Today I was reading about electronic payment system in my E-commerce text book. While reading, I was both amazed and frustated to learn about the potentials and weakness of E-payment systems. There was a good list of criteria of ideal payment media. Traditional Cash payment system was qualifying almost all category.
However, like traditionaly payment methods,there are Digital Cash, Online credit card, Online accumulated store account, Online value storage etc. But most widely used media is some Peer-to-peer method like Paypal.
What about Bangladesh? where are we standing? Now days, we are talking much about Digital Bangladesh. Truth is There is no online commerce or e-commerce activity in our country.
Our internet penetration very low, not even 1% of our total population. With such a terrifying low internet penetration, it is a sin to dream of having e-transaction in our country. But there are peoples who, time to time, do Afsos for not having any e-payment like paypal. Some of my friend said in previous classes that, they would buy from internet if they have any payment system.
Most of the IT professional, specially the web development or desigh related people need e-payment system badly. A single Paypal will be a great aid to those needy people. But we are not in the Paypal list. Even Bhutan is on their list!
According my text book, one of the major weakness of those e-payment system working is lack of convertibility of e-currency. The balance in any e-cash account is not convertible like cash without the help of any intermediating third party. Again it also needs special hardware arrangement like computer, internet connection which are barrier to convertibility. Traditional cash payment is easily convertible as it is authorized by a nationala authority.
Here lies the fact. There is also a great problem of Platform Dependence of those payment systems. Digicash dont accept Paypal. A site may support Paypal, may not Digicash. This is a great barrier. This problem was created as there is no common standard provided by any common authority like Federal Reserve Bank or Bangladesh Bank.
For Bangladesh, If governemnt starts working on building a e-payment system, I would suggest that, it should be initiated and authorized by the governement. Government should set up standardards and a authorization body to authorize the E-Taka. That is Government should work like as intermediating authority which will bring a mass acceptance of E-Taka, thus easing the convertibility problem.
I’m thinking of developing a more detail framework for a e-payment system for Bangladesh. Hope to share it with you here in Youthinkers! Keep in touch with this post for future update.
Tags: digital bangladesh, e-commerce, e-payment, online payment