Abstract. Electronic commerce and electronic
business are the inevitable mediums of exchange in an increasingly wired world.
To better understand the problems and perspectives of electronic payment
systems, it is wise to look at not only the current systems in place, but to
also examine what the future may hold. This paper describes the characteristics
of current systems in place and provides a brief analysis of how each works.
Finally, it predicts the future of these systems and the possible changes to
the current structure of economic transactions.
1
Introduction
For
more than decade there have been predictions of the elimination of physical
cash as a transaction medium and the substitution of one form or another of an
electronic payments system. Some forecasters view the prospect with delight,
looking on it as increasing the efficiency of the economy. Others fear its
rise, anticipating it to be another way in which the security and privacy of
our lives become subject to monitoring and scrutiny. But no matter which side
one may fall on, it is clear that we're abolishing the physical need for money,
one step at a time. We're committing our futures, our families, our societies,
to cyberspace (Gleick). Because of this explosive development of electronic
commerce in recent years, the issue of paying over open networks has become
very important. Electronic payment systems are required to bring the necessary
infrastructure to facilitate payments. They are an essential part of the
further development of commerce and business (Gleick).
