Electronic commerce refers to businesses that take place over the internet. They include buying and selling of goods over the internet. Electronic payments refer to payments made online mostly after an electronic commerce transaction has been done.
Types of Electronic Commerce (E-Commerce)
Electronic commerce are of different types these include:
Business to Consumer: in this case a business sells its products directly to customers over the internet. An example would include buying coca cola goods from the coca cola website.
Business to Business: In this case, there is a direct interaction of business between two businesses where they cross sell their products and/or services. An example would be like a company selling domain names selling to a business that needs a domain name.
Consumer to business: At times the consumer could have a product or service that a business requires. This is when this type of E-Commerce comes into place. An example would be being paid for an online survey.
Consumer to Consumer: Here the consumers sell to other consumers. A good example would be like olx and eBay where consumers sell products they feel they no longer require to other consumers.
Types of Electronic payments (E-Payments)
There are basically three types of E-payments which include:
One Time Customer Payments: In this kind of payment, the customer usually is shopping online and when there is a product or service of interest, the customer uses a credit card to pay. After keying in the credit card information.The site processes the payment and informs the customer bank which then authorizes the payment by initiating a transfer to the vendor.
Recurring Customer-to-vendor payments: This occurs when there is a payment that is don regularly by the customer. This could be like the Pay Tv. The process is the same as the one-time payment only that now there is a frequency attached to the payment say fortnightly of monthly. In this case the payment is triggered based on the frequency and the payment done accordingly.
Automatic bank-to-vendor payment: In this case te customer bank is triggered by the customer to pay the vendor online. The customer initiates the funds transfer from his/her account from the bank website and the funds are transferred electronically to the vendor account.
Electronic commerce and Electronic Payment work hand in hand. Whenever there is an E-Commerce transaction done, the payment is done using any one of the E-payment options provided.