Process formulation and business model for electronic payment systems in Zambia

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.