Brief BackgroundEPS payment services are provided by EPS Company, which was established in 1984. The payment service is mostly used in Macau, Hong Kong, and Shenzhen. Currently, it is accepted in more than 25,000 locations.How it WorksElectronic Payment Services rely on a payment terminal application that is installed at each retail outlet and linked to the retailer’s point of sale system. The terminal can also be connected independently to commercial banks via the public telephone system. Transactions that are accepted are often batched into a special payment portfolio and after that, directly made to a retailer’s account.EPS typically relies on the use of ATMs or credit cards that are issued by to clients by member banks. Each retail store has an EPS device, which consists a stationary based and a detachable card processor. The former serves as a data link and the machine’s charger. When paying, customers hand over their cards, which are then inserted to the processor before the transaction amount is keyed in. Once the card’s PIN is entered, a receipt will be printed to verify the transaction.Pros and Cons of the ServiceEPA has been lauded for saving time since money transfers happen between virtual accounts, and only take a few minutes. There are also small commissions and a reduced risk of loss. The system is also convenient and user-friendly. The main drawback is the restrictions about the maximum number of transactions that can be made. One must also have access to the Internet for him/her to make payments.