Commerce · Ch 12 — Emerging Trends in Business
Digital Payments and M-Commerce
Digital Payments and M-Commerce
The growth of e-business would not have been possible without a parallel growth in the ways money itself can be transferred electronically, which is why the Andhra Pradesh Intermediate Commerce syllabus studies digital payments and m-commerce together in this chapter.
A digital payment, sometimes also called an electronic payment, is any payment made through electronic or digital means, without the physical exchange of cash or a paper cheque changing hands. In a digital payment, both the payer and the payee use an electronic medium to transfer and receive money, and the transaction is usually completed almost instantly and leaves a traceable electronic record.
| Mode of digital payment | Brief description |
|---|---|
| Debit and credit cards | Cards linked to a bank account or a credit line, used to pay at a physical terminal or an online checkout |
| Net banking | Transferring funds or paying bills directly through a bank's own internet banking portal |
| Mobile banking apps and wallets | Applications on a smartphone that store payment credentials or a pre-loaded balance for quick transfers and payments |
| Unified electronic payment systems | Interbank systems that allow instant transfer of funds between bank accounts using a mobile number, virtual address or account details |
| NEFT / RTGS / IMPS style fund transfers | Bank-to-bank electronic fund transfer systems used for moving money between accounts, differing mainly in speed and transaction-value limits |
These digital payment modes have made e-commerce transactions far more convenient, since a customer can pay for an online purchase within seconds instead of arranging cash-on-delivery or a cheque, and a business can receive and reconcile payments automatically. Digital payments also support government and business efforts to build a transparent, less-cash economy, since every transaction leaves an electronic trail. …
A payment made through electronic or digital means — such as cards, net banking, mobile wallets, or interbank electronic transfer systems — without any physical exchange of cash or a paper cheque, a …
Mobile commerce; the buying and selling of goods and services, and the making of related payments, carried out using a mobile or handheld wireless device such as a smartphone, …