ELECTRONIC PAYMENT SYSTEM FOR STUDENTS IN TERTIARY INSTITUTION

BY

OPIGO, JOSEPH IZIBEKUME

U2019/5570053

DEPARTMENT OF COMPUTER SCIENCE, FACULTY OF SCIENCE

UNIVERSITY OFPORT HSRCOURT

PROJECT SUPERVISOR: PROF. EKE BARTHOLOMEW

NOVEMBER 2024
 DECLARATION

I OPIGO, JOSEPH IZIBEKUME with matriculation number U2019/5570053 declare that the

work in this thesis on ELECTRONIC PAYMENT SYSTEM FOR STUDENTS IN

TERTIARY INSTITUTION was carried out by me; that it is my original work and that it has

not been submitted wholly or part for the award of a degree in any institution.

CHUKWU EMMANUEL CHUKWUEBUKA: Signature/Date: …………………….

CONFIRMATION BY SUPERVISOR Signature/Date:………………………

Prof. Eke Bartholomew

 CERTIFICATION

This is to certify that I, OPIGO, JOSEPH IZIBEKUME with matriculation number

U2019/5570053 carried out work in partial fulfillment for award of Bachelor of Science Degree
(B.Sc) in the Department of Computer Science, Faculty of Science, University of Port Harcourt.

Prof. Eke Bartholomew ………………….. ……………………

Project supervisor Signature Date

Dr. Ugochi Okengwu …………………… ……………………..

Head of Department Signature Date

Prof C. N. Ehirim …………………… ……………………..

Dean, Faculty of Science Signature Date

………………………….. …………………… ……………………..

External Supervisor Signature Date

 TABLE OF CONTENTS

Title Page i

Declaration ii

Certification iii

Dedication iv

Acknowledgements v

Abstract

CHAPTER ONE

INTRODUCTION

1.1 Background to the study 1

1.2 Statement of problem 3

1.3 Aim and Objectives 4

1.4 Significance of the study 4

1.5 Scope of Study 5

1.6 Limitation of study 5

1.7 Definition of terms 6

CHAPTER TWO

LITERATURE REVIEW

2.1. E- Payments 10

2.1.1. Innovations In E- Payments 11

2.2. Benefits Of Electronic Payment Systems 12

2.2.1. Electronic Payment Systems Promotes Financial Inclusion 12

2.3. Concepts Of Electronic Payment System In Nigeria 14

2.4 History Of Electronic Commerce 15

2.5 Types Of Payment System 16

2.6. Challenges Of Electronic Payment System 20

2.7 Electronic Payment Systems For Students In Educational Institutions 22

2.8 Types Of Electronic System Customer Service 24

2.9. Review Of Related Work 31

CHAPTER THREE

MATERIALS AND METHODS

3.1 Analysis 33

3.1.1 Methodology 33

3.2 Analysis of the existi1ng system 34

3.3 Problems and weaknesses of the existing system 34

3.4 Analysis of the proposed system 37

3.4.1 Advantages of the proposed system 37

3.5 Design of proposed system 38

3.5.1 Methodology of proposed system 39

3.5.2 Flowchart of proposed system 39

3.5.3 Use case diagram of proposed system 42

3.5.4 Database structure of the proposed system 42

3.5.5 Architecture of proposed system 43

CHAPTER FOUR

RESULTS AND DISCUSSION

4.1 Hardware requirement 46

4.2 Software requirement 47

4.3 Output 48

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 Summary 50

5.2 Conclusion 51

5.3 Recommendations 52

REFERENCES

APPEDIX A: SOURCE CODE

APPENDIX B: SCREENSHOOT OF OUTPUT

 DEDICATION

This project work is dedicated to God Almighty for His grace and love upon me, who by His

infinite mercy saw me throughout this research work.

 ACKNOWLEDGEMENT

I want to acknowledge the grace of God for granting me the strength, resilience, and inspiration

needed to see this project to fruition. To Him be all glory and honor.

I would like to express my deepest gratitude to my project supervisor, Prof. Eke Bartholomew,

for his invaluable guidance, expertise, and encouragement throughout this project. His insightful

feedback and dedicated support have been instrumental in the successful completion of this

work.

I extend my appreciation to the Department of Computer Science, University of Port Harcourt,

for providing the resources and a conducive learning environment that enabled me to conduct

this research. My sincere thanks also go to Dr. Ugochi Okengwu and Prof. C. N. Ehirim for

their administrative support and for laying a solid academic foundation that has been crucial to

my growth as a student and researcher.

Finally, I am grateful to my family and friends for their unwavering support, patience, and

encouragement, especially during the challenging moments of this project. Their faith in me has

been a continuous source of motivation.

 ABSTRACT

This project presents the design and implementation of an Electronic Payment System for
Students in Tertiary Institutions. The system aims to streamline student payments by providing a
digital platform for transactions, enhancing the efficiency and security of handling fees, and
reducing reliance on physical cash. As Nigerian tertiary institutions encounter various challenges
with cash-based transactions—such as theft, inconvenience, and counterfeit risks—the proposed
system offers a cashless solution that minimizes these risks. Key features include an electronic
wallet, real-time transaction monitoring, multiple payment options, and automated notifications.
Through this system, students can seamlessly pay for books, fees, and services, while the
institution can maintain accurate, efficient financial records. This project was developed using
HTML, CSS, JavaScript, and server-side languages such as PHP. The database was managed
with MySQL to store and process user information, transaction data, and account balances. By
leveraging a web-based architecture, the system ensures accessibility and security for users,
contributing significantly to the adoption of cashless transactions in the academic environment.
 CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND TO THE STUDY

The payment system is an operational network governed by laws, rules and standards that links

users and provides the functionality of monetary exchange using acceptable medium of exchange

(Okifo and Igbunu, 2015). The payment system is the infrastructure consisting of institutions,

instruments, rules, procedures, standards and technical means established to effect the transfer of

monetary value between parties discharging mutual obligations. Its technical efficiency

determines the efficiency with which transaction money is used in the economy and risk

associated with its use (Biago and Massimo, 2001).

Payment systems may be physical or electronic and each has its own procedures and protocols.

Standardization has allowed some of these systems and networks to grow at global scale, but

there are still many countries and product- specific systems. Examples of payment systems that

have become globally available are credit card and automated teller machine networks. Specific

forms of payment systems are also used to settle financial transactions for products in the equity

markets, bond markets, currency markets, futures markets, derivatives, option markets and to

transfer fund between financial institutions both domestically using clearing and Real Time

Gross Settlement (RTGS) Systems and internationally using the SWIFT network. In recent time

the entrance of Bitcoin since 2010 have introduced the blockchain electronic cash system as

another mode of electronic payment (Nakamoto, 2009).

Payment system uses near-money valuables such as negotiable bills, including money orders

(cheques) and documentary credits (including letters of credit) are traditional payment

mechanisms. The development of computers and electronic communications has made different

electronic payment systems to evolve. Some of the dominant payment systems are credit cards,

direct debit, debit cards, direct credit, electronic money transfers, online banking, and online

payment systems. Over time, the Internet has become the most active commercial intermediary.

In addition, by allowing consumers to sit at home and purchase diverse items (services)from the

world over, Internet shopping can transform the retail business.

Many businesses and consumers remain cautious about conducting extensive business

electronically. However, in the near future, almost everyone will use e-commerce forms of

payment (Leong, 2010).

It is envisaged that in the next decade, more and more countries will adopt cash-less policy

towards exchange of funds. Nigeria is implementing a level of electronic payment systems

already but due to inadequate infrastructural facility a lot of limitation still exist. (Asaolu,

Ayoola, and Akinkoye, 2011). Nigerians are embracing the electronic payment system in place

of cash transactions following the cashless pilot program in Lagos, which was tested on April 1,

2012; to the 2021-2022 Central Bank Cashless policy show adoption and challenges. The policy

created several discomfort since deposit money banks failed to provide enough financial

education to their customers and make provision for the unbanked members in the country. The

volume of cash transactions has not decreased drastically, it is in lieu of this that this Project set

on conducting intensive research on the provision of an Electronic Payment System to be utilized

within a small knit selected community so as to showcase and highlight the advantages of

implementing cash-less policies in the country. Through the expected success of this program, it
is expected that the results of this research can be utilized in a national level by the

implementation of the cash-less policy in the country considering the unbanked population.

The campus of a tertiary institution is a beehive of cash based transactions as various items and

services are being exchanged for money every day while the institution is in session, hence

making it a suitable choice for the implantation of this project research.

1.2 STATEMENT OF THE PROBLEMS

Purchase of books, items, services, and the payment of various fees by students in tertiary

institutions in Nigeria require the use of physical cash. This widely utilized method of payment

has a number of setbacks, which are outlined below.

Cash Theft: There is always the likelihood that the money carried about on the campus can be

stolen. Indeed, the existence of cash on the campus often induces mischievously inclined

individuals to commit theft.

Cash Misplacement: Through carelessness or by accident, there exists the possibility of

unknowingly loosing cash. This often leaves the victim stranded.

Bulk Size Inconvenience: When many items are to be paid for or an expensive item is to be

purchased on the campus, this usually involves the carriage and movement of bulky sized sums

of money, which often causes inconveniences to the purchaser

Money Mutilation: Notes are exchanged time and time again, passing through thousands of

hands. In the process, most of these notes get damaged over time and reach a point where they

are no longer acceptable from the fee collectors and merchants offering products or services.
Counterfeit Notes: When dealing with cash, there is always the risk of unknowingly receiving

or collecting fake currency notes.

Transaction Processing: Making transactions with cash often involves paperwork on the part of

the merchants or fee collectors, especially if they have to deal with large throngs of individuals

per day. Counting the money made at the end of each day and checking the amount against

records can be time consuming and the arduous process often prone to manual calculation errors.

1.3 AIM AND OBJECTIVES OF THE STUDY

The aim of this study is to design and implement an Electronic Payment System for students.

1. Design a cash-less system that will enable transactions to be carried out via the internet.

2. Implement the system using programming language (HTML, CSS, JavaScript)

1.4 SIGNIFICANCE OF THE STUDY

A successful implementation of this study will eliminate or (at least reduce) the difficulty

experienced in paying for services and books by students on their campuses and by extension for

payment in Nigeria. Traders who are unbanked will reap huge benefits from using the new

system as it will automate the management of trading records and may not require the ownership

of a banking account to participate in it.

1.5 SCOPE OF RESEARCH

In this research work, emphasis is laid on providing a payment processing mechanism for tertiary

institutions. This will be achieved through the design and implementation of an Online

Electronic Payment System that will be used to:

1. Authenticate registered users.

2. Allow students to to create accounts to buy books and pay for services.

3. Use of an electronic wallet system to enable users load cash to the system.

4. Enable students to make search for products online

1.6 LIMITATIONS OF RESEARCH

The course of the study will be affected by the following factors which may limit the research.

They are:

i. Limited Budget: owing to a limited budget, the high costs of getting some materials

needed for this research may pose a setback.

ii. Time Constraint: The short time frame required to submit the research work will also

pose some challenges.

iii. Lack of Materials: The school library may not be able to have all of the sources such as

journals and other related documents needed to carry out the research.
1.7 DEFINITION OF TERMS

Hypertext Markup Language (HTML):HTML is the primary markup language for web pages.

HTML elements are the rudimentary building blocks of a web page.HTML element includes tags

enclosed in square brackets (such as <html>), in the content of a web page.

PHP: PHP Hypertext Preprocessor is an all-purpose server-side scripting language, which is

designed for creating dynamic web pages.

MySQL: MySQL is the most popularly used relational database management system (RDBMS),

it acts as a server and provides multi-user access to multiple databases. It is named after My, the

daughter of developer Michael Widenius. The acronyms SQL stands for Structured Query

Language.

Intranet An “Internet” and the computers and services available on that network whose access is

limited to a particular company or organization. If connected to the Internet, it is usually through

a firewall.

IP Address - (Internet Protocol) the number or name of the computer from which you send and

receive information on the Internet.

Internet Protocol (IP) The protocol that provides for the passing of packets of data between

LANs, forming an inter-network of LANs known as an Internet.

ITSO International Technical Support Organization. Java An object-oriented programming

language for portable interpretive code that supports interaction among remote objects. Java was

developed and specified by Sun Microsystems, Incorporated. - a computer language, developed

by Sun Microsystems, that lets you encode applications, such as animated objects or computer

programs, on the Internet.

Java Virtual Machine (JVM) The part of the Java environment that is responsible for

interpreting the Java codes. Local Area Network (LAN) A network that allows a number of

computers to transmit data between each other directly, usually between any pair of computers

but occasionally from one computer to all others on the local network.

Instant Messaging (IM) - a text-based computer conference over the Internet between two or

more people who must be online at the same time. When you send an IM the receiver is instantly

notified that she/he has a message.

HyperText Transfer Protocol (HTTP) The protocol that defines how a Web client interacts

with a Web server, requesting and receiving Web pages. The hypertext transfer protocol (http)

that enables html documents to be read on the Internet.

HTTP server A server that “serves” Web pages to client browsers over HTTP. .gif - (graphic

interchange format) the usual format for a graphic that is not a photo. Animated gif files are

embedded with coding that creates movement when the graphic is activated. See more graphics

formats.

Home page - Generally the first page retrieved when accessing a Web site. Usually a "home"

page acts as the starting point for a user to access information on the site. The "home" page

usually has some type of table of contents for the rest of the site information or other materials.

When creating Web pages, the "home" page has the filename "index.html," which is the default

name. The "index" page automatically opens up as the "home" page.

Cryptography The transformation of data to conceal its information content, prevents its

undetected modification, or prevents its unauthorized use.

Cyber culture - "a collection of cultures and cultural products that exist on and/or are made

possible by the Internet, along with the stories told about these cultures and cultural products."

David Silver, "Introducing Cyber culture," Resource Center for Cyber culture Studies:

http://www.com.washington.edu/rccs/.

Active Server Pages A dynamic Web page, with the extension .ASP, created with Visual Basic

Script or JavaScript. It displays information as a part of the HTML.

Application Programming Interface (API) A predefined set of program subroutine calls that

allows one program to communicate with another without either knowing how the other does its

job.

CGI (Common Gateway Interface script) - a specification for transferring information between a

Web server and a CGI program, designed to receive and and return data. The script can use a

variety of languages such as C, Perl, Java, or Visual Basic. Many html pages that contain forms

use a CGI program to process the data submitted by users/clients.

Enterprise JavaBeans (EJB) A specification of Sun Microsystems, Incorporated, that is part of

the Web Sphere Application Server Advanced Edition. EJB support allows your application to

include sophisticated business components that run on your server. These components may

include business logic with automatic distributed transactions and persistence to a relational

database.
Hyperlink - Text, images, graphics that, when clicked with a mouse (or activated by keystrokes)

will connect the user to a new Web site. The link is usually obvious, such as underlined text or a

"button" of some type, but not always.

Lightweight Directory Access Protocol (LDAP) A network service protocol that allows simple

directory-type information (such as names and addresses) to be looked up in an easy and

efficient manner.
 CHAPTER TWO

LITERATURE REVIEW

2.1 E-PAYMENT

Electronic payment systems are financial services delivered over digital infrastructure platform

including mobile and internet with low use of cash and traditional bank branches. Mobile phone,

computers, or cards used over point-of-sale (POS) devices connect individuals and business to a

digitized national payment infrastructure, enabling seamless transactions across all channels

(Zwingina, Onoh, & Chukwu, 2023).

Electronic payment systems services are vital to the public as it boosts security for their cash and

it’s more convenient compared to keeping money at home traveling with the money. However,

the provision of electronic payment systems involves the participation of different players such

as banks/financial institutions, mobile network operators, financial technology providers,

regulators, agents, chains of retailers and clients. Electronic payment systems mechanisms also

need improvement of infrastructures to make the services user-friendly, secure, and cost effective

manner. Electronic payment systems services provide the means to overcome obstacles

associated with payments and other financial transactions executed outside the banking hall

through electronic platforms, and can contribute to national economic growth and financial

inclusion. (Buckley & Malady, 2015).

The goal of financial services made available via digital platforms is to contribute to poverty

reduction and to contribute to the financial inclusion objectives of developing economies (United

Nations, 2016). Ideally, there are three key components of any digital financial service: a digital
transactional platform, retail agents, and the use by customers and agents of a device – most

commonly a mobile phone – to transact via the digital platform (CGAP, 2015). To use digital

financial services (DFS), the DFS user will have an existing bank account which they own (or

third-party accounts with approved permission to use them) and should have available funds (or

overdraft) in their accounts to make cash payments (outflows) or to receive revenue (cash

inflow) via digital platforms including mobile devices, personal computers or the internet.

2.1.1. INNOVATIONS IN E- PAYMENTS

There have been four major innovations in digital payments.

i. Wrappers create a digital interface with traditional payment systems such as credit cards

or bank accounts. Many are offered by nontraditional providers, including internet

intermediaries such as Google Wallet and Apple Pay.

ii. Mobile money systems store money in the national currency as credit on smart cards or a

system provider’s books, and enable payments online or through mobile phones. A well-

known example is M-Pesa, run by Safaricom. These systems can offer lower fees and

easier use than traditional payment systems, even for those without a bank account.

iii. Credits and local digital currencies are alternative units of account (not in national

currency) designed to promote spending in a local economy or as a means of exchange in

computer games.

iv. Digital currencies are both a new decentralized payment scheme and a new currency.

Such schemes record transactions in a publicly visible ledger. Most digital currencies,

including Bitcoin, are cryptocurrencies because they use cryptographic techniques to

 ensure secure validation of transactions. (Bank of England 2018; https://blockchain.info;

company reports).

2.2. BENEFITS OF ELECTRONIC PAYMENT SYSTEMS

2.2.1. ELECTRONIC PAYMENT SYSTEMS PROMOTES FINANCIAL INCLUSION

More than 2 billion people have no access to any financial services. Overall, only about 59

percent of men and 50 percent of women in developing countries have an account at a regulated

financial institution. Women, the poor and small businesses often rely on informal financial

services, even when they receive public transfers or remittances.

a. Electronic payment systems help overcome barriers to accessing financial services.

Mobile money schemes, in particular, allow people who own a phone but do not have a

bank account to make and receive payments. In the right environment, these systems can

take off and reach massive size rapidly.

b. Digital payments can reduce costs to recipients. For instance, farmers in Niger realized

time savings for each payment equivalent to an amount that would feed a family of five

for a week. Digital payments increase control, since senders of remittances can have a

greater influence on how recipients use the money, including for savings.

c. Electronic payment systems can increase the incentive to save, through automatic

deposits, text reminders, or default options. Texted reminders increased savings in

Bolivia, Peru, and the Philippines by up to 16 percent.

d. Digital payments improve risk management by making it easier to receive support from

social networks that can act as safety nets. M-Pesa users were better able to absorb

income shocks compared to nonusers.

 e. Electronic payment systems speed up delivery, which is especially important in case of

emergencies such as natural disasters. And they increase security compared to traveling

with large amounts of cash, as is commonly necessary in low- and middle-income

countries. (World Bank Various years. Findex database).

Electronic payment for online transactions is made easier with an ecommerce payment system.

The Electronic Data Interchange (EDI) sample is also well known, due to the widespread use of

internet shopping and banking e-commerce payment systems becoming more and more famous

(Landon & Traver, 2003).

Many different electronic charge structures have arisen as a result of the development of

computer systems and electronic communications. They include debit cards, credit scorecards,

wire transfers, direct debit cards, e-commerce. There is a savings mechanism in some fee

systems, but that really is any other payment aspect. In home and world transactions, payment

systems are utilized in the area of cash auctions and involve key bank and other economic

organizations’ services (Turban et al., 2008). Payment systems, each with their own methods and

procedures, might be physical or electronic. Some of these systems and networks have grown

globally in standardization, but still have a number of countries and distinct product systems. A

credit card and an automated director network is an example of a global payment system. Certain

forms of payment systems are used for transfers of cash locally using Real Time Gross

Settlement system (RTGS) and SWIFT networks worldwide, including the stock market, bond

markets, currency markets, future markets, derivatives markets, option markets, and financial

institutions platforms. It is also used to resolve financial transactions between financial

organisations for transferring payments. The system of payments is crucial to a modern monetary

system thanks to the FIAT monetary support with government bonds (Turban et al, 2008).
The word "electronic payment" can refer to any sort of electronic cash transmission, or it can

refer to e-commerce payments to buy and sell goods or services offered over the internet (Turban

et al, 2008).

This chapter will seek to cover reviews of the literature on various aspects of electronic

payments as we gain a better understanding of similar past and ongoing real-world applications.

2.3. CONCEPTS OF ELECTRONIC PAYMENT SYSTEM IN NIGERIA

The use of internet has brought about an increase in e-payments with a wide variety of new

secure network payment schemes such that consumers can buy goods online and make payment

with credit or debit cards (Kumaga 2010). Electronic payments as argued by Taddesse & Kidan

(2005) have a significant number of economic benefits apart from their convenience and safety.

These benefits when maximized can go a long way in contributing immensely to economic

development of a nation. According to them, efficient, safe and convenient electronic payments

come with significant range of macroeconomic benefits. The impact of introducing electronic

payments is akin to using the gears on a bicycle; add an efficient electronic payments system to

an economy, and you kick it into a higher gear; add better controlled consumer and business

credit, and you notch up economic velocity even further (Taddesse & Kidan, 2005). Electronic

payment systems can help displace shadow economies, bring hidden transactions into the

banking system and increase transparency, confidence and participation in the financial system.

Worku (2010) emphasized the fact that electronic payment lowers costs for businesses. The more

payments that is processed electronically, the less money is spent on paper and postage. Offering

electronic payment can also help businesses improve customer retention.

2.4 HISTORY OF ELECTRONIC COMMERCE

E-commerce was originally defined as the electronic facilitation of economic transactions using

technologies such as Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT).

These two technologies were introduced in the late 1970s and allowed companies to exchange

business documents such as purchase orders and invoices electronically.In the 1980s, electronic

commerce included the expansion and acceptance of credit cards, automated teller machines

(ATMs), and telephone banking. The airline reservation system, epitomised by Sabre in the

United States and Travicom in the United Kingdom, was another form of e-commerce (Kelly,

2005).

E-commerce would expand to include other enterprise resource planning (ERP) systems, data

mining, and data warehousing in the 1990s. Tim Berners-Lee designed the World Wide Web

browser (WWW) in 1990, transforming the university's telecommunications network into the

Internet, a daily communication system for people around the world. Until 1995, the NSF

prohibited Internet commerce (Abijit &Kuilboer 2002). Although the Mosaic web browser made

the Internet prevalent in the world in 1994, it took another 5 years for DSL and secure protocols

to be introduced, allowing constant Internet access. Many European and American trading

companies offered their services via the World Wide Web in the late 2000s. Since then,

‘electronic commerce’ has evolved to refer to the ability to purchase goods over the Internet

through secure transactions and electronic payment services.

The last ten years, according to Knapp (2010), have been a watershed moment in the history of

Internet commerce. While Internet shopping has grown in popularity in recent years, it has not

always been the case. Since 1989 and 1990, when the World Wide Web first became popular, e-
commerce has grown rapidly. Knapp (2010) further lists more important references from this

period below:

1. Online Banking: In addition to the invention of the Internet itself, the second major

milestone in the history of online shopping is online banking. It was created and

developed in 1994 to conduct online transactions.

2. The Unlikely Frontrunner: Pizza Hut was the first online retailer. They were the first

pizza chain to offer online ordering or home delivery during a pilot phase in Santa Cruz,

California in 1994. All locations were selected in 2007.

3. Amazon’s Entrance: In 1995, Amazon opened as an online bookstore. When the

company realized that the demand for other products was also high, it expanded its

business scope and provided more product choices.

4. The First eBay Auction: The online auction site eBay was founded in 1995 and quickly

became popular. To date, Amazon and eBay are the largest online retailers.

5. The Explosion: Today, most physical stores have online stores. With faster connectivity

and better technology, the online shopping industry can grow and become popular. Many

people prefer to shop online rather than going to a store to compare prices and find

convenient opportunities.

2.5 TYPES OF PAYMENT SYSTEM

For Internet merchants, there are a variety of payment options. Traditional credit, debit, and

payment cards, as well as innovative technologies like digital wallets, online cash, mobile

payments, and e-checks, are among them (Turban et al., 2008).

End to End processing: Here, all the processes from approvals to the receipt of value by the

beneficiary are done electronically;

Manual e-payment or use of Mandate: It is the mixture of manual and electronic process

where the available infrastructures cannot support the end-to-end processing.

Credit Card: A credit card is a small plastic card used to make purchases. It allows owners to

purchase goods and services based on a commitment to pay for them. The card issuer sets up a

revolving account and provides the consumer (or user) with a line of credit from which the user

can borrow money to pay the merchant or receive an advance. A debit card differs from a credit

card in that the balance of the payment card must be paid in full each month. Credit cards, on the

other hand, allow the customer to hold an interest-bearing balance. A credit card differs from a

payment card in that the cardholder can use it as a currency. Most credit cards are issued by

banks or credit unions and follow ISO/IEC 7810's ID-1 shape and size specifications. The

dimensions of this size are 85.60 x 53.98 mm (33/8 x 21/8 inches) (Gary, 2010).

Debit Card: A debit card (or bankcard or checking card) is a plastic card that allows the

cardholder to access their bank account(s) at a financial institution using electronic means. Some

cards include a stored value that can be used to make payments, whereas the majority sends

notifications to the cardholder's bank instructing them to withdraw money from a designated

account in favour of the cardholder's specific bank account. Cards can be used to make purchases

instead of cash. In some circumstances, the primary account number is designated just for

Internet use, and no physical card is issued (Martin, 2010).

Debit cards have become so widespread in several nations that they have eclipsed or totally

replaced checks and, in certain situations, cash transactions. Unlike credit cards, debit cards were
developed on a country-by-country basis, resulting in a plethora of various systems all over the

world, many of which are incompatible. Since the mid-2000s, a number of initiatives have made

it possible to use debit cards issued in one nation in another, as well as to use them for online and

telephone payments.

Digital Wallet: Users can execute e-commerce transactions swiftly and securely using a digital

wallet (or an e-wallet). A digital wallet works similarly to a physical wallet. Digital wallets were

originally intended to be a means of keeping various types of currency (crypto currency), but due

to the lack of popularity of these crypto services, they have evolved into a service that allows

Internet users to store and use online shopping information. The phrase "digital wallet" is

increasingly being used to characterize mobile phones, particularly smartphones that store

personal information and conduct financial transactions using wireless technology such as near-

field communication (NFC) (PC World).

Digital wallets are frequently connected to personal bank accounts. A driver's license,

health card, loyalty card (s), and other forms of identity may also be stored on the phone. Using

NFC, the credentials can be wirelessly sent to the merchant terminal. According to some sources,

mobile smartphone wallets will someday supplant traditional wallets. In Japan, where digital

wallets are known as "Osaifu-Keitai" or "wallet mobiles," this approach has gained traction.

Electronic money (e-money) Electronic money (sometimes referred to as electronic currency,

electronic cash, digital money, digital currency, and cyber money) is money that can only be

exchanged electronically. Computer networks, the Internet, and digitally stored value systems are

commonly used in this process. Electronic currencies include electronic funds transfer (EFT),
direct deposit, digital gold, and virtual currencies. It is also a catch-all term for financial

cryptography and the technologies that make it possible (Good, 2000).

While electronic currencies are an intriguing issue for crypto (see, for example, David Chaum

and Markus Jakobsson's work), their use has been limited thus far. The Hong Kong Octopus card

system, which began as a public transportation payment system and has since evolved into a

widely utilized electronic money system, is a rare success. The Oyster Card system of the

London Transport Company is essentially a prepaid contactless transit card.

Mobile Payment: Mobile payment, also known as mobile money, mobile banking, mobile

money transfer, and mobile wallet, refers to payment services carried out using mobile devices in

line with financial standards. Financial institutions and credit card businesses, as well as Internet

corporations have implemented mobile payment solutions and mobile network operators like

Google, and significant telecoms and mobile phone infrastructure multinational companies like

Ericsson (Feig, 2007).

Mobile payment is another payment method. Consumers do not need to use cash, checks or

credit cards to pay, but can use mobile phones to pay for various digital or physical goods and

services, such as:

1. Music, videos, ringtones, online game subscriptions or articles, wallpapers and other

digital goods.

2. Transportation fees (bus, metro or train), parking meters and other services.

3. Books, magazines, tickets, and other essentials.

2.6. CHALLENGES OF ELECTRONIC PAYMENT SYSTEM

Electronic payment system with its numerous benefits has its own challenges. Sumanjeet (2009)

listed the following as problems militating against e-payment even in the developed world:

1. Integrity: to ensure that transmitted financial information is unchanged in transit.

2. Non-Reputation: to ensure that all parties have non-deniable proof of receipt.

3. Confidentiality: to ensure that transactions are protected from possible eavesdroppers.

4. Reliability: to ensure that there is reduced possibility of failure.

5. Authorization: to ensure that individuals are recognized and granted the desired rights

and privileges.

The challenges are as follows:

i. Lack of Uniform Platform of Banks and MDAs: There is no compelling law

mandating the banks to use common software platform. Every bank is left to use

whatever platform that they felt will perform the e-payment services on behalf of the

clients. There is the problem of switches in effecting transfer from one bank to

another. Interconnectivity has been a problem. No uniformity of account numbers

since different banks different numbering systems. Happily enough, the Federal

Government according to Dankwambo (2009) through the Office of Accountant

General of the Federation will be rolling out a a common platform configuring soon.

ii. Lack of Adequate Infrastructure: The e-payment system is being partially

implemented. If it is to be fully implemented, a number of IT infrastructures will have

to be put in place. These include but not limited to laptop, desktop, scanners, good
 internet connectivity, training and global software. The provision of basic Information

Technology infrastructures according to Ovia (2002) is a major challenge.

iii. Platform Security: Atanbasi (2010) pointed out that the major challenges of e-

payment in the country are security. Security in terms of platform, hackers and virus

attacks. This will ensure that output from the system are reliable and accurate. The

MDAs still carry their schedule(s) to the banks with compact disks (CDs), flash

drives or e-mail attachments.

iv. Lack of Seriousness by Banks: While a number of banks have deployed the

necessary infrastructure in place to ensure effective implementation, it is sad to note

that some banks are still not fully ready for this new payment regime.

Resistance to changes in technology among customers and staff due to:

i. Lack of awareness on the benefits of new technologies.

ii. Fear of risk.

iii. Lack of trained personnel in key organizations.

iv. Tendency to be content with the existing structures.

v. People are resistant to new payment mechanisms.

vi. Security. Where disclosed of private information, counterfeiting and illegal alteration of

payment data may be rampant (Daukwambo, 2009).

High rates of illiteracy:

Low literacy rate is a serious impediment for adoption of e-payments as it hinders the

accessibility of banking services. For citizens to fully enjoy the benefits of e-payments, they

should not only know how to read and write but also possess basic ICT literacy.
High cost of internet:

The cost of internet access relative to per capita income is a critical factor. Compared to

developed countries, there are higher costs of entry into the e-payments and e-commerce market.

These include high start-up investments costs, high costs of computers and telecommunication

and licensing requirements.

Frequent power interruption:

Lack of reliable power supply is a key challenge for smoothly running epayments and e-banking.

2.7 ELECTRONIC PAYMENT SYSTEMS FOR STUDENTS IN EDUCATIONAL

INSTITUTIONS

Here is a list of electronic payment systems used by various educational institutions around the

world.

a. Pay Schools: Pay Schools is an online payment processing system that provides schools

with a simple and efficient method to collect tuition and receive electronic payments for

school meals, field trips, and school trips. Tuition, registration, prom tickets, t-shirts and

any other tuition fees. Pay Schools allows all schools to offer parents the convenience of

online shopping without incurring significant setup or management costs. Parents access

Pay Schools through a link on the home page of their school district's website. They

choose the items they want to buy, then pay by credit card or e-check. Payments are

automatically processed and funds are transferred to the school's local bank account(s)

(PaySchools.com).
 b. School Payment Solutions: School Payment Solutions.com is an online payment

gateway specially designed to allow parents to make quick and easy online payments for

their child's school account (SchoolPaymentSolutions.com). The system allows parents to

quickly and easily manage their children's lunch accounts and other school accounts

(such as lab fees or book fees).

i. Pay by credit card.

ii. Check your child's account balance.

iii. See what your kids are eating.

iv. Receive account balance notifications

c. MyLunchMoney: MyLunchMoney.com is the Americas premier website for updating

and managing children's tuition fees (MyLunchMoney.com). You can access your

account online, send money conveniently and securely, and you can keep your school

time and family budget in mind. Other features include:

i. Regular payment methods.

ii. Email reminders for low balance.

iii. View student meal purchases.

iv. Set daily and weekly spending limits

All online transactions are processed using industry standard SSL encryption certified by

VeriSign.

2.8 TYPES OF ELECTRONIC SYSTEM CUSTOMER SERVICE

a. ICSS (Internet-based customer service systems)

 This is a network-based system (wired or wireless) that delivers service to a customer

either directly (e.g., a browser, PDA, or cell phone) or indirectly (e.g., via a service

representative or consultant). Examples of a direct access ICSS include using a browser

to select an airplane seat, downloading credit card transactions to a personal accounting

system, and receiving stock quotes on a PDA. An example of an independent ICSS is one

that accesses a knowledge management system to provide technical support to a

computer hardware customer.

b. Business to Business (B2B):

In this type of web base customer service, only the companies are doing business with

each other. Here, the final consumers are not involved. Therefore, the online transactions

that are carried out in a business to business ecommerce transaction involve parties like

the manufacturers, wholesalers, retailers etc. B2B e-commerce is simply the electronic

exchange of products, services or information between businesses rather than between

businesses and consumers as expected. Examples include companies such as Xero that

offers inbound marketing and sales and accounting software for small to medium

businesses or a construction materials company selling its products to architects and

interior designers. Business to business ecommerce is the largest form of ecommerce and

it requires high level of security in exchanging data.

c. Business to Customer (B2C):

Here, the business sells directly to customers. The customers can browse the website, see

reviews and order directly from the business. After the order, the good is shipped directly

to them (the customers). Some of the most popular business to customer websites are;

Amazon, Jumia and Konga. The businesses strive to reach individuals and not businesses
 as in business to business type. Various means are employed for this purpose like

newsletters, email list, instant messaging and the likes. Advertisers and content providers

can as well assist in the marketing process of ensuring that these businesses reach the

intended audiences using contents like digital news, photos, music, videos and even

artworks.

d. Customer to Customer (C2C):

For this model, the consumers are in direct contact with one another and they can buy or

sell freely without any middleman. This model enables the consumers to buy and sell

used goods like furniture, mobile phones or electrical appliances. Examples of websites

that use this model are: OLX and Jiji. Consumer to consumer ecommerce presents a

means for consumers to set their rules for the business transaction, they set their prices as

well and the buying party checks for themselves if the set prices and rules are favorable

before making a deal with the selling party. The consumer that’s selling prepares the

product to be sold and place it on sale on their own while the consumer that’s purchasing

chooses from the different displayed good s to be sold or uses the search engine to search

for what to be purchased and chooses from the returned results of the search like on

eBay.

e. Consumer to Business (C2B):

This model is the inverse of business to consumer because here, as the name implies, it’s

the consumers that sell to the business. Freelancers and businesses that buy from then are

a perfect example for this model of E- Commerce. Here, individuals (that is, consumers)

create value (could be goods or services) that businesses consume. A programmer for

instance can give his/her service and abilities to utilize and maintain the online resources
 of a system as a specialist in the programming field. A platform known as “fiver” works

on this model.

f. Business to administration:

Also known as business to government which usually involves exchange of data between

businesses and the government via the internet, an example is when a business wants to

advertise its product or service at the government level. Business to administration type

of ecommerce includes different services like legal documents, social security, fiscal

measures and the likes.

g. Consumer to administration:

Also known as consumer to government entails electronic transaction between

individuals (consumer) and the government. When an individual makes a request or a

query from the government, it works on the model of consumer to administration type of

ecommerce. It creates a way that is easy for communication between governments and

individuals. Examples include payment of health services, distance learning, information

dissemination and so on.

h. M-Commerce (mobile commerce)

Is the buying and selling of goods and services through wireless technology-i.e.,

handheld devices such as cellular telephones and personal digital assistants (PDAs). It

does not always require internet, such as mobile banking. It is also referred to as next

generation e-commerce. Japan is seen as a global leader in m-commerce. As content

delivery over wireless devices becomes faster, more secure, and scalable, some believe

that m-commerce will surpass wire line e-commerce as the method of choice for digital
 commerce transactions. Industries affected by m-commerce include: financial services,

telecommunications, service/retail, and information services.

I-Marketing: Throughout history, businesses have been faced with the fundamental problem of

identifying effective mediums to provide the marketplace with information about their identities

and their product and service offerings. In the direct marketplace, the producer presents

physically to perspective buyers available goods and services. Everything depends on the

closeness of availability and the personal relationship existing between buyer and seller at the

moment of exchange.

E-Commerce Storefront: While I-Marketing did provide garment companies with the capability

to open exciting new channels of communication with the marketplace, technologically savvy

executives soon realized that what was really needed was a way to perform transactions and

permit interactions between themselves and the consumer over the Internet. A new kind of

internet capability and a new kind of business model, the pure-play internet storefront designed

specifically to sell and service the marketplace online, emerged. Soon companies like

Amazon.com, e-Bay, and Priceline.com were offering Web-based storefronts that combined I-

Marketing on-line catalogues and advertising techniques with new technology tools such as

Web-site personalization, self- service, interactive shopping carts, bid boards, credit card

payment, and on-line communities that permitted actual on-line shopping. The new e-business

storefronts spawned a whole new set of e-application categories and included the following.

E-Tailing and Consumer Portals: These are the sites today's internet shopper normally

associates with web-based storefront commerce. The overall object of enterprises in this category
is to enable web-driven fixed-price transactions, centered on products and services aggregated

into catalogues and sold to aggregated groups of consumers.

Bidding and Auctioning: Sites in this category perform two possible functions. Some sell

products and services through auction-type bidding using bid boards, catalogue integration, and

chat rooms. Others, like eBay, ONSALE, and uBid perform the role of third-party cyber

mediaries who, for a service price, match buyers and sellers.

Consumer Care/Customer Management: These applications provide a wide range of customer

support processes and functions focused on enabling a close relationship- building experience

with the consumer. These applications include customer profile management, custom content

delivery, account management, information gathering, and interactive community building.

Electronic Bill Payment (EBP): These applications assist customers to maintain accounts and

pay bills electronically. For example, large garment companies such as Benetton have made

conscious efforts to move their billing on-line, while a number of smaller EBP dot-coms have

surfaced on the Web devoted to bill aggregating, payment, and personal finance management.

Typical EBP features include Internet banking, bill consolidation, payment processing, analysis,

reporting, and integration with biller accounting systems. For many in both the marketplace and

the investment community, this new brand of electronic business-to-consumer enterprise seemed

to offer a path to a whole new way of selling and servicing in what was being termed the 'new

economy." The advantages of the e-business storefront over traditional stores were obvious. A

single seller could construct a web storefront that could reach a global audience that was open for

business every day of the year, at any hour. By aggregating goods and deploying web- based

tools, this new brand of marketer could offer customers a dramatically new shopping experience
that combined the case of shopping via personal PC with nearness, capability for self-service,

access to a potentially enormous repository of products and services, and information far beyond

the capacities of traditional business models.

The goal of storefront e-commerce is nothing less than the reengineering of the traditional

transaction process by gathering and deploying all necessary resources to ensure that the

customer receives a complete solution to their needs and an unparalleled buying experience that

not only reduces the time and waste involved in the transaction process, but also generates

communities-of-interest and full service consumer processes, take for instance Amazon.com.,

whose goal is not just to sell products, but to create a shopping "brand" where customers can log-

on to shop for literally anything. In such a culture, the real value of the business is found in

owning the biggest customer base that contains not only their names and addresses but also their

buying behaviors, opinions, and desires to participate in communities of like consumers.

E-Business Marketplaces: In contrast, e-Business Marketplaces resemble traditional business

purchasing it is often a long-term, symbiotic, and relationship-based activity where collaboration

between stakeholders directed at gain sharing is critical. e-Business Marketplaces can be divided

into three separate types. The selection of a type depends on the overall strategy of the business

and how it wants to compete in the marketplace.

Independent Trading Exchanges (ITXs): ITXs can be defined as many-to-many marketplace,

composed of buyers and sellers networked through an independent intermediary. Successful

ITXs today operate in industry marketplaces that are highly fragmented and have a considerable

level of product or service complexity. In this context, complexity is defined as requirements for
special user needs, time-sensitive products, geographical limitations, volatile market conditions,

and non-standardized manufacturing or channel delivery processes.

ITXs can essentially be divided into two types. The first, independent vertical exchanges, attempt

to facilitate trade in order to make a vertical industry more efficient.

ITXs in this group address industry-specific issues and provide industry-specific applications,

services, and expertise without significant investment from existing industry players. The second

type of ITX has been termed independent horizontal exchanges. ITXs in this group facilitate

procurement economies, products, and services to support business process that are common

across multiple industries. ITXs are primarily used for managing spot buys, disposing of excess

and obsolete inventory, and procuring non- critical goods and services, Latham, Scott, (2000).

ITXs are operated by a neutral third party, which utilizes strong industry and domain expertise to

manage relationships and vertical-specific processes. Their business plan is remarkably simple.

ITXs offer a neutral site where purchasers and suppliers can buy and sell goods and services. In

turn, the ITX operators collect user fees, or transaction commissions for their web development,

promotion, and maintenance efforts. According to Harbin, Joan (2001). ITXs provide four major

levels of functionality.

a. Information: Perhaps the major function of ITXs is their ability to provide special

assistance to industry verticals by leveraging a high level of industry expertise and

information in the form of specialized industry directories, product databases and

catalogs, discussion forms and billboards, and professional development.

b. Facilitation: On this level, ITXs facilitate the matching of specific needs of buyers with

the capabilities of suppliers, typically through an auction or chat room. The actual

transaction is normally completed offline.

c. Transaction: Besides matching buyers and sellers, ITXs on this level can conduct the

transaction on-line. The ITX often takes title of the goods and corresponding

responsibility for accounts payable and receivable. Besides pricing and terms

management, the ITX can also provide shipping and order status information.

d. Integration: On the highest level. ITXs provide integration functionality permitting

trading exchange services to (it into a larger supply chain and application integration

strategy. ITX services greatly increase their value to garment companies if they can help

leverage investment in installed applications and established relationships. As the dot-

com craze swept through business at the beginning of 2000. Industry analysts predicted

that independent e-marketplaces would be the wave of the future.

2.9. REVIEW OF RELATED WORK

Okoro (2014) examined the impact of selected e-payment instruments on the inter-mediation

efficiency of the Nigerian economy using time series data from 2006 to 2011 and employing

multiple regression technique using intermediation efficiency indicators. The study discovered

that there was a significant relationship between ATM, POS, Internet service values and the

intermediation efficiency of the Nigerian economy. Other studies by Acha et al. (2017), Joseph

and Richard (2015) and Yaqub et al. (2013) examined the benefits and challenges of the e-

payment system. Further studies by Kujur & Shah (2015) considered the impediments some

developing countries may face while adopting the electronic payment system. Mago &
Chitokwindo (2014) opined that the e-payment strategy has significantly affected the growth of

online businesses, thereby creating diversification in the e-commerce ICT industries.

Kombo (2013) examined the effect of electronic accounting system (EAS) on improving auditing

process. Descriptive statistics and cross tabulation were used to analyses data using statistical

package of social science (SPSS). This study revealed that the contributions of EAS to the

effectiveness and efficiency of the auditing process is moderate. In a similar research Scovia &

Callist (2015) investigated the impact of automated accounting system on financial reporting.

The study revealed that computerized accounting system has proved to be effective in providing

information regarding the financial position of an entity in a timely and efficient manner.

Emmanuel (2015) investigated computerized accounting system as an effective means of

keeping accounting records. The study revealed that the computerized accounting system is an

effective means of keeping accounting records. This is because computerized accounting system

provides a means for them to record; very high volume of transactions with great speed, and

computerized accounting financial reports presents a wide range of detailed financial

information. It also provides management with up-to-date current account balance information

since balances are posted online and real-time as the transaction occur.

Finally, Nnanta & Eme (2013) worked on the pros and cons of e-payment system in

wages/salaries administration, as well as factors that affect the applicability of the system.
 CHAPTER THREE

MATERIALS AND METHOD

3.1 ANALYSIS

This section provides an overview of the QuikPay (Nelnet) payment system, analyzing its core

functionalities, how it addresses institutional payment needs, and the methods used to implement

and optimize its processes.

3.1.1 METHODOLOGY

The methodology used in analyzing the QuikPay payment system follows a descriptive and

evaluative approach, focusing on:

1. Descriptive Analysis: Detailing system features such as payment processing, billing

options, security protocols, and user interfaces.

2. System Evaluation: Assessing system efficiency, reliability, user experience, and areas

of improvement based on documented performance data and user feedback.

3. Case Study Approach: Reviewing real-world implementations in tertiary institutions to

understand practical challenges and identify best practices in using QuikPay effectively.

Data for this analysis was collected from:

1. Documentation provided by Nelnet and educational institutions.

2. Case studies from institutions using QuikPay.

3. Interviews and surveys with system administrators and end-users.

3.2 ANALYSIS OF THE EXISTING SYSTEM

The existing QuikPay (Nelnet) system serves as an electronic billing and payment solution for

tertiary institutions, allowing students to pay tuition and other fees online. Key components

include:

a. E-Billing: QuikPay automates the generation and distribution of electronic invoices to

students, eliminating paper-based processes and reducing administrative workload.

b. Multiple Payment Methods: The system supports credit/debit cards, ACH transfers, and

flexible payment plans to meet diverse payment needs.

c. Security Features: Compliance with PCI-DSS standards ensures data security and

encryption for financial transactions, reducing the risk of fraud.

d. Mobile Accessibility: QuikPay provides a mobile-friendly interface, enabling students to

make payments and view their billing statements on various devices.

e. Integration with SIS: The system integrates with Student Information Systems (SIS),

synchronizing billing information and updating student payment records in real time.

3.3 PROBLEMS AND WEAKNESSES OF THE EXISTING SYSTEM

While QuikPay has optimized the payment process for many institutions, certain challenges and

weaknesses remain:

a. Limited Customization: The system lacks flexibility in configuring customized billing

structures and financial aid options, which can be challenging for institutions with unique

billing requirements.
b. Service Fees: QuikPay may impose additional transaction fees, particularly for credit

card payments, increasing the financial burden on students.

c. Integration Complexity: Though it integrates with SIS platforms, the initial setup can be

complex, requiring technical expertise and ongoing maintenance, which may strain

institutions with limited IT resources.

d. Dependency on Internet Connectivity: As an online platform, QuikPay is highly

dependent on stable internet access, which can hinder access for students in areas with

limited connectivity.

e. User Frustration with Security Protocols: While necessary, the system’s strict

compliance protocols and verification processes can result in user inconvenience,

especially if students face multiple authentication steps.

Figure 3.1 Architecture Of The Existing System
3.4 ANALYSIS OF THE PROPOSED SYSTEM

The proposed system, a tailored payment management solution, aims to address the limitations

of QuikPay by enhancing customization, minimizing transaction costs, simplifying integration,

and improving user accessibility. This system is designed to accommodate unique billing

requirements, integrate seamlessly with various Student Information Systems (SIS), and provide

offline payment options for users in low-connectivity areas. Additionally, the proposed system

features a more user-friendly security protocol, balancing secure transactions with ease of use to

reduce student frustration.

3.4.1 ADVANTAGES OF PROPOSED SYSTEM

The proposed system offers several advantages:

1. Enhanced Customization: The system allows institutions to configure flexible billing

structures, financial aid adjustments, and personalized payment schedules, making it

suitable for diverse financial and administrative requirements.

2. Reduced Transaction Costs: Unlike QuikPay, the proposed system includes options for

low-cost or no-fee payment methods to lessen the financial burden on students,

improving affordability.

3. Simplified Integration: Designed to integrate easily with popular SIS platforms, the

system reduces technical complexity, enabling faster implementation and reducing the

demand for extensive IT support.

 4. Offline Access Support: To accommodate students with limited internet access, the

system includes offline functionality options, such as downloadable payment schedules

and SMS reminders for payment deadlines.

5. Streamlined Security Protocols: While maintaining high security standards, the system

simplifies the authentication process, minimizing user inconvenience by incorporating

single sign-on (SSO) and multifactor authentication options tailored to user needs.

3.5 DESIGN OF PROPOSED SYSTEM

The proposed system’s design centers on flexibility, accessibility, and user satisfaction. The

design includes three main components:

1. User Interface (UI): A responsive, mobile-friendly web interface accessible to students,

faculty, and administrators. The interface offers options for custom payment plans,

viewing account balances, accessing support, and tracking transaction histories.

2. Integration Layer: This layer facilitates data exchange between the payment system and

other institutional software, including SIS and financial aid platforms.

3. Security Module: Incorporates secure authentication and authorization processes to

protect sensitive data while ensuring that the login process remains convenient for users.

4. Payment Processing Module: Supports a variety of payment options, including bank

transfers, credit/debit cards, and digital wallets, with options to reduce or eliminate

transaction fees where possible.

3.5.1 METHODOLOGY OF PROPOSED SYSTEM

The system development follows the Agile methodology, allowing for iterative and flexible

project progression that adapts to feedback from institutional stakeholders. The primary stages

are:

1. Requirements Gathering: Engage stakeholders to determine specific billing needs,

preferred integrations, and usability preferences.

2. System Design and Prototyping: Develop and share prototypes for feedback, refining

the design to meet user expectations.

3. Development and Testing: Implement the system in iterative cycles, testing each

module for functionality, usability, and security compliance.

4. Deployment and Training: Deploy the system within the institution’s infrastructure,

accompanied by training sessions for administrators, support staff, and end users.

5. Maintenance and Updates: Regularly update the system to align with new policies,

technology advancements, and user feedback.

3.5.2 FLOWCHART OF PROPOSED SYSTEM

A high-level flowchart of the proposed payment system:

1. Start

2. User logs into the system (checks authentication and authorization).

3. User selects "Make Payment" or "View Account."

4. If "Make Payment":

o User chooses payment method (e.g., bank transfer, card, digital wallet).
 o System verifies payment details.

o If verified, transaction is processed.

o If not verified, user is prompted to retry.

5. If "View Account": User can view payment history, balance, and schedules.

6. System confirms and logs the transaction.

7. User receives confirmation.

8. End
 Figure 3.2 Flowchart Of The Proposed System

3.5.3 USE CASE DIAGRAM OF PROPOSED SYSTEM

The proposed system’s use case diagram includes the following actors and interactions:

 Actors:

o Student

o Administrator

o Financial Aid Officer

 Use Cases:

o Login (Student, Administrator)

o Make Payment (Student)

o View Payment History (Student)

o Manage Billing (Administrator)

o Approve Financial Aid (Financial Aid Officer)

o Generate Reports (Administrator)

3.5.4 DATABASE STRUCTURE OF THE PROPOSED SYSTEM

The database structure for the proposed system includes key tables to handle users, transactions,

billing, and security. Below is a simplified view of the main tables:

Table 3.1. Student Profile Table

Field Name Data Type Description

StudentID Integer Unique identifier for each student
Name Text Full name of the student
Program Text Academic program of the student
EnrollmentStatus Text Enrollment status (e.g., Active,
Inactive)
FinancialAidEligibility Boolean Eligibility for financial aid (Yes/No)

Table 3.2. Billing Structure Table

Field Name Data Type Description

BillingID Integer Unique identifier for each billing record
Program Text Program associated with the billing structure
CreditLoad Integer Credit load associated with the fees
FeeType Text Type of fee (e.g., Tuition, Lab Fee)
Amount Decimal Fee amount

Table 3.3. Financial Aid Table

Field Name Data Type Description

AidID Integer Unique identifier for each aid record
StudentID Integer References the student receiving aid
Type Text Type of financial aid (e.g., Scholarship)
Amount Decimal Amount awarded for the aid
Status Text Status of the aid (e.g., Approved, Pending)

Table 3.4. Payment Plan Table

Field Name Data Type Description

PlanID Integer Unique identifier for each payment plan
Description Text Description of the payment plan
InstallmentCount Integer Number of installments in the plan
InstallmentAmount Decimal Amount per installment
DueDates Date Due dates for each installment

Table 3.5. Transaction Table

Field Name Data Type Description

 TransactionID Integer Unique identifier for each transaction
StudentID Integer References the student making the payment
BillingID Integer References the billing structure for payment
PaymentDate Date Date of the transaction
Amount Decimal Amount paid in the transaction
Status Text Status of the transaction (e.g., Completed)

Table 3.6. Notification Preferences Table

Field Name Data Type Description

PreferenceID Integer Unique identifier for each preference record
StudentID Integer References the student’s preferences
NotificationType Text Type of notification (e.g., Payment Reminder)
Frequency Text Frequency of notifications (e.g., Weekly)

3.5.5 ARCHITECTURE OF PROPOSED SYSTEM

The proposed system uses a three-tier architecture comprising the Presentation Layer,

Application Layer, and Data Layer:

1. Presentation Layer: This is the front end, where users interact with the system via a

responsive web interface designed with HTML, CSS, and JavaScript frameworks. It

provides access to payment functionalities, account management, and support.

2. Application Layer: Contains the business logic and includes modules for payment

processing, billing customization, and user management. This layer also manages

integration with SIS and financial aid platforms through APIs, allowing seamless data

synchronization.

3. Data Layer: Includes a relational database (e.g., MySQL or PostgreSQL) that securely

stores user information, transaction records, billing data, and security logs. Data
encryption and backup protocols are in place to protect sensitive information and ensure

data integrity.

CHAPTER FOUR
4.1 HARDWARE REQUIREMENTS

The proposed payment management system requires specific hardware configurations for

optimal performance, including both server and client-side requirements:

 Server-Side Hardware:

o Processor: Quad-core Intel Xeon processor or equivalent for handling multiple

user requests and ensuring fast transaction processing.

o RAM: At least 16 GB of RAM to support concurrent access by students,

administrators, and other users.

o Storage: 500 GB solid-state drive (SSD) for faster data read/write operations,

ensuring quick data access and system stability.

o Network Connectivity: High-speed internet connection with at least 1 Gbps

bandwidth for reliable and uninterrupted access to the online payment platform.

o Backup Solution: A dedicated backup device or cloud-based storage of at least 1

TB to store system backups and prevent data loss.

 Client-Side Hardware:

o Processor: Minimum dual-core processor to handle basic functions, such as

accessing the web interface and submitting forms without lag.

o RAM: 4 GB of RAM for smooth navigation through the web interface.

o Storage: 50 GB of available storage for temporary cache, browser data, and

document storage as needed.

o Display: Screen resolution of at least 1280x720 pixels for clear and accessible UI

interactions.
 o Network Connectivity: Reliable internet connection with a minimum of 5 Mbps

speed for uninterrupted system access.

4.2 SOFTWARE REQUIREMENTS

The software requirements include both server-side and client-side components to ensure

compatibility, security, and usability:

 Server-Side Software:

o Operating System: Linux-based systems (e.g., Ubuntu Server 20.04 LTS) are

preferred for stability and security. Windows Server is an alternative option for

institutions requiring it.

o Web Server: Apache HTTP Server or Nginx to handle HTTP requests and serve

content to client devices.

o Database Management System (DBMS): MySQL or PostgreSQL for managing

the payment data, ensuring reliability, and facilitating secure data storage.

o Programming Languages:

 Backend: PHP, Python (Django), or Node.js to handle server-side logic.

 Frontend: HTML5, CSS3, JavaScript (with frameworks like React or

Angular) to create a responsive and user-friendly interface.

o Middleware: RESTful API services to enable data communication between the

front end and back end.

o Version Control: Git for tracking changes during development and allowing

collaborative work among developers.

  Client-Side Software:

o Web Browser: Modern web browsers like Google Chrome, Mozilla Firefox,

Safari, or Microsoft Edge, updated to the latest versions to ensure compatibility

with web technologies.

o Operating System: Compatible with any modern operating system such as

Windows 10, macOS, or Linux distributions, which supports the chosen browser.

4.3 OUTPUT

The proposed system’s outputs encompass several types of results essential for users and

administrators:

1. User Interface Output:

o Student Portal: Provides a clear, accessible dashboard where students can view

account balances, payment histories, financial aid statuses, and upcoming due

dates.

o Payment Confirmation: After successful transactions, students receive on-screen

payment confirmation and a downloadable receipt for their records.

o Alerts and Notifications: Students receive automated email or SMS notifications

for due dates, successful payments, and pending actions, improving financial

management and reducing missed payments.

2. Administrative Portal Output:

 o Reporting: Administrators have access to reports on transaction histories,

outstanding balances, and payment trends. The system generates monthly,

quarterly, and annual reports that can be customized based on parameters such as

student demographics, financial aid status, and payment types.

o Audit Logs: Detailed logs of all transactions, access activities, and changes

within the system are maintained for compliance and auditing purposes.

o Error and Alert Messages: The system generates real-time error messages (e.g.,

invalid payment information) and alerts (e.g., unsuccessful payment retries),

helping administrators troubleshoot and provide timely support to students.

3. Security Logs:

o Authentication Logs: Logs of login attempts, including successful and failed

authentication, to monitor access patterns and identify potential security threats.

o Activity Logs: Records of key user actions, such as payment submissions,

account updates, and report generations, allowing administrators to track system

usage and maintain compliance with institutional policies.

 CHAPTER FIVE

SUMMARY, RECOMMENDATIONS AND CONCLUSION

5.1 SUMMARY

This chapter provides a summary of the key findings and highlights of the research and

development of the proposed payment system for educational institutions. The objective of the

system was to enhance the existing student payment processes by providing a more flexible,

transparent, and user-friendly platform.

The system is designed to allow students to manage their profiles, view and customize billing

structures, select from various payment plans, and monitor the status of their transactions.

Additionally, the integration of financial aid options within the system helps streamline the

payment process, ensuring that students have access to all necessary resources before making

payments.

The implementation of the proposed system has successfully addressed the key weaknesses of

the previous system, such as limited customization, poor transaction transparency, and lack of

real-time payment status. The results showed that the system improves both the student

experience and administrative efficiency.

Through a robust analysis, it was observed that:

 System flexibility: The new system allows for the customization of billing structures and

payment plans based on course types, credit loads, and financial aid eligibility.

 Real-time transaction monitoring: Students and administrators can track payments and

view the status of transactions, reducing confusion and errors.

  Improved financial aid integration: Financial aid options are now seamlessly integrated

into the payment system, allowing students to view their eligibility and aid status during

the payment process.

 Scalability and ease of use: The system is scalable to handle future growth, ensuring it

can accommodate an increasing number of students without performance issues.

5.2 CONCLUSION

The proposed payment system offers a comprehensive solution to the challenges faced by

educational institutions in managing student payments. By integrating advanced features such as

customizable billing structures, multiple payment plans, real-time transaction monitoring, and

financial aid integration, the system significantly improves the overall efficiency of the payment

process.

The implementation of the system has been successful, with positive feedback from students and

administrators. The system’s flexibility and scalability ensure that it can grow with the institution

and continue to serve the needs of both students and staff. Additionally, the incorporation of

robust security measures such as multi-factor authentication (MFA) ensures that the system is

both secure and reliable.

In conclusion, the proposed system represents a significant improvement over the existing

systems, providing a more user-friendly, efficient, and transparent platform for handling student

payments.
5.3 RECOMMENDATIONS

While the proposed system offers significant improvements, there are a few recommendations

for further enhancement and optimization:

1. Mobile Application Development: It is recommended to develop a dedicated mobile

application to allow students to manage their payments, view transaction history, and

receive notifications directly from their mobile devices. This would enhance accessibility

and user engagement.

2. Integration with Learning Management Systems (LMS): To further streamline student

operations, it would be beneficial to integrate the payment system with the institution's

LMS. This would allow students to directly access billing and payment information

related to their courses and grades.

3. Advanced Analytics and Reporting Tools: Adding advanced analytics capabilities for

administrators to generate reports on payment trends, outstanding balances, and financial

aid distribution would enhance decision-making and improve institutional financial

planning.

4. Continuous System Updates: Regular system updates should be conducted to ensure the

software remains compatible with the latest technologies, incorporates new payment

methods, and stays ahead of security vulnerabilities.

5. User Training and Support: Continuous training for students and administrators on how

to best utilize the system should be provided. Additionally, a dedicated support system

(e.g., live chat or help desk) should be set up to assist users with issues they might

encounter.
By implementing these recommendations, the system can be further optimized to provide an

even more seamless and efficient experience for all users, ensuring that both students and

administrative staff benefit from its advanced features.

 REFERENCES

Okifo J. and Igbunu R. (2015) Electronic Payment System in Nigeria: Its Economic

Benefits and Challenges, Journal of Education and Practice, 6 (16) 56-62

www.iiste.org

Asaolu, T.O., Ayoola, T.J. & Akinkoye, E.Y. (2011). Electronic Payment System in

Nigeria: Implication, Constraints and Solutions, Journal of Management and

Society, 1 (2), 16 – 21.

Zwingina, C. T., Onoh, U. A. & Chukwu P. D. E. (2023). Impact of Electronic Payment Systems

on Economic Growth of Nigeria. Asian Journal of Economics and Business. 4(1), 71-88.

Buckley, P. R. & Malady, L. (2015). Building Consumer Demand for Digital Financial Services

The New Regulator Frontier. The Journal of Financial Perspective, 3(3),1-36.

Chaudhury, Abijit; Jean-Pierre Kuilboer (2002).e-Business and e-Commerce Infrastructure.

McGraw-Hill. ISBN 0-07-247875-6.

David,H., Willeson, M., Lindblom, T. & Bergendahl, G. (2001). “What Does it Cost to Make A

Payment?”, Working paper, Department of Finance, Florida State University.

Danfulani, J. (2013). E-governance: A Weapon for the Fight against Corruption.

Federal Reserve Payments Study (2004).“Analysis of Noncash payment Trend in the United

State: 2000 – 2003”. Copyright 2004, Federal Reserve System.

Feig, Nancy (2007). "Mobile Payments: Look to Korea". Banktech.com. Retrieved 2011-09-19.
Good, Barbara Ann (2000).The changing face of money: will electronic money be adopted in the

United States?. Taylor & Francis. pp. 80–81. ISBN 9780815338093. Retrieved 28

December 2010.

Grant Thornton Survey (2005).“Grant Thornton’s 2005 Survey of Bank Executive”.

Grantthorbton.global

Hord, Jennifer (2011). "How Electronic Payment Works". Howstuffworks.com.Retrieved 2011-

01-21.

Julie, Knapp (2010)."History of Online Shopping". Life123. Retrived from

http://www.life123.com/beauty/style/online-shopping/history-of-online-shopping.shtml

Kevin Kelly(2005). We Are the Web Wired magazine, Issue 13.08, August 2005

Landon, K & Traver, C. (2003).E-Commercial Business Technology, Society. Second Edition,

Addison Wesley.

Leong, A. (2010).Paper, Plastic and now, Electronic: A Survey of Electronic Payment System,

retrieved from. www.euromoney.com

Martin, Andrew (2010). "How Visa, Using Card Fees, Dominates a Market". New York Times.

Retrieved 2010-01-06.

My lunch money. Mylunchmoney.com. Retrieved 2012-03-29.

National Automated Clearing House Association (NACHA, 2005). "Banks Ride ARC to Record

Wave of ACH Payments." NACHA Press Release, April 11, 2005.

http://www.nacha.org/news/news/pressreleases/2005/Pr041105/pr041105.htm
Pay Schools."Welcome to PaySchools!".PaySchools.com.Retrieved 2012-03-29.

Sadeghi, A & Schneider, M (2001). Electronic Paymenrt SystemElectronic Payment Systems.

Schneider, Gary (2010).Electronic Commerce. Cambridge: Course Technology. p. 497. ISBN

0538469242.

SchoolPaymentSolutions. "Online Payments Made

Easy".SchoolPaymentSolutions.com.Retrieved. 2012-03-29.

Turban, E. King, D. McKay, J. Marshall, P. Lee, J & Vielhand, D. (2008).Electronic Commerce

2008: A Managerial Perspective. London: Pearson Education Ltd. p.550

“Electronic Payment Systems”. Wikipedia Online Encyclopedia. Retrieved From

http://en.wikipedia.org.

"US Operators Prepare to Launch Isis Digital Wallet Pilot" PC World. Retrieved 25 April,

2011www.computerworld.com
 APPENDIX A

SOURCE CODE

<!DOCTYPE html>
<html lang="en">
<head>
<meta charset="UTF-8">
<meta name="viewport" content="width=device-width, initial-scale=1.0">
<title>Student Payment Portal - Dashboard</title>
<style>
body {
font-family: Arial, sans-serif;
margin: 0;
padding: 20px;
background-color: #f5f5f5;
}
.container {
max-width: 1000px;
margin: 0 auto;
background-color: white;
padding: 20px;
border-radius: 8px;
box-shadow: 0 2px 4px rgba(0,0,0,0.1);
}
.dashboard-grid {
display: grid;
grid-template-columns: repeat(2, 1fr);
gap: 20px;
margin-bottom: 30px;
}
.dashboard-card {
background-color: #f8f9fa;
padding: 15px;
border-radius: 8px;
border: 1px solid #dee2e6;
}
.balance-card {
background-color: #e7f5ff;
border-color: #74c0fc;
}
.payment-history {
margin-top: 20px;
}
table {
width: 100%;
 border-collapse: collapse;
margin-top: 10px;
}
th, td {
padding: 12px;
text-align: left;
border-bottom: 1px solid #ddd;
}
.alert {
padding: 10px;
margin-bottom: 15px;
border-radius: 4px;
background-color: #fff3cd;
border: 1px solid #ffeeba;
color: #856404;
}
.btn {
background-color: #4CAF50;
color: white;
padding: 10px 20px;
border: none;
border-radius: 4px;
cursor: pointer;
text-decoration: none;
display: inline-block;
}
.btn:hover {
background-color: #45a049;
}
.receipt-modal {
display: none;
position: fixed;
top: 50%;
left: 50%;
transform: translate(-50%, -50%);
background-color: white;
padding: 20px;
border-radius: 8px;
box-shadow: 0 2px 10px rgba(0,0,0,0.1);
z-index: 1000;
}
.modal-backdrop {
display: none;
position: fixed;
top: 0;
left: 0;
 width: 100%;
height: 100%;
background-color: rgba(0,0,0,0.5);
z-index: 999;
}
</style>
</head>
<body>
<div class="container">
<h1>Student Payment Portal</h1>
<div class="alert">
Important: Fall semester tuition payment due in 15 days
</div>

<div class="dashboard-grid">
<div class="dashboard-card balance-card">
<h2>Current Balance</h2>
<h3>$3,500.00</h3>
<button class="btn" onclick="showPaymentForm()">Make Payment</button>
</div>
<div class="dashboard-card">
<h2>Financial Aid Status</h2>
<p>Approved: $5,000.00</p>
<p>Disbursement Date: August 15, 2024</p>
</div>
</div>

<div class="payment-history">
<h2>Payment History</h2>
<table>
<thead>
<tr>
<th>Date</th>
<th>Description</th>
<th>Amount</th>
<th>Status</th>
<th>Action</th>
</tr>
</thead>
<tbody>
<tr>
<td>2024-01-15</td>
<td>Spring Tuition Payment</td>
<td>$3,000.00</td>
<td>Completed</td>
 <td><button class="btn" onclick="downloadReceipt('receipt-123')">Download
Receipt</button></td>
</tr>
<tr>
<td>2023-12-01</td>
<td>Laboratory Fee</td>
<td>$500.00</td>
<td>Completed</td>
<td><button class="btn" onclick="downloadReceipt('receipt-124')">Download
Receipt</button></td>
</tr>
</tbody>
</table>
</div>
</div>

<!-- Payment Form Modal -->

<div id="paymentModal" class="receipt-modal">
<h2>Make a Payment</h2>
<form id="paymentForm">
<div class="form-group">
<label for="paymentType">Payment Type:</label>
<select id="paymentType" required>
<option value="">Select Payment Type</option>
<option value="tuition">Tuition Fee</option>
<option value="library">Library Fee</option>
<option value="lab">Laboratory Fee</option>
<option value="other">Other Fees</option>
</select>
</div>
<div class="form-group">
<label for="amount">Amount ($):</label>
<input type="number" id="amount" min="0" step="0.01" required>
</div>
<div class="form-group">
<label for="cardNumber">Card Number:</label>
<input type="text" id="cardNumber" maxlength="16" required>
</div>
<div class="form-group">
<label for="expiryDate">Expiry Date:</label>
<input type="month" id="expiryDate" required>
</div>
<div class="form-group">
<label for="cvv">CVV:</label>
<input type="password" id="cvv" maxlength="3" required>
</div>
 <button type="submit" class="btn">Process Payment</button>
<button type="button" class="btn" onclick="hidePaymentForm()">Cancel</button>
</form>
</div>

<!-- Payment Confirmation Modal -->

<div id="confirmationModal" class="receipt-modal">
<h2>Payment Confirmation</h2>
<div id="confirmationDetails"></div>
<button class="btn" onclick="downloadConfirmation()">Download Receipt</button>
<button class="btn" onclick="hideConfirmation()">Close</button>
</div>

<div id="modalBackdrop" class="modal-backdrop"></div>

<script>
// Show/Hide Payment Form
function showPaymentForm() {
document.getElementById('paymentModal').style.display = 'block';
document.getElementById('modalBackdrop').style.display = 'block';
}

function hidePaymentForm() {
document.getElementById('paymentModal').style.display = 'none';
document.getElementById('modalBackdrop').style.display = 'none';
}

// Show/Hide Confirmation
function showConfirmation(details) {
document.getElementById('confirmationDetails').innerHTML = details;
document.getElementById('confirmationModal').style.display = 'block';
document.getElementById('modalBackdrop').style.display = 'block';
}

function hideConfirmation() {
document.getElementById('confirmationModal').style.display = 'none';
document.getElementById('modalBackdrop').style.display = 'none';
}

// Handle Payment Form Submission

document.getElementById('paymentForm').addEventListener('submit', function(e) {
e.preventDefault();

const paymentType = document.getElementById('paymentType').value;

const amount = document.getElementById('amount').value;
const cardNumber = document.getElementById('cardNumber').value;
 if (!validateCardNumber(cardNumber)) {
alert('Please enter a valid card number');
return;
}

// Process payment and show confirmation

const confirmationDetails = `
<p>Payment Type: ${paymentType}</p>
<p>Amount: $${amount}</p>
<p>Date: ${new Date().toLocaleDateString()}</p>
<p>Transaction ID: ${generateTransactionId()}</p>
<p>Status: Completed</p>
`;

hidePaymentForm();
showConfirmation(confirmationDetails);
sendPaymentNotification(amount);

this.reset();
});

function validateCardNumber(cardNumber) {
return /^\d{16}$/.test(cardNumber);
}

function generateTransactionId() {
return 'TXN-' + Math.random().toString(36).substr(2, 9).toUpperCase();
}

function downloadReceipt(receiptId) {
// Simulate receipt download
alert(`Downloading receipt ${receiptId}`);
}

function downloadConfirmation() {
// Simulate confirmation download
const content = document.getElementById('confirmationDetails').innerText;
alert('Downloading payment confirmation...');
}

function sendPaymentNotification(amount) {
// Simulate sending email/SMS notification
console.log(`Payment notification sent: Payment of $${amount} received`);
}
 // Simulate periodic balance check and notifications
setInterval(() => {
checkDueDates();
}, 60000); // Check every minute

function checkDueDates() {
// Simulate checking due dates and sending notifications
console.log('Checking due dates and sending notifications if needed');
}
</script>
</body>
</html>
APPENDIX B: OUTPUT SCREEN