your user ID and password. One-click remittance is possible through fingerprint scanning and stored data. You do not have to re-enter data each time.

Debit/Credit cards: It is the most popular method used to pay online. It requires you to enter the 16-digit card number, expiry date with year, and card verification value. You can store the card details on shopping portals and browsers for convenience. However, the CVV is required to authenticate your details with a one-time password. This is a two-step verification to ensure security.

Link and browser payments: These are standard methods used for shopping and booking tickets. You enter the bank credentials or card details on the e-commerce website. The payment gateway then verifies this by sending an OTP to your bank's registered mobile number. Similarly, you can also pay through links redirecting to the merchant's website. You usually use them during cash-on-delivery, ad induced buying, etc.

Quick response codes: As the name suggests, it allows you to make instant payment. Just scanning the code on the merchant's store, point of sale terminals, etc., complete the transactions. It is a fast and easy method of paying through banking apps. Scan and pay with your fingerprint or PIN in seconds on the go.

Swiping machines: It is paying mode that requires you to swipe or tap your card on the device. You then enter your card PIN, and the receipt gets processed. You find them mainly in convenience stores, retail outlets, malls, etc. They are popularly used in such chains on the checking counter. It is referred to as plastic money as you use cards instead of cash.

These are some of the many forms of digital paying systems. All of them are useful for different purposes. They all get activated with your cards. You can use them combined to pay quickly online.