e-Payment Challenges in the International Market

Posted on May 13th, 2022

Electronic Payments, more commonly known as e-payments are digitalized payment solutions, offered by and on behalf of banks by in-house setups or third parties. The evolution of payment solutions has witnessed a steep rise in terms of innovation and adoption. These convenient, user-friendly solutions have been created in a way to suit the seller and the consumer both.

The e-payment solutions are not limited to only making payments for purchases, by virtue of their adaptability, they are now being used for top-ups, payments to and from banks, cross-border payments, and many more. Digitalizing payments has disrupted conventional methods of making transactions, by bringing simple and convenient alternatives to handling cash. 

The quality that has helped revolutionize e-payments is the level of convenience that comes with it. 3 out of 4 people exposed to the workings of the digital age are adopting electronic solutions to keep up with the rapidly increasing changes, and to improve connectivity worldwide.

Benefits of E-Payments

An organization’s online presence and dominance govern how it is perceived by the masses. The more innovative and easy solutions the organization provides, the more customers and in turn investors, it can attract. With the growing number of people switching to digital platforms for conducting transactions, it has become essential for banks and third parties to offer solutions that their customers can relate to. There are several benefits of providing and adopting e-payment solutions.

Omniscient Presence

Digitalization has immensely disrupted the normal everyday things in our lives, in a good way. The aggressively increasing popularity of e-payments has mandated banks, vendors, and third parties to offer these options to people. Because of this, we can now find these options and solutions almost everywhere.

Quick Turnaround

e-Payments happen in real-time. Unlike conventional methods, digitalization has enabled quick transfers and transactions, which otherwise would take several days. Solutions like fast air-time top-ups from anywhere have increased their popularity. 

Simpler Processes

Apart from being quick, digital payments are much simpler and easier to conduct. The customer does not have to go through the trouble of waiting for a week to get their cheques cleared. 

When simple procedures combined with user-friendly interfaces are made available, no one would want to go back to conventional, time-consuming, and complicated processes.

But with every asset comes a liability. As is the case with e-payments too. With growing connectivity, digitalization, and countless possibilities, there are risks and expenses to consider. 

The Challenges

e-Payments is one of the products borne out of the amalgamation of finance and technology – Fintech. The risks and challenges that can potentially hinder the smooth functioning of these can be subdivided into two major categories- risks specific to the finance section and the challenges associated with the technological segment.

Financial Risks

Security Regulations

Innovation and creativity require a free hand and space to experiment and grow. But, without regulations and discipline, the entire space would become extremely risky. Providing secure gateways to conduct payments and transfers is mandatory and even a minute slip can cause colossal damage.


One of the most common methods of providing e-payments is for a Fintech server to partner with a conventional institution to back the latter’s financial services with technology. In this method, it is crucial to have mutual authentication by both parties before processing an online payment. Authentication of the user or the device helps in developing a fool-proof system for payments to go through.

Data Privacy

Financial information of the user and their dealings are very sensitive in nature. The security system to protect this type of data requires advanced techniques. With the growing ease and frequency of making payments on miscellaneous websites, users are given options of saving their financial details, like their card numbers and expiry dates to enable quicker payments. When this type of sensitive information is saved on the internet, the financial institutions and the third parties are partly obligated to protect the information and the user from falling into the hands of malicious activities. 

Technological Challenges


With the growing presence of Fintech worldwide, one of the primary objectives of Fintech servers is to make their system and infrastructure such, that they can adapt to different requirements and setups. The modernization in this domain has to be compatible with conventional methods too, as digitalization cannot completely replace the conventional methods. The intention of digitalization shouldn’t be to override other payment solutions and methods. 


Easy and simple processes act like Pied Pipers, pulling everyone towards them. With the majority focused on seeking convenience and user-friendly interfaces, it becomes a challenge for Fintech servers to simplify their procedures further at such a competitive rate. Simple and reliable e-payments form the base of everything that a consumer is looking for.

Other Challenges


Digitalization demands fierce advancements and innovation in technology which involves extensive procedures, hiring experts, and producing intelligent results. This entire process becomes expensive. With the growing demand and competition, the Fintech servers perpetually need to be on the lookout for methods to save on their costs to bring down expenses. 


e-Payments are network-dependent. Even though they are highly convenient and marketable, areas with little or no network cannot accommodate digitalization. This is one of the major obstacles which hinder the growth of e-payment solutions.

Country Laws

When it comes to overseas e-payments, it is mandatory for Fintech providers to abide by country laws in the countries they are offering their services in. Not abiding by these laws may lead to their services being terminated.

Overall, the upsurge in the number of Fintech start-ups all over the world has changed the face of digitalized payments. With more and more people adopting these solutions, it has become crucial to regulate how Fintech operates. Data protection and privacy along with much-needed versatility, have poured in countless obstacles and hindrances. It is up to the Fintech industry to bring its game up to a level where anyone from any corner of the planet can make quick and secure payments, at any time.

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