E-Commerce (BBA 114) - Digital Payment Systems - PDF

BBA 114: E-COMMERCE Course Contents Unit 1 Introduction to E-Commerce: Meaning, nature, concepts, advantages, disadvantages and reasons for transacting online, Electronic Commerce, Types of Electronic Commerce, Electronic Commerce Models, Challenges and Barriers in E-Commerce envir...

BBA 114: E-COMMERCE Course Contents Unit 1 Introduction to E-Commerce: Meaning, nature, concepts, advantages, disadvantages and reasons for transacting online, Electronic Commerce, Types of Electronic Commerce, Electronic Commerce Models, Challenges and Barriers in E-Commerce environment; E-Commerce in India: Transition to E-commerce in India, Indian readiness for E-commerce, E-Transition challenges for Indian corporate. Unit II HTML: Elements. Tags and basic structure of HTML files, Basic and advanced text formatting, multimedia components in HTML documents, Designing of webpage: Document Layout, List, Tables, Hyperlink, Working with Frames, Forms and Controls.  Unit III Electronic Payment System: Digital Payment Requirements, Electronic Payment System, Types of Electronic Payment Systems, Concept of e-Money, Infrastructure Issues and Risks in EPS, Electronic Fund Transfer. Security Issues in E-Commerce: Need and concepts, Electronic Commerce security environment, security threats in E-Commerce environment, Basics of Encryption and Decryption. Unit IV E-commerce Applications: E-commerce applications in various industries, Emerging Trends in E- Commerce, Mobile Commerce; Economic, Technological and Social Considerations, Regulatory and Ethical considerations in E-Commerce. UNIT-3 DIGITAL PAYMENT REQUIREMENTS & ELECTRONIC PAYMENT SYSTEMS DIGITAL PAYMENT REQUIREMENTS For a successful digital payment system, several key requirements must be met: Internet & Network Infrastructure: Reliable internet and secure networks are essential for online transactions. User Authentication & Security: Strong authentication methods like OTP (One-Time Password), biometrics, and encryption ensure secure transactions. Payment Gateway & Processors: Platforms like Razorpay, PayPal… process payments securely. Banking Integration: Digital payments require integration with banks for fund transfers. User-Friendly Interface: A simple and efficient UI/UX enhances customer experience. UX (user experience) and UI (user interface) Regulatory Compliance: Payment systems must follow legal regulations like RBI guidelines in India or PCI-DSS for data security. Transaction Speed & Reliability: Payments should be processed quickly and efficiently without delays.  ELECTRONIC PAYMENT SYSTEMS (TYPES) An Electronic Payment System (EPS) is a digital way of making financial transactions without using cash or cheques. It allows individuals and businesses to pay for goods and services online or electronically using various methods like: 1. Credit & Debit Cards – Traditional card-based transactions using networks like Visa and Mastercard. 2. Digital Wallets – Apps like Google Pay, Paytm, and Apple Pay store card details for seamless payments. 3. UPI (Unified Payments Interface) – A real-time payment system in India enabling bank-to-bank transfers. 4. Net Banking – Online banking services provided by banks for direct payments. 5. Cryptocurrency Payments – Digital currency transactions using Bitcoin, Ethereum, etc. 6. Buy Now, Pay Later (BNPL) – Services like AmazoPaylater, FlipkartPaylater allow deferred payments. 7. QR Code Payments – Payments through QR codes scanned via mobile wallets.  CONCEPT OF E-MONEY E-Money (Electronic Money) refers to digital currency stored electronically and used for online transactions instead of physical cash. It allows users to make payments through computers, smartphones, or other digital devices.Key Features of E-Money: Stored Digitally – Can be kept in e-wallets, prepaid cards, or online banking accounts. Used for Electronic Transactions – Works for online shopping, bill payments, and fund transfers. Backed by Fiat Currency – Unlike cryptocurrency, e-money is usually linked to traditional currency (e.g., USD, INR) and regulated by financial authorities. Examples of E-Money: Mobile Wallets – Paytm, Google Pay, Apple Pay Prepaid Cards – Gift cards, travel cards Digital Bank Accounts – Online banking transactions E-money makes payments faster, more convenient, and reduces the need for carrying physical cash.  INFRASTRUCTURE ISSUES AND RISKS IN ELECTRONIC PAYMENT SYSTEMS (EPS) AND E- MONEY 1. Infrastructure Issues These refer to problems related to the technology and systems that support electronic payments. Internet Connectivity Problems – Poor or unstable internet access can disrupt transactions. Lack of Payment Terminals – Some areas, especially rural regions, may not have enough POS (Point of Sale) machines or ATMs. Compatibility Issues – Different banks and payment platforms may not always be compatible, causing transaction failures. System Downtime – Payment gateways, banking servers, or mobile wallets may experience outages, delaying transactions. Cybersecurity Weaknesses – Poor security measures in payment systems can make them vulnerable to fraud and hacking. 2. Risks Associated with EPS and E-Money These include financial, security, and operational risks. Fraud and Hacking – Cybercriminals may steal money through phishing, malware, or identity theft. Data Breaches – Leakage of personal and financial data can lead to financial losses. Transaction Errors – Failed or delayed transactions may cause inconvenience and loss of trust. Regulatory Risks – Changing laws and lack of proper regulations in some countries can affect payment systems. Digital Divide – Some people, especially the elderly or those without smartphones, may struggle to access digital payments.