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Electronic Payment System Evolution Over Years

The electronic payment system can be used to pay the tax bill on individual income tax liabilities by withdrawing electronic funds (direct debit) from a bank or financial institution.

Electronic payment is any type of non-cash payment that does not include a paper check. Electronic payment methods include methods such as credit cards, debit cards, and ACH (automatic clearing system).

ACH combines direct deposit, direct debit and electronic checks (electronic checks).

Evolution of Electronic Payment Process

A decade ago, the format of the Electronic Funds Transfer (EFTS) system gradually replaced cash and checks in advanced industrial economies.

This trend continues. The purpose of this paper is to provide an alternative approach to our understanding of the key forces behind this need for change.

Efficiency considerations have been the main driving force in the historical evolution of our payment mechanism and electronic payment systems.

If EFTS is an effective payment mechanism in the end, sooner or later it will become an integral part of our lives

Efficiency considerations will determine the ultimate impact of EFTS on financial institutions and companies, and the availability of financial information, instruments, and channels influencing monetary policy.

Efficiency considerations are expected to change patterns of spending in society, which in turn will affect the money multiplier, monetary groups, monetary policy objectives and the Fed’s ability to control the money supply.

This paper attempts to identify and analyze the place of electronic money in the continuous change of our payment mechanism. It does this by using standard concepts of balance and efficiency. Access/lack of access or active participation versus no participation at all in the electronic payment mechanism plays a key role in this analysis.

The first part of the paper attempts to deal with the underlying balances associated with this property in the fixed resource allocation window.


Payment systems are the mechanisms that enable the smooth transfer of funds between buyers and sellers, or between banks.

In modern society, no economic activities can be undertaken without the transfer of funds. In this sense, it is still possible to say that payment systems are one of the most important social infrastructures.

Because a limited range of people in central banks and commercial banks play a central role in conventional e-payment systems, people on the street rarely or never notice the role and importance of payment systems.

For this reason, payment systems are sometimes considered “behind the scenes” activities, which are not seen by a large audience. Similarly, payment systems are compared to “plumbing”.

This analogy suggests that payment systems are very important, but their operations are often underground and out of sight. Stable efforts have been made to smooth the performance of payment systems, although they are unclear.

But time has changed, and a lot of attention is now focused on payment systems. Background Twofold attention. First, the volume of remittances handled through payment systems has increased significantly. This means that the “settlement risks” that arise when the payment is not as expected, have also increased.

Big love is always a concern for central authorities and banks. Second, there have been significant developments in payment systems due to the development of information technology (IT).

The progress of information technology has made it possible to process payments and create some improved payment systems.

Expectations of Electronic Payment Growth From 2019 to 2025

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