Are electronic payment systems able to support electronic commerce?
Electronic payment systems are not new. For nearly two decades, electronic funds transfer have been in place. EFT is a very broad concept. It includes funds transferred through computer and telecommunication devices. This includes ordering, instructing, or authorizing an institution to debit or credit an account. On-line payment systems today are evolving towards some form of “electronic token.” Typically, there are three types of electronic tokens: e-cash, stored value cards (smart cards), or credit/debit cards. Electronic cash systems are currently under development by a few alliance groups spearheaded by VISA, Mondex, and Cybercash. Known as E-Cash, electronic cash represents a new form of currency that allows parties to transact in real-time goods, services, and payment. Stored value cards are already under substantial prototype testing. In this system, users prepay another to store electronic currency into a smart card that exchanges electronic currency to approved vendors. Debit
