Abstract:
In this document the author uses the project to make a comparative investigation
between the two payment mechanisms. On the one hand, a comprehensive process
analysis was done of cheque payments and this was compared with the vastly
simplified process requirements associated with electronic salary payments.
The basis for the investigation is based on available documentation from existing
suppliers to the Southern African banking sector, as well as a functional process flow
analysis of existing banking solutions implemented at Southern African banks. For this
purpose, the author met with supplier representatives and constructed process flows
based on best practice, rather than specific implementations. The results were
documented to support the hypothesis that electronic systems are not only desirable,
but that they are infinitely more customer friendly, efficient, less prone to fraud and
ultimately better suited to a post-paper business infrastructure as a sound business
model.
The results obtained clearly illustrate that the new generation of electronic payment
technologies, based on simplified processing structures and cost effectiveness, will in
future dominate and replace traditional payment systems. As a result the observations
of the research could in future be used as a model that may be applied to any situation
where the unbanked and under-banked populations are drawn into the formal banking
network.
