Secure Payments - Introduction

General Introduction


What is Secure Payments?

Secure Payments is a protected payment terminology which allows customers and users to complete online transaction without having risk of leaking confidential payment information.

What does Secure Payment used for?

Secure payment is the establishment of E-Commerce [e-commerce link here] and secure payment pave the road for Online Shopping, electronic Transaction and payments. Some examples for Secure Payment case is Alipay [Alipay Link] which used by Taobao, Paypal [paypal link] which linked to Ebay, Apple Pay [Apple Pay link] which cooperated with in shop purchase. With secure payment, real time online transactions can be made.

Technologies used in Secure Payments

Secured Payments are based on Modern Credit Card Technology including Visa, Mastercard, Union Pay.
To achieve the secure feature, verification is required in a secured payment. Banking Authorization is the first step. When a payment is made, commerce send request to bank and ask for authorization including following information provided by customer:
Verification Information
Card Number
Billing Address
Holder’s Name
Next step, Card Association is involved including Visa, Mastercard, Amex, JCB, Union Pay. In general, card association is an intermediator between commercials and banks, recording transaction information and clearing process. Card association features coded message communication, POS terminal (Point of Sale), Commercial terminal, and Secure communication.
Here is a image shows the process.
Meanwhile, Encryption is employed to ensure the secure information communication between banking organization and commerce.

Case Studies



What is Ali Pay

  • Alipay, or Zhifubao in Chinese, is a third-party mobile and online payment platform, established in Hangzhou, China in February 2004 by Alibaba Group and its founder Jack Ma.
  • Alipay was first created as the payment department of Taobao, the B2C platform of Alibaba Group.
  • Alipay overtook PayPal as the world's largest mobile payment platform in 2013.

The growth of Alipay

  • To enhance its competitive advantage, Taobao tried to solve the biggest pain point in ecommerce in China at that point — the trust between seller and buyer.
  • Alipay saw tremendous growth on Taobao platform, and even started to be used on other platforms outside of the Alibaba ecosystem.

Why Alipay is a secure payment

Alipay provides multiple security mechanisms to make sure that user accounts are safe.


  • Real name authentication
    • Need to use Chinese ID
  • Password:
    • An Alipay account requires the user to set up their own login password and separate payment password, which need to be different.
    • The user can enter the login password up to five times and the payment password up to three times before the user is locked out of his or her account.
  • Supervision:
    • They also install a digital certificate, which can encrypt information sent over a network, preventing hackers from stealing passwords, thereby enhancing the security of online transactions
  • Other:
    • Alibaba recently launched facial recognition technology to verify the identity of Alipay users and complete payments.
    • Termed “Smile and Pay”, this technology uses a 3-D camera that scans a customer’s face to verify his or her identity and complete the payment.

Risk Check

  • Alipay can do an optional risk check when log in, otherwise the shopper goes direct to step 5. If Alipay make a risk check, they send the shopper a one-time PIN in an SMS text message. The shopper makes a note of the one-time PIN that arrives in an SMS text message. The PIN is in blue and underlined.



History of PayPal

PayPal is a popular tool for sending and receiving money online.It was established in December 1998 as Confinity, a company that developed security software for handheld devices founded by Max Levchin, Peter Thiel, Luke Nosek and Ken Howery.PayPal was developed and launched as a money transfer service at Confinity in 1999, funded by John Malloy from BlueRun Ventures.

PayPal Advantages

Pay with flexibility

Register your credit card or debit card with your PayPal account. You can pay by simply choosing PayPal at checkout, logging into your PayPal account, and confirming your payment.

quick and easy

Simply choose PayPal when customer selects a payment option on this site, and you can quickly open a PayPal account and add your payment method to complete your purchase. You can use your PayPal account to shop with millions of merchants and sellers around the globe wherever you see the PayPal logo.

Paypal uses data encryption and anti-fraud technology to keep customer’s information secured, reducing the risk of online fraud.

Your financial information
PayPal helps keep customers’ transactions secure by not sharing full financial information with sellers.

24/7 Monitoring
Paypal monitors transactions 24/7 to ensure the security of the payment.

Secure technology
Paypal’s encryption help keeps your online transactions guarded from start to finish.

Fraud prevention
if anything seems suspicious to you, contact Paypal so it can help you protect yourself from fraudulent charges against your account. It will never ask for sensitive information in an email.

Dispute resolution
If there’s a problem with a transaction, Paypal will put a hold on the funds until the issue is resolved and it will investigate and stay involved every step of the way.

Purchase protection around the globe
Buy or sell around the globe. Paypal processes 25 currencies in over 200 markets to make sending, spending, and selling simple and secure.

Weakness of PayPal

*PayPal can immediately freeze your account and hold your money
*It is a private company and not ruled by any federal banking regulations, therefore no need for your permission or approval for freezing your account. if PayPal feels that you have committed a fraud or violated they’re policy your they might freeze your account and hold your funds till further notice.
*When your account is frozen It might take a while till PayPal decides to release your funds and might leave you with very limited options and without proper explanation.


Future of PayPal

PayPal may soon be able to draw from its mountains of data to offer new services. If a customer who regularly deposits his paycheck with PayPal stops that practice, the company's software could guess that the person may have lost his or her job and offer a personal loan with a low rate if PayPal already knows that the customer is fiscally responsible.

WeChat Pay

What is Wechat Pay
Wechat is a software developed and owned by Tencent, a Chinese company. The mobile application API now allows online payment. These are well established due to a digital wallet facility incorporated inside the Wechat linking your profile and bank account.
The growth of Wechat pay
The popularity of Wechat Pay increases daily in China and now it has expanded to Africa and South America.
The future of Wechat Pay
Wechat pay has enabled easy payment of electricity bills as well as booking various appointments. It has fulfilled the repetitive dream of Internet era, the cashless frugality.

Apple Pay

What is ApplePay

The new mobile payment service and digital wallet app based on NFC.
Why we choose ApplePay
  • Security

ApplePay uses Touch ID to authenticate a transaction.

  • Privacy

People would never know what you bought, where you bought or how much you paid.

Weakness of Apple Pay

  • Some merchants including Walmart and CVS have refused to support ApplePay
  • Apple Pay never requires a customer ID verification
  • Fees
  • It's limited to Apple's own platform



The background of Venmo

Venmo is a mobile app used for money transfer among peers in the United States. The app was founded by Iqram MagdonIsmail and Andrew Kortina in 2009, and the company is headquarted in New York.

The main feature of Venmo

Increasing efficiency in money transfer is the primary policy of Venmo. Through the 'Nearby Payment' feature, users are able to send/receive money from other subscribers who are not in their contact list with the only requirement that they should be within the geographical proximity. Therefore, the feature can make it possible for users to pay for goods or services.


Venmo uses bank-level security and data encryption features to guarantee confidentiality and prevent unauthorized access to information or personal data. Subscribers can use their preferred PIN code to protect the mobile app. And a subscriber can get I touch with the helpdesk on time in case of any suspicious activities.

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