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     E-payment
is a way of transferring funds or paying for goods and services through
electronic method without the use of physical money and cheque. It’s also known
as an online payment system. In short, e-payment is facilitated by internet
access. It includes all financial operations using electronic devices such as
computer, smartphones or tablets. The e-payment system has been growing rapidly
due to the widespread of the internet or online banking. As the world more on
technology development, a lot of e-payment systems and payment devices have
been evolved to increase and improve payment transactions while reducing the
transaction of cash and cheque.

     E-payments include a various method which is
Electronic Funds Transfer (EFT) and Credit Payment system. EFT uses electronic
technology and network to transfer money between bank accounts through online without
any exchange of physical cash. For the credit payment system, it is credit
transfer through payment provider, which is an intermediary between the
customer’s bank and the retailer. These include credit cards and electronic wallet.
Generally, these are the most popular and actively used by many consumers and
businesses in their daily transactions.

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     Facilitated by the use of Information and
Communication Technology(ICT) and digital innovation, the banking sector has changed
whereby the transactions are shifting from traditional banking to electronic
banking system which is e-payment (Slozko&Pelo,2014).
Traditional banks were the first financial institution which provides current
account and saving account, acts as the depository institution to accept
deposits, make loans and payment of the cheque. Therefore, traditional banking
involves cash and other paper-based transactions. In comparison, e-payments are
effective and efficient especially in international transactions because
payment is made instantly and so its save time. Together with the electronic
commerce (e-commerce), e-payment has risen significantly over the years as
e-commerce allow consumers to purchase goods and services on the Internet without
barriers of time and distance. Today, the world payment system drive towards
the current trends of cashless transactions has further extended the need for
countries to provide efficient e-payment system to promote growth and economy
efficiency. Furthermore, efficiency payment system would also help to reduce
the costs related to cash and cheque transaction.

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