Online payment refers to money that is exchanged electronically. Typically, this involves use of computer networks, the internet and digital stored value systems. It includes transactions by businesses, consumers and government. The most common methods of online payment include:
- Credit or Debit Cards: This is the most common method of online payment. Consumers enter their card details on the checkout page, and the payment gateway or merchant processes the transaction.
- E-Wallets: These are online services or software that let people carry out electronic transactions. Popular e-wallets include PayPal, Apple Pay, Google Wallet, and Amazon Pay.
- Bank Transfers: Online banking allows consumers to transfer money directly from their bank account to another. Services like Wire Transfer, ACH and SWIFT are used for these transactions.
- Cryptocurrencies: Cryptocurrencies like Bitcoin, Ethereum, and others are becoming an increasingly popular way to make online payments. They offer a decentralized way to process transactions.
- Payment Applications: These are smartphone applications that allow users to make online transactions. Examples include Venmo, Zelle, and Cash App.
- Mobile Payment Systems: These are systems that let users make payments using their mobile devices. Examples include Apple Pay, Google Pay, and Samsung Pay.
- Payment Gateways: These are online commercial services used by merchants that authorizes credit card or direct payments processing for e-businesses. Examples include Stripe, Square, and Braintree.
Security is a critical concern with online payments. Technologies such as SSL encryption, two-factor authentication (2FA), and tokenization are often used to protect online transactions. In addition, laws such as the Payment Card Industry Data Security Standard (PCI DSS) set requirements for secure handling of payment information.
