E-commerce is in simple terms electronic commerce. This means that it is transactions that occur online. Online transactions are as old as the internet itself this means that online transactions came long before other e-commerce businesses started taking up shape. Online transactions are now instant. This means that the e-commerce store owner can record the transaction as complete after the transaction. The best part about online transaction is the fact that they have more authentication methods than the other transactions methods. Online sales usually take a lot of time to deliver and having an instant payment system is very helpful for any e-commerce business owner. The most effective part of e-commerce transactions is the fact that they need to be secure against fraud related threats. For instant payment methods such as PayPal have created a system whereby they always favor the buyer over the seller. This prevents the buyer from getting ripped off by the seller.
Online transactions from peer to peer
There are now several platforms used to conduct online transactions from peer to peer. These payment methods are dedicated to serve peer to peer kind of e-commerce. PayPal first started as a peer to peer online payment system before branching out in order to take advantage of the rising e-commerce sector. Peer to Peer payment methods are very common. Bitcoin on the other hand has revolutionized peer to peer payment methods through allowing people to send money to another person without the need for a central authority.
Online transactions through mobile phones
Although credit and debit cards are the most commonly used methods for online transactions, I decided to talk about mobile phone which are more fascinating. They apply mobile application technology in order to process online mobile transactions. Sometime they use the USSD messaging methods.