10.21.2007

Definition of online payment systems

The on-line payment systems are e-commerce businesses allowing money transfers to be made only through Internet (most of them maintain fully functional mobile applications). They function as a fast and secure electronic alternative to traditional methods as cheques, money orders or bank transfers. The systems perform payment processing not only for online vendors, auction sites, and other corporate users but between their costumers, for which it charges a fee which is much less than the bank wire transfer equivalent

The so called "online wallets" allows their customers to:
1) Pay online with revealing their credit card details
2) Transfer money to each other at very low cost often less than $1,00
3) Add and withdraw funds directly to bank accounts
4) Most of the companies has prepaid card so there is no need for you to even have a bank account or bank card

Most of the companies are strictly financially regulated so they are as secure as banks.

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