E-payment is a way of makingtransactions or paying for goods and services through electronic method withoutthe use of cash and check. It’s also called an electronic payment system oronline payment system. In short, e-payment is facilitated by internetaccess. It includes all financial operations using electronic devices such ascomputer, smartphones or tablets. The e-payment system has grown rapidly over the last decades due to thewidespread of internet-based banking.

As the world more on technologydevelopment, a lot of e-payment systems and payment devices have been developedto increase and improve payment transactions while reducing the transaction ofcash and cheque.     E-paymentsinclude a various method which is Electronic Funds Transfer (EFT) and CreditPayment system. EFT is anelectronic system used to transfer money from one bank account to anotherwithout any exchange cash by hand.

EFT include direct debit, e-cheque,electronic billing, electronic cash and stored value card. For the creditpayment system, it iscredit transfer through payment provider, which is an intermediarybetween the customer’s bank and the retailer. These include credit cards ande-wallet. Generally, these are the most popular and actively used by manyconsumers and businesses in their daily transactions.     Facilitated by the use of Information andCommunication Technology(ICT) and digital innovation, the banking sector haschanged whereby the transactions are shifting from traditional banking toelectronic banking system which is e-payment (Slozko&Pelo,2014). Traditional banks were the first financialinstitution which provides current account and saving account, acts as thedepository institution to accept deposits, make loans and payment of thecheque. In short, traditional banking involves cash and other paper-basedtransactions. In comparison, e-paymentsare effective and efficient especially in international transactionsbecause payment is made instantly and so its save time.

Along with theelectronic commerce (e-commerce), e-payment has expanded rapidly over the yearsas e-commerce allow consumers exchange goods and services electronicallywithout barriers of time and distance. E-commerce is a term for any form ofbusiness transaction that conducted across the internet. Today, the worldpayment system drive towards the current trends of cashless transactions hasfurther extended the need for countries to provide efficient e-payment systemto promote growth and economy efficiency.

Furthermore, efficiency paymentsystem would also help to reduce the costs related to cash and chequetransaction.