A PPT on Digital Banking that has details about Electronic Payments

Electronic Payments are a sub part of Digital Banking. A case study with graph and data has been used for better understanding of the topic. Electronic Payment Methods are briefly explained in this powerpoint presentation. The reader can therefore apply these topics after thorough reading and understanding. Enhanced knowledge about these banking topics are necessary for day to day usage as well.

1. Electronic Payments Banking CIA 3 Group 4

2. Introduction

3. Evolution of Electronic Payments

4. Spread of E-Money The first generation of electronic payment  was based on chip cards, with monetary values protected and managed on the chip of a smart card. European national central banks considered the widely accepted multipurpose chip cards to constitute a new type of means of payment called electronic money (EMI 1994).

5. Spread of Mobile Payments The high penetration rate of mobile and wireless networks seems to imply a vast market potential for mobile payment services. The volume of mobile payments in recent time has increased due to high penetration rate . (shown in Fig.)

6. Evolution in India

7. Types of Electronic Payments    Debit Cards A debit card is a card with unique credentials and is linked to the customer’s bank account.  A debit card deducts money from the user's bank account instantly at the time of the transaction – which is the main distinction between a debit card and a credit card.

8.       Credit Cards Credit cards are the most popular form of payment for e-commerce transactions.  Enabling credit card payments on your website can enable customers to shop without having to worry about paying upfront.

9.      E-Wallet  The E-Wallet can be thought of as a prepaid account that enables users to store a variety of debit cards, credit cards, and other payment methods in a safe environment without having to enter their credentials each time. E-wallets enable customers to skip entering card information each time, thus promoting a rapid checkout.  PhonePe , PayTM , Mobikwik , Amazon Pay, etc are some of the well-known digital or E-wallets in India.

10. Smart Card ​ Smart Card In terms of appearance, debit/credit cards and smart cards are somewhat comparable.  Smart cards, however, contain an embedded microprocessor chip.  It has the ability to store money as well as a person's personal and professional information.  Faster processing is possible with smart cards at lower rates. 

11. Online banking Customers can conveniently make purchases by paying with a bank account directly.  The user does not need a debit card to use this e-commerce payment system, but they still need to register with their bank for a net banking facility The customer only needs to provide their net banking ID and PIN in order to complete a purchase.

12. Mobile Payment Customers may easily and quickly use mobile payment to make purchases using their smartphones.  A user only needs to download a mobile payment app from the applications store.  They must then link their bank account to that app in order to add money to their wallet and make purchases.

13. Internet Banking  The process of doing financial transactions online is referred to as Internet banking. These could include various services, like money transfers, making new fixed or periodic deposits, cancelling accounts, etc. The terms e-banking and virtual banking are also used to describe Internet banking. Online payments in India using NEFT, RTGS, or IMPS are typically made using internet banking.

14. Differences between NEFT, RTGS and IMPS

15. POS Terminals  “Point of sale” ( PoS ) terminals referred to the devices that were installed at all stores where customers made transactions using credit/debit cards.   Different PoS terminal types exist, including Physical PoS , Mobile PoS , and Virtual PoS. The PoS terminals that are kept at shops and retailers are the physical ones.  Payment processing is done through web-based applications in virtual PoS systems .

16. Increase in PoS Terminals

17. World Bank Case Study : Digital Financial Inclusion Digital financial inclusion  involves the deployment of the cost-saving digital means to reach currently financially excluded and underserved populations with a range of formal financial services suited to their needs that are responsibly delivered at a cost affordable to customers and sustainable for providers. As a result,  millions of formerly excluded and underserved poor customers are moving from exclusively cash-based transactions to formal financial services  — payments, transfers, savings, credit, insurance, and even securities —  using a mobile phone or other digital technology  to access these services.