The advent of e-payment systems has promulgated considerable design and usability issues. These concerns have manifested themselves as the key inhibitors to the success of electronic payment systems. Credit and debit cards have proved to be popular alternatives to cash payments in retail transactions. However, for small and frequent payments, credit and debit cards are merely used due to the unavailability of a system. We attempt to propose a system that provides a platform for cashless transactions based on reliability and usability features for closed loop organization. The Cashless Payment System entails the involvement of an electronic card that invokes an element of trust essential to design of an effective payment system.