e-commerce marketing strategies

1. Search engine optimization

Launching a website is a win for any e-commerce company, but websites aren't enough for
consumers to easily find the brand. To improve visibility, marketing teams must optimize
websites for search engines. Positive search engine optimization (SEO) requires marketing
teams to continually update websites with rich and relevant content that provides useful
information for customers.

2. Content marketing

To support SEO and build brand authority, marketing teams should embrace content marketing
in their e-commerce marketing strategies.

Content marketing helps answer customers' questions, educate them, deliver the company
narrative and lead people to make a purchase. Additionally, different content types, like video,
downloadable guides and user-generated content, can strengthen a brand's reputation. This
content can also feed the blog and bring more eyes to the organization and its offerings.

3. Social media marketing

In addition to strong SEO that helps content show up on SERPs, brands should meet consumers
where they are: on social media. These channels can help engage an active audience.

Billions of people use social media each month, and social media can help brands create
authentic connections with their followers. On social media platforms, marketing teams can
also respond to comments, publish relevant content and provide more information about their
company's products.

Marketing teams should select the right platforms to manage and distribute this content. For
example, people on Twitter want to see different content than people on Instagram. Marketing
teams should know which platforms the customer base is most likely to use and align the
channel they use with them.
4. Email marketing

Email marketing can also let prospects and customers know about new products or information.
If marketing teams provide timely and relevant information through this channel, they can
inform new and existing customers of sales, new product releases and new blog content.

Personalized email communications have lasting benefits in customer retention and repeat
purchases. If marketing teams show they understand a buyer's purchase or browsing history
through personalized communications, they can establish a strong and loyal customer base.

Email marketing is one of the easiest ways to keep in contact with all different types of
customers.

5. Customer loyalty programs

Customer loyalty programs can help increase revenue and retain customers over time. Loyal
customers are highly valuable because they have already made purchases. If marketing teams
incentivize loyalty and repeat purchases, they can increase CLV and create strong brand
advocates.

Marketing teams have various types of loyalty programs to choose among, but programs that
are consistent and add value to the consumer often succeed the most. Loyalty programs also
have strong personalization opportunities, as they can collect more information about
consumers and insights into the best times to trigger communications to these individuals.

Additionally, loyalty programs can provide special offers, discounts and birthday wishes to
strengthen the relationship between business and consumer.
If
customers don't know about a loyalty program, then they likely won't join it.

6. Optimized product pages and checkout experiences

An e-commerce website includes category and product pages. However, optimizing the product
pages can help with conversion rate optimization. These pages should make it easy for visitors
to see the product, learn about its specifications or features and make a purchase.

Product marketers can evaluate which pages to optimize for conversion based on analytics data
to see where sales come from or where sales are lost. These teams should also optimize the
checkout experience for ease of use and reduce the number of steps it takes for someone to
complete their purchase.

7. Pay-per-click advertising

Some e-commerce marketing strategies have a lower cost associated with implementation, but
sometimes, brands need to pay to get their products and services in front of consumers. Pay-
per-click (PPC) strategies can ensure that product pages are at the top of SERPs in the form of
ads.

Good PPC campaigns contain an ad, offer and landing page. This approach can support SEO
efforts and let businesses use marketing budgets to get offers in front of consumers. Marketing
teams can deploy search and display campaigns within search engines or within their support
ad networks. Within ad networks, these campaigns can follow users to other sites they visit and
increase visibility to products and offers. Additionally, marketing teams can use paid
advertising strategies on social media platforms.
Organizations that struggle to show up in SERPs may benefit from a paid search strategy.

8. Retargeting

Building off a PPC strategy, a retargeting strategy is another paid approach to get people to
revisit a website they already visited and expressed interest in. While PPC can bring new eyes
to a website, retargeting tracks people who already visited a page but left without making a
purchase.

Brands can build different audience lists based on website pages viewed. If someone comes to
an e-commerce site and views various product pages, representing an interest in those items,
brands can deploy relevant ads on other websites within the brand's ad networks. These ads can
drive users to the specific product pages they visited before and reinforce that they should buy
the product.

9. Influencer marketing

Influencer marketing is a growing strategy among brands that want to tap into a specific
audience through someone the community trusts already. Influencers exist in all different types
of markets and industries. From tech review blogs and YouTube channels to lifestyle products
and TikTok channels, brands that use influencers can reach their followers.

In particular, this approach can benefit organizations releasing new products. Companies can
send influencers free products in exchange for reviews, promotions, a third-party perspective
on the product and an increased reach for the brand. While organizations can engage with
influencers in many ways, they often include product or sponsorship costs depending on the
influencer's terms.

Marketing teams should consider influencer marketing as a strong channel for an e-commerce
marketing strategy, as it involves positive relationships with influencers and ensures they can
provide a positive review or promotion for the products.

10. SMS marketing

SMS texting is a resurging and growing channel for e-commerce marketing strategies. While
the mix of strategies includes creating relevant content, sending emails and promoting through
paid channels, social media or influencers, marketing teams can't ignore that consumers are on
their phones most often.

Brands that want to take advantage of an SMS marketing strategy can collect phone number
details from consumers and send frequent and timely offers to both prospects and customers.

Online shopping retailers are currently some of the most successful businesses that uses SMS
marketing. This approach offers cross-sell and upsell opportunities and abandoned cart
recovery, and it can also provide exclusive offers or promotions to drive increased sales.

E Advertising
Electronic advertising, also known as e-advertising or online advertising, refers to the
promotion of products or services using digital technologies such as the Internet, mobile
devices, and social media platforms.
Use electronic advertising
E-advertising has become an essential part of the marketing mix for businesses of all sizes. It
provides an effective way to reach a broad audience and target specific demographics or
interests. E-advertising offers benefits such as targeted advertising, cost-effectiveness, real-
time results, and increased visibility and reach.
Types of Electronic Advertising
There are various types of electronic advertising that businesses use to promote their products
or services. Some of the most common types include:
Social Media Advertising
This type of advertising allows businesses to reach their target audience on social media
platforms like Facebook, Instagram, and Twitter. Social media advertising can take many
forms, such as sponsored posts, display ads, and video ads.
Content Marketing
Content marketing involves creating and sharing valuable content, such as blog posts, articles,
and videos, to attract and retain customers. Content marketing is often used to establish thought
leadership, build brand awareness, and drive traffic to a website.

Search Engine Marketing

Search engine marketing involves placing ads on search engines like Google and Bing to target
customers who are actively searching for products or services related to the business. This type
of advertising can be highly effective in reaching customers who are ready to make a purchase.
Display Advertising
Display advertising involves placing ads on websites and mobile apps to reach a broad
audience. Display ads can be in the form of banner ads, pop-up ads, and video ads and are often
used to build brand awareness and drive traffic to a website.
Email Marketing
Email marketing involves sending promotional messages and newsletters to a list of subscribers
who have opted-in to receive communication from the business. Email marketing is often used
to nurture leads, promote sales, and build relationships with customers.
Overall, the use of electronic advertising provides businesses with a wide range of options to
reach their target audience in creative and engaging ways. Choosing the right mix of advertising
mediums depends on a variety of factors, including the target audience, budget, and marketing
goals.

Electronic Ads Examples

Social Media Ads
When talking about social media ads it can take many forms, such as sponsored posts, display
ads, and video ads. For example, a business might use a sponsored post on Instagram to
showcase a new product and target users who have shown interest in similar products. Let’s
have a look at a few examples of social media ads.
SPONSORED POST
A sponsored post is created to appear on social media platforms, such as Facebook, Instagram,
or Twitter. It is a post that has been paid for by a business or brand, and it is designed to look
like a regular post from an individual user. Sponsored posts are used to promote products or
services to the audience of the influencer or social media user who shares the post, allowing
businesses to reach a wider audience and potentially gain new customers.

DISPLAY ADS
Display ads are a type of electronic advertising that appear on websites, mobile apps, and social
media platforms. They can take many forms, such as banner ads, pop-up ads, and video ads.
Display ads are designed to catch the user’s attention and encourage them to click through to
the advertiser’s website or landing page.
Source:PlusROI

VIDEO ADS
Dove asked several women to describe themselves to a forensic artist as he sketched their faces
without seeing them. He then sketched them again based only on descriptions provided by
others in the group.

It was inevitable that the two representations wouldn’t match exactly but the curveball was just
how altered women’s perceptions are about their own faces.

Content Marketing
Content marketing involves creating and sharing valuable content, such as blog posts, articles,
and videos. For example, a business might create a video tutorial on YouTube to demonstrate
how their product works and provide helpful tips to potential customers.

Search Engine Ads

Search engine ads appear on search engines like Google and Bing and are often triggered by
specific keywords. For example, a business might place an ad for any of their products when
people search for “help get rid of acne”.

Advantages of Electronic Advertising

Electronic advertising, also known as digital advertising, has become an essential component
of modern marketing strategies. Here are four advantages of electronic advertising:
Targeted Advertising

One of the primary benefits of electronic advertising is the ability to target specific audiences.
As compared to other advertising methods, electronic advertising can be tailored to reach a
precise demographic based on factors like age, gender, location, interests, and online behavior.

For instance, social media platforms like Facebook and Instagram offer sophisticated targeting
options that enable advertisers to create customized ads for specific demographics, interests,
behaviors, and even life events. This level of precision ensures that the message is delivered to
people who are most likely to be interested in the product or service, resulting in a higher
conversion rate and ROI.

Cost-Effective

Electronic advertising is also cost-effective compared to traditional advertising methods.

Digital ads can be created and launched quickly, without the need for printing, mailing, or other
production costs associated with traditional ads. Advertisers can also set budgets and only pay
for clicks or impressions, which means they can control their spends more effectively and
optimize their campaigns for better results.

Additionally, electronic advertising allows for real-time performance tracking and

optimization, which means that advertisers can adjust their campaigns based on data and
insights, ensuring that their ads are always relevant and effective.

Greater Reach
Electronic advertising has a broader reach than traditional advertising methods. With the
proliferation of the internet and mobile devices, people are spending more time online than
ever before. This means that advertisers can reach a vast audience, including people who may
not have been reachable through traditional advertising methods.

Moreover, electronic advertising offers the flexibility to target audiences globally or locally,
depending on the business’s needs. This allows businesses to reach consumers in specific
regions or countries, making it an effective tool for businesses looking to expand their customer
base.
Interactivity

Electronic advertising offers the advantage of interactivity, enabling businesses to engage with
their customers more effectively. Digital ads can include interactive elements like videos,
animations, and clickable calls-to-action, making the ad experience more engaging and
memorable. This interactivity can lead to increased brand awareness and customer loyalty.

For instance, interactive ads can include quizzes, polls, and surveys that encourage customers
to engage with the brand and provide valuable feedback. Moreover, electronic advertising
offers the ability to retarget customers who have previously interacted with the brand,
increasing the likelihood of conversion.

In conclusion, electronic advertising offers several advantages, including targeted advertising,

cost-effectiveness, greater reach, and interactivity. These benefits make it an essential tool for
businesses looking to build brand awareness, expand their customer base, and achieve their
marketing goals.

E-Advertising Agency
The Media Ant is a leading e-advertising agency in India with over 10 years of experience in
the industry. With a strong team of experts, the agency has served more than 3000 clients across
various industries, providing them with cutting-edge digital marketing solutions.
The Media Ant has the expertise to help businesses achieve their goals. The agency’s focus on
delivering measurable results and its commitment to client satisfaction have helped it become
one of the most trusted names in the Indian e-advertising space.

E Branding”

Online branding, also referred to as internet branding or e-branding (electronic branding), is

defined as the use of the internet and social media channels to create and promote brand
identity. This can be done through the use of a website, blog, or social media profile.
Few Examples Of Online Branding Done Right

1) Apple: - This electronic company fuels engagement with user-generated content and uses
gamification to reward and encourage constructive participation. It is one of the electronic
giants for a reason.
2) Lego: - Lego has been in the market for years, it has successfully developed a customer-
based product ideation system. Here the customers provide product ideas to the company and
they are in constant engagement with the company throughout the product creation process.
3) Airbnb: - This company provides space to stay throughout the world and through this, they
build relationships and get to know the culture of various places. They are one of the pioneers
of such novel idea, which plays a part in making them successful.
Key uses of building an internet branding campaign are-

• Creating and Sharing a Brand story

• Identifying the target customer base
• Optimizing Brand awareness
• Building a dialogue with target audiences
• Creating and sharing the Value proposition of the brand
• Widening reach, boosting lead generations, and driving sales

RACE Framework of an Online Brand

For branding a business on the web, a RACE Framework is used that revolves around four
stages to connect and convert target audiences. The 4 stages of the RACE framework of internet
branding are-

• R- Reach
• A- Act
• C- Convert
• E- Engage
It is useful in planning, managing, and optimizing online marketing practices.

Key Factors of Online-Branding

1. Customer – The branding on the web starts with the customer. Your customers’
inclinations, age, gender, availability, etc are crucial for designing an effective
branding strategy.
2. Brand identity – Branding is also associated with the kind of identity a brand
has. Accordingly, different visual elements of branding like logo, taglines, etc
play a crucial role in sharing the brand voice with the target audience. It is useful
in creating curiosity, interest, affinity, and relations with prospects.
3. Competitors – Analysis of the competitors is essential for designing an
effective brand strategy on the web. It guides about the relevant channels,
strategies, and practices, plus it suggests better ways to stand out from
the competition.
4. Online Messaging – How a brand shares its messages with its customers is very
important in branding campaigns online. Messaging should support
brand vision, product, service, and customer value.
5. Location – Deciding where your business should be based, analyzing where
audiences live, the kinds of language they speak, sorts of location-specific details
are the deciding factors of branding campaigns.
6. People – The way people or employees working for a brand understand and
deliver the brand promises is crucial for ensuring success for a brand. Therefore
brands should be educating, training, monitoring, and recruiting the right people
in the organization.
7. Product or Service – The kind of product or service that a brand offers is also
central to the effectiveness of the branding campaigns. How a product or service
is adding value to the lives of consumers is integral in optimizing the branding
on the web.

III Unit

Digital Payments
What is a Digital Payment?
In short, digital payment occurs when goods or services are purchased through the use of
various electronic mediums. There is no transfer of cash or cheques in the physical form in the
digital payment method.

How do Digital Payments work?

There are multiple elements involved in completing a digital payment. The main components
of the digital payment are consumer (payer), merchant (payee), the payer’s bank account and
the receiver’s bank account.

For digital transaction to be successful, it is mandatory for both payee and payer to have a bank
account with sufficient funds, an electronic device using which they can complete the
transaction and they both should have signed up for an intermediary or payment service
provider.

The are numerous modes of digital payments, such as UPI, PoS, NEFT, mobile wallets, BHIM,
and AEPS. UPI is one the most popular digital payment modes with transactions worth over
$1 trillion.

Types of Digital Payment Methods in India

E-Commerce - Payment Systems

E-commerce sites use electronic payment, where electronic payment refers to paperless
monetary transactions. Electronic payment has revolutionized the business processing by
reducing the paperwork, transaction costs, and labor cost. Being user friendly and less time-
consuming than manual processing, it helps business organization to expand its market
reach/expansion. Listed below are some of the modes of electronic payments −

• Credit Card
• Debit Card
• Smart Card
• E-Money
• Electronic Fund Transfer (EFT)
Credit Card

Payment using credit card is one of most common mode of electronic payment. Credit card is
small plastic card with a unique number attached with an account. It has also a magnetic strip
embedded in it which is used to read credit card via card readers. When a customer purchases
a product via credit card, credit card issuer bank pays on behalf of the customer and customer
has a certain time period after which he/she can pay the credit card bill. It is usually credit card
monthly payment cycle. Following are the actors in the credit card system.

• The card holder − Customer

• The merchant − seller of product who can accept credit card payments.
• The card issuer bank − card holder's bank
• The acquirer bank − the merchant's bank
• The card brand − for example , visa or Mastercard.
Debit Card

Debit card, like credit card, is a small plastic card with a unique number mapped with the bank
account number. It is required to have a bank account before getting a debit card from the bank.
The major difference between a debit card and a credit card is that in case of payment through
debit card, the amount gets deducted from the card's bank account immediately and there
should be sufficient balance in the bank account for the transaction to get completed; whereas
in case of a credit card transaction, there is no such compulsion.

Debit cards free the customer to carry cash and cheques. Even merchants accept a debit card
readily. Having a restriction on the amount that can be withdrawn in a day using a debit card
helps the customer to keep a check on his/her spending.

Smart Card

Smart card is again similar to a credit card or a debit card in appearance, but it has a small
microprocessor chip embedded in it. It has the capacity to store a customer’s work-related
and/or personal information. Smart cards are also used to store money and the amount gets
deducted after every transaction.
Smart cards can only be accessed using a PIN that every customer is assigned with. Smart cards
are secure, as they store information in encrypted format and are less expensive/provides faster
processing. Mondex and Visa Cash cards are examples of smart cards.

E-Money

E-Money transactions refer to situation where payment is done over the network and the
amount gets transferred from one financial body to another financial body without any
involvement of a middleman. E-money transactions are faster, convenient, and saves a lot of
time.

Online payments done via credit cards, debit cards, or smart cards are examples of emoney
transactions. Another popular example is e-cash. In case of e-cash, both customer and merchant
have to sign up with the bank or company issuing e-cash.

Electronic Fund Transfer

It is a very popular electronic payment method to transfer money from one bank account to
another bank account. Accounts can be in the same bank or different banks. Fund transfer can
be done using ATM (Automated Teller Machine) or using a computer.

Nowadays, internet-based EFT is getting popular. In this case, a customer uses the website
provided by the bank, logs in to the bank's website and registers another bank account. He/she
then places a request to transfer certain amount to that account. Customer's bank transfers the
amount to other account if it is in the same bank, otherwise the transfer request is forwarded to
an ACH (Automated Clearing House) to transfer the amount to other account and the amount
is deducted from the customer's account. Once the amount is transferred to other account, the
customer is notified of the fund transfer by the bank.

. Banking cards:
Cards are among the most widely used payment methods and come with various features and
benefits such as security of payments, convenience, etc. The main advantage of credit/debit or
prepaid banking cards is that they can be used to make other types of digital payments. For
example, customers can store card information in digital payment apps or mobile wallets to
make a cashless payment. Some of the most reputed and well-known card payment systems
are Visa, Rupay and MasterCard, among others. Banking cards can be used for online
purchases, in digital payment apps, PoS machines, online transactions, etc.

How to get Banking cards?

• Apply with your respective bank and provide Know Your Customer (KYC) details
• The card will get activated within a week and you will be allotted a 4-digit pin, which
can be used for all transactions

Mobile Wallets:
A mobile wallet is a type of virtual wallet service that can be used by downloading an app. The
digital or mobile wallet stores bank account or credit/debit card information or bank account
information in an encoded format to allow secure payments. One can also add money to a
mobile wallet and use the same to make payments and purchase goods and services. This
eliminated the need to use credit/debit cards or remember the CVV or 4-digit pin. Many banks
in the country have launched e-wallet services and apart from banks, there are also many private
players. Some of the mobile wallet apps in the market are Paytm, Mobikwik, Freecharge, etc.
The various services offered by mobile wallets include sending and receiving money, making
payments to merchants, online purchases, etc. Some mobile wallets may charge a certain
transaction fee for the services offered.

How to use a mobile wallet?

• Download the app

• Register for the service by following instructions and providing all details
• Load money

Internet Banking:
Internet banking refers to the process of carrying out banking transactions online. These may
include many services such as transferring funds, opening a new fixed or recurring deposit,
closing an account, etc. Internet banking is also referred to as e-banking or virtual banking.
Internet banking is usually used to make online fund transfers via NEFT, RTGS or IMPS.
Banks offer customers all types of banking services through their website and a customer can
log into his/her account by using a username and password. Unlike visiting a physical bank,
there are to time restrictions for internet banking services and they can be availed at any time
and on all 365 days in a year. There is a wide scope for internet banking services.

. Mobile Banking:
Mobile banking is referred to the process of carrying out financial transactions/banking
transactions through a smartphone. The scope of mobile banking is only expanding with the
introduction of many mobile wallets, digital payment apps and other services like the UPI.
Many banks have their own apps and customers can download the same to carry out banking
transactions at the click of a button. Mobile banking is a wide term used for the extensive range
or umbrella of services that can be availed under this.

Benefits of Digital Payments

• Faster, easier, more convenient: Perhaps, one of the biggest advantages of cashless
payments is that it speeds up the payment process and there is no need to fill in lengthy
information. There is no need to stand in a line to withdraw money from an ATM or
carry cards in the wallet. Also, with the move to digital, banking services will be
available to customers on a 24/7 basis and on all days of a year, including bank holidays.
Many services like digital wallets, UPI, etc, work on this basis.
• Economical and less transaction fee: There are many payment apps and mobile
wallets that do not charge any kind of service fee or processing fee for the service
provided. The UPI interface is one such example, where services can be utilized by the
customer free of cost. Various digital payments systems are bringing down costs.
• Waivers, discounts and cashbacks: There are many rewards and discounts offered to
customers using digital payment apps and mobile wallets. There are attractive cash back
offers given by many digital payment banks. This comes as boon to customers and also
acts a motivational factor to go cashless.
• Digital record of transactions: One of the other benefits of going digital is that all
transaction records can be maintained. Customers can track each and every transaction
that is made, no matter how small the transaction amount this.
• One stop solution for paying bills: Many digital wallets and payment apps have
become a convenient platform for paying utility bills. Be it mobile phone bills, internet
or electricity bills, all such utility bills can be paid through a single app without any
hassle.
• Helps keep black money under control: Digital transactions will help the government
keep a track of things and it will help eliminate the circulation of black money and
counterfeit notes in the long run. Apart from this, this may also give a boost to the
economy as the cost of minting currency also goes down.

A digital token-based electronic payment system is a financial technology (FinTech) solution

that facilitates secure and efficient transactions using digital tokens rather than traditional
currencies like cash or credit cards.

What types of electronic payment systems are required in e-commerce?

Types of electronic payment

• Wire transfers.
• ACH transfer.
• Credit cards.
• Virtual cards/Ghost cards.
• Payment cards.
• Debit cards.
• Digital wallets and peer-to-peer payments.
• International payments.

Digital token payment

• Digital payment tokens are digital representations of value that do not have a physical
form, and are typically maintained using blockchain technology. While they are not
legal tender issued by governments, they can be transferred to another person in
exchange for goods and services.
Token based payment

Payment tokenization is a security technique that replaces sensitive payment

information, such as credit card numbers, with a unique, random set of characters called
a “token.” This process helps keep payment data safe during transactions, because the
actual card information is not being used or stored.
E-Commerce – Requirement
• Confidentiality − Information should not be accessible to an unauthorized person. It
should not be intercepted during the transmission.
• Integrity − Information should not be altered during its transmission over the network.
• Availability − Information should be available wherever and whenever required within
a time limit specified.
• Authenticity − There should be a mechanism to authenticate a user before giving
him/her an access to the required information.
• Non-Repudiability − It is the protection against the denial of order or denial of
payment. Once a sender sends a message, the sender should not be able to deny sending
the message. Similarly, the recipient of message should not be able to deny the receipt.
• Encryption − Information should be encrypted and decrypted only by an authorized
user.
• Auditability − Data should be recorded in such a way that it can be audited for integrity
requirements.
• DIGITAL TOKEN-BASED E-PAYMENT
•

• A token based payment system is one in which tokens are purchased from authorized
vendors may be used as credit in the purchase of goods and services. E-token is
equivalent to cash that is backed by a bank.
•

• Digital token payment is of 3 types:

• 1. Cash or real time: Transactions are settled with the exchange of electronic
currency. Example- E-cash.
• 2. Debit or prepaid: Users pay in advance. Example-Smart Cards.
• 3. Credit or postpaid: The server authenticates the customers and verifies with the
bank that funds are adequate before purchase.
•
• BENEFITS OF DIGITAL TOKEN BASED PAYMENT SYSTEM-
•

• A. Benefits to buyer:
•

• 1. Convenience of global acceptance, a wide range of payment options, and enhanced

financial management tools.
• 2. Enhance security and reduce liability for stolen or miss used cards.
• 3. Consumer protection through and established system of dispute resolution.
• 4. Convenient and immediate access to funds on deposit via debit cards.
• 5. Accessibility to immediate credit, intuitively, the comparative cost of arranging for a
consumer loan related to the ability to obtain credit at the point of sell is substantial in
considering both the direct processing costs as well as the implicit opportunities costs
to borrower and lender.
• B. Benefits to Seller:
•

• 1. Speed and security of the transaction processing chain from verification and
authorization to clearing and settlement.
• 2. Freedom for more costly labour, materials and accounting services that are required
in paper based processing.
• 3. Better management of cash flow, inventory and financial planning due to swift bank
payment.
• 4. Incremental purchase power on the part of the consumer.
• 5. Cost and risk saving by eliminating the need to run an in house credit facility.
•

• TYPES OF DIGITAL TOKEN BASED PAYMENT

•

• 1. E-CASH
•

• · It is cryptographic electronic money cash system designed in 1983 used as

micropayment system.
• · It combines computerized convenience with security and privacy that improve
on paper cash. E-Cash is based on cryptographic systems called digital signature. This
method involves a pair of numeric keys that work in tandem; one for locking and the
other for unlocking. It focuses on replacing cash as the principal payment vehicle in
consumer oriented payments system. Customers open an account with bank and either
buy or receive free special software for their PC’s.
• · Two approaches to holding electronic cash are online storage where the
consumer does not personally have possession of it and off-line where the consumer
does have physical control. A smart card is an example of off-line electronic cash
storage.
•

• PROPERTIES OF E-CASH
•

• [Link] value: It is back by either cash, a bank authorized credit, or a bank certified
cashier cheque. When e-cash created by one bank is accepted by others, reconciliation
must occur without any problem.
•

• [Link]: It is exchangeable as payment for other e-cash, paper cash, goods or

services, lines of credit, deposit in banking account, bank notes or obligation, electronic
benefit transfer and the like. Most e-Cheque proposal use a single bank.
•

• [Link] and retrieval: Remote storage and retrieval would allow user to exchange
e-cash from home or office or while traveling. The cash could be stored on the remote
computer memory, in smart cards or special purpose devices. It is preferable that cash
is stored on a dedicated device that can’t be altered and should have suitable interface.
To facilitate personal authentication using passwords or other means.
•

• [Link]: E-Cash is not easy to copy or temper with while being exchanged. This
includes preventing or detecting duplication or double spending. Detection is essential
in order to audit whether prevention is working or not or to know the tricky issue of
double spending.
• ADVANTAGES OF E-CASH:
• 1. More efficient than cash, checks or credit cards for both the consumer and the
merchant.
• 2. Lower transaction costs and perhaps product costs related to increases in
efficiency.
• 3. The distance which electronic cash must travel in a transfer does not effect the
transmission costs or the time as it does with traditional payment methods.
• 4. Electronic cash does not require any special authorization, so anyone may use it
for almost any kind of transaction, large or small.
•

• DISADVANTAGES OF E-CASH:
•

• 1. Potential collection problems if an Internet tax is ever enacted.

• 2. Since electronic cash does not leave an audit trail, it could be used in money
laundering operations or as a medium of exchange in other illegal activities.
• 3. Electronic cash is susceptible to forgery and double spending abuses.
•

• 2. E-CHEQUES
•

• · Electronic Cheques are designed to accommodate the many individuals and

entities that might prefer to pay on credit or through some mechanism other than cash.
•

• · In e-Cheque system, consumer posses an e-Cheque book on a Personal computer

memory card International Associations (PCMCIA Card). The buyers must register
with a third party account server before they are able to write e-Cheque. As needed,
Cheque are return electronically from an e-Cheque book on the card. They are then send
over the internet to the retailer, who in turn sends the e-Cheque to the customer banks.
Settlement is made through a financial network such as ACH. E-Cheque method was
deliberately created to work in much the same way as a conventional paper Cheque.
•

• ADVANTAGES OF E-CHEQUE:
•

• 1. They work in the same way as traditional Cheque, thus simplifying customer
education.
• 2. E-Cheque is well suited for clearing micro payments; their use of conventional
cryptography makes it much faster than e-cash.
• 3. E-Cheque creates float and the availability of float is an important requirement for
commerce.
• 4. Financial risk is assume by the accounting server and may result in easier acceptance.
Reliability and scalability are providing by using multiple accounting servers.
•

• 3. SMART CARDS
• o A smart card is a plastic card with a small, built in microcomputer chip and
integrated circuit that can store and process a lot of data.
• o These are generally made of polyvinyl chloride, but sometimes polyethylene
terephthalate based polyesters, acrylonitrile butadiene styrene or polycarbonate.
• o They can provide personal identification, authentication, data storage, and
application processing and strong security authentication for single sign-on (SSO)
within large organizations.
• o Depending on your application you should choose right card.
•

• TYPES OF SMART CARDS

•

• 1. CONTACT SMART CARDS :

•

• o These pads provide electrical connectivity when inserted into a reader, which is used
as a communications medium between the smart card and a host (e.g., a computer, a
point of sale terminal) or a mobile telephone.
• o These cards do not contain batteries; power is supplied by the card reader.
• o These have a contact area of approximately 1 square centimetre (0.16 sq in),
comprising several gold-plated contact pads.
•

• 2. CONTACTLESS SMART CARDS

• o These cards are those in which the card communicates with and is powered by the
reader through RF induction technology (at data rates of 106–848 kbit/s).
• o These cards require only proximity to an antenna to communicate.
• o Like smart cards with contacts, contactless cards do not have an internal power
source. Instead, they use an inductor to capture some of the incident radio-frequency
interrogation signal, rectify it, and use it to power the card's electronics.
• 3. MEMORY CARDS
•

• o The most common and least expensive smart cards are memory cards.
• o This type of smart cards, contains EEPROM (Electrically Erasable Programmable
Read-Only Memory), non-volatile memory. Because it is non-volatile when you
remove the card from the reader, power is cut off, card stores the data.
• o This microcontroller is responsible for accessing the files and accepting the
communication.
• o The data can be locked with a PIN (Personal Identification Number), your password.
PIN's are normally 3 to 8 digit numbers those are written to a special file on the card.
Because this type is not capable of cryptography, memory cards are used in storing
telephone credits, transportation tickets or electronic cash.
•

• 4. MICROPROCESSOR CARDS:
•

• o A microprocessor smartcard is defined as an IC chip contact card with a

microprocessor and memory.
• o This smart card contains a small microchip that can process and store thousands of
bits of electronic data.
• o Memory cards or magnetic stripe cards can only store information, while the
microprocessor smart card is truly smart as it has its own operating system able to
process data in reaction to a given situation. This capability to record and modify
information in its own non-volatile, physically protected memory makes the smart card
a powerful and practical tool.
• o These smart cards are small and portable, they can interact with computers and other
automated systems, and the data they carry can be updated instantaneously.
• o Also with the ongoing mass adoption of microprocessors, predominantly in the
banking (EMV) and mobile phone markets (SIM cards), it has led to falling costs
through economies of scale. This makes microprocessor cards attractive to developers
in the emerging markets such as access control, E-passport, PKI and multi applications
where their cryptographic capabilities addresses the issues of security.
• o There are open platforms available such as Java Card, Native Operating systems
and the emerging .net architectures.

• 5. HYBRID CARDS
•

• o A hybrid smart card which clearly shows the antenna connected to the main chip.
• o Hybrid cards implement contactless and contact interfaces on a single card with
dedicated modules/storage and processing.
•

• 6. DUAL INTERFACE CARDS

•

• o Dual-interface cards implement contactless and contact interfaces on a single card

with some shared storage and processing.
• o An example is Porto's multi-application transport card, called Andante, which uses
a chip with both contact and contactless (ISO/IEC 14443 Type B) interfaces.
•

• 7. USB CARDS
•

• o The CCID (Chip Card Interface Device) is a USB protocol that allows a smartcard
to be connected to a Computer, using a standard USB interface. This allows the
smartcard to be used as a security token for authentication and data encryption such as
Bitlocker.
• o CCID devices typically look like a standard USB dongle and may contain a SIM
card inside the USB dongle.

What are the benefits of digital signatures?

Digital signatures offer the following benefits:

• Security. Security capabilities are embedded in digital signatures to ensure a legal

document isn't altered and signatures are legitimate. Security features include
asymmetric cryptography, personal identification numbers (PINs), checksums and
cyclic redundancy checks (CRCs), as well as CA and trust service provider (TSP)
validation.

• Timestamping. This provides the date and time of a digital signature and is useful
when timing is critical, such as for stock trades, lottery ticket issuance and legal
proceedings.

• Globally accepted and legally compliant. The public key infrastructure (PKI)
standard ensures vendor-generated keys are made and stored securely. With digital
signatures becoming an international standard, more countries are accepting
them as legally binding.

• Time savings. Digital signatures simplify the time-consuming processes of

physical document signing, storage and exchange, enabling businesses to quickly
access and sign documents.

• Cost savings. Organizations can go paperless and save money previously spent on
the physical resources, time, personnel and office space used to manage and
transport documents.

• Positive environmental effects. Reducing paper use also cuts down on the physical
waste generated by paper and the negative environmental impact of transporting
paper documents.

• Traceability. Digital signatures create an audit trail that makes internal record-
keeping easier for businesses. With everything recorded and stored digitally, there
are fewer opportunities for a manual signee or record-keeper to make a mistake or
misplace something.

Uses for digital signatures

Digital signature tools and services are commonly used in contract-heavy industries, including
the following:

• Government. The U.S. Government Publishing Office publishes electronic

versions of budgets, public and private laws, and congressional bills with digital
signatures. Governments worldwide use digital signatures for processing tax
returns, verifying business-to-government transactions, ratifying laws and
managing contracts. Most government entities must adhere to strict laws,
regulations and standards when using digital signatures. Many governments and
corporations also use smart cards to identify their citizens and employees. These
are physical cards with an embedded chip that contains a digital signature that
provides the cardholder access to an institution's systems or physical buildings.

• Healthcare. Digital signatures are used in the healthcare industry to improve the
efficiency of treatment and administrative processes, strengthen data security, e-
prescribe and process hospital admissions. The use of digital signatures in
healthcare must comply with the Health Insurance Portability and Accountability
Act of 1996.

• Manufacturing. Manufacturing companies use digital signatures to speed up

processes, including product design, quality assurance, manufacturing
enhancements, marketing and sales. The use of digital signatures in manufacturing
is governed by the International Organization for Standardization and the National
Institute of Standards and Technology Digital Manufacturing Certificate.

• Financial services. The U.S. financial sector uses digital signatures for contracts,
paperless banking, loan processing, insurance documentation and mortgages. This
heavily regulated sector uses digital signatures, paying careful attention to the
regulations and guidance put forth by the Electronic Signatures in Global and
National Commerce Act (E-Sign Act), state Uniform Electronic Transactions Act
regulations, the Consumer Financial Protection Bureau and the Federal Financial
Institutions Examination Council.

• Cryptocurrencies. Bitcoin and other cryptocurrencies use digital signatures to

authenticate the blockchain. They're also used to manage transaction data
associated with cryptocurrency and as a way for users to show ownership of
currency or their participation in a transaction.

• Non-fungible tokens (NFTs). Digital signatures are used with digital assets -- such
as artwork, music and videos -- to secure and trace these types of NFTs anywhere
on the blockchain.