An online shopping system permits a costumer to submit online orders for items from a store . A Web portal acts as a gateway to the internet. Web portals provide a single point of access to a variety of content and core services, and offer a single sign-on point. The main challenge for online shopping portals is to provide security for the transactions involved. Customers, usually need to enter their crucial information like credit card number, debit card number etc. to buy products. Today most of the shopping portals use Secured Socket Layer (SSL) to transfer crucial data .This system was capable of providing good end-to-end security. But, it is unable to encrypt only a small part of the stored information; so a large cipher text is generated. To overcome this issue , new system is proposed here, which makes use of XML Encryption to provide security for transactions by generating a compact cipher text, which is transferred over the net as an XML document file. In this paper work the development of secured web portal is undertaken. Online shopping portals are new way for marketing hence must be designed in a creative but simple manner so that it is easy for the users to transact from it. There is need to analyse this new player by applying XML encryption which provides end-to-end security for applications that require secure exchange of structured data.