While there's plenty of agreement that electronic commerce is a fast-growing, popular way to reach a wide range of consumers, just how to take advantage of marketing on the Internet isn't as clear. There are various ways to pay up for Commerce on the Internet, but not many are that popular. In the article I am explaining some efforts to highlight the different efforts that are in progress for providing alternative sources of E - Payment (Other than Credit Card) I will be covering three types of payment. The first 2 are cash and cheque in electronic format and the other is the Electronic Wallet.

1. ELECTONIC CASH
   

   DIGICASH as the name suggests has come up with a product suitably called ECASH. ECASH software uses digital signature technology based on public-key cryptography to provide authentication, nonrepudiation, data integrity, and confidentiality. With eCash, only the bank signs the payment data, and the same bank verifies its signature and the integrity of the payment data when a payment recipient submits an eCash payment for validation. eCash software eliminates the complex key management issues associated with issuing or verifying digital signatures from millions of consumers or merchants. When eCash software is issued by multiple banks, each bank will verify other banks' signatures. eCash Technologies will then provide standard interoperable digital certificates. Financial institutions are the only parties that issue eCash currency.
   
   Properties Electronic CASH has to provide

   1. ECASH has to have monetary value. It should be backed by either Hard cash or bank authorised credit.
   2. ECASH must be interoperable. Ie. Exchangeable as payment for other Ecash providers, paper cash, goods or services.
   3. ECASH must be storable and retrievable
   4. Of course it has to be secure.
   5. ECASH should not be traced to the buyer.
   
   Problems With ECASH
   1. There is a possibility of Ecash becoming a proxy for paper cash. Users will simply exchange Ecash for paper money deposited with some central bank
   2. Currency fluctuations can change the value of Ecash. Once the Ecash is given by the Bank, it will be difficult to change the denomination.
   3. ECASH is unable to divide itself into smaller denominations
   
   Operational Risks of ECASH
   1. The time period over which a given Ecash is valid
   2. How much ECASH can be stored and forwarded to different users.
   3. The number of exchanges that can take place before ECASH needs to be re - deposited with the bank / Financial Institution
   4. No. of transactions that are allowed during the period.
   Finally some analysts believe that, eCash proved even better than traditional cash, because it allows more secure transactions, eliminates the risk of theft, and makes accessing personal funds easier.
   
   
2. Electronic Cheque
   

   As an example, I am covering the effort of Information Sciences Institute, University of Southern California. The product is called Netcheque. At present the implementation is a research prototype and is available for licensing by companies implementing commercial payment service. Users registered with NetCheque accounting servers are able to write electronic checks to other users. These checks may be sent through e-mail or as payment for services provided through other network protocols. When deposited, the check authorizes the transfer of account balances from the account against which the check was drawn to the account to which the check was deposited. Reliability and scalability are provided by using multiple accounting servers. The NetCheque system is well suited for clearing micropayments; its use of conventional cryptography makes it more efficient than systems based on public key cryptography. The NetCheque system will enable creation of new Internet services that charge small fees, on the order of pennies, for access to information, processing queries, and consumption of resources. Such services are a critical component of electronic commerce.
   
   Electronic cheques have the following advantages.

   1. They work in the same way as traditional cheques, thus simplifying customer education
   2. Electronic cheques are well suited for clearing micro - payments. Electronic cheques use conventional cryptography, makes it faster than systems based on Public key Cryptography.(ecash)
   3. Electronic cheques create float, a must for International Finance.
   
   
   
3. Electronic Wallet

   Wallet is a service that enables you to store your credit card information with a wallet service provider. If you sign up for a Wallet, you will not have to input your credit card information when you purchase items. This convenience will let you make purchases on the service providers shopping sites from anywhere in the world, without ever looking for your credit card. All you have to do is sign in with your Wallet provider’s ID and Security Key, and the provider will do the rest for you.
   
   Where can wallets be used?
   You can currently use your Wallet to purchase items from the Store merchants on Shopping sites provided by your Wallet providing company.
   
   In a nutshell, an e-wallet is a little software widget that stores your credit card information, shipping address, and Web site passwords. Once an e-wallet user enters that information once, he can shop at any site that accepts the wallet without having to fill out new billing forms

   CYBER CASH WALLET
   The CyberCash Wallet is a free software application for your PC that enables you to securely and conveniently purchase products and services from merchants on the Internet. You have two payment options with CyberCash Wallet. CyberCoin is an innovative new service that allows you to spend small amounts of cash easily and instantaneously on the Internet. Credit Card service provides a secure and convenient way to use your existing credit cards for online purchases.

   YAHOO WALLET With this wallet, you can purchase from anywhere in the world from the shopping links provided with Yahoo.

   THE MICROSOFT WAY
   The company has unveiled its own e-wallet and announced that 50 Web vendors, including such heavyweights as Dell and Barnesandnoble.com, plan to use it. It could be the first step towards a future in which the bulk of online bucks travel through Microsoft, allowing the company to take a pricey toll, analysts said. "Long-term, if a significant amount of e-commerce sites use [Microsoft's e-wallet], then Microsoft could be in a position to take a cut on the transactions," said IDC analyst Barry Parr.
   But because Microsoft's e-wallet is deployed across several sites, it opens up a slew of money-generating possibilities for both Microsoft and its partners. First off, partner sites will pay Microsoft an annual fee for the software. They'll do this not because they couldn't build or buy the software elsewhere, said analysts, but because Microsoft will let partners market their wares to all of the millions of folks who sign up for the e-wallet, regardless of whether they've ever visited the partner site. (Source E-Wallet's Ambitious Plans by Craig Bicknell )

   References -

   1. Frontiers of Ecommerce - By Ravi Kalakota
   2. Digicash.com, Netcheque.com

   Knowledge of Public / Private Key Cryptography, Digital Signature, which is assumed for understanding of this article can be read at www.fandsindia.com

   By Sandeep Tapaswi - The author is Director, Fands and can be reached at sandeep@fandsindia.com