This is the topic for Online Payment System

The payment system plays a crucial role in financial management as it facilitates the smooth and secure transfer of funds between individuals, businesses, and financial institutions. It encompasses various methods, including cash transactions, credit and debit card payments, online banking, mobile wallets, and emerging digital currencies. A well-structured payment system is essential for ensuring efficiency, transparency, and security in financial transactions. As technology continues to evolve, modern payment systems are becoming more sophisticated, integrating automation, blockchain technology, and artificial intelligence to enhance transaction speed and security. Businesses and individuals benefit from these advancements by experiencing reduced processing times, lower transaction costs, and improved financial tracking. Furthermore, regulatory bodies and financial institutions work together to implement stringent security measures to prevent fraud and ensure compliance with global financial standards. The adoption of digital payment solutions has significantly transformed financial management by promoting cashless transactions, enabling real-time settlements, and fostering financial inclusion on a global scale. Understanding the intricacies of payment systems is vital for businesses, financial managers, and individuals who aim to optimize their financial strategies and ensure seamless monetary transactions in an increasingly digitalized economy.

1. Introducing the Payment System Material p repared by: Ida Kristina Ramos FM 415 Instructor: Christian Maranan

2. What is the PAYMENT SYSTEM ? It is the mechanism for conducting money which facilitates transactions in the economy.

3. EVOLUTION OF THE PAYMENT SYSTEM PAYMENTS THRU GOLD AND SILVER COINS PAYMENTS THRU PAPER MONEY AND CHECKS WRITTEN ON DEPOSITS OF BANKS PAYMENTS THRU BANK TRANSFERS

4. Why is MONEY useful ? Because of its ability to serve as a standard of deferred payments It can facilitate exchange at any given point in time

5. What are CHECKS ? These are promises to pay on demand money deposited with a bank or other financial institution.

6. What are the different types of CHECKS in the Philippines? Entry-Level Checking Accounts Personal/Individual Checking Accounts Business/Corporate Checking Accounts All-in-One Checking Accounts US Dollar Checking Accounts https://www.moneymax.ph/personal-finance/articles/checking-account-guide

7. The process of Check Clearing https://www.moneymax.ph/personal-finance/articles/checking-account-guide

8. NEW TECHNOLOGY AND THE PAYMENT SYSTEM The Bangko Sentral ng Pilipinas supervises the payment system but doesn’t directly control it. Financial Institutions such as banks process the payments.

9. 5 DESIRABLE OUTCOMES OF A PAYMENT SYSTEM 1 4 Security 2 3 5 Efficiency Speed Smooth international transactions Effective collaboration among participants in the system

10. How does DEBIT CARD work?

11. How does CREDIT CARD work ?

12. Proximity Mobile Payments is when a payer and a payee are in the same place and their devices communicate with one another via proximity technology. Using near field communication (NFC) or a QR code, proximity mobile payments can be started with a smartphone or other smart device to pay for goods and/or services. What is PROXIMITY MOBILE PAYMENT ? How does it work?

13. What is PROXIMITY MOBILE PAYMENT ? How does it work?

14. an electronic component of fiat currency systems, and still trades in familiar units such as dollars, euros, pesos, or yen. E-money is typically regulated and controlled within the framework of a government’s central banking system. The customers of such transactions are identified under Financial Action Task Force standards and as a result are not anonymous. What is E-MONEY ?

15. It is a decentralized electronic currency that derives its value from supply and demand as well as trust in the system. The network uses complex math to verify transactions, and the people that volunteer their computing power to the network, or “miners”, are generated bitcoins as a reward for their efforts. What is BITCOIN (cryptocurrency) ?

16. Customers are anonymous in that they are not directly identified under FATF standards. However, to obtain full anonymity, customers have to take additional precautions. Bitcoin is not regulated in most places, although some countries have adopted some early regulations or rules. What is BITCOIN (cryptocurrency) ?

17. Explained: Differences Between Electronic Money and Bitcoin (visualcapitalist.com)

18. What is E-MONEY AND CRYPTOCURRENCY ?

19. What is BLOCKCHAIN ?

20. How does a CASHLESS SOCIETY looks like ?

21. How does a CASHLESS SOCIETY looks like?

22. Financial Instruments Material p repared by: Ida Kristina Ramos FM 415 Instructor: Christian Maranan

23. What are FINANCIAL INSTRUMENTS ? It is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

24. What are CONTRACTS ? It is an agreement between two or more parties that has clear economic consequences that the parties have little, if any, discretion to avoid, usually because the agreement is enforceable by law.

25. What are FINANCIAL INSTRUMENTS ? Financial assets Financial liabilities Equity instruments Derivatives

26. What are FINANCIAL INSTRUMENTS ? Financial assets Cash on Hand in Banks Petty cash Demand, savings, and time deposits Undeposited checks Foreign currencies Money orders Bank drafts

27. What are FINANCIAL INSTRUMENTS ? Financial assets Accounts, notes, and loans receivable and investment in bonds and other debt instrument Trade receivables Promissory notes Bond certificates

28. What are FINANCIAL INSTRUMENTS ? Financial assets Interest in shares or other equity instruments issued by other entities Stock certificates Publicly listed securities

29. What are FINANCIAL INSTRUMENTS ? Financial assets Derivative Financial assets Futures contracts Forward contracts Call options Foreign currencies futures Interest rate swaps

30. What are FINANCIAL INSTRUMENTS ? Financial liabilities Accounts and notes payable, loans from other entities and bonds, and other debt instruments issued by the entity Derivative financial liabilities

31. What are FINANCIAL INSTRUMENTS ? Financial liabilities Obligations to deliver own shares worth a fixed amount of cash Some derivatives on own equity instruments

32. What are FINANCIAL INSTRUMENTS ? Equity instruments Ordinary Shares Preference Shares Warrants

33. What are FINANCIAL INSTRUMENTS ? Derivatives Futures contracts Forward contracts Call options Foreign currency futures Interest rate swaps

34. ^_^ End of Financial Instruments

35. Financial Markets Material prepared by: Ida Kristina Ramos, MBA FM 415 Instructor: Christian Maranan, MBA

36. How do FINANCIAL MARKETS FUNCTION?

37. What do FINANCIAL MARKETS do ? Raising capital Commercial transactions Price setting Asset valuation Arbitrage Investing Risk management

38. Debt and Equity Markets Primary and Secondary Markets Stock exchange and OTC Market STRUCTURE OF FINANCIAL MARKETS

39. What is DAY TRADING ? It is the buying and selling of shares, currency, or other financial instruments in a single day. The intention is to profit from small price fluctuations - sometimes traders hold shares for only a few minutes.

40. What you need to know DAY TRADING Market data Scalping Margin trading Bid-offer spread

41. DAY TRADING is … a high risk occupation a stressful expensive

42. Characteristics Liquidity Transparency Reliability Legal procedures Suitable investor protection and regulation Low transaction costs THE RISE OF THE FORMAL MARKETS

43. Technology Deregulation Liberalization Consolidation Globalization THE FORCES OF CHANGE FOR FORMAL MARKETS

44. ^_^ End of Financial Markets