Comparison of Current On-line Payment Technologies

Abstract: The purpose of this thesis work was to make a survey of current on-line payment technologies and find out which are they and how do they work? Compare and analyze them from a security point of view, as well as a usability point of view. What is good? What is bad? What is lacking? To achieve this purpose, an overview of the current on-line payment technologies was acquired through academic books and papers, Internet sites, magazines. Basic cryptographic and security related techniques were studied for the security analysis of current on-line payment systems. In this work, various current on-line payment systems were classified into two groups [Macro and Micro on-line payment systems]. This classification was based on the mode of on-line payment transactions. To analyze these on-line payment systems, a set of payment system requirements were formed [Security Issues, Usability Issues, Anonymity, Scalability etc]. Under the category of Macro payment system, Credit Card payment system, Debit Card payment system, Stored Value Card payment system, Electronic Check payment system, Electronic Cash payment system, Electronic account transfer payment system and mobile payment system transactions were examined. Under the category of Micro payment system, Hash Chain based Payment System, Hash Collisions and Hash sequences based Payment Systems, Shared Secrete Keys based Payment Systems and Probability based payment systems were examined. Based on the requirements of payment system, these on-line payment systems were analyzed and compared. In the analysis phase, the advantages and drawbacks of these payment systems were figured out. It was found from the study that the credit card based payment systems are the most widely used means of conducting on-line payments. It is evident that credit card based payment systems satisfy stakeholder requirements the best, as they offer more flexible payment options, having a large user-base, benefit from familiarity and simplicity of use and also allow international payments. The other on-line payment systems lack this flexibility It can also be extracted from the study that users want more simplified, convenient and secure on-line payment systems. Thus the futuristic on-line payment systems will have all secure payment options into one system.