Radio Frequency Identification (RFID) is the most advanced technological method for automatic data collection. It can be integrated with any enterprise applications to help reduce human errors and improve the speed and accuracy of business processes. As we know, insufficient small change is a small matter but it can lead to a big problem to the shopkeeper as well as to the customer. Therefore, a smart payment system is developed by applying the RFID technology. This project is basically an electronic cash system that is referred as one of the categories in electronic payment system. Customer can register and top up their card at the administration centre while the payment of meal can be done at participating shop. Microsoft Visual Basic 6.0 program is used to develop the interface and software of the system. Besides RFID tag and reader, Microsoft Office Access 2003 is also used to design the system database while the networking system is carried out by using Ethernet. The result shows that the RFID can be applied to the smart payment system. The system can be applied in the transaction activities such as school cooperatives, book shops, stationery shops, or canteens. Entrepreneurship can play an important role in providing the service to the participating shops
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