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ELECTRONIC PAYMENTSYSTEMS

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Conventional paymentmechanism

In the past , barter system was introducedin which people exchange their products orservices to fulfill the needs .

 This system did not grow well because

traders could not carry over long distanceswhat the others needed, traders could notanticipate what the others needed.

It was essentially determined by demand

and supply

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Contd.

 The came the concept of money theearlier forms of money were seashells,gold

 The came the currency based moneywhich is widely used byorganizations ,trade systems in theirtransactions

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Contd…

As time went on the banking systemcame into existence and grew well in thetrading world

People keep their money for own

convenience and security and withdrawtheir money whenever needed.

Banks utilizes the money of customers to

promote social and business activities bylending the money to business operations

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Contd.

Most money transfers have startedtaking place on paper like bills of exchange,moneyorders,cheque,drafts,

letters of credit . The advent of electronic networking of 

banks had improved the performanceof banks through fastercommunication and

Provide convenience to customers .