An AI-powered Smart Routing Solution for Payment Systems

Online payment remains a significant factor in today's e-business sector. Since businesses are expanding globally and also offering online options, the need for alternative forms of payment is quite substantial. The use of online payment systems has increased substantially and has changed the way consumers do business. Online payment systems have also catalyzed new business formations and social practices. The term electronic money was formed from online payment systems, electronic ordering, and payment system. The Online Ordering and Payment System with SMS Notification for Nina Clothing Accessories is a system that can order through online. The admin part of the system can monitor sales order including customer’s information. The customer would find their experience most enhanced when the online system gives flexibility for the customer to choose the delivery method and receive the SMS Notification on the ordering status.

There has been extensive discourse on the topic of cashless payments, and their global adoption has witnessed exponential growth in recent years. Cash transactions pose certain challenges, notably the impracticality of managing physical currency and the restricted accessibility of financial institutions to withdraw cash. Multiple research studies have affirmed the positive influence of cashless payments on economic growth, thus highlighting their crucial significance. The present study aims to examine the effects of cashless payments on the economy of Sri Lanka. In particular, the investigation focuses on the measurement of economic growth using the real Gross Domestic Product (GDP), and the analysis of cashless payment systems through the employment of Real-time Gross Settlement System (RTGS), Cheque (CHE), Sri Lanka Interbank Payment System (SLIPS), and Internet Banking (IB), Mobile Banking (MB), Credit Card (CC), Debit Card (DC) transactions as representative indicators. The data utilized in this study is based on secondary sources in the form of time series data, spanning from quarter 01 of 2015 to quarter 3 of 2022. The AutoRegressive Distributed Lag (ARDL) model is then employed for the purpose of data analysis. Upon conducting an analysis of the long-term impact of various payment methods on economic growth, it is determined that RTGS (94% of total digital transaction) and SLIPS have a statistically significant positive relationship with economic growth. Conversely, IB exhibits a significant negative relationship which requires targeted improvements. Notably, there is no significant impact on economic growth observed with respect to the CHE, CC, DC, and MB indicating the need for technological advancements and integration. In the short run, it can be inferred that there is a significant positive correlation between RTGS, CHE, IB, and MB. Conversely, the analysis indicates a significant negative relationship between the SLIPS and DC payment methods. It is worth noting that the analysis does not reveal any significant association between the CC payment method and economic growth. Hence, this study conclude that digital currencies have on overall positive impact on short and long run in Sri Lankan economic growth and highlights the importance of prioritizing efficient payment systems that foster the economic growth while addressing the challenges with less effective methods. Policy makers and financial institutions can enhance the efficiency of payment ecosystems, ultimately driving sustainable economic growth.

With the evolution of Internet Technology, payment methods have undergone drastic changes from entity exchange to Internet banking. Almost every sector has gone through the transformation from conventional technologies to digital technologies. With the arrival of online payment and digital wallet system, making payments has become easier than ever and with the increasing demand for such services, the number of users using instant money transfer systems are growing rapidly. However, the existing online payment system has issues like a single point of failure, transparency, and insider problem. Also, security in such online payments is crucial to mitigate risks and financial inefficiencies. In this paper, a private and permissioned Blockchain-based Payment System for the financial sector in India is proposed. The proposed architecture is based on Istanbul Byzantine Fault Tolerance (IBFT) consensus and it also discusses the integration of banks with the system.

PurposeThis exploratory study seeks to explore the link between the choices of payment mode to customer satisfaction. It examines the Austrian market in relation to its choice and usage of debit cards versus credit cards and its impact on customer satisfaction and loyalty. Furthermore, the study aims to identify the key drivers of customer satisfaction for these two modes of electronic payment.Design/methodology/approachA structured questionnaire was administered in person to 360 Austrian bank customers. These customers were selected using quota sampling based on Austrian census data for a particular Austrian province. However, while the quota sampling was used to determine the categories, selection of the actual respondents was done through systematic sampling. This ensured that the sample was representative of the population of that Austrian province who had credit and debit cards. One group, women who were 65 and older, were not considered as there were relatively few women in this age range who had debit and credit cards.FindingsFive hypotheses were proposed. Four of the five hypotheses were supported while one, H4, had partial support. Essentially, the results indicate that a person's preference for a particular payment method is dependent on his/her personal characteristics. Additionally, the payment method's features and characteristics influenced its desirability and acceptance. Furthermore, a person's expectations had an impact on his/her attitude toward the payment method. The study also found that positive expectations, performance, and desires led to customer satisfaction. Customer satisfaction, in turn, leads to a higher degree of intent to use the payment method and higher degree of intent to recommend the payment method. These results are consistent with the literature on customer satisfaction that identifies expectations, performance and desires as the drivers of customer satisfaction.Originality/valueMultiple payment modes have emerged but there has been scant attention paid to the effects of payment modes on customer behavior and by extension, customer satisfaction and loyalty. This paper addresses these issues.

E-Payments: Modern Complement to Traditional Payment Systems

Credit card payment system is the most popular way to make a purchase on electronic commerce. The main problem about using it is that the customer gives his personal information and credit card number to merchant or payment service provider when he makes a purchase in Internet. The result of this action is the lost of customer’s anonymity and privacy in both the real world and Internet. We propose a new electronic currency scheme which guarantees customer anonymity and privacy. Also, we integrate our scheme with PayPal system.

Over the past few decades, Internet technology has shaped almost everybody’s life. Business banks set up internet workstations and provide customer information requirements, internet payment fund diversion financial services, credit, investment, etc. An online payment system is a means for conducting economic transactions based on the Internet. This allows a seller to accept payments over the web or other internet connections, such as direct network connections between retail stores and their suppliers- a common way of keeping inventories just in time. Online payment systems are greatly expanding a company’s scope and selling potential. Usually, online payment services are operated by third-party firms like PayPal, Google, or Click2Pay. Such companies make a profit by taking a small portion of each transaction, or by signing contracts with institutions that require a large number of transactions. Without the ability to make online payments, a large Internet retailer, like Amazon.com, could not exist. Online payment systems have expanded the playing field between big and small companies, as each of them can adopt the same payment methods when they sign up with third-party payment processors.

In the current market, usage of e-payment has been dominant instead of the physical cash payment method. Money is transferred out from a bank account using a debit card, credit card, or online banking to pay people using the e-wallet, offering the effortlessness of a cashless payment method. The Internet turned out to be the pillar technology, particularly for the retail industry, electronic payments, mobile payments, and banking systems initiated to develop. Beforehand, cashless transactions are just individuals making payments by using debit or credit cards, which are the main initiative of the development of banking system technology. Due to the era of globalization, the utilization of banking system technology between banks and third parties, debit, and credit debit cards can also be considered e-payments. The study's objectives are to identify the effect of perceived compatibility, social influences, personal innovativeness, and facilitating conditions on customer intentions among working adults who use mobile phones for e-payment in Klang Valley. This research shows that the use of the UTAUT model is helpful to assist academicians and marketers as a further research purpose to understand the consumer’s intention towards the acceptance of new technology which is e-payments. From this study, the finding shows that positive sign which is seen across the independent variables of social influence perceived compatibility, and facilitating condition. There is no relationship between personal innovativeness and customers’ intention to use mobile phones for e-payment in Klang Valley. Quantitative data had been obtained through the distribution of online questionnaires to 384 targeted respondents as part of the methodology of this research. In this study, three data analysis models have been applied in data analysis descriptive analysis, multiple linear regression, and Pearson correlation coefficient analysis. The survey was analysed through SPSS version 27.

This article describes research into online electronic payment systems, focusing on the aspects of payment systems that are critical for their acceptance by end users. Based on our earlier research and a diary study of payments with an online payment system and with online banking systems of a reputable bank, we proposed a set of 12 interaction design guidelines. The guidelines have been applied during the implementation and redesign of a new payment system. An extensive experimental comparison of the original version of the system with the one designed according to the design guidelines has provided confirmation of the relevance and adequacy of these guidelines for designing online payment systems.

Using data from the United States and Canada, we quantify consumers’ net pecuniary cost of using cash, credit cards, and debit cards for purchases across income cohorts. The net cost includes fees paid to financial institutions, rewards received from credit or debit card issuers, and the merchant cost of accepting payments that is passed on to consumers as higher retail prices. Even though credit cards are more expensive for merchants to accept compared with other payment methods, merchants typically do not differentiate prices at checkout, but instead pass through their costs to all consumers. As a result, credit card transactions are cross-subsidized by cheaper debit and cash payments. Card rewards and consumer fees paid to financial institutions are additional sources of cross-subsidies. We find that consumers in the lowest-income cohort pay the highest net pecuniary cost as a percentage of transaction value, while consumers in the highest-income cohort pay the lowest. This result is robust under various scenarios and assumptions, suggesting payment card pricing and merchant cost pass-through have regressive distributional effects in the United States and Canada.

This research is a type of quantitative research with the aim of determining the Effect of Consumer Reviews and Cash On Delivery (COD) online payment systems on consumer confidence in purchasing products on the Shopee Application. The type of data used in this study is quantitative data obtained from questionnaires distributed and related to the problem studied. Data collection is carried out by observation and distribution of questionnaires. In this study, the data sources used in data collection include primary data and secondary data. The research instrument used in this study was using the Likert scale method. The results showed data using statistical calculations through the Statistical Package for the Social Science (SPSS) application version 25 regarding the Effect of Consumer Reviews and the Cash On Delivery (COD) online payment system on consumer confidence in purchasing products on the Shopee Application which has been discussed from the previous chapter, the author draws important conclusions, namely consumer reviews and cash on delivery. This means that consumer reviews have a positive and significant effect on the Cash on Delivery payment system in purchasing products on the Shopee application.

Abstract: With the increasing reliance on online transactions across sectors such as banking, telecommunications, insurance, and e-commerce, credit card fraud has emerged as a critical concern. The widespread use of electronic payment systems, particularly credit and debit cards, has made fraudulent activities more prevalent and sophisticated. Credit card fraud detection presents a complex classification problem that can be effectively addressed using machine learning (ML) techniques. This study explores the capabilities of ML algorithms in detecting fraudulent credit card transactions by examining both the challenges and opportunities in this domain. Adopting a mixed-method approach that combines a comprehensive literature review with experimental evaluation, the study investigates how past transaction data distinguishing between legitimate and fraudulent activities can be modeled to classify new transactions accurately. The research advocates for a progressive transition towards hybrid models that integrate machine learning with deep learning techniques to enhance the robustness and adaptability of fraud detection systems.

Building the Payment System of the Future: How Central Banks Can Improve Payments to Enhance Financial Inclusion

Determinants of user acceptance of the e-Government services: The case of online tax filing and payment system

Credit card is the most popular payment method used in Internet shopping. The idea of credit card payment is to buy first and pay later. The cardholder can pay at the end of the statement cycle or they can pay interest on the outstanding balance. Therefore, there are many credit card-based electronic payment systems (EPSs) that have been developed to facilitate the purchase of goods and services over the Internet such as CyberCash (VeriSign), iKP (Bellare, Garary, Hauser, et al, 1995), SET (Visa and MasterCard, 1997), CCT (Li & Zhange, 2004), and so forth. Usually a credit card-based EPS involves five parties: cardholder, merchant, acquirer bank, issuer bank, and financial institution. Internet is an open system and the communication path between each other is insecure. All communications are potentially open for an eavesdropper to read and modify as they pass between the communicating endpoints. Therefore, the payment information transmitted between the cardholder and the merchant through Internet is dangerous without a secure path. SSL (Zeus Technology, 2000) is a good example to secure the communication channel. Besides the issue of insecure communication, there are a number of factors that each participant must consider. For example, merchant concerns about whether the credit card or the cardholder is genuine. There is no way to know the consumer is a genuine cardholder. As a result, the merchant is incurring the increase in losses due to cardholder disputes and frauds. On the other hand, cardholders are worried about the theft of the privacy or sensitive information such as the credit card number. They don’t want any unauthorized usage of their credit cards and any modification to the transaction amount by a third party. These security issues have deterred many potential consumers from purchasing online. Existing credit card-based EPSs solve the problems in many different ways. Some of them use cryptography mechanisms to protect private information. However, they are very complicated, expensive, and tedious (Xianhau, Yuen, Ling, & Lim, 2001). Some EPSs use the Certificate Authority (CA) model to fulfill the authentication, integrity, and nonrepudiation security schemes. However, each participant requires a digital certificate during the payment cycle. These certificates are issued by independent CAs but the implementation and maintenance cost of this model is very high. In addition, the validation steps of Certificate-based systems are very time-consuming processes. It requires access to an online certificate server during the payment process. Moreover, the certificate revocation list is a major disadvantage of the PKI-based certification model (The Internet Engineering Task Force). The cardholder’s certificate also includes some private information such as the cardholder’s name. The requirement of a cardholder’s certificate means software such as e-Wallet is required to be installed on the cardholder’s computer. It is the barrier for the cardholder to use Certificatebased payment systems. To solve this problem, Visa Company has developed a new payment system called Verified by Visa (VbV) (http:www/visa-asia.com/ ap/sea/merchants/productstech/vbv_implementvbv. shtml). However, sensitive information such as credit card number is still passed to the merchant. Therefore, the cardholder is not protected by the system.