An e-commerce payment system facilitates the acceptance of electronic payment for online transactions.

Also known as a sample of Electronic Data Interchange (EDI), e-commerce payment systems have
become increasingly popular due to the widespread use of the internet-based shopping and banking.
There are multiple security issues encountered with e-payment, such as

Virtual currencies are not really easy to accept. One of the major examples of this is BitCoin.
When BitCoins were introduced, they were expected to be a huge success but they have not been
able to respond in the way as they were expected to. Also, the usage of e-payment has been
spreading like wildfire which makes it necessary for every organization to implement it, and
sometimes these rapid implementations may lead to security issues being left unaddressed.
Google wallet, Airtel money, Apple Pay are examples of transaction methods which can make life
a lot easier for people by enabling them with new ways of transacting over the internet, but at the
same time these methods also give rise to security threats.

Figure 1 shows that people still believe that

Authentication risks make it difficult to implement innovative electronic payment systems

The pressure to migrate to innovative electronic payment systems puts the security of transactions
at risk

In short, the skepticism in accepting the virtual currency payment methods still exists.
Another major concern today is the amount of personal information collected for authentication and
verification purposes by the companies and the transparency and integrity with which this information is
used.
Near field communication (NFC) technologies and host card emulation (HCE) are strategically important
as they increase the security of new payment systems extensively. NFC is a set of standards for smart
phones and other mobile devices to establish radio communication. NFC devices can be used in
contactless payment systems such as mobile payments. HCE enables the following: merchants to offer
payment cards solutions more easily through mobile, closed-loop contactless payment solutions, real time
distribution of payment cards and allows for an easy deployment scenario that does not require merchants
to change the software inside the terminal.
However, whatever risks and security issues may be there, virtual currencies are expected to take over
paper currency in the near future. Among all the different payment methods, e-wallets seem most
promising. On the other hand, video teller machines are not able to ignite much enthusiasm among
companies and are not very likely to be implemented on a large scale in the near future.
Despite privacy concerns, consumers are quickly embracing new payment systems, including mobile
payments, person-to-person payments and e-wallets. According to the Security & Compliance Trends in
Innovative Electronic Payments Report conducted by the Ponemon Institute, payments with a mobile
device or phone number are the most popular electronic payment method, with 75 percent of respondents
saying their organizations have plans to support payments with a mobile device or phone number.

With electronic payment adoption on the rise, the security and integrity of sensitive financial data must be
addressed. According to the study, 66 percent of respondents reported the authentication of users to be a
key challenge in implementing new payment methods. To address this, organizations can look to
technologies such as cryptography, key management, hardware security models (HSMs) and
interoperability. In addition, industry standards play an increasingly important role in securing emerging
electronic payment capabilities.
Some of the approaches that are looking healthy for e-payments in the coming future are

Virtual currencies such as BitCoin need to be promoted a bit more and maybe a much more
sophisticated version of BitCoins can be re-introduced.
E-wallets are most widely accepted as the mode for online transactions as of now. With the
introduction of virtual currency, we can embed these two features to come up with a more secure
and hassle free mode of payment.
The most critical factor in e-payment is the security and authentication of the people involved in
the transaction. The credit card companies have been the most innovative and successful in
coming up with new and improved security strategies and hopefully they will continue to do so in
the future.
Most critical for the e-payment methods are the authentication strategies used among which OTP
is one of the most trusted as it involves manual intervention from the user and real time responses
which may be able to detect an anomaly in time and prevent any fraudulent activities from
happening.
Also the inclusion of video teller machines as a means for e-payment strategies looks very bleak
as the companies are not very excited about using this method in near future. The reasons cited by
these companies mainly point towards incompatibility between the video teller technology and
their own e-payment strategy.

Submitted By-- Aviral Aggarwal

PRN

-- 13020841070