The involve any coin, bank note and even paper

The advancement of Information Technology in nowadays had totally transformed the way people used to live in the past and innovate the way business used to operate. The digital innovations had bring along with a vigorous change in the world of business which business transactions are eliminating cash-based transactions and constantly switching to electronic-based transactions that provide convenient, fast, secured and cost effective payment method (Premchand & Choudhry, 2015). Consequently, there is an emergence of current trend of “going cashless’ among individuals, organizations and government operations while forming a cashless society has been the ultimate goals in many countries (Odi Richard, 2013). 

     Literally, e-payment represents any kind of payment that does not involve any coin, bank note and even paper cheque (Hord, 2005) E-payment are also defined as a payment channel or platform utilized to pay for goods and services purchased online by making any payment over the internet (Roy & Sinha, 2014). Besides, Shon and Swatman (1998) define e-payment as any funds exchange commenced through the electronic platform without using any tangible assets while Gans and Scheelings (1999) define e-payment as “payments made through electronic signals linked directly to deposit or credit accounts”. Teoh, Chong, Lin, and Chua (2013) regarded e-payment as any transfer of an electronic value of payment from one party to another through an electronic medium whereby the individuals are able to remotely access the transactions over an electronic network. In short, e-payment system can be defined as a system and its processes that allows the transactions and exchange of monetary value to be made electronically instead of paying cash tangibly.

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     With the introduction of e-payment system, the consumers’ payment decisions had been changed as consumers are now presented with wider options of payment instruments which vary in terms of cost, speed and convenience. Chou et al. (2004) and Linck et al. (2006) state that e-payment has emerged as an attractive alternative due to its features such as security, simplicity, convenience, reliability, privacy, and anonymity. Apart from the convenience and safety values provided by e-payment, there are also some major economic benefits include mobilizing savings and ensuring most of the cash available in the country are with the banks and make funds available to borrowers which could further result in higher productivity for the economy. Furthermore, an e-payment system has the ability to track individual spending which is useful for the design of products by the banks and for the economic decision making by the government. Besides, e-payment system had also significantly contributed to the efficiency, fraud reduction and innovativeness in the world payment system (Oladeji, 2014). With less cash-holding, e-payment also reduces transport costs, robbery, and counterfeiting of fiat cash (Panurach, 1996). According to the Central Bank of Malaysia (2011), intensive use of e-payment system would also help redeploy resources used for manually or semi-automatically processing payments and help reduce costs related to cash and cheque handling.