Benefits And Challenges Of Digital Payment And E-commerce Payment System

Problem statement

 Manual payment system was used earlier in order to transfer money however the use of a manual system creates a number of challenges. According to Grimes and Rodima-Taylor (2017), utilization of manual payment system uses a paper journal as well as ledgers in order to finish the task which is one of the time-consuming procedures and can be subject to frequent errors due to the use of manual accounting information. Moreover, it is found that the lack of security is another major disadvantage of using manual payment system (Kazan & Damsgaard, 2016).  In addition to this, it is found that the use of the manual payment system also creates challenges including inconvenience, high cost of transaction as well as chances of data duplication. In order to resolve the issues that are faced due to the use of the manual system, the utilization of digital Payment and E-commerce Payment System was used.

 Traditionally, the utilization of manual payment system put pressure on the people to be correct in context to the details related to work.  It is found that the service that is provided by the manual payment system is generally dependent on the individuals and it generally creates a number of issues like data duplication, redundancy, inaccurate security as well as time consumption. (Sumathy & Vipin, 2017). Moreover, it is found that when mistakes are made and corrections are generally needed than manual transaction requires to be completely redone rather than just updating. Thus, it is found that in order to resolve the issues and challenges, it is a very much necessary move to digital Payment and E-commerce Payment System as the services that are provided are very much convenient, highly secure as well as assists in limiting the spending of the organizations.

According to Pal et al. (2018), utilization of manual payment system generally needs to understand the entire procedure of accounting in a proper way by unravelling the difficulties as well as complexities of the financial records. It is identified that the utilization of manual system for undertaking transaction is considered to be one of the unsecured methods due to the security challenges as well as utilization of paper-based calculation for completing the entire transaction. In addition to this, inaccuracy in financial records can also occur due to the tedious manual calculation which further causes the bookkeepers to make mistakes.

The problems that are created by the use of a manual payment system includes technical problems, security issues as well as workplace related problems. It is analyzed that as manual payment system needs much time in order to complete the calculation manually, an organization needs to spend more amount of money on hiring human resources in order to complete the work in a short period of time. Though, more amount of money was spent on the human resources the chances of accuracy within the calculation is not high as there is a high chance of error, inconveniency as well as security-related issues. (Kazan, 2015). Moreover, the use of manual payment system is not considered as one of the safest methods for payment due to the security associated problems.

Background

It is found that it is quite necessary to resolve the problem by pinpointing the gaps by using literature as a support for the argument is very much necessary (Geva, 2017).  This is generally necessary in order to determine the method that would be helpful in providing a secure as well as convenient method of payment to the people by resolving the issues that are related with the manual payment system. In addition to this, the research would also help in identifying the role that the Digital Payment and E-commerce Payment System play.

The research question includes:

The use of digital payment and E-commerce payment system helps in enabling the businesses, individuals as well as governments to make cashless payment in context to goods and services with the help of cards, mobile phones as well as internet. It presents a number of advantages including time as well as cost savings, increased speed and convince as well as helps in enhancing the sales of the organizations. It is found that nowadays digital payment systems are utilizing secure socket layer as well as data encryption method in order to keep the online payment safe and secure. In addition to this, Payment Fraud Prevention using Cryptographic Algorithm TDES is also utilized for making a safe transaction. (Trautman, 2015).  Moreover, in spite of the advantages that are provided by the digital Payment and E-commerce Payment System, it is found that there are a number of challenges including security concerns, disputed transactions, as well as enhanced cost of business. It is analyzed that although stringent measures like encryption are used for making the digital payment system much more secure and safe though they are vulnerable to hacking. Moreover, it is found that if electronic money is utilized without the authorization of the person then one could identify unfamiliar charge as, without sufficient details about the individuals who performed the transaction, it is very much difficult to receive a refund. In addition to this, it is analyzed that the digital or electronic payment system enhances the need to protect the financial details that are generally stored.

 It is found that this question will not be answered easily without having proper data and information that proves that the utilization of digital and e-payment system provides both benefits as well as challenges. Thus, in order to answer the question, it is very much necessary to undertake primary data analysis. It is found that primary data analysis method would be helpful in determining the benefits and challenges that are associated with the use of digital Payment and E-commerce Payment System.

Context in which problem arises

 It is found that in order to undertake the research project on digital Payment and E-commerce Payment System, inductive approach is mainly utilized as this approach is helpful in analyzing the advantages as well as challenges of the digital payment and e-commerce payment system with the help of online survey (Lewis, 2015).  This approach is generally selected for this research project as with the help of specific observations from the online surveys, it would be quite easy to conclude that digital payment and e-commerce payment system are quite beneficial as they are helpful in providing easy as well as a convenient method of payment to the people.  

The individual steps that are generally undertaken in order to finish the entire research project are generally elaborated below:

Initial literature review: It is found that in this step, the problem for the research project is identified so that proper review can be made in order to determine the solution that would be helpful in resolving the problem that is associated with the manual payment system. After reviewing it is found that the use of digital payment and e-commerce system are not only helpful in resolving the issues and challenges but are helpful in providing easy as well as a convenient method of payment to the people (Vaioleti, 2016).

Undertaking a survey: The Online survey is generally done in order to collect the response of 100 people for determining the benefits as well as challenges that are mainly associated with that digital payment and e-commerce payment system. Online survey method is found to be online of the essential data collection method for analyzing the role that digital payment and e-commerce payment system plays.

Collection of data: After undertaking survey, it is found that in the next step, quantitative data collection method is used in order to analyze the significance of using digital payment and e-commerce payment system (Choy, 2014).  This method is mainly used as the research project uses an online survey in order to collect proper data and information on the research project.

Data analysis: With the help of quantitative data analysis method, the information as well as details related with the utilization of digital as well as e-commerce payment system is inspected, cleansed, transformed as well as modelled with the proper goal of discovering proper information related with the advantages as well as challenges of digital and e-commerce system by informing as well as supporting proper process of decision making. (Fletcher, 2017).

Nature of the problem

Analyzing the final outcome: The data that is analysed on the basis of the research that generally reflects in reflecting the advantages of digital payment and e-commerce payment system and how it is helpful in making payment quite easily as well as in a very much short period of time.

In this research project, quantitative data will be collected in order to analyze the answer for the research question (McCusker & Gunaydin, 2015).  It is found that quantitative data collection method is mainly used as it generally helps in allowing a better understanding of the research and in addition to this it helps in exploring proper decision that would be further helpful in undertaking the research in a detailed insight.

It is found that online survey method is used for the collection of data in context to digital payment and e-commerce payment system as it is considered as one of the powerful tools for collecting quantitative data. Surveys are mainly utilized as it assists in providing a high level of general capability in order to represent large number of population and a huge number of people generally answers the survey, the data that are being gathered mainly compromises better description about the views of the people on the benefits and challenges of the digital and e-commerce payment system. Thus, in order to get proper understanding as well as knowledge on the benefits and challenges of digital system, an online survey is conducted which collects responses of 100 participants in order to reach to the conclusion quite easily (Isaacs, 2014).

It is identified that in order to collect the raw data for the research project, quantitative data analysis method is used. The main reason of using quantitative data analysis is that it generally helps in analyzing the data successfully by delivering proper information in context to using digital payment and e-commerce payment system (Choy, 2014).  It is found that the data that is generally collected from the online research method, helps in analyzing that there are number of benefits that is achieved with the utilization of digital payment and e-commerce payment system. The advantages that are achieved include convenient as well as easy method of payment, increment in the sales as well as less time consumption during transaction. In spite of the advantages, it is analyzed that it is very much necessary to use some of the security-related methods in order to make the digital payment secure.

Reason of research

The resources that are generally needed in order to finish the research project on the using digital payment and e-commerce payment system is provided in the table that is given below:

Time required	20 days.
Human resources	100
Other resources	Software tools

 In this specific section, the response of 100 participants are collected in order to analyze the significance of using digital Payment and E-commerce Payment System. The graph that is used for analysing data are mainly done by using excel where both the option factor as well as response percentage factor was considered.

Section 1: Demographic information

1. Please select your gender.

Options	No of respondents	Total respondents	Response %
Male	62	100	62.6 %
Female	36	100	34.6%
Others	2	100	2.8 %

Finding: From the above figure that is provided, it is reflected that out of 90 respondents who participated into the survey, the percentage of the male is 34.6% whereas the female is 62.6 % and others are 2.8%.

1. Please indicate your age group

Options	No of respondents	Total respondents	Response %
Between 12-19	7	100	7.4%
Between 20-27	45	100	47.4%
Between 28-37	40	100	42.1%
Between 37-50	3	100	3.2%

Findings: The figure that is provided below reflects that the participants of the survey are mostly the middle-aged people between 20-27 as 47.4% of them were involved in the survey.

Section 2: Digital Payment and E-commerce Payment System

Findings: The figure that is provided above suggests that 53.3% agrees that the use e-payment system has increased since the last decade whereas 7.6% of the participants disagree with the statement.

Findings: The findings suggest that 42.4% of the people agree that due to online shopping the need for online payment become must for the people whereas 27.2% people disagrees with it.

Findings: The figure which is provided above reflects that 44.4% people agrees that digital and e-payment system is much more convenient as compared to the traditional method of payment whereas 24.2% disagree with the statement. 

Findings: The figure which is provided above reflects that 43.3% people agree with the fact that e-payment system generally requires protection from unauthorized access whereas 23.7 % disagrees with the statement. 

Findings: The figure that is provided above reflects that 42.4% people agrees that with the use of internet banking and online shopping, the number of people doing cash payments is decreasing. On the other hand, it is reflected hat 28.3 % disagrees with the fact. 

Findings: The figure that is provided above reflects that 42.4% people agrees that although stringent measures are provided, e-payment and digital payment system are vulnerable to hacking whereas 26.3% disagrees with the statement. 

Findings: It is seen from the above figure that 43.9% people agrees with the fact that E-payment and digital payment system provide competitive advantage whereas 26.5% disagrees with the statement. 

Findings: It is reflected from the figure that 43% people agrees that an option to receive online payment will be helpful in improving reputation and thus it helps in allowing the users to gain trust for the customers whereas 27% disagrees with the statement.  

Research Question

Findings: The figure which is provided above showcases that 38.7% of the people agrees with the fact that digital payment system is very much useful in boosting the sales whereas 31.2% people disagrees with the statement. 

Findings: The figure that is given above reflects that 39% of the people agrees with the fact that online payment reduces labour costs whereas 27% people disagrees with the statement that is provided.

The prototype for the Digital Payment and E-commerce Payment System is provided below. The prototype that is provided below reflects on the procedure that needs to be followed in order to make digital payment. 

The analysis that was undertaken on the research topic suggests that e-commerce and digital payment system generally resolves the problems that are associated with the traditional or manual payment system. In addition to this, it is showcased for the data that e-commerce and digital payment system helps in increasing sales within the organization, assists in improving competitive advantages and helps in providing easier and convenient method of making payment. In spite of that, the research also suggests that although stringent measures are taken, the chances of ethical hacking in context to digital and e-commerce payment system is quite higher. Thus, it is found that the from the data that is gathered through a survey, both the benefits as well as challenges of using digital and e-commerce payment system is determined.

The standards and guidelines that are generally followed within the research are reflected below:

• The data that are collected are collected will not be shared with others and the data are kept in a secure place so that they cannot be accessed by the unauthorized individual.
• The research topic will generally be helpful in producing proper as well as ethical knowledge in context to digital and e-commerce payment system
• Validity of the data that is collected through the survey is collected ethical method.

The entire research that is undertaken reflects that due to the use of e-commerce payment and digital payment system the organizations are gaining a huge competitive advantage as there is 10-15% hike in the sales of the organization. It is found that secure socket layers as well as data encryption methods are utilized in context to digital payment system in order to secure the online transaction. Moreover, online Payment Fraud Prevention using Cryptographic Algorithm TDES is also utilized for securing the transaction that is done with the help of digital medium.  As the new payment system is considered to be convenient, it is analyzed that it is utilized by a greater number of people in comparison to the use of the traditional payment system. In addition to this, it is analyzed that the new payment system also helps in minimizing the required time consumption within the entire payment procedure. Moreover, it is analyzed that in spite of the advantages, there are a number of security-related issues which can affect the digital payment system.  From the entire research, it is identified that though stringent measures are used in order to keep the digital and e-commerce payment system secure then also the new payment system can get vulnerable to hacking. Thus, the entire research that is undertaken by collecting responses of 100 people is helpful in producing new knowledge that is associated with the utilization of e-commerce payment system and the information that is gathered from the research methodology and the corresponding new knowledge must be quite obvious. Moreover, it is found that the new knowledge that is collected from the research is quite helpful in solving the research problem.

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