E-BUSINESS

E-Business & E-Commerce

Refers to commercial activities performed over

computers & related technologies mainly through
E-Business networks such as intranets, extranets, and the
Internet to streamline, improve, and extend
business operations.

Applications that support the buying and selling of

E-Commerce products, services, and information over the Internet
and Extranets.
 E-Business & E-Commerce

Often viewed to be one and the same however they are not.

E-commerce is simply a part e-business, more specifically, it is the

trading aspect of e-business.

E-commerce applications include:

Interactive order processing at company web sites ,

Electronic data interchange (EDI) of business transaction
documents and
Secure electronic funds transfer (EFT) payments systems.
E-CASH & E-WALLET
 E- CASH E- WALLETS

SMART CARDS CREDIT CARDS

 Evolution of E Cash
The U.S. government initiated a campaign to
create a universal, all-electronic payment
1996
system to decrease the nearly 70 billion paper
checks

The U.S. Treasury Department sponsored a

1998 pilot program to test the workability of paying
participating federal contractors with e-checks
 E Cash E Cash
A system that allows a person to pay for goods or services by transmitting a
number from one computer to another.

Like the serial numbers on real currency notes, the E-cash numbers are unique.

This is issued by a bank and represents a specified sum of real money.

It is anonymous and reusable

 E Cash Processing
1) Consumer buys e-cash from Bank Merchant

2) Bank sends e-cash bits to consumer (after

charging that amount plus fee) 5
Bank
3) Consumer sends e-cash to merchant 4

3
4) Merchant checks with Bank that e-cash is
valid
2
1
5) Bank verifies that e-cash is valid

6) Parties complete transaction Consumer

 Advantages of E Cash

fixed cost of does not

Distance hardware to require that
efficient and
does not handle e- one party to
less costly
affect cost. cash is nearly have any
zero. special
authorization
 Problems with E Cash
no audit trail True electronic susceptible to
cash is not forgery
traceable >>
money
laundering is a
problem.

1 2 3
Future of E Cash
Digital
Wallet
Digital
Wallet
E Wallet or Digital Wallet
is a payment scheme that
operates like a carrier of
E Cash
 Functions of E Wallet
similar to a physical wallet

Holds credit cards, e-cash, owner id & contact info

provides owner contact info at an e-commerce sites checkout

counter

stores shipping and billing info, including a consumers first and last
names, street address, city, state, country, and zip or postal code
 Types of E wallet
BASED ON WHERE THE INFORMATION IS STORED

SERVER SIDE ELECTRONIC WALLET

A server side electronic wallet stores a customer info on the remote server
belonging to a particular merchant or wallet publisher

CLIENT SIDE ELECTRONIC WALLET

A client side electronic wallet stores customer info on his/her own computer.

Many of the electronic wallet were client side wallet that require users to
download the wallet software
 TYPES OF E WALLET BASED ON
USAGE
Closed wallet Open wallet
Semi-closed wallet
A company issues to its Can be used for purchase of
consumers for in-house Can be used for goods goods and services,
goods and services and services, including including financial services
only. financial services, at such as funds transfer at
These instruments do select merchant merchant locations or
not carry the advantage locations or point-of-sale terminals that
of cash withdrawal or establishments that accept cards, and also cash
redemption have a contract with withdrawals at automated
teller machines or business
the issuing company to
correspondents
accept these payment
instruments.
 Process
Decide on an online site where you would like to shop

Download wallet from the merchants website/Sign

up on the website itself to create your Digital wallet

Transfer fund from your bank account into your

digital wallet

When you are ready to buy, click on the wallet

button, the buying process is fully executed
E-Wallets will check for sufficiency of E Cash
If yes, transaction completed and the purchase is made
Examples
 Google Wallet
Mobile payment system developed by Google
Allows users to store debit cards, credit cards, loyalty
cards etc
Uses Near Field Communication to make secure payments
fast and convenient by tapping the phone on pay press
enable terminal
Works with 30,00,000+ MasterCard merchant locations
 Yahoo Wallet

Server side electronic wallet offered by Yahoo!

Lets users store information about several major

credit and charge cards
 h Advantages of E Wallet
Competitive Greater revenue
Convenience
Advantage opportunities
The e-wallet makes This is also a great E wallets open up a
online shopping advantage for online new aspect of
easier because it fills merchants, because payment methods in
in the fields in an customers large markets
online order form sometimes abandon introducing many
automatically, saving online purchases if business
you the trouble of they feel that the opportunities and
doing it yourself order form is too greater potential
confusing or revenue
frustrating
 Disadvantages of E Wallet
System Outages Security Investment

Info for E wallets are Companies must The initial monetary

stores on the cloud ensure that their investment for
of business server, customers info is building a functional
therefore the risk of encrypted and well E wallet application
a system protected. is quite large as it
malfunction or shut requires the
down is always development of the
present. software as well as
continual
maintenance.
 Future of E wallet
Personal Device to device
Automatic Bill Loyalty Preemptive
Information person to person
Payments redemption Purchasing
access payments
Will be able to Real time E wallet will It can make a Itll be possible
make bill reporting of become a single list of purchases to transfer a
payments on points accrued access point to based on your payment from
behalf of the under loyalty all personal purchase habits one person to
used by schemes information and remind the another simply
scheduling including consumer to by pointing two
payment medical, make these wallet enabled
intervals for insurance, purchases on a devices at each
electronic bills mortgage etc. regular basis other
and invoices
BENEFITS OF ELECTRONIC PAYMENT
SYSTEM

BENEFIT TO BENEFITS TO
BUYERS SELLERS
1. Convenience of Electronic payment methods provide a wide range of payment options and enhanced financial
management tools through which individuals can pay for numerous different types of
global acceptance transactions ranging from parking payments to travel tickets pr payments in foreign currency.

2. Universal With electronic payment methods payments can be made over the phone, on the internet, and
acceptance through the post and accepted everywhere.

3. Greater Electronic payment system is safe and secure as it follows strict encrypted secure system for
making payments keeping buyers identity and details completely confidential and reduced
security liability for stolen or misused cards.
 4. Consumer The electronic payment system provides additional insurance by facilitating
disputes resolution in the case of unsatisfactory receipt of goods and services
protection .

4. Accessibility to E-payment system allow consumers to transfer funds, purchase stocks, and
offer a variety of other services without having to handle physical cash. Using
immediate credit credit card it is very easy to make payments.

6. Better control Electronic payment also provides the ability to control payment for goods and
services over time by allowing buyers to pay at will whenever they want or
over payments have sufficient funds to make payments.
 BENEFITS TO SELLERS
EPS ensure faster processing of transaction from verification and
1. Speed and security authorization to clearing and settlement . It reduces the visibility of
information.

EPS provides companies freedom from more costly labour, materials

2. Reduces cost and accounting services hat are require in paper based processing.

It leads to better management of cash flow, inventory and financial

3. Efficiency planning due to swift bank payment.

When used properly the electronic aspects of purchasing and

4. Better control prepaid cards can increase internal controls over high volumes .
 TYPES OF TRANSACTIONS IN EPS

1. A ONE TIME CUSTOMER

It is used when you shop online at an e-commerce site, such as Amazon .
TO VENDOR PAYMENT

2. RECURRING CUSTOMER It is used when you pay a bill through a regularly scheduled direct debit from
TO VENDOR PAYMENT your checking account or an automatic charge to your credit card.

3. AUTOMATIC BANK TO In this, your bank offer a service called online bill pay.
VENDOR PAYMENT
MAJOR CHALLENGES IN ONLINE PAYMENT SYSTEMS

FRAUD AND CHARGE BACKS

CROSS-BORDER TRANSACTIONS
CARD DATA SECURITY
MULTI-CURRENCY AND PAYMENT METHODS
TECHNICAL INTEGRATION
 SECURE EPS INFRASTRUCTURE
SECURE ELECTRONIC FUNDS TRANFER IS CRUCIAL TO E-BUSINESS.

TO ENSURE THE INTEGRITY AND SECURITY OF EACH ELECTRONIC TRANSACTION

AND OTHER EPSS UTILIZE SOME OR ALL OF THE FOLLOWING SECURITY MEASURES
AND TECHNOLOGIES DIRECTLY RELATED TO EPSS:
AUTHENTICATION
PUBLIC KEY CRYPTOGRAPHY
DIGITAL SIGNATURES
CERTIFICATE
SSL
S-HTTP.
Thank You!