The Advantages Of Electronic Payment


With advancement in technology, we have seen concepts like B2B and B2C gaining importance throughout the globe. Most of the transactions are now conducted with the use of internet.

Not only businesses, even individuals use online facilities and payment modes for their day to day purchases. Time is important to all of us. Nowadays we don’t need to go to the market to do shopping. We can search online for the items we wish to buy and pay for them using credit card or debit card. What else you can even buy book a movie ticket from the comfort of your home.

For every purchase transaction you need to pay something. Payment can be made in cash, through cheques or demand drafts, credit cards and debit cards. With the help of internet payments can also be made using internet banking which works just like a debit card.

You frequently use credit card for your purchases, for which you need to make payment before a specific date. Such payments can also be made using internet banking or debit cards.

So you make an electronic payment using your credit card and again you can use an electronic medium to clear your dues.

Let Us Discuss Some Advantages of E-Payment

a)    Speed

E-Payments help you in making quick payments. For utility bills like electricity, gas and telephone, any delay in payment can result in disconnection or a penalty. By using electronic mediums, you can make payments even three to four days before the due date. Payment is generally credited within two to three days to the supplier’s account. Similar is the case with payment for credit cards. Any delay in payment can result in heavy financial charges. So with electronic medium, you need not prepare a cheque and make special preparations for depositing it with the vendor.

b)    Convenience

Remember the days when you had to wait for long hours in long queues to make payments for your electricity and gas bills irrespective of the amount. With most government and state agencies providing online facilities for payment, you just need to use your personal computer or laptop to release payments in their favour. Nowadays even tax payments can be made online. You can also use such mediums for making recurring payments by availing facilities like direct debit.

c)    Accessibility

With the help of electronic mediums for payment, you can buy mobile phones, expensive electronic items, watches, clothes, shoes etc. from any part of the world. So now you are no longer restricted by location, you can identify best bargains and avail them as and when you desire.

d)    Records

Just like a cheque, where you record payee details, cheque number and issuance date with yourself for future purposes, whenever you make an electronic payment you are provided with a unique transaction identification number which you can use for any kind of correspondence with your bank or with the supplier in the near future. So electronic payment also serves the very purpose of maintaining accurate and complete records.

e)    Minimum Cash

By using electronic mediums for payment, the need to maintain cash has reduced. Internet banking or debit card works just like a cash facility whereby your account is debited immediately upon payment.

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