What is the essential difference between electronic payment and traditional payment methods?

The difference between electronic payment and traditional payment method lies in:

First, the circulation mode is different.

Electronic payment uses advanced technology to complete information transmission through digital circulation, and its various payment methods all adopt digital means to pay; The traditional payment method is to complete the payment through physical entities such as cash circulation, bill transfer and bank remittance.

Second, the business environment is different.

Traditional payment runs in a relatively closed system, and the working environment of electronic payment is based on an open system platform (that is, Internet).

Third, the use of different media

Traditional payment uses traditional media.

Electronic payment uses advanced communication means.

For example, Internet and extranet, electronic payment requires high hardware and software facilities, and generally requires networked microcomputers, related software and other supporting facilities, while traditional payment does not have such high requirements.

Fourth, the length of time is different and the cost is different.

Traditional payment costs are high and electronic payment costs are low.

Electronic payment has the advantages of convenience, quickness, high efficiency and economy. As long as users have a PC with Internet access, they can complete the whole payment process in a short time without leaving home.

In e-commerce, the payment process is a very important link in the whole business activity, and it is also a business process with the highest requirements for accuracy and security in e-commerce. The capital flow of electronic payment is a business process, not a technology. However, many technical problems will be involved in the process of electronic payment activities.

Invoices, promissory notes, money orders, credit cards and cash are widely used in traditional payment methods. Although cash flow has been replaced by bill exchange, which has brought great changes to the actual payment business, there are still many disadvantages in this mode of business processing.

Nowadays, electronic payment based on online transactions can not only improve the settlement efficiency, but also speed up the capital turnover and reduce the capital turnover cost.

Extended data:

The business types of electronic payment are divided into online payment, telephone payment, mobile payment, point-of-sale terminal transaction, ATM transaction and other electronic payments according to the initiation mode of electronic payment instructions.

1, online payment

Online payment is a form of electronic payment. Broadly speaking, online payment is based on the Internet, using some digital financial tools supported by banks, financial exchange takes place between buyers and sellers, realizing online monetary payment, cash flow, fund settlement, inquiry and statistics from buyers to financial institutions and merchants, thus providing financial support for e-commerce services and other services.

Step 2 pay by phone

Telephone payment is an offline form of electronic payment, which refers to the way that consumers use telephones (fixed telephones, mobile phones, PHS) or other terminal devices similar to telephones to directly complete payment from personal bank accounts through the banking system.

3. Mobile payment

Mobile payment is a new payment method that uses mobile devices to complete payment by wireless means. The mobile terminal for mobile payment can be a mobile phone, PDA, mobile PC, etc.

Baidu encyclopedia-electronic payment