Electron commerce(e-commerce) is facilitated through Electronic payment (e-payment) involves executions of money transfer or payments amongst businesses and their clienteles or customers, through electronic means or information technology of recent technological advances. The most common modes of electronic payments involves the use of credit cards, ATMs, Visa Cards, Master Cards and Smarts Cards, facilitated through electronic or digital technology. The driving force behind this technological development is the innovation of electronic commerce (e-commerce). The suitability and convenience of the e-payment is chosen on the basis of security, acceptability, cost, anonymity and tracebility. In this essay, the writer explores new avenues of e-payments innovations and their implication in the e-commerce. The innovations are supported by versatility convenience, inclusivity advance and adherence to security and traceability requirements.
Advances in Authentication Versatility Advances
Technological advances in e-payments could involve integration of some of the authentication protocol used in online payments in portable, cheap, consumer affordable electronic gadgets such as cell phones. Authentication protocol available for such innovative exploration includes Kerberos and X/Open Single Sign On (XSSO) authentication protocol. However, the ultra high security discourages low profile authentication protocol such as Pluggable Authentication Protocol (PAM).
Implication of e-payments Advances
Affordability, portability and versatility of mobile payments can increase the percentage of the consumer to consumer payment, in the e-commerce business industry. With the consumer to consumer e-payments being rated the lowest at (5% in the United States) among the categories of e-commerce, such an e-payment innovation could tilt the e-commerce balance of payment toward the consumer. This has been realized in Kenya through Safaricom telecommunication company innovation of MPESA cell phone e-payments transactions.
Impediments to E-Payments
The high security demand of e-payments in terms of anonymity and tracebility discourages full fledged devolution of payments to encompass all level of consumers due to cost implications. The most commonly used online e-payment; transaction authenticator Kerberos server is very costly in terms of its centralized installation. Its delocalization to consumer areas is not economically feasible in the low payment transactions involved in the little consumer transaction.