The term digital payment system is used synonymously with electronic payment system or e-commerce payment system. Digital Payment System is an electronic payment system in which a financial transaction is facilitated between a buyer and seller in e-business.
Digital Payment Systems can take various forms such as Credit Cards, Electronic Checks, Pre-loaded Money Card, Digital Cash or Paypal (a service of Ebay). Increasingly, digital payments are also mobile. This mobile payment(m-payment) is enabled by credit card institutions but also by network providers, merchant consortia or technology groups such as Google with Google Wallet and Google Pay, Apple with Apple Pay or Microsoft with Zero Effort Payment. In this context, one also often speaks of digital wallet.
Digital payment systems represent an important part of value creation in e-commerce activities. Transparent and trustworthy payment is one of the most important features in online shopping for onlinecustomers and is therefore relevant to success for online companies. The range of different forms of Digital Payments Systems such as wireless payment via a credit card with NFC chip, Paypal or other forms increases the likelihood of customers buying.