Epayments

E-payments are electronic methods used to transfer funds to complete transactions, typically in online or mobile contexts. They replace cash or checks by moving money through banks, payment processors, and service providers. E-payments cover a range of channels, including card payments, bank transfers, and digital wallets.

Common types include card payments (credit or debit), bank transfers (ACH, wires), and e-wallets or mobile wallets. A typical flow involves the customer submitting payment data, a payment gateway to route it to a processor, an authorization from the issuer, and later capture and settlement to the merchant.

Security and standards protect payment data through encryption and tokenization. Strong customer authentication, 3-D Secure, and compliance with PCI DSS are widely implemented. Regional regimes such as PSD2 in Europe introduce additional authentication requirements for online transactions and cross-border payments.

Benefits include faster settlement, greater reach, improved auditability, and lower cash handling costs. Challenges include fraud risk, privacy concerns, technical reliability, and regulatory compliance across jurisdictions.

E-payments emerged with online commerce in the late 1990s and have since grown with digital wallets and mobile payments. Key players include PayPal, Stripe, and card networks, with ongoing emphasis on security, interoperability, and evolving authentication standards.