What is a Web Address?

The web address was developed by Sir Tim Berners-Lee and the
URL working group of IEFT (Internet Engineering Task Force) in the
year 1994. It is a name that points to the location of a particular
web page in the internet world. It can be the address of anything
like the address of a particular file, directory, photo, video, etc.
Every web page on the internet has a unique web address, with the
help of which the user accesses those web pages. It is the same as
the address of your house or school or any place on this planet.
Web Address is also known as URL i.e. uniform resource locator. For
example: Types of Web Address

There are two types of web addresses:

 Absolute web address: An absolute web address is the
web address that contains the domain name and the entire
address of the file/directory to which it points. It is the web
address that is normally seen in the address bar of the
browser and it can be accessed from anywhere in the
world. It begins with the protocols like “http”, “https”, “ftp”
etc, and have the structure like:
Protocol://Domain name/Path
 Relative web address: Relative web address is the web
address that can be accessed only if you are on the home
page or on any web page of the particular website. It tells
the web address is in relation to the current user
location(hence it is named Relative web address). Since it
is assumed that the user is already present on the website,
a relative web address only contains the domain name and
the location, e.g.
<a href = "./geeksforgeekscourses.html"

URL
the address of a resource (such as a document or website) on
the Internet that consists of a communications protocol
followed by the name or address of a computer on the
network and that often includes additional locating
information (such as directory and file names) called
also uniform resource locator, universal resource locator
What is an IP Address – Definition and
Explanation
IP address definition

An IP address is a unique address that identifies a device on the internet or a local

network. IP stands for "Internet Protocol," which is the set of rules governing the
format of data sent via the internet or local network.

In essence, IP addresses are the identifier that allows information to be sent

between devices on a network: they contain location information and make devices
accessible for communication. The internet needs a way to differentiate between
different computers, routers, and websites. IP addresses provide a way of doing so
and form an essential part of how the internet works. Types of IP Address

IP Address is of two types:

1. IPv4: Internet Protocol version 4. It consists of 4 numbers
separated by the dots. Each number can be from 0-255 in decimal
numbers. But computers do not understand decimal numbers, they
instead change them to binary numbers which are only 0 and 1.
Therefore, in binary, this (0-255) range can be written as
(00000000 – 11111111). Since each number N can be represented
by a group of 8-digit binary digits. So, a whole IPv4 binary address
can be represented by 32-bits of binary digits. In IPv4, a unique
sequence of bits is assigned to a computer, so a total of (2^32)
devices approximately = 4,294,967,296 can be assigned with IPv4.
IPv4 can be written as:
189.123.123.90
Classes of IPv4 Address: There are around 4.3 billion IPv4
addresses and managing all those addresses without any scheme is
next to impossible. Let’s understand it with a simple example. If
you have to find a word from a language dictionary, how long will it
take? Usually, you will take less than 5 minutes to find that word.
You are able to do this because words in the dictionary are
organized in alphabetical order. If you have to find out the same
word from a dictionary that doesn’t use any sequence or order to
organize the words, it will take an eternity to find the word. If a
dictionary with one billion words without order can be so
disastrous, then you can imagine the pain behind finding an
address from 4.3 billion addresses. For easier management and
assignment IP addresses are organized in numeric order and
divided into the following 5 classes :
IP Class Address Range Maximum number of networks

Class A 1-126 126 (27-2)

Class B 128-191 16384

Class C 192-223 2097152

Class
224-239 Reserve for multitasking
D

Class E 240-254 Reserved for Research and development

The 0.0.0.0 is a Non-routable address is that indicates an invalid,

or inapplicable end-user address.
A loopback address is a distinct reserved IP address range that
starts from 127.0.0.0 ends at 127.255.255.255 though
127.255.255.255 is the broadcast address for 127.0.0.0/8. The
loopback addresses are built into the IP domain system, enabling
devices to transmit and receive the data packets. The loopback
address 127.0.0.1 is generally known as localhost.
2. IPv6: But, there is a problem with the IPv4 address. With IPv4,
we can connect only the above number of 4 billion devices
uniquely, and apparently, there are much more devices in the
world to be connected to the internet. So, gradually we are making
our way to IPv6 Address which is a 128-bit IP address. In human-
friendly form, IPv6 is written as a group of 8 hexadecimal numbers
separated with colons(:). But in the computer-friendly form, it can
be written as 128 bits of 0s and 1s. Since, a unique sequence of
binary digits is given to computers, smartphones, and other
devices to be connected to the internet. So, via IPv6 a total of
(2^128) devices can be assigned with unique addresses which are
actually more than enough for upcoming future generations.
IPv6 can be written as:
2011:0bd9:75c5:0000:0000:6b3e:0170:8394

Classification of IP Address

An IP address is classified into the following types:

1. Public IP Address: This address is available publicly and it is
assigned by your network provider to your router, which further
divides it to your devices. Public IP Addresses are of two types,
 Dynamic IP Address: When you connect a smartphone or
computer to the internet, your Internet Service Provider
provides you an IP Address from the range of available IP
Addresses. Now, your device has an IP Address and you can
simply connect your device to the Internet and send and
receive data to and from your device. The very next time
when you try to connect to the internet with the same
device, your provider provides you with different IP
Addresses to the same device and also from the same
available range. Since IP Address keeps on changing every
time when you connect to the internet, it is called a
Dynamic IP Address.
 Static IP Address: Static address never changes. They
serve as a permanent internet address. These are used by
DNS servers. What are DNS servers? Actually, these are
computers that help you to open a website on your
computer. Static IP Address provides information such as
device is located on which continent, which country, which
city, and which Internet Service Provider provides internet
connection to that particular device. Once, we know who is
the ISP, we can trace the location of the device connected
to the internet. Static IP Addresses provide less security
than Dynamic IP Addresses because they are easier to
track.
2. Private IP Address: This is an internal address of your device
which are not routed to the internet and no exchange of data can
take place between a private address and the internet.
3. Shared IP addresses: Many websites use shared IP addresses
where the traffic is not huge and very much controllable, they
decide to rent it to other similar websites so to make it cost-
friendly. Several companies and email sending servers use the
same IP address (within a single mail server) to cut down the cost
so that they could save for the time the server is idle.
4. Dedicated IP addresses: A dedicated IP Address is an address
used by a single company or an individual which gives them certain
benefits using a private Secure Sockets Layer (SSL) certificate
which is not in the case of a shared IP address. It allows to access
the website or log in via File Transfer Protocol (FTP) by IP address
instead of its domain name. It increases the performance of the
website when the traffic is high. It also protects from a shared IP
address that is black-listed due to spam.
Internet Service Provider
Internet Service Provider (ISP) is a company which provides
internet connection to end user, but there are basically three levels
of ISP. There are 3 levels of Internet Service Provider (ISP): Tier-1
ISP, Tier-2 ISP, and Tier-3 ISP.
 Tier-1 ISP:
These ISPs are at the top of the hierarchy and they have a
global reach they do not pay for any internet traffic through
their network instead lower-tier ISPs have to pay a cost for
passing their traffic from one geolocation to another which
is not under the reach of that ISPs. Generally, ISPs at the
same level connect to each other and allow free traffic
passes to each other. Such ISPs are called peers. Due to
this cost is saved. They build infrastructure, such as the
Atlantic Internet sea cables, to provide traffic to all other
Internet service providers, not to end users.
Examples:
Some examples of tier 1 Internet providers:
Cogent Communications,
Hibernia Networks,
AT&T
 Tier-2 ISP:
These ISPs are service provider who connect between tier 1
and tier 3 ISPs. They have regional or country reach and
they behave just like Tier-1 ISP for Tier-3 ISPs.
Examples:
Examples of tier 2 ISPs:
Vodafone,
Easynet,
BT
 Tier-3 ISP:
These ISPs are closest to the end users and helps them to
connect to the internet by charging some money. These
ISPs work on purchasing model. These ISPs have to pay
some cost to Tier-2 ISPs based on traffic generated.
Examples:
Examples of Tier-3 ISPs:
Comcast,
Deutsche Telekom,
Verizon Communications
Role (Functions and Services
Provided) by ISPs
ISPs offer a range of services that go beyond just providing internet
connectivity. Apart from connecting users to the internet, ISPs often
offer email services, allowing users to create and manage their email
accounts. They also provide web hosting services, enabling individuals
and businesses to publish their websites and make them accessible to
the public. Furthermore, many ISPs offer domain registration services,
allowing users to register and manage their own website domains.

What is the Internet

Protocol?
The Internet Protocol (IP) is a set
of requirements for addressing
and routing data on the Internet.
IP can be used with several
transport protocols, The Internet
Protocol (IP) is a protocol, or set
of rules, for routing and
addressing packets of data so
that they can travel across
networks and arrive at the
correct destination. Data
traversing the Internet is divided
into smaller pieces,
called packets. IP information is
attached to each packet, and
this information helps routers to
send packets to the right place.
Every device or domain that
connects to the Internet is
assigned an IP address, and as
packets are directed to the IP
address attached to them, data
arrives where it is needed
MODES OF CONECTING DEVICES
Hotspot
A hotspot is a specific location that provides Internet access via
a wireless local area network (WLAN). The term is generally
synonymous with a Wi-Fi connection. A network that creates a
hotspot primarily includes a modem and wireless router. The radio
frequency (RF) waves sent by the wireless network extend in
different directions from its centralized location. These signals
become weaker as they travel, either further from the central
location or due to interference.
There are two types of hotspots:
 1. Free WiFi hotspots: Essentially a WiFi router with the password
requirements removed, this allows all users in range to access
the Internet from the same network.
2. Commercial hotspots: These access points provide wireless
coverage for a fee. When using a commercial hotspot to
connect to the Internet, a user is usually redirected to a screen
requesting login information or payment details.

WI-FI
WI-FI is the radio signal sent from a wireless router to the nearby
device, which translates signal into data that you can see and you
use. The device transmits signal back to the router which connect to
the internet by wire or cable.
The wi-fi is simply an internet connection that connects various
devices in the home or in business via a wireless router. The router is
connected directly to your internet modem and acts as a hub to
broadband the internet signal to all your wi-fi enabled devices. This
gives to flexibility to stay connected to the internet as long as you
are within network coverage area .
Wi-fi uses radio waves to transmit data from your wireless router to
your wi-fi enabled devices like your TV, smartphone, tablets, and
computer. Because they communicate with each other over
airwaves, your devices and personal information can become
vulnerable to hackers , cyber-attacks, and other threats at places like
a coffee shop or airports. When possible, its best to connect to a
wireless network that is password protected or a personal hotspot.

Lan (local area network)

 local area network (LAN) is a computer network that interconnects
computers within a limited area such as a residence, school,
laboratory, university campus or office building. By contrast, a wide
area network (WAN) not only covers a larger geographic distance, but
also generally involves leased telecommunication circuits.

What is a LAN cable?

A LAN cable is a conductor that connects devices in a Local Area
Network (LAN) with a network connector. The network cable
provides communication between several devices (computers,
routers, switches,…). The term “LAN” is an overtake for Ethernet
cable.

What is a LAN cable used for and how?

First and foremost, such a LAN cable is used to connect devices
within a network. It is a physical plug connection. Basically, any data
cable that is used for communication between end devices can be
called a network cable.
Some of them are particularly suitable for short distances. Their
design can be particularly space-saving so that they can also be used
in confined areas. Others are designed for longer distances or
outdoor use.
However, all of these serve only one purpose: to connect devices to
each other with a network connector. In addition to computers,
routers or servers, peripheral devices such as printers or IP cameras
also form part of the network.
For this purpose, a LAN cable is connected to a terminal device. The
data reaches the other end device via a LAN distributor. Of course,
this must also be integrated into the network.
BROADBAND
This high-speed internet connection is provided through either cable
or telephone companies.one of the fastest options available,
broadband . internet uses multiple data channels to send large
quantities of information. The term broadband is shorthand for
broad bandwidth. The technical definition of broadband is that of a
method of data transmission that can support two or more traffic
types simultaneously due to its capability of supporting a wide, or
broad, band of frequencies.

USB Tethering
When the mobile internet connection is shared with a connected
computer or laptop using physical USB data cable then it is called
USB Tethering. It gives a high-speed connection while sharing the
internet between mobile devices and connected computer systems,
it is because Wired connection is quite stronger than Wireless LAN
connection.

Advantages of USB Tethering.

These are some advantages provided by USB Tethering over the
Mobile Hotspot.
1. The computer does not need to have Wi-Fi (Wireless LAN)
functionality for USB Tethering.
2. It does not lower the battery life of mobile, as the mobile gets
charged while sharing the internet.
3. The internet speed obtained in the connected computer is
quite faster because of the strong connection build by USB
data cable.
 4. Also, If mobile does not have Hotspot functionality, still USB
Tethering can work for it.
IMEI Vs. MAC Address Vs. IP Address

Your phone’s IMEI number is a hardware address of 15

decimal digits that uniquely identifies your phone in a cellular
network. IMEI number identifies the origin, model, and serial
number of your specific phone. So IMEI numbers are globally
unique, and no other phone can have your phone’s IMEI.

Cellular carriers use your phone’s IMEI number to register the

phone in their networks. They can also block IMEI numbers of
stolen phones from their networks.

On the other hand, the MAC address is a 12-digit

hexadecimal number burned into your phone’s Wi-Fi adapter.
Each phone should ideally have a globally unique Wi-Fi MAC
address.

What is a blog?
A blog is a type of website that is updated regularly with new content.
Most blogs contain short, informal articles called blog posts. These posts
usually contain some combination of text, photos, videos, and other
media. At its core, a blog is just a space on the Web that you can create to
record and express your opinions, experiences, and interests.

If you spend much time browsing the Web, you've probably read a blog
post before, even if you didn't realize it at the time. Some of the most-read
blogs are a bit like online magazines because they're written by a team of
people who are paid to update the blog with new posts several times a
day.

However, a majority of blogs are written by one person. As a result, the

average blog is fairly personal, reflecting the interests and personality of
the person who writes it. This is the type of blog we'll focus on in this
tutorial.
Who blogs?
The people who write blogs are called bloggers. From what you hear on
the news, you might think bloggers are all a certain type of people—young,
politically inclined, and tech-savvy. Or maybe you've heard about bloggers
who've written about amazing experiences or ambitious projects, then
turned their blogs into bestselling books. While some bloggers do fit these
descriptions, a majority of bloggers don't. In fact, there's no "average"
blogger—blogs are written by people of all ages and backgrounds and
from all walks of life.

Review the infographic below to learn more about bloggers.

Why blog?
As you saw in the infographic on the last page, most bloggers consider
blogging a hobby. It can be a fairly time-consuming hobby, as many
bloggers spend several hours each week writing blog posts, replying to
comments, and more. So why do they do it?

There are many reasons why people blog, but here are some of the most
common reasons:

 To share your experiences and expertise

 To speak up about an issue you care about
 To become more involved with hobbies and
passions
 To be part of a community
 To advance your career or start a career in
writing
 To keep family and friends updated about your
life

No matter what their main reason for blogging is, most bloggers have at
least one thing in common: They're passionate enough about a topic
to write about it over and over again, usually for free. If there's a subject
you care deeply about, you might enjoy blogging about it. When you have
your own blog, you have unlimited space and freedom to express your
opinions and discuss the things you care about with others.

Blogging for money

Another reason some people blog is to earn money. People earn money
from their blogs by hosting advertisements, selling products,
or publishing their blog posts in the form of a book or printed articles.

The media often reports on bloggers who have done this successfully,
turning their blogs into careers and even a book and movie deals. While
it's fine to try to earn money from blogging, you should be aware that
these success stories are very rare.

You may see advertisements for services that promise to help you make
your blog profitable with little effort. However, making money this way
is not as easy as it may seem. Many bloggers write for years without ever
earning a cent from their blogs. Keep this in mind as you begin blogging.

What do people blog about?

A blog can be about literally anything. There are people blogging about
every topic imaginable, from their political views to their pets. Think
of any interest or hobby, no matter how unusual or specialized—there's
bound to be an entire community of blogs devoted to discussing it.
Although it's impossible to list all of the subjects people blog about, there
are certain topics that are commonly covered.

The MAC address is also a hardware address, but unlike the

IMEI which uniquely identifies the phone in cellular networks,
the MAC address uniquely identifies your phone in Wi-Fi
networks.
Your phone’s public IP address, on the other hand, acts as
your address on the internet. The websites you visit will see
your traffic as coming from your phone’s public IP address.

However, unlike the IMEI number and MAC address which are
permanent and unique to your phone, the IP address can
change over time.

Your phone gets a dynamic public IP address every time it

connects to a cellular data network or a Wi-Fi network. This
public IP is only temporary, and you may get a different
public IP next time you connect to the internet.

What Is Electronic Commerce (E-commerce)?

Electronic commerce (e-commerce) refers to companies and individuals
that buy and sell goods and services over the internet. E-commerce
operates in different types of market segments and can be conducted over
computers, tablets, smartphones, and other smart devices. Nearly every
imaginable product and service is available through e-commerce
transactions, including books, music, plane tickets, and financial
services such as stock investing and online banking. As such, it is
considered a very disruptive technology.

KEY TAKEAWAYS

 E-commerce is the buying and selling of goods and services over the
internet.
 It is conducted over computers, tablets, smartphones, and other
smart devices.
 Almost anything can be purchased through e-commerce today,
which makes e-commerce highly competitive.
 It can be a substitute for brick-and-mortar stores, though some
businesses choose to maintain both.
 E-commerce operates in several market segments including
business-to-business, business-to-consumer, consumer-to-
consumer, and consumer-to-business.
Investopedia / Laura Porter

Understanding E-commerce
As noted above, e-commerce is the process of buying and selling tangible
products and services online. It involves more than one party along with
the exchange of data or currency to process a transaction. It is part of the
greater industry that is known as electronic business (e-business), which
involves all of the processes required to run a company online.12

E-commerce has helped businesses (especially those with a narrow reach

like small businesses) gain access to and establish a wider market
presence by providing cheaper and more efficient distribution channels for
their products or services. Target (TGT) supplemented its brick-and-
mortar presence with an online store that allows customers to purchase
everything from clothes and coffeemakers to toothpaste and action figures
right from their homes.

Providing goods and services isn't as easy as it may seem. It requires a lot
of research about the products and services you wish to sell, the market,
audience, competition, as well as expected business costs.

Once that's determined, you need to come up with a name and set up a
legal structure, such as a corporation. Next, set up an e-commerce site
with a payment gateway. For instance, a small business owner who runs a
dress shop can set up a website promoting their clothing and other related
products online and allow customers to make payments with a credit card
or through a payment processing service, such as PayPal.3

E-commerce may be thought of as a digital version of mail-order catalog

shopping. Also called online commerce, e-commerce is the transaction
between a buyer and a seller that leverages technology.
Special Considerations
E-commerce has changed the way people shop and consume products
and services. More people are turning to their computers and smart
devices to order goods, which can easily be delivered to their homes. As
such, it has disrupted the retail landscape. Amazon and Alibaba have
gained considerable popularity, forcing traditional retailers to make
changes to the way they do business.

But that's not all. Not to be outdone, individual sellers have increasingly
engaged in e-commerce transactions via their own personal websites. And
digital marketplaces such as eBay or Etsy serve as exchanges where
multitudes of buyers and sellers come together to conduct business.
The U.S. Department of Commerce recognizes e-commerce businesses
such as transactional sites, static content sites, online marketplaces, and
auction sites.4
History of E-commerce
Most of us have shopped online for something at some point, which means
we've taken part in e-commerce. So it goes without saying that e-
commerce is everywhere. But very few people may know that e-commerce
has a history that goes back to before the internet began.

E-commerce actually goes back to the 1960s when companies used an

electronic system called the Electronic Data Interchange to facilitate the
transfer of documents. It wasn't until 1994 that the very first transaction.
took place. This involved the sale of a CD between friends through an
online retail website called NetMarket.3

The industry has gone through so many changes since then, resulting in a
great deal of evolution. Traditional brick-and-mortar retailers were forced to
embrace new technology in order to stay afloat as companies like Alibaba,
Amazon, eBay, and Etsy became household names. These companies
created a virtual marketplace for goods and services that consumers can
easily access.

New technology continues to make it easier for people to do their online

shopping. People can connect with businesses through smartphones and
other devices and by downloading apps to make purchases. The
introduction of free shipping, which reduces costs for consumers, has also
helped increase the popularity of the e-commerce industry.

Advantages and Disadvantages of E-commerce

Advantages
E-commerce offers consumers the following advantages:

 Convenience: E-commerce can occur 24 hours a day, seven days a

week. Although eCommerce may take a lot of work, it is still possible
to generate sales as you sleep or earn revenue while you are away
from your store.
 Increased Selection: Many stores offer a wider array of products
online than they carry in their brick-and-mortar counterparts. And
many stores that solely exist online may offer consumers exclusive
inventory that is unavailable elsewhere.
 Potentially Lower Start-up Cost: E-commerce companies may
require a warehouse or manufacturing site, but they usually don't
need a physical storefront. The cost to operate digitally is often less
expensive than needing to pay rent, insurance, building
maintenance, and property taxes.
  International Sales: As long as an e-commerce store can ship to
the customer, an e-commerce company can sell to anyone in the
world and isn't limited by physical geography.
 Easier to Retarget Customers: As customers browse a digital
storefront, it is easier to entice their attention towards placed
advertisements, directed marketing campaigns, or pop-ups
specifically aimed at a purpose.

Disadvantages
There are certain drawbacks that come with e-commerce sites, too. The
disadvantages include:

 Limited Customer Service: If you shop online for a computer, you

cannot simply ask an employee to demonstrate a particular model's
features in person. And although some websites let you chat online
with a staff member, this is not a typical practice.
 Lack of Instant Gratification: When you buy an item online, you
must wait for it to be shipped to your home or office. However, e-
tailers like Amazon make the waiting game a little bit less painful by
offering same-day delivery as a premium option for select products.
 Inability to Touch Products: Online images do not necessarily
convey the whole story about an item, and so e-commerce
purchases can be unsatisfying when the products received do not
match consumer expectations. Case in point: an item of clothing may
be made from shoddier fabric than its online image indicates.
 Reliance on Technology: If your website crashes, garners an
overwhelming amount of traffic, or must be temporarily taken down
for any reason, your business is effectively closed until the e-
commerce storefront is back.
 Higher Competition: Although the low barrier to entry regarding low
cost is an advantage, this means other competitors can easily enter
the market. E-commerce companies must have mindful marketing
strategies and remain diligent on SEO optimization to ensure they
maintain a digital presence.

Pros
 Owners can generate revenue semi-passively

 Consumers can easily browse for specific products

 Greater earning potential as there are no limitations on physical

location as long you can ship there

 Reduced costs assuming digital presence costs less than building,

insurance, taxes, and repairs.
  Greater marketing control, including data extraction from customers,
targeted ads, and pop-up placement

Cons
 Limited customer service opportunities as there is little to no face-to-
face opportunities

 Lacks instant gratification as customers must believe in a product

before seeing it in person

 Products can't been seen or handled until delivered (can't try before
they buy)

 Loss of revenue or income when websites go down

 High reliance on shipping constraints

 Higher competition due to lower barriers of entry and greater

customer potential

Types of E-commerce
Depending on the goods, services, and organization of an ecommerce
company, the business can opt to operate several different ways. Here are
several of the popular business models.

Business-to-Consumer (B2C)
B2C e-commerce companies sell directly to the product end-user. Instead
of distributing goods to an intermediary, a B2C company performs
transactions with the consumer that will ultimately use the good.

This type of business model may be used to sell products (like your local
sporting goods store's website) or services (such as a lawn care mobile
app to reserve landscaping services). This is the most common business
model and is likely the concept most people think about when they hear
the term e-commerce.

Business-to-Business (B2B)
Similar to B2C, an e-commerce business can directly sell goods to a user.
However, instead of being a consumer, that user may be another
company. B2B transactions often entail larger quantities, greater
specifications, and longer lead times. The company placing the order may
also have a need to set recurring goods if the purchase is for recurring
manufacturing processes.
Business-to-Government (B2G)
Some entities specialize as government contractors providing goods or
services to agencies or administrations. Similar to a B2B relationship, the
business produces items of value and remits those items to an entity.

B2G e-commerce companies must often meet government requests for

proposal requirements, solicit bids for projects, and meet very specific
product or service criteria. In addition, there may be joint government
endeavors to solicit a single contract through a government-wide
acquisition contract.

Consumer-to-Consumer (C2C)
Established companies are the only entities that can sell things. E-
commerce platforms such as digital marketplaces connect consumers with
other consumers who can list their own products and execute their own
sales.

These C2C platforms may be auction-style listings (i.e. eBay auctions) or

may warrant further discussion regarding the item or service being
provided (i.e. Craigslist postings). Enabled by technology, C2C e-
commerce platforms empower consumers to both buy and sell without the
need for companies.

Consumer-to-Business (C2B)
Modern platforms have allowed consumers to more easily engage with
companies and offer their services, especially related to short-term
contracts, gigs, or freelance opportunities. For example, consider listings
on Upwork.

A consumer may solicit bids or interact with companies that need particular
jobs done. In this way, the e-commerce platform connects businesses
with freelancers to enable consumers greater power to achieve pricing,
scheduling, and employment demands.

Consumer-to-Government (C2G)
Less of a traditional e-commerce relationship, consumers can interact with
administrations, agencies, or governments through C2G partnerships.
These partnerships are often not in the exchange of service but rather, the
transaction of obligation.

For example, uploading your federal tax return to the Internal Revenue
Service (IRS) digital website is an e-commerce transaction regarding an
exchange of information. Alternatively, you may pay your tuition to your
university online or remit property tax assessments to your county
assessor.
Investopedia / Sabrina Jiang
The U.S. Census Bureau conducts estimates of retail e-commerce sales in
the United States. In the first quarter of 2023, retail e-commerce accounted
for 15.1% of total sales in the country, totaling roughly $272.6 billion.
These figures are adjusted for seasonal variation.5

Types of E-commerce Revenue Models

In addition to crafting what type of e-commerce company a business wants
to be, the business must decide how it wants to make money. Due to the
unique nature of e-commerce, the business has a few options on how it
wants to process orders, carry inventory, and ship products.

Dropshipping
Often considered one of the easier forms of e-commerce, dropshipping
allows a company to create a digital storefront, generate sales, then rely
on a supplier to provide the good. When generating the sale, the e-
commerce company collects payment via credit card,
PayPal, cryptocurrency, or other means of digital currency.

Then, the e-commerce store passes the order to the dropship supplier.
This supplier manages inventory, oversees the warehouse of goods,
packages the goods, and delivers the product to the purchaser.

White Labeling
White-label e-commerce companies leverage already successful products
sold by another company. After a customer places an order, the e-
commerce company receives the existing product, repackages the product
with its own package and label, and distributes the product to the
customer. Although the e-commerce company has little to no say in the
product they receive, the company usually faces little to no in-
house manufacturing constraints.

Wholesaling
A more capital-intensive approach to e-commerce, wholesaling entails
maintaining quantities of inventory, keeping track of customer orders,
maintaining customer shipping information, and typically having ownership
of the warehouse space to house products.

Wholesalers may charge bulk pricing to retailers or unit prices for

consumers. However, the broad approach to wholesaling is to connect to
buyers of large quantities or many smaller buyers of a similar,
standardized product.
Private Labeling
Private labeling is a more appropriate e-commerce approach for
companies that may not have large upfront capital or do not have their own
factory space to manufacture goods. Private label e-commerce companies
send plans to a contracted manufacturer who makes the product.

The manufacturer may also have the ability to ship directly to a customer
or ship directly to the company receiving the order. This method of e-
commerce is best suited for companies that may receive on-demand
orders with short turnaround times but are unable to handle the capital
expenditure requirements.

Subscription
E-commerce companies can also leverage repeating orders or loyal
customers by implementing subscription services. For a fixed price, the e-
commerce company will assemble a package, introduce new products,
and incentivize locking to a long-term agreement at a lower monthly price.

The consumer only places an order once and receives their subscription
order at a fixed cadence. Common subscription e-commerce products
include meal prep services, agriculture boxes, fashion boxes, or health and
grooming products.

Example of E-commerce
Amazon is a behemoth in the e-commerce space. In fact, it is the world's
largest online retailer and continues to grow. As such, it is a huge disrupter
in the retail industry, forcing some major retailers to rethink their strategies
and shift their focus.

The company launched its business with an e-commerce-based model of

online sales and product delivery. It was founded by Jeff Bezos in 1994 as
an online bookstore but has since expanded to include everything from
clothing to housewares, power tools to food and drinks, and electronics.

Company sales increased by 9% in 2022 from the previous year, totaling

$513.98 billion compared to $469.82 billion in 2021. Amazon's operating
income dropped from $24.88 billion in 2021 to $$12.25 billion in 2022. The
company posted a net loss of $2.72 billion in 2022, compared to net
income of $33.36 billion in 2021.6

How Do You Start an E-commerce Business?

Make sure you do your research before you start your business. Figure out
what products and services you're going to sell and look into the market,
target audience, competition, and expected costs.
Next, come up with a name, choose a business structure, and get the
necessary documentation (taxpayer numbers, licenses, and permits if they
apply).

Before you start selling, decide on a platform and design your website (or
have someone do it for you).

Remember to keep everything simple at the beginning and make sure you
use as many channels as you can to market your business so it can grow.

What Is an E-commerce Website?

An e-commerce website is any site that allows you to buy and sell
products and services online. Companies like Amazon and Alibaba are
examples of e-commerce websites.

What Is the Difference Between E-commerce and E-business?

E-commerce involves the purchase and sale of goods and services online
and is actually just one part of e-business. An e-business involves the
entire process of running a company online. Put simply, it's all of the
activity that takes place with an online business

What is Netiquette? 20 rules Internet

Etiquette Rules
20 general recommendations for conduct on the internet that you should follow
when communicating online.
1. Stick to the rules of conduct online that you follow in real life

When communicating online, remember the rules of etiquette that you follow in your
everyday life. Refrain from insulting, provoking, threatening or insulting others.
Respect the opinions of your chat counterparts and express constructive criticism.
Remember that you can be prosecuted for insulting people online.

2. Netiquette: Think of the person

Think of the person behind the computer when you compose your messages. You
are not communicating with a machine, but with real people. Also, consider what and
how you write. Because the internet doesn't forget anything! A screenshot or
a copy of your messages is quickly made and still exists even if you delete your
messages afterward.
3. Present your best side online

Communication on the internet comes with a certain anonymity that does not exist
in real life when you are talking to someone face to face. Often this anonymity leads
to a lower inhibition threshold for many users and they behave rudely online if,
for example, you disagree with them.
Make sure that you show your best side online. Remain friendly and respectful,
even if you disagree. Good netiquette is characterized by respect, politeness and
professionalism.
A tip: You should generally refrain from writing messages or individual words entirely
in capital letters – even if you want to give these sections more expression. After all,
capital letters on the internet mean shouting and are generally
considered impolite.
4. Read first, then ask

Do you have a question about something? Then take the time to carefully read the
answers in the previous discussion posts first. There is a good chance that someone
has already answered your question. If you write an answer similar to someone
else's, it shows the other chat participants that you have paid little attention to the
conversation so far.

Remember that conversations online can happen very quickly. It is therefore

important to gather all the information before responding or asking questions.

5. Netiquette: Pay attention to grammar and punctuation

Take time to read through your answers again. Check them

for grammar, punctuation and correct spelling. It can be very frustrating for the
other person if they have to decipher poorly written sentences in order grasp the
meaning behind them. In addition, faulty grammar distracts from the goal of your
message.
Grammar, spelling and punctuation become especially important when composing
emails or other correspondence that you submit to colleagues or superiors. If you
have a weakness in grammar and spelling, don't be discouraged. Use spelling
aids before you send messages.
Another tip: When composing emails, always remember to use the appropriate
salutation and parting formula as well. These are also part of netiquette.
6. Respect the privacy of others

This rule should be followed not only in everyday use of online communication, but
also at work. Do not simply forward information that has been sent to you without
first obtaining permission from the original sender. When sending private emails to
multiple recipients, use BCC (blind carbon copy) instead of CC (carbon
copy). Many people do not like their names and email addresses being passed on to
people they do not know themselves.
This rule on the internet also applies to uploading and sharing photos or
videos that show other people. Before circulating such private files, be sure to check
with the people concerned before doing so.
Last but not least: Respect the privacy of others and do not sign up for
newsletters, forums or the like with someone else's name or email address.
7. Respect the time and bandwidth of others

We live in a much faster world than our parents or grandparents are used to.
Information can be sent to different people around the world in a matter of seconds –
and without much effort. Nevertheless, the bandwidth, that is to say the information
capacity of wires and channels, is limited. It is similar with humans. Think of this
limited receptivity of information when you send messages to your friends,
colleagues or superiors.

Do you get to the point quickly enough in your emails? Are your arguments
formulated correctly and clearly recognizable? No one wants to waste time
unnecessarily on an email whose core message is only at the end of the email. That
consumes time and effort, and is simply annoying. Also, consider who really needs
to be on the list of recipients. After all, respect for other people's time and bandwidth
is also part of netiquette.
8. Forgive the mistakes of others

Everyone who goes online to forums and networks was once a beginner. As in any
other field, you can make mistakes as a beginner. In online communication, these
can be a lack of etiquette or manners.

Often these are spelling mistakes, superfluous questions or answers that are
too long. With this in mind, it's important to forgive your counterparts' mistakes. If
they are only minor mistakes, it is best not to react to them at all. In the event of a
major error, for example a wrong quote, messages written only in capital letters or
missing grammar and punctuation, then it is best to point it out to the person in a
private message.
A tip: Sarcasm in written form is not always recognizable to everyone on the
internet. It is therefore better to remain objective. If you still want to express
sarcasm among friends or close colleagues, use emojis such as smileys or GIFs.
Carefully chosen, emojis can reinforce your message.
9. Netiquette: Don't abuse your power

On the internet, as in real life, some people have more power than others.
Moderators in a forum, experts in companies or system administrators. If you have
more power than others, you do not have the right to exploit this power.
Don't spy on colleagues or chat participants just because you have the technical
means to do so. For example, system administrators should never read private
emails or find out about the salary structure in the company.
10. Help keep flame wars under control
Flame wars are messages that contain aggressive personal criticism or attacks
on a person. In group chats, heated discussions often degenerate into so-
called flame wars. If you get into such a discussion, you should stay out of it. Always
remember that you should treat others as you would like to be treated. Profanity is
not part of netiquette.
Also remember that insults and threats on the internet can have legal
consequences for you. For this reason, do not be tempted to make such
comments, even in heated discussions. Instead, demonstrate exemplary conduct on
the internet.
11. Know where you are in cyberspace

Netiquette is interpreted differently in different places on the internet. For example, it

is perfectly normal to spread gossip in a TV discussion group. However, if you do
this in a serious discussion group, you will quickly make yourself unpopular. It is
therefore important that you know where you are on the internet.
This also means that if you are in a new area that is unfamiliar to you, you need to
look around and learn the ropes. Get an idea of how other people in this area of
cyberspace communicate with each other and adapt to them.
12. Hate speech and netiquette

So-called hate speech on the internet is an increasing problem, especially in social

media. It is often found in offensive comments under photos or posts. However,
time and again there are coordinated actions by specific actors who join forces for
the sole purpose of spreading hate comments. Not infrequently, social or religious
fringe groups, foreigners or black people become victims of such actions.
What can you do against hate speech? If you come across such statements on the
internet, you should report them to the provider of the website. Often you will find
the option to report a post directly underneath it on social media. The providers are
legally obliged to delete content which is evidently illegal within 24 hours.
In addition, you can actively approach the spreaders of hate speech and try
to invalidate their statements and subsequently educate theperpetrators. It is
advisable to ask for the alleged "facts" and take a clear position against hate. Steer
the discussion in a more positive direction. However, under no circumstances should
you react with hate or insults. You could also be held accountable for this.

Netiquette: Safety rules for children

The internet is an enrichment for everyone – in everyday life, at school and at work.
However, it brings with it some risks and downsides, such as the dark net. Talk to
your child and explain the possible risks of the internet. Respect your child's
privacy and explain the following rules for children on the internet:
13. Children on the internet: Do not give out personal information

In these times of social media, identity theft and social engineering, keeping personal
information secret is essential! Under no circumstances should your child share
passwords or personal information such as their name,
address or telephone number online. The name of the school or clubs should also
be kept secret.
14. Use a neutral nickname

Make sure that your child uses a neutral nickname in chat rooms. This should
under no circumstances reveal your child's identity. In addition, a neutral nickname
ensures that other people do not feel insulted or ridiculed.
15. Netiquette and bots/troll posts

So-called bots are computer programs that usually automatically follow up on a task
without requiring any interaction with humans. In social media channels, bots often
post comments or even their own posts.

They often spam in forums or in the comments under posts. This is annoying and
time-consuming, as these responses have to be identified and removed. Bots are
therefore not part of netiquette and should be avoided if at all possible.

16. Rules for children on the internet: Do not trust chat participants

Your child should always approach strangers with a healthy skepticism. You never
know who is really hiding behind the funny profile name and picture. For example,
your child should never meet a stranger just because they got along well in a chat
conversation. It could be an adult with bad intentions.
Similarly, you should explain to your child that they should not add strangers as
friends on social media such as Facebook or Instagram. Your child should also not
simply open emails and other messages and download attachments. In doing so,
your child could accidentally download a Trojan or other malware.
17. Fairness first: Do not exclude anyone

If your child is communicating in a private group, they should refrain from making
insider jokes that not everyone in the group will understand. It is better to send a
private message to this person. Other chat participants should not feel excluded.
Netiquette includes values such as tolerance, respect and helpfulness. This also
means that only the language used by everyone should be used.

In a school group chat, your child should always make sure that all chat members
are on the same level, for example during a review or presentation. When your child
is explaining a topic that may not be clear to everyone, it is a good idea to answer
questions about the topic.

18. Netiquette for children: Keep it short and clear

Posts, answers and even questions should be kept as short and clear as possible.
No one wants to read an unnecessary amount of text that does not contribute to
answering the issue.
Cumbersome language and repetitions only clog up chats and forums; in addition,
spelling mistakes can make it more difficult to read and understand what is being
said. Forwarding chain letters also has no place in respectful online
communication.
19. Netiquette and online learning (tips for pupils)

In the wake of the COVID-19 pandemic, most teaching in schools was done online.
So-called homeschooling – teaching from home – was a new challenge that pupils,
teachers and parents had to overcome together. Here are some tips for teaching
from home:
 Children should support one another, for example by responding to classmates'
questions on a chat thread.
 Instruct your children not to digitally record or take screenshots of lessons without
first getting the teacher's permission.
 A polite and respectful tone is an absolute must in homeschooling.
 Passwords and credentials given by the school must not be passed on by children to
third parties under any circumstances.
 Children should be ready a few minutes before class starts in order to start on time.
Teaching materials should be ready and the camera for the video conference should
always be switched on. You should also make sure that your child dresses as they
would appear at school.
 Pupils should speak up if they have any questions or comments. Afterwards, they
should mute their microphone again so as not to disturb the lesson with any
background noise.
20. Trust your child

Last but not least, the most important rule for children's use of the internet: Trust
your child. After all, you cannot permanently look over their shoulder, whether your
child is learning via computer, smartphone or tablet. Your child learns best
through their own experiences. Trust in your offspring's abilities, and refrain from
constantly monitoring their internet activities. It is usually enough to know that your
child can ask you for help if the worst happens.
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Captcha Characters Select required service (e.g. Apply for Fresh Passport / Reissue of Passport).

You can apply for passport/reissue passport by •

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Fill the application form online and submit. Schedule Appointment

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Make payment & schedule an appointment for visiting PSK.
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Click “Pay and Book Appointment” to proceed for appointment booking Click Payment Mode of your
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Print Application Receipt/Send Appointment SMS Check the date and time of your appointment on
application receipt

What are Digital Financial Tools?

Digital financial tools are technology-based
solutions that streamline financial transactions and
management for individuals and businesses. These
tools leverage the power of digital platforms to
provide convenient and accessible financial
services, such as budgeting, savings, payments, and
investing, all in one place.
With the rapid advancement of technology and the increasing reliance on
digital systems, digital financial tools have become essential for effective
money management, allowing users to easily track and control their
financial activities anytime, anywhere. From mobile banking apps to
online payment platforms and investment platforms, these tools empower
users to make informed financial decisions and enhance their financial
health.

As technology continues to evolve, so does the range and

capabilities of digital financial tools, offering users greater efficiency
and flexibility in their financial lives.

Definition And Importance

Digital financial tools refer to various applications, software, and platforms
that enable individuals and businesses to manage their finances
electronically. These tools revolutionize traditional financial practices,
offering benefits such as convenience, efficiency, and improved accuracy.
With features like budgeting, payment processing, and financial planning,
digital financial tools have become increasingly important in today’s fast-
paced, tech-driven world.

The Role Of Digital Financial Tools In Managing Money Effectively

Digital financial tools play a pivotal role in helping individuals manage

their money effectively. Here are some key aspects highlighting their
importance:

 Streamlined budgeting: Digital financial tools provide automated

budgeting features that enable users to categorize their income and
expenses. By analyzing spending patterns and setting budget limits,
individuals can identify areas of overspending and make necessary
adjustments to achieve financial stability.
 Real-time expense tracking: These tools allow users to track their
expenses in real-time, eliminating the need for manual entry of
transactions. By linking bank and credit card accounts, individuals can
monitor their spending habits, detect potential discrepancies, and
avoid overspending.
 Automated bill payment: Digital financial tools offer automated bill
payment features, ensuring timely payments and avoiding late fees.
Users can set up reminders and schedule payments in advance,
simplifying the process of managing bills and avoiding unnecessary
penalties.
 Goal setting and tracking: These tools enable individuals to set
financial goals and track progress towards achieving them. Whether
it’s saving for a down payment, planning for a vacation, or building an
emergency fund, digital financial tools provide insights and visual
representation of progress, motivating users to stay on track.
 Investment management: Digital financial tools can help
individuals manage their investment portfolios effectively. With
access to real-time market data and analysis, users can make
informed decisions regarding their investments, track their
performance, and adjust strategies accordingly.
 Financial literacy and education: Many digital financial tools also
offer educational resources such as articles, blogs, and tutorials to
enhance financial literacy. Users can learn about personal finance
topics like budgeting, debt management, investing, and retirement
planning, empowering them to make better financial decisions.

Advantages And Disadvantages Of Digital Financial Tools

Digital financial tools refer to software, applications, and platforms that

provide individuals with convenient ways to manage their finances online.
These tools offer several advantages, such as easy access to account
information, quick and secure transactions, and personalized financial
planning.
However, they also come with certain disadvantages like potential
security risks, reliance on technology, and possible limited availability for
individuals without internet access.

Advantages

Digital financial tools offer several advantages that can improve your
financial management experience. Below are the key benefits of using
these tools:

 Improved accessibility and convenience: Digital financial tools

allow you to manage your finances from anywhere, anytime. With just
a few clicks, you can access your accounts, track expenses, and make
payments. This convenience saves you time and effort, eliminating
the need to visit a physical bank branch.
 Real-time tracking and analysis of financial data: These tools
provide real-time updates on your financial transactions, allowing you
to monitor your income and expenses in detail. You can easily track
spending trends, identify areas for cost-cutting, and set budget goals.
The ability to analyze your financial data in real-time gives you
valuable insights for making informed decisions.
 Automation of financial tasks for time-saving benefits: Digital
financial tools can automate various financial tasks, such as bill
payments, fund transfers, and investment management. This
automation not only saves you time but also reduces the risk of errors
that may occur during manual processes. By automating routine
tasks, you can focus on other important aspects of your financial
planning.

Disadvantages

While digital financial tools offer numerous advantages, they also come
with a few disadvantages that should be considered:

 Potential privacy and security concerns: The use of digital

financial tools involves sharing sensitive personal and financial
information. There is always a risk of unauthorized access or data
breaches, which could result in identity theft or financial fraud. It is
crucial to choose reputable and secure platforms, regularly update
your passwords, and be cautious while sharing information online.
 Dependency on technology and possible technical
issues: Digital financial tools heavily rely on technology, including
internet connectivity, software, and hardware. Any technical issues,
such as network outages or system glitches, can temporarily limit
your access to your financial data and services. It’s important to have
backup plans in place and ensure that you have alternative methods
for managing your finances during such disruptions.
  Learning curve for using new financial tools: Adopting new
digital financial tools may require some time and effort to become
familiar with their functionalities and features. There might be a
learning curve associated with understanding how to navigate the
tool, interpret reports, and make the most of its capabilities. However,
with a little patience and practice, you can quickly adapt and reap the
benefits of these tools.

Digital financial tools offer improved accessibility, real-time tracking and

analysis, and automation of financial tasks. However, it is essential to
consider the potential privacy and security concerns, the dependency on
technology, and the learning curve when using these tools. By
understanding and mitigating the disadvantages, you can leverage the
advantages to enhance your financial management experience.

How To Choose And Use Digital Financial Tools

Digital financial tools refer to a wide range of digital applications and

software designed to help individuals manage their finances efficiently
and effectively. Whether it’s budgeting apps, investment platforms, or
mobile banking tools, digital financial tools provide users with convenient
and user-friendly tools to track expenses, save money, and make smarter
financial decisions.

These tools are an essential part of modern personal finance

management, offering security, convenience, and accessibility to users.

Digital financial tools have revolutionized the way we manage our

finances, making it easier and more convenient to track expenses, set
budgets, and achieve financial goals. However, with so many options
available in the market, it can be overwhelming to choose the right digital
financial tools that best fit our needs.

To help you make an informed decision, here are some important factors
to consider when selecting and effectively using these tools:

Factors To Consider When Selecting Digital Financial Tools:

 User-friendly interface: Look for tools that are intuitive and easy to
navigate, allowing you to quickly access the features you need. A
clean and organized interface can save you time and frustration.
 Security measures and data privacy policies: Your financial
information is sensitive and should be protected. Ensure that the tools
you choose have robust security measures in place, such as
encryption and multi-factor authentication. Check their data privacy
policies to understand how your information is handled.
  Compatibility with personal financial goals: Different tools cater
to various financial needs. Assess your goals, whether it’s tracking
expenses, saving for retirement, or managing investments, and
choose a tool that aligns with your objectives.

Tips For Effectively Using Digital Financial Tools:

 Regularly updating and reviewing financial data: To get the

most out of these tools, it is essential to regularly update your
financial data. This includes adding new transactions, categorizing
expenses accurately, and reconciling accounts. Set aside dedicated
time every week or month for this task.
 Setting financial goals and tracking progress: Digital financial
tools offer features to help you set and monitor financial goals. Take
advantage of these tools by setting realistic and measurable goals.
Regularly reviewing your progress will keep you motivated and on
track.
 Seeking professional advice when needed: While digital financial
tools can provide valuable insights, they cannot replace the advice of
a professional financial advisor. If you’re unsure about certain
financial decisions or need personalized guidance, consult with a
qualified expert who can provide you with the best recommendations.

By carefully considering these factors and implementing effective

strategies, you can harness the power of digital financial tools to take
control of your finances and work towards a more secure and prosperous
future. Keep exploring and experimenting with different tools until you
find the ones that suit your preferences and goals best.

Future Trends In Digital Financial Tools

Digital financial tools are innovative and convenient applications that

enable individuals and businesses to manage their finances digitally.
These tools encompass various mobile apps, online platforms, and
software that provide features such as budgeting, expense tracking,
investment management, and online banking.

As technology advances, the future trends in digital financial tools are

expected to focus on enhancing security, improving user experience, and
incorporating artificial intelligence to offer personalized financial advice.

Advances In Artificial Intelligence And Machine Learning

 Artificial intelligence (ai) and machine learning (ml) are

revolutionizing the way digital financial tools operate.
 Ai algorithms and ml models are being used to analyze large amounts
of financial data and provide personalized recommendations to users.
  These advancements enhance the accuracy and efficiency of financial
tools, making them more reliable and effective.
 Ai and ml are also enabling tools to detect and prevent financial fraud
by continuously improving their ability to identify suspicious patterns
and behaviors.
 By constantly learning from new data, these technologies can adapt
and evolve, ensuring users have access to the most up-to-date and
relevant information.

Integration Of Digital Financial Tools With Smart Devices

 With the proliferation of smart devices such as smartphones and

wearable gadgets, digital financial tools are being seamlessly
integrated into our daily lives.
 Users can now access their financial information, make transactions,
and manage their accounts directly from their smart devices,
providing convenience and flexibility.
 Integration with smart devices also means that tools can leverage
device-specific functionalities such as biometric authentication
(fingerprint or facial recognition) for secure and swift access.
 This integration enables users to stay connected to their financial
data and perform transactions anytime, anywhere, without the need
for a physical bank or computer.

Increasing Popularity Of Mobile Banking And Digital Wallets

 Mobile banking has witnessed a significant surge in popularity due to

the convenience it offers.
 Users can perform various banking activities on their mobile devices,
including checking balances, transferring funds, paying bills, and
even applying for loans.
 Digital wallets, on the other hand, provide a secure and efficient way
to store payment information and make transactions without the need
for physical cards or cash.
 The widespread adoption of mobile banking and digital wallets is
driven by factors such as increased internet penetration, improved
security measures, and the availability of user-friendly interfaces.
 As these tools continue to evolve, they are becoming an integral part
of modern banking experiences, giving users quick and seamless
access to their finances.

Overall, the future of digital financial tools looks promising, with

advancements in ai and ml driving increased accuracy and fraud
prevention. The integration of these tools with smart devices offers
convenience, and the popularity of mobile banking and digital wallets
highlights the growing digitization of financial transactions.

As these trends continue to evolve, users can expect more innovative and
user-friendly tools in the coming years.
 What does OTP mean?
One-time password (OTP) systems provide a mechanism
for logging on to a network or service using a unique
password that can only be used once, as the name
suggests.

What Is a QR Code? QR Code Meaning

A QR code is a machine-readable optical label that contains information.
It’s a barcode, basically. With a slight difference: it’s two-dimensional.
Read our How Do QR Codes Work? post for a more technical version.

A traditional, one-dimensional barcode (see below) is scanned by a narrow

beam of light. That beam of light comes from a specialized scanner. The
vertical bars in a one-dimensional barcode are where the information is
encoded. Specifically, in their widths and their distances from each other.
That’s why it’s called a one-dimensional barcode; scanners access the
information in one dimension, horizontally.

A traditional, one-dimensional bar code

But QR codes contain information accessible along two dimensions:

horizontal and vertical. A QR code is a square made up of patterns of
smaller squares. Information in a QR code is encoded by the arrangement
of these smaller squares. And, once scanned, it delivers information just
like other barcodes.
A QR code

That QR codes encode and provide information along two axes (up-and-
down and side-to-side) has numerous benefits. Speed is one of the most
impactful; in fact, QR codes were invented in 1994 primarily to increase
scanning speed. See our QR code vs barcode post for more information
between the two.

What Is a Unified Payments Interface (UPI)?

A Unified Payments Interface (UPI) is a smartphone application that allows
users to transfer money between bank accounts. It is a single-window
mobile payment system developed by the National Payments Corporation
of India (NPCI). It eliminates the need to enter bank details or other
sensitive information each time a customer initiates a transaction.

How Unified Payments Interface (UPI) Works

The Unified Payments Interface is a real-time payment system. It is
designed to enable peer-to-peer inter-bank transfers through a single two-
click factor authentication process. The interface is regulated by
the Reserve Bank of India (RBI) , India's central bank. It works
by transferring money between two bank accounts along with a mobile
platform.2
The system is said to be a safe and secure method of transferring money
between two parties and eliminates the need to transact with physical cash
or through a bank. The pilot system was launched in India on April 11,
2016. Banks across the country started to upload their interface in Aug.
2016.1

UPI uses existing systems, such as Immediate Payment Service (IMPS)

and Aadhaar Enabled Payment System (AEPS), to ensure seamless
settlement across accounts. It facilitates push (pay) and pull (receive)
transactions and even works for over-the-counter or barcode payments, as
well as for multiple recurring payments such as utility bills, school fees,
and other subscriptions.

AADHAAR ENABLED PAYMENT

SYSTEM (AEPS)
AEPS is a bank led model which allows online interoperable financial
transaction at PoS (Point of Sale / Micro ATM) through the Business
Correspondent (BC)/Bank Mitra of any bank using the Aadhaar
authentication.
How to get it:
 Provide KYC (Know Your Customer) information to open a new
account

 Aadhaar Number should be linked with bank a/c

Service Activation:
 None

 1-2 minutes post Aadhaar seeding

What is required for Transaction:

 MicroATM

 Remember Aadhaar

 Give Bank name

 Present self (Aadhaar holder) with Bio-metrics (Finger and/or

IRIS)
  Assisted mode

adhaar enabled payment system or the AePS is a bank-led payment

model that allows all Aadhaar card holders to make monetary
transactions at micro automated teller machines (ATMs)or point of
sale (POS) using a unique identification number (UID).

The National Payment Corporation of India (NPCI) took this initiative to

promote cashless transactions in India. Their main aim was to
authorize people from all sections of the society to access financial
and banking services via Aadhaar. The AePS allows users to transfer
funds, deposit cash, withdraw money, check account balance, among
other features.

Here’s a deep dive into how the AePS works.

What is AePS?

Aimed at empowering people to carry out banking and financial

services like fund transfers, cash withdrawals, mini statements,
balance inquiries, etc through a business correspondent, the Reserve
Bank of India (RBI) and the Government of India to go cashless in
retail payments by enabling Aadhaar-originated interbank
transactions through centralized switching and clearing organizations.

To simplify payments of government schemes like social security

pension, handicapped old age pension, National Rural Employment
Guarantee Act (NREGA), etc. for any State or Central government
bodies using Aadhaar, AePS is put to use.
USSD (Unstructured
Supplementary Service Data)
USSD (Unstructured Supplementary Service Data) is a Global System for
Mobile Communications (GSM) protocol that is used to send text messages.
USSD is similar to Short Message Service (SMS).

USSD uses codes made up of the characters that are available on a mobile
phone. A USSD message, which can be up to 182 characters long,
establishes a real-time communication session between the phone and
another device -- typically, a network or server.

USSD can be used for Wireless Application Protocol (WAP) browsing, mobile
money services, prepaid callback service, menu-based information services
and location-based content services.

With USSD, users interact directly from their mobile phones by making
selections from various menus. Unlike an SMS message, during a USSD
session, a USSD message creates a real-time connection. This means USSD
enables two-way communication of information, as long as the communication
line stays open. As such, queries and answers are nearly instantaneous.

How USSD works

Typically, USSD involves a query from a mobile phone user, such as a request for a
bank account balance. Once the user sends the request, the USSD gateway forwards it
to the user's USSD application, which responds to the request.

The process is then repeated in reverse, i.e., the response goes back to the USSD
gateway, which displays the content of that response on the screen of the user's mobile
phone. Generally, the responses, which contain a maximum of 182 alphanumeric
characters, are sent in a format that's easy to display. The user sends and receives data
by dialing a specific short code -- usually, five numbers.
USSD applications run on the network, not on a user's device. As such, they don't
have to be installed on the user's phone, which is an advantage for users with feature
phones that have limited storage space. USSD apps are instantly available to every
subscriber the moment they're deployed to a network.

How USSD is used

USSD is used for several purposes, including the following:

 Mobile banking. Unlike banking apps that need internet access and
smartphone functionality, USSD banking can work on any mobile device,
including feature phones.

 Network configuration and requests. USSD is used to configure a user's

mobile device on the network. It also provides a menu of service options a
user can choose from for such things as buying airtime or requesting
account balances.

 Customer update requests. USSD can integrate with enterprise resource

planning (ERP) and customer relationship management (CRM) systems to
request updated customer information. This enables better customer
service and data accuracy.

 Marketing surveys. USSD can be used for mobile marketing. For example,
organizations can send basic marketing surveys that users can respond to
immediately, enabling companies to get customer feedback in real time.

 Callback services. Service organizations, such as insurance providers and

financial services companies, can use USSD to determine customers'
interests by enabling them to request callbacks after they present their
offers.
What Is a Debit Card?
A debit card is a payment card that deducts money directly from your
checking account. Also called “check cards” or "bank cards," debit cards
can be used to buy goods or services or to get cash from an ATM. Debit
cards can help you reduce the need to carry cash, although using these
cards can sometimes entail fees.