Assignment Code: BCOS–184 / TMA/2021-22

Course Code: BCOS–184

Assignment Name: E-COMMERCE

Year: 2021-2022

Verification Status: Verified by Professor

Note: Attempt all the questions.

Section – A

Q1. State the various advantages and disadvantages of E-commerce. (10)

Ans) The various advantages of E-Commerce are discussed below:

1. Faster Buying Process: E-commerce has speed up the whole buying process for customers. They do not need to visit physical outlets for shopping and can purchase products by just sitting at their home. It saves huge times and performs faster transactions.

2. Eliminates Operating Cost: It has reduced the overall operating cost of businesses. E-commerce has eliminated the need of opening physical outlets by the business. For operating an outlet, there are huge expenses in terms of rent, utilities, various bills, and staff salaries. It saves all these expenses and operates all business activities through an online website.

3. Personalize Shopping Experience: E-commerce enables customers in enjoying personalized shopping experience. Customers can search for a large variety of products as per their choice and needs without any restrictions. Online business shows products to customers according to their interest and their location.

4. Available 24×7: Online shopping facility is available at all the time that is 24 hours a day and 7 days a week. This is one of the major advantages of e-commerce that customers can access online products at any time. Unlike physical outlets, there is no official opening and closing time here.

5. Connects far and wide: Online businesses are able to reach and connect to customers at far distant places with no geographical limits. People can place their orders from any place and get their orders delivered at their location.

6. Detailed Product Information: Peoples can acquire a full description in detail regarding the products online. It gives full information so that customers can make a comparison with other products easily and choose the best one.

7. Retargets the Customers: Online shopping has made it easy for a business to retargets their customers. The electronic business acquires vast information about their customers while they are doing their shopping online. Customers can be contacted from time to time by sending them personalized emails, messages, coupons and discounts offers.

Disadvantages of E-Commerce

The various disadvantages of E-Commerce are discussed below:

1. Lack of Personal Touch: Customers lack the facility of touching and feeling products in case of online shopping. They are sometimes more satisfied by purchasing at physical outlets by properly checking the product before buying.

2. No Guarantee about Product Quality: Customers cannot get ensured regarding the quality of products available online. They may be cheated by companies and receive faulty products.

3. Security Issues: Customers may lose their essential credentials while shopping online. There are various hackers over the internet which may steal customer’s data and may cause great loss to them.

4. Long Delivery Period: Another major disadvantage of online shopping is that customers need to wait for longer time periods for getting their products delivered. In the case of offline shopping, customers get on-spot delivery of their products.

5. Cannot try before Buying: Customers cannot take a trial of products before purchasing when they are doing online shopping. They don’t have a facility of negotiating the prices and cannot acquire better information regarding usage and features of the product as in case of the physical outlet where salesperson interacts directly.

Q2. Explain the various types of online payment methods. (10)

Ans)

Some of the various kinds of E-payment present in a market are mentioned below:

1. Automated clearing house.

2. Wire transfers.

3. Item processing.

4. Remote deposit capture.

5. FedLine Access Solutions.

6. Automated Teller Machines.

7. Card Services (ATM, credit, debit, prepaid)

8. Mobile payments

9. Crypto currency.

On the other hand, E-payment methods could be further classified into two areas, credit payment systems and cash payment systems which we usually called Pre-Paid & Post-Paid E-Payment System. Prepaid refers to the scheme in which you buy credit in advance before availing services. Post-paid is defined as a scheme in which the customers are billed at the end of the month for the services availed by them. Some online payment methods are described below:

Credit Cards

A credit card is a bank-issued plastic card. It is given to consumers with good credit, and the data is kept magnetically on the card. A card holder can buy an item from a shop or showroom without paying cash. He must swipe his card in a machine to make purchases. Banks give credit cards up to a limit. Customers can buy goods/services from authorised showrooms without carrying cash. The showroom presents the bills to the approved branch. The paying branch sends this bill to the issuing branch. 100 E-Payment The issuing branch tells the consumer. Banks levy minimal fees for cards.

Cyber Cash

Unlike credit cards, Cyber Cash does not handle funds directly. After determining what to buy, the buyer pays the merchant by credit card without giving his credit card details. The credit card number is transferred encrypted to the retailer. Payment is encrypted and sent to the bank's Cyber Cash gateway server. Decrypting the data, processing the transaction, and sending it to the merchant's bank.

Internet Cheques

A cheque is a signed paper document that instructs the signer's bank to pay a defined sum to a specified person on a set date. Cheques go straight from payer to payee, so the payee knows the timing or reason of the payment. The payee can either deposit or cash the cheque. Banks provide broad deposit facilities for cheques. Clear and settle them between banks.

Smart card

It is a plastic card with a microprocessor that can be loaded with funds to make transactions; also known as a chip card.

Cash Payment System

A. Direct debit — A financial transaction in which the account holder instructs the bank to collect a specific amount of money from his account electronically to pay for goods or services.

B. E-check — It is a digital version of an old paper check. It’s an electronic transfer of money from a bank account, usually checking account, without the use of the paper check.

C. E-cash – It is a form of an electronic payment system, where a certain amount of money is stored on a client’s device and made accessible for online transactions.

D. Stored-value card — A card with a certain amount of money that can be used to perform the transaction in the issuer store. A typical example of stored-value cards are gift cards.

E-wallet

Mobile wallets are slowly becoming a payment method, but cash is still a requirement for consumers. Mobile payments will soon replace traditional wallets, say experts from many industries, including network operations and banks. Recent research shows increased consumer awareness of mobile payments. In order to make online transactions easier, E-Wallet’s store user financial data such as debit and credit card numbers. Wallets come in numerous forms.

Crypto Currencies

Crypto currencies are rapidly gaining interest as a payment method for online transactions, particularly among young, moneyed professionals with IT expertise.

Q.3 Do you think Distributed Ledger Technology (DLT) is revolutionizing the world? If so, how? (10)

Ans) Ledgers have been at the centre of economic transactions since the dawn of time, recording contracts, payments, buy-sell agreements, and the movement of assets and property. With the invention of paper, the journey that began with recording on clay tablets or papyrus took a giant leap forward. Computers have made the process of record-keeping and ledger maintenance much easier and faster during the last few decades. Today, thanks to technological advancements, information saved on computers is evolving into increasingly more advanced forms that are cryptographically safe, quick, and decentralised. Companies can benefit from this technology in a variety of ways, one of which is through distributed ledgers.

A distributed ledger is a decentralised ledger of any transactions or contracts that is maintained across multiple places and persons, obviating the need for a central authority to keep an eye on things. A central authority is not required to authorise or validate any transactions in this manner. Cryptography is used to safeguard and precisely store all of the information on the ledger, which can be accessed via keys and cryptographic signatures. Once the data has been saved, it becomes an immutable database over which the network's rules apply.

As a result, distributed ledger technology (DLT) is a digital system for documenting asset transactions in which the specifics of the transactions are recorded in numerous locations at the same time. Distributed ledgers, unlike traditional databases, do not have a central data store or administration functionality.

A distributed ledger is a database that is shared and synchronised by a group of people across many sites, institutions, or countries. It allows for public "witnesses" to be present during transactions. Each network node's member has access to the recordings shared across the network and can possess an identical copy of them. In a couple of seconds or minutes, any modifications or additions to the ledger are reflected and replicated to all participants. The technology that underpins distributed ledgers is the same as that which underpins block chain, which is the same technology that underpins bitcoin. Bitcoin uses a distributed ledger called a block chain.

While distributed ledger technology offers numerous benefits, it is still in its infancy, and the best ways to implement it are currently being researched. Though one thing is certain: centuries-old ledgers' future format will be decentralised.

Q.4 What is E-tailing? Explain its advantages and disadvantages for both the retailers and the buyers. (10)

Ans) E-tailing stands for E-retailing also known as e-retail as “sales of goods and services via the internet or other electronic sources, for personal and household use by consumers”. The term E-Retailing was first developed in the European countries. It has both passive and interactive retail system while all e-tailing is generally limited to passive, air ticketing and other entertainment booking is designed in interactive system mostly.

Advantages of E-tailing for retailers:

1. Location utility: Location is utmost important for the conventional retailing process to provide convenience utility to its consumers. However, in e-tailing location is not important. Retailers and customers need internet for e-tailing and transaction can happen from anywhere from within the country or overseas.

2. Less expensive: As compared to organised retailing, e-tailing is less expensive as it saves wages of salesmen and premises cost and maintenance. These expenditures are low as compared to internet cost.

3. High Reach: Integration with customers is high in e-tailing as customers can be local, national, and international. Through internet, e-tailers can reach to large audience.

4. 24*7 businesses: The time utility for customers is high in e-tailing as customers can buy the products and services from anywhere and anytime.

5. Feedback: It’s easy to manage customer relationship management in e-tailing based on feedback of consumers.

Disadvantages of E-tailing for retailers

1. Lack to infrastructure: The issues of accessibility and connectivity of internet causes problems in functioning of e-tailing activities. Also, the initial investment cost is very high in e-tailing.

2. Lack of technological expertise: To start an online retailing project it is important to have technological expertise and not all retailers have it.

3. Complex logistic management: Intrinsic and extrinsic challenges increase the complexities in e-tailing logistics. Like cash on delivery increases the operational cycle, managing high rates of returns, poor logistic management in rural areas and problems in cross-nation shipments.

4. Customers’ expectations: In terms of flexibility in delivery, detailed product descriptions, cost and security of delivery, flexible payment options set high expectations of customers.

5. Lack of personal touch: The lack of face-to-face interaction, persuasion and handling the customers’ query is a major disadvantage in e-tailing.

6. High competition: E-tailers must compete with other e-tailers as well as the organised and unorganised retailers in the market that increase the competitions for them.

Advantages of E-tailing for buyers

1. Time utility as consumers can shop 24*7

2. Place utility as consumers can shop from anywhere

3. Convenience utility as consumers can shop from any mode via computer, laptops or mobile

4. Option utility as consumers can get wide range of option via e-tailing

Disadvantages of E-tailing for buyers

1. Customers may be uncertain regarding the quality of the products and services offered online

2. Fear regarding online fraud and loss of money

3. Every time not every product is available.

4. Lack of technological know-how.

Q.5 Explain the process pertaining to acknowledgement and dispatch of electronic records. (10)

Ans) If the originator of the electronic record has not specified a mode of acknowledgement, the acknowledgement can be made by "any communication by the addressee, automated or otherwise" or "any conduct by the addressee, sufficient to indicate to the originator that the electronic record has been received." For example, if an individual receives a meeting invitation, he or she can write a thank-you email to the sender, send an automated answer, or express interest by attending the meeting. These actions demonstrate that the receiver has acknowledged your message.

In addition, if the originator of the electronic record "stipulated that the electronic record shall be binding only upon receipt of an acknowledgment of such electronic record by him," the electronic record "shall be deemed to have been never sent by the originator unless such acknowledgment has been received." However, if the originator has not specified that the electronic record will be binding only upon receipt of acknowledgement, and the acknowledgment has not been received by the originator within the time specified or agreed upon, or if no time has been specified or agreed upon within a reasonable time, the originator may give notice to the addressee stating that no acknowledgment has been received by him and specifying a reasonable time within which the acknowledgment must be received, the originator may give notice to the addressee stating that

The moment of dispatch is defined as the point at which an individual sends an electronic record, and it enters a computer outside of the sender's control. In addition, the location of dispatch is the sender's place of business, and the place of receipt is the receiver's place of business.

Section – B

Q.6 State the impact of Block chain technology with respect to E-commerce. (6)

Ans) The blockchain revolution is poised to disrupt e-commerce, decentralizing control and cutting out the middlemen. Fortunately, this sea change in e-commerce will also offer incredible opportunities, making the exploration of blockchain technology both necessary and exciting.

A blockchain is a database in which bits of information (the ‘blocks’) are linked together (the ‘chain’). Since the database is shared and managed by more than one party, irregularities are easily spotted and make it a highly trustworthy system. And while blockchain technology has long been associated primarily with Bitcoin transactions, its potential is now recognized by e-commerce and other industries.

Blockchain technology and e-commerce

One can scarcely imagine the level of disruption that will be unleashed in commerce, retail and on social platforms:

First of all, due to blockchain technology and the subsequent empowerment of consumers, manufacturers and vendors will need to improve their customer experience. This requires increased customer insight.

Secondly, any business that serves as a middleman is at risk of being made obsolete by blockchain. This is especially true for companies that cannot show how their service adds value. And this does not solely concern obscure organizations, either. If, for example, Facebook users actually owned the information they provided to the platform themselves, they could decide to take their friends, clickstream data and personal details to another network, depriving Facebook of its all-important ad revenues.

In a blockchain world, all companies that provide intermediary services will need to assess their level of added value to their customers’ interactions.

Meanwhile, blockchain applications offer a whole new array of promising business opportunities for manufacturers, as shown below. We strongly encourage you to look into these – not just to see how you could apply these specific solutions, but also to find inspiration for entirely new blockchain-based business ideas.

 So clearly, Blockchain technology and e-commerce unlock a host of interesting business opportunities in the quest for transparency, trustworthiness and cost reductions. But it poses threats as well, especially to those companies that fail to add value for their customers. If you want to remain relevant for the consumers of the future, there’s no better time to start exploring the possibilities of blockchain technology and e-commerce than the present.

Q.7 What are the various non-biometric security measures? (6)

Ans) Without protection against viruses and intruders, connecting to the Internet will be extremely dangerous. Firewalls, intrusion detection systems, and antivirus software have all been crucial corporate tools. These are detailed explanations below:

1. Firewalls: Firewalls prevent unlicensed users from accessing private networks. A firewall is a mix of hardware and software that regulates traffic intake and output. Firewalls are often placed between private internal networks and untrustworthy external networks like the Internet, while they can also be used to isolate a piece of a company's network from the rest of the network.

2. Intrusion Detection Systems: Intrusion detection systems at the most vulnerable locations or "hot spots" of the company networks contain full-time monitoring tools to detect and prevent intruders. The device may send out an alarm if something strange or unusual happens. Scanning software looks for patterns that signal known attack methods, such as incorrect passwords, and checks to see whether important files have been deleted or modified. When a security assault is detected, computer monitoring evaluates the situation. If undesirable traffic is detected, the intrusion detection instrument may be changed to shut down a network segment that is particularly sensitive.

3. Antivirus and Antispyware Software: All devices, both personal and business, must be protected against malware as part of the defence protection strategies. Antiviral software stops and detects malware such as computer viruses, computer worms, tropical horses, spyware, and adware. Most antivirus software is only useful against malware that has already been identified. Antivirus software must be updated on a regular basis to remain effective.

4. Unified Threat Management Systems (UTM): Because such security services are expensive and difficult to obtain for small and medium-sized businesses, security products with lower costs and better manageability, such as firewalls, virtual private networks, intrusion detection systems, and Web content filtering and anti-spam software, have been introduced to the market. These products combine security methods into a single appliance and include firewalls, virtual private networks, intrusion detection systems, and Web content filtering and anti-spam software. Unified threat management (UTM) systems are the name for these comprehensive security management packages. Although designed for small and medium-sized organisations, UTM devices are now available for networks of all sizes. Crossbeam, Fortinet, and Check Point are major UTM providers on the market, and networking vendors like Cisco Systems and Juniper Networks offer certain UTM capabilities in their products.

Q.8 What are the most advance functions of E-commerce software? (6)

Ans) In most cases, e-commerce software ensures that the full commercial cycle of buying and selling goods and services over the Internet is handled smoothly, benefiting both the buyer and the vendor. When it comes to online shopping, for example, most e-commerce platforms have multiple elements such as an engine that searches through a buyer's preferences in terms of products, vendors, and/or price points. It also assists the buyer in the selection and selection of the things to be purchased. It enables safe monetary transactions to be completed in order to finalise the purchase. While assisting a buyer in completing these stages, an e-commerce programme also assists the buyer in gathering several orders into a dedicated basket, where additions, deletions, and adjustments are permitted to be made at any time. Additionally, this programme controls each buyer's address information and order history, as well as providing multi-channel product booking and delivery, among other features.

According to the majority of experts, it is the role of e-commerce software to not only assist in ensuring smooth operation of the entire business but also to provide various facilities and utilities to both buyers and sellers that would elicit trust in them to continue their transactions on these portals.

Q.9 What are the various key elements of a business model? (6)

Ans) Following are some simple methods to establish a robust business model that will ensure that all of these basic questions are effectively addressed.

1. Identify your specific audience: Targeting a large audience will prevent a company from identifying the correct customers who actually require and desire the product or service. Instead, while developing a business model, limit the audience (potential purchasers) to two or three and conduct a thorough examination of the buyer profiles. Outline the demographics of each persona, as well as common challenges and the company's solutions.

2. Establish business processes: Make a comprehensive knowledge of the tasks required to make the business model work before it can go live. To build a proper business process, it is necessary to identify the core business activities. The first stage is to determine the most important parts of the company's offering.

3. Record key business resources: Document critical business resources to ensure that the business model is well-prepared to meet the company's needs. A website, funds to get the business up and running, warehouses, intellectual property, and customer lists are all examples of things a company might need.

4. Develop a strong, preferably a unique value proposition: The value proposition refers to how the company adds value to its customers and how it differentiates itself from competitors in the market. Once the company has a few value propositions, it's crucial to relate each one to a service or product delivery mechanism to see how the company can continue to be beneficial to customers over time.

5. Determine key business partners: Without important partners who contribute to the business's ability to service clients, no business can run efficiently (much alone achieve specified goals). It is critical to select important partners such as suppliers, strategic partnerships, and advertising partners while developing a business plan.

The establishment of a sound business model capable of fuelling the growth of a new business entity will be aided by keeping these five components in mind.

Q.10 State the importance of E-Governance. (6)  

Ans) Electronic governance or e-governance is the application of IT for delivering government services, exchange of information, communication transactions, integration of various stand-alone systems between government to citizen (G2C), government-to-business (G2B), government-to-government (G2G), Government-to-employees (G2E) as well as back-office processes and interactions within the entire government framework.

Importance of E-Governance

1. Information delivery is greatly simplified for citizens and businesses.

2. It gives varied departments’ information to the public and helps in decision making.

3. It ensures citizen participation at all levels of governance.

4. It leads to automated services so that all works of public welfare is available to all citizens.

5. It revolutionizes the functions of the government and ensures transparency.

6. Each department and its actions are closely monitored.

7. Public can get their work smartly done and save their time.

8. It provides better services to citizens and brings government close to public. Public can  be in touch with the government agency.

9. It cuts middlemen and bribery if any from the picture.

Section – C

Q.11 Briefly comment on the following:

Q11. a) E-commerce leads to fast and convenient services to citizens. 

Ans) Some of the fast and convenient E-commerce services to citizens are summarised herewith:

1. Fast and convenient service to citizens: Citizens can easily acquire information about all public services by applying online using the government's web portal/apps. He/she can also readily obtain documents in electronic or hard copy format, eliminating the need to stand in long lines. Other internet services are available to citizens with a mouse click, and public services are offered at their doorsteps, reducing transaction and travel costs.

2. Reduction in delays, red tapism, and corruption: Implementing e-government and e-governance reduces slow processes, personal grudges of delivery officers, and so on. With the use of digital technologies, public procedures become more transparent, and the government official in charge of the process is held accountable. It not only speeds up operations but also decreases the risk of corruption.

3. Effective utilization of resources: Due to their speed and efficiency, digital technologies enable public sector resource usage to be optimised. This type of utilisation is not achievable with traditional government paperwork and processes.

4. Enhanced citizen participation: In a democratic society, citizen engagement is essential to decision-making. The utilisation of Internet-based technologies allows for large-scale citizen participation in government policy making, despite distance and population variety.

5. Integration of public services of offered by different departments: Using digital technologies, departments and functions could be linked. This combination of state and federal public services facilitates citizens' access to public services.

As e-governance and e-government have grown in prominence, it would be fascinating to learn how different public organisations or even countries progress from using digital technology in governance to greater levels.

Q11. b) The main aim of cyber security is to help make the business more successful.

Ans) The main aim of cyber security is as follows:

1. Protection for your business – cyber security solutions provide digital protection to your business that will ensure your employees aren’t at risk from potential threats such as Adware and Ransomware.

2. Increased productivity – viruses can slow down computers to a crawl and making work practically impossible. Effective cyber security eliminates this possibility, maximising your business’ potential output.

3. Inspires customer confidence – If you can prove that your business is effectively protected against all kinds of cyber breaches, you can inspire trust in your customers that their personal data will not be compromised.

4. Protection for your customers – ensuring that your business is secure from cyber threats will also help to protect your customers, who could be susceptible to a cyber breach by proxy.

5. Stops your website from going down – if you are business that hosts your own website, a potential cyber breach could be disastrous. If your system becomes infected, it’s possible that your website could be forced to close meaning you will lose money as a result from lost transactions.

Q11. c) Recent technology disruption has been knocking at the banking industry much more than before.

Ans) The impact of the fast-changing digital landscape, which is seeing an influx of new technology, can be observed in practically every part of our life. Banking and finance are one of the businesses that has been hit the hardest by digital disruption.

It's fascinating to observe how the highly regulated banking and financial sector is constantly modifying its formerly bulletproof business strategies in order to stay ahead of the competition in such digitally disruptive times.

Payment solutions, loans, credit settlements, and other financial services are all being disrupted by digital disruptors today. Banks and other financial institutions are being compelled to either cooperate with FinTech start-ups or develop their own solutions as a result of these developments.

Q11. d) Having an online presence is imperative on the part of any type of business these days. (10)

Ans) More and more businesses understand the importance and the requirement of having their business online. Being well represented online is a necessary part of becoming successful in most industries. Technology and online options are moving at such a rapid pace, and many are venturing in it.

No matter how small or big or what industry you belong to, having these vital components can help your business be found by anyone, anywhere, and at any given time. This is how you can have your business operational around the clock with a virtual showroom open 24 hours a day, 7 days a week! Surprisingly, having a web presence carries no major cons.

Some Advantages of Having a Web and Social Presence in the Virtual World:

1. Business accessible 24/7

2. Greater audience reach increases your customer base

3. Convenient selling with the help of shopping carts integrated with secured payment gateways

4. Easy and affordable way to market your brand as opposed to print with dwindling readership, billboards which have limited reach and tv commercials that have very expensive airtime

5. An exciting and fun way to connect with your customers and potential consumers by posting useful and engaging content in your blog or through social media

6. A casual and easy way to get instant reviews, testimonials and feedbacks from your products or services’ consumers through blog comments and social media interactions

7. Improve customer service by interacting with them directly with chats and through social media

8. Gain referrals by getting social proof through user reviews

9. Use the capabilities online for continuous focus group feedback

Q.12 Distinguish between the following:

Q12. a) Hardware and Software

Ans) The main difference between hardware and software is that the hardware refers to physical components of a computer while the software refers to a set of instructions given to a computer to perform a certain task.

The components of a computer are mainly divided into two sections. They are hardware and software.  Hardware refers to the tangible and physical components of the computer.  CPU, motherboard, mouse, keyboard, printer, and monitor are some hardware components. On the other hand, software is a set of instructions to perform a specific task. The software should be loaded into hardware to perform a task. Software works as the interface between the user and the hardware. In brief, both hardware and software are essential for the computer to produce a useful output.

Q12. b) App based business and Web based business

Ans) Creating a mobile app for your business can improve your marketing reach and provide a unique channel for attracting new customers or engaging with existing customers.

1. An app can attract new customers through the app stores

2. An app can take advantage of phone and tablet hardware

3. An app can provide a unique experience to your customers

A mobile website is a great way to start a relationship with a customer, and an app can deepen existing relationships. Mobile apps give you unique options to engage with existing customers, as well as providing a personalized experience.

A website is often how businesses who are considering a mobile app get started. Here's a quick overview of how a website compares to an app.

1. A website is often less expensive than an app

2. A website works on all devices

3. A website is easier to link and share than an app.

A mobile website can be easier for people to find when searching online. From a business perspective, a website is less difficult to create and update, as well. You don't need separate versions of your website for iOS and Android, either.

Q12. c) Self hosted payment gateways and API hosted payment gateways 

Ans)

Self-hosted payment gateways

This type of gateway collects payment information from clients on the merchant's website. After the details are requested, the collected data is given to the payment gateway's URL. Payment data must be in a certain format for some payment gateways, while others require a hash key or secret key. QuickBooks Commerce's B2B Payments and Shopify Payments, both powered by Stripe, are examples of self-hosted payment gateways.

Pros:

1. Good customer experience – the entire transaction is completed in one place

2. Customizable flow – the merchant has control over the payment journey

Cons:

There is no support system in place- Self-hosted gateways typically lack a technical support team on which you can rely in the event that the system fails. One must either figure out how to fix the problem on their own or hire an expert, which might be expensive. However, QuickBooks Commerce's B2B Payments includes technical assistance, so you can be assured that you'll always have someone to help you.

API hosted payment gateways

Customers enter their credit or debit card information directly on the merchant's checkout page with API hosted payment gateways, and payments are processed using an API (Application Programming Interface) or HTTPS queries.

Pros:

1. Customizable – offers full control over the customer experience and UI of the payment journey

2. Capable of integration – can be used with mobile devices, tablets, etc.

Cons:

Security – merchants are responsible for PCI DSS compliance and purchasing SSL certification

Q12. d) Digital Signature and Electronic Signature (10)

Ans)

1. Electronic Signature:

Electronic Signature is a digital version of a wet link signature that is legally binding and secure but lacks code and standards. It can be a sign, image, or method that is linked to a message or document in order to recognise the recipient's identity and offer approval. We utilise electronic signatures when we merely need to validate the paper. Electronic signature validation is not usually authorised because it is not performed by any trusted certificate authorities or trust service providers. Electronic signatures are more convenient to use than digital signatures, but they are less secure and authentic.

2. Digital Signature:

The term "digital signature" refers to a secure signature that uses electronic signatures and relies on public key infrastructure, which implies it adheres to encryption requirements. It's similar to an electronic fingerprint in that it encrypts and identifies a person's identity. We utilise digital signatures when we need to secure a document. Because trusted certificate authority or trust service providers validate digital signatures, they are usually permitted. Electronic signatures are favoured over digital signatures because digital signatures are more secure and authentic.