Online Business Model in India

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Table of Contents

  • Introduction
  • How It Works
  • What Is E-commerce?
  • M-Commerce
  • M-Commerce Statistics
  • Traveling And Tourism
  • Internet Banking
  • Advantages of Internet Banking
    Disadvantages of Internet Banking
    What do I need to start using an e-wallet?
    Advantages Of E-wallet
    Disadvantages Of E-wallet
  • Cyber Crime, Fradulent And Security Threat
  • Point Of View Regarding Online Transactions And Digital Payments

OBJECTIVE: Discuss elaborately your standpoint on any 5 sectors where online transactions on the raise.


An online transaction, also known as a PIN-debit transaction, is a password-protected payment method that permits a transfer of funds over an electronic funds transfer (EFT). Online transaction processing (OLTP) is information systems that facilitate and administer transaction-oriented applications, typically for data entry and recoverl transaction processing. So online transaction is done with the help of the internet. It can’t take place without proper internet connection. Online transactions take place when a procedure of buying and selling takes place through the internet. When a consumer purchases a product or a service online, he/she pays for it through online transaction.

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How It Works

When you have to pay for goods or services with your debit card, you have an option for the payment to be processed in two different ways: as an offline transaction via a credit card processing network, or as an online transaction via an EFT system, requiring a personal identification number (PIN) to complete the process. When it is processed as an online transaction, the exchange of funds is completed using an EFT network, such as Star, Pulse or Interlink, depending on which EFT system your bank is associated with as a member bank. The value of the transaction typically amounts to a reciprocate fee of 1% of the total purchase price, which is charged to the vendor/merchant.

What Is E-commerce?

E-commerce is the buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, primarily the internet.


Mobile commerce is now coming to the light, from enormous brands to startups. In fact, almost everyone around the globe is welcoming and appreciating it. It is the use of wireless handheld devices such as android phones and tablets for handling purchase and sales transactions via online. With M-Commerce customers can pay from anywhere with their smartphones or gadgets even by sending messages,e-mails,SMS etc to some short-codes which is fascinating.

M-Commerce Statistics

The introduction of Mobile Image Recognition (MIR) technology has made the purchasing of products with android phones much more effortless and interesting. The existence of this technology has sealed the gap between the virtual and the real world, all in a blink of an eye. The MIR-driven application seize the displaying images and produces a directory of retailers that has the product with their selling cost. This authorizes you to collate prices, read reviews, and make payment all in one simple go at your finger tips. Powerfully built mobile applications. There’s been an significant expansion in mobile apps with improved certainty which most retailers are now amalgamating into their business, to boost mobile shopper’s interaction and better experience with their products and services. This technology permits consumers to try their products on their mobile screens, compare and even take pictures before purchasing them. Peer-to-Peer sharing.

Truly, M-Commerce is really making a great impact on business with the introduction of Near Field Communication technology that sanctions easy peer-to-peer sharing of files, and transfer of mobile payments from across the world. Even online shoppers can make use of it, by tapping their NFC-enabled bank card when directed to the checkout page. This makes payment faster, effortless and rewardingIt has also given rise to the vast increase in customer experience in marketing as a whole. It’s now clearer that M-Commerce is the feature of good customer experience.

Traveling And Tourism

The Indian tourism and hospitality industry has emerged as one of the key drivers of growth among the services sector in India. Tourism in India has significant potential considering the rich cultural and historical heritage, variety in ecology, terrains and places of natural beauty spread across the country. Tourism is also a potentially large employment generator besides being a significant source of foreign exchange for the country. During January-July 2018 FEEs from tourism increased 12. 1 per cent year-on-year to US$ 17. 09 billion. Market SizeIndia is the most digitally-advanced traveller nation in terms of digital tools being used for planning, booking and experiencing a journey, India’s rising middle class and increasing disposable incomes has continued to support the growth of domestic and outbound tourism. Foreign Tourist Arrivals (FTAs) increased to 5. 97 million in January-July 2018, achieving a growth rate of 7. 3 per cent year-on-yearAdvantages of online travel services.

  • It’s a fairly low cost way to list your property and its rooms.
  • Potential depletion in your online marketing spend, as OTAs will invest in marketing and advertising to captivate potential international customers.
  • A depletion in your website costs, as OTAs are keen to provide a positive online experience for customers through good website design and functionality.
  • Online travel sites are popular with customers who like to compare arrangement costs and the facilities offered by seperate providers.
  • Unbiased reviews on online travel websites may give new customers the confidence to book. Disadvantages of online travel services.
  • Online travel agents can charge commission on every sale, which can range between 10-20 per cent of the gross cost.
  • There may be restrictive terms and conditions imposed by OTAs such as guest cancellation and automatic room reselling policies.
  • You may need to find a way of managing room availability across a range of OTAs, your own website, front desk and telephone sales. This can be time consuming and labour intensive. There are software options to help you manage this.
  • Using OTAs does not reduce the need to have your own website with booking engine.
  • You may still need to invest in a balanced multi-channel marketing strategy.

The world of online payments is undertaking a swift transformation. Whereas once customers had minimal options - primarily credit cards and bank transfers - to make bookings over the internet, they now have an ever-expanding choice of 21st-century technology, from PayPal to MobilePay.

Internet Banking

Banks are already investing in INTERNET technology and security, developing smartphone applications supplementing new characteristics such as remote deposit of checks, and educating consumers. Consequently internet banking adoption among consumers has been much faster than the adoption of online banking more than a decade. Most banks believe that the mobile channel will help them minimize transaction costs as well as increase customer engagement and retention.

Advantages of Internet Banking

  • Online account is simple to open and easy to operate.
  • It is accesible all the time, i. e. 24x7. You can perform your tasks from anywhere and at any time
  • It is fast and efficient. Funds get transferred from one account to the other very fast. You can also manage several accounts easily through internet banking.

Disadvantages of Internet Banking

  • You cannot have access to online banking if you don’t have an internet connection; thus without the availability of internet access, it may not be useful.
  • Security of transactions is a big issue. Your account information might get hacked by unauthorized people over the internet.


E-wallet stands for electronic wallet. It is a type of electronic card which is used for transactions made online through a computer or a smartphone. The advantage of e-wallet is same as a credit or debit card. An e-wallet needs to be associated with the individual's bank account to make payments. The main objective of e-Wallet is to make paperless money transaction effortless. E-wallet has mainly two components, software and information. Software segment stockpile personal information and provides security and encryption of the data whereas information segment is a database of details presented by the user which includes their name, shipping address, payment method, amount to be paid, credit or debit card details, etc.

What do I need to start using an e-wallet?

  • Bank Account.
  • Smart phone.
  • 2G/3G/4G connection.
  • A free wallet app.

Advantages Of E-wallet

  • More convenient
  • Carry less and earn more

Disadvantages Of E-wallet

  • Dependency on smartphones
  • Safety concerns

Cyber Crime, Fradulent And Security Threat

E-Mail Bombing In Internet usage, an e-mail bomb is a structure of net malthreat consisting of sending enormous volumes of e-mail to an address in an attempt to overflow the mailbox where the email address is hosted in a denial-of-service attack. Data Theft Most common type of cyber crime. The term Data Alteration or theft means making illegal changes or stealing data. Which leads to thefting of personal data which leads to misuse of personal data and monetary transactions. Various Cyber attacks : Viruses and worms are computer programs that affect the storage partition devices of a computer or network, which then duplicate information without the knowledge of the consumer. Trojan: A Trojan is a program that appears legitimate. However, once run, it moves on to locate password information or makes the system more vulnerable to future entry. Or a Trojan may simply destroy programs or data on the hard disk. Scareware : Using fear strategy, some cyber criminals pushes users to download certain software. While such software is usually presented as antivirus software, after some time these programs start striking the user’s system. The user then has to pay to the criminal to remove such viruses. Phishing : Phishing strikes are designed to steal a person’s login and password. For instance, the phisher can access the victims bank accounts or assume control of their social network. Fiscal fraud: By targeting official online payment channels, cyber attackers can hamper processeCarders: Stealing bank or credit card details is another major cyber crime. Duplicate cards are then used to withdraw cash at s such as tax collection or make fraudulent claims for benefits.

Point Of View Regarding Online Transactions And Digital Payments

Online transactions are on the rise in the above sectors leading to increase in consumer satisfaction,economy development, saving time and making it effortless without going from one place to another. Since the online transaction is on rise it might lead to new viruses and threats through the growing technology leading to personal wars between the countries as well as stealing users info and personal details regarding money transactions. Online transaction on rise also rises the threats through the internet from the corner of the world which at times would be too complicate to solve and lead to dangerous circumstances, but with tight security like getting your account connected through valid ID card and biometric system may help in overcoming to some extent. The user should be well aware of what he is using regarding the website and the procedure to follow online transactions. It should be updated accordingly and must be followed by the citizens since its very beneficial, user friendly and saves time in the hectic schedule of the user. With more than half of the world’s population already using internet technology and digital payments, it’s a clear indication that developing, adopting and creating strategy is the way to go. Don’t be left behind.

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