E-Payment, Issues and E-Payment, Issues and Challenges in N.W.F.PChallenges in N.W.F.P According to EU directive document According to EU directive document A payment that is initiated, processed and A payment that is initiated, processed and

received electronically received electronically Components of e-payment system includes Components of e-payment system includes Money transfer applications, Money transfer applications, Network infrastructuresNetwork infrastructures Rules & procedures Rules & procedures

Major actors of e-payment includes Major actors of e-payment includes Payer Payer Payee Payee Banks Banks Trusted third PartyTrusted third Party

Types of e-payment system Types of e-payment system

• Online credit card payment system Online credit card payment system 2. Electronic Payment based on Trusted Third Party (TTP) 2. Electronic Payment based on Trusted Third Party (TTP) 3. Digital Cash 3. Digital Cash

4. M-Payment Smart card based e-Payment system 4. M-Payment Smart card based e-Payment system

5. Electronic billing presentment and payment5. Electronic billing presentment and payment

• Electronic innovations over the past decade provided Electronic innovations over the past decade provided consumers a variety of financial instruments and channels to consumers a variety of financial instruments and channels to make payments. Adoption of each depends on many factors make payments. Adoption of each depends on many factors such as lifestyle choices, life priorities, access to technology such as lifestyle choices, life priorities, access to technology and convenience .and convenience .

• The application of e-payments as the method for the receipt The application of e-payments as the method for the receipt

of revenues to government, including various forms of of revenues to government, including various forms of taxes, such as personal income, sales and excise and non-taxes, such as personal income, sales and excise and non-

tax revenues such as fees, fines. tax revenues such as fees, fines.

• A particular focus is on Governments in a traditional A particular focus is on Governments in a traditional approach receive revenue in the form of a physical approach receive revenue in the form of a physical check, either through the mail or over the counter. Upon check, either through the mail or over the counter. Upon receipt of the payment a manual workflow is employed receipt of the payment a manual workflow is employed until the check is deposited and the accounting data is until the check is deposited and the accounting data is entered into a computer system due to which revenue entered into a computer system due to which revenue payers the general public is not in a routine and payers the general public is not in a routine and recurring relationship with the government.recurring relationship with the government.

• Point-of-sale systems allow the public to pay for goods Point-of-sale systems allow the public to pay for goods and services with debit cards and credit cards, checks and services with debit cards and credit cards, checks and cash over the counter at walk in service centers. and cash over the counter at walk in service centers. This program will provide the public with a cost-effective This program will provide the public with a cost-effective convenient way to pay for government goods and convenient way to pay for government goods and services and allow for quick and efficient updates to services and allow for quick and efficient updates to citizens payment records.citizens payment records.

•An E- payment program will enable government to shift An E- payment program will enable government to shift from traditional over-the-counter approach to epayment from traditional over-the-counter approach to epayment services where public can pay for goods and services services where public can pay for goods and services over the Counter, Internet, and mobile..over the Counter, Internet, and mobile..

Challenges:Challenges:

Security challenges includeSecurity challenges include• Disclosure of private information Disclosure of private information • Counterfeiting Counterfeiting • Illegal alteration of payment dataIllegal alteration of payment data

But, possible solutions are: SSL (Secure Socket Layer) SET But, possible solutions are: SSL (Secure Socket Layer) SET (Secure Electronic Transaction) 3D Secure Smart Card (Secure Electronic Transaction) 3D Secure Smart Card SecuritySecurity

• Also Advancement in technology along with Encryption and Also Advancement in technology along with Encryption and validation technologies has made most transactions very secure validation technologies has made most transactions very secure which is more than enough to address the security issues.which is more than enough to address the security issues.

Problems related to infrastructure: Problems related to infrastructure: • Frequent connectivity failure in telephone lines, Frequent connectivity failure in telephone lines, • Unavailability of dedicated data service networks and closed Unavailability of dedicated data service networks and closed financial networks financial networks • Frequent power interruption Frequent power interruption • No financial networks that links different banks, Automated No financial networks that links different banks, Automated clearing houses or ACHclearing houses or ACH• Banks are not ready for e-paymentBanks are not ready for e-payment,

Legal Framework: Legal Framework:

• No legal and regulatory framework for e-commerce No legal and regulatory framework for e-commerce and e-payment due to:and e-payment due to:

•Inexistence of large pool of e-commerce and e- Inexistence of large pool of e-commerce and e- payment users group, payment users group, •Lack of a Civil Code to address some of the issues Lack of a Civil Code to address some of the issues with in electronic transactions for e.g.with in electronic transactions for e.g.

•Freedom of form of contracts Freedom of form of contracts

•clearly stipulated privacy and data protection lawsclearly stipulated privacy and data protection laws

ISSUES IN E-PAYMENTISSUES IN E-PAYMENT

•Socio-cultural issues Socio-cultural issues

•Resistance to changes in technology among customers Resistance to changes in technology among customers and staff due to: and staff due to:

•Lack of awareness on the benefits of new technologies, Lack of awareness on the benefits of new technologies,

•Fear of risk, Fear of risk,

• Lack of trained personnel in key organizations, Lack of trained personnel in key organizations,

•Tendency to be content with the existing structures, Tendency to be content with the existing structures,

•People are resistant to new payment mechanismsPeople are resistant to new payment mechanisms

Bureaucratic issuesBureaucratic issues

• An e-payment project can face several obstacles within a An e-payment project can face several obstacles within a bureaucracy, at the political level or with outside entities. Some bureaucracy, at the political level or with outside entities. Some issues that may exist within a bureaucracy: for e.g.issues that may exist within a bureaucracy: for e.g.• Who takes ownership, responsibility and the lead in a Who takes ownership, responsibility and the lead in a project? project? • Keeping enthusiasm for the project.Keeping enthusiasm for the project. • Leadership continuity issues. Leadership continuity issues. Overcoming implementation difficulties regarding standard Overcoming implementation difficulties regarding standard systems, Union, and middle management opposition.systems, Union, and middle management opposition.

On the political level:On the political level: • Inadequate funding or allocation of resources. Inadequate funding or allocation of resources. • Legislative or regulatory constraints. Legislative or regulatory constraints. • Political opposition. Political opposition.

And Outside Entities such as: Gaining public . And Outside Entities such as: Gaining public .

Terminal Benefits

POINTOF SALE TERMINALPOINTOF SALE TERMINAL

Provide customized receipts with retailer Provide customized receipts with retailer name name

Offer advanced reporting tools for retailers Offer advanced reporting tools for retailers through web-interface through web-interface

Offer a demo mode for training purposes Offer a demo mode for training purposes

Complete automatic updates of templates, Complete automatic updates of templates, products and services products and services

Provide retailer credit control through existing Provide retailer credit control through existing billing infrastructure available with the billing infrastructure available with the distributor/operator distributor/operator

Two level security with supervisor and teller sign-in passwords Two level security with supervisor and teller sign-in passwords Fast transaction times Fast transaction times Robust inbuilt thermal printer Robust inbuilt thermal printer Credit and debit card processing is provided as an option Credit and debit card processing is provided as an option (subject to approval by banking acquirer) (subject to approval by banking acquirer) Can be made GPRS enabled (eliminating the requirement of a Can be made GPRS enabled (eliminating the requirement of a telephone line) telephone line) Can perform both PIN basedCan perform both PIN based as well as PIN-less transactionsas well as PIN-less transactions

Front SideFront Side

Back SideBack Side

Transaction Processing Transaction Processing

A2z Franchise

Vehicle Code:

Penalty Code:

Ticket No.

7

21

715

SRequired Information

NIC/DLNo. 123456789

Amount: 200.00

Merchant & Customer Merchant & Customer Receipts Receipts

After Successful Transaction Terminal Will Print the following Receipts

Document CellDocument Cell

Benefits to the GovernmentBenefits to the Government

Improved cash flow Improved cash flow

Reduced operating costsReduced operating costs

Simplified payment and collection processesSimplified payment and collection processes

Simplified record keepingSimplified record keeping

reliable and secure way to access and pay for reliable and secure way to access and pay for

government services.government services.

Automation of government business processes.Automation of government business processes.

LAST NOTELAST NOTE

• Addressing consumers ’ concerns about electronic payments Addressing consumers ’ concerns about electronic payments comes down to a few basics.comes down to a few basics. • First, the entity on the other side of the transaction (the First, the entity on the other side of the transaction (the government acting in the capacity of the merchant) must ensure government acting in the capacity of the merchant) must ensure

• Tools they offer are easy to use, cleanly designed so that they Tools they offer are easy to use, cleanly designed so that they are intuitive, very reliable and constructed and operated in such are intuitive, very reliable and constructed and operated in such a way a way

• that they offer secure and consistent service. that they offer secure and consistent service.

• Second, the merchant must proactively market the fact that Second, the merchant must proactively market the fact that they offer e-payment alternatives. they offer e-payment alternatives.

• Third, merchants must find ways to differentiate the e-payment Third, merchants must find ways to differentiate the e-payment options from other choices so that consumers want to use them.options from other choices so that consumers want to use them.

THANK YOU FOR THANK YOU FOR

YOUR YOUR PATIENCEPATIENCE

YOU WERE LISTENING TO YOU WERE LISTENING TO SHAKIR ULLAHSHAKIR ULLAH

CEOCEOA2Z E-PAYMENTSA2Z E-PAYMENTS

- 7 DEANS TRADE CENTRE,PESHAWAR- 7 DEANS TRADE CENTRE,PESHAWARUAN-091-111-441-441UAN-091-111-441-441