E - Money

What is the E-Money ?

Electronic money. also known as e-money and digital money. Is a currency that is available only in digital form. Unlike banknotes, coins or actual money. E -money is stored digitally. 

Forms of E - Money

• E-money Payment Networks. A payment network can be centralized or decentralized.
• Hard Electronic Currency. Hard electronic currency is used for non-reversible transactions, such as those drawn through a bank.
• Soft Electronic Currency.
• E-money Delivery Systems.
• Identified and Unidentified E-Money.

Different Between Money or E-Money.

• The main difference between e-money and virtual currencies is that e-money does not change the value of the fiat currency (euro, dollar, etc), but virtual currency is not equivalent to any fiat currency. In other words, all digital currency is electronic money, but e-money is not necessarily digital currency.

• Types of digital currencies include cryptocurrency, virtual currency and central bank digital currency. Digital currency may be recorded on a distributed database on the internet, a centralized electronic computer database owned by a company or bank, within digital files or even on a stored-value card.

Types of

          Systems.

 

Centralized Systems.

Currency can be exchanged electronically using debit cards and credit cards using electronic funds transfer at point of sale.

Ex- 

Ø   Electronic funds transfer 

Decentralized systems.

Digital Currency has been implemented in some cases as a decentralized system of any combination of currency issuance, ownership record, ownership transfer authorization and validation, and currency storage.

Per the Bank for International Settlements (BIS), "These schemes do not distinguish between users based on location, and therefore allow value to be transferred between users across borders. Moreover, the speed of a transaction is not conditional on the location of the payer and payee

Ex-

Ø  Cryptocurrency

Types of Electronic Payments Systems.

• Automated clearing house.
• Wire transfers.
• Item processing.
• Remote deposit capture.
• Feedline Access Solutions.
• Automated Teller Machines.
• Card Services (ATM, credit, debit, prepaid)
• Mobile payments.

Key Benefits of The Electronic Marketing.

1. Speed. 
   
   
   

Electronic transactions are carried out instantly, eliminating problems such as long queues in stores and waiting for change. In addition, money transfers between virtual accounts take a few minutes, while a wire transfer may take days.

       2. Record of all transactions.

Unlike cash payments, digital transactions are recorded and you can keep track of each and every payment and expense.
Leu Pay, for instance, provides comprehensive reporting of all account activities as well as real-time monitoring via the Leu Pay mobile app.

        3. Customer Convenience.

E-money can be used anytime, anywhere. It removes the hassle of currency exchange and this is why it’s ideal for international transfers and remote payments.

        4. Security.

With e-money, you are guaranteed your personal information is not shared with anyone, thanks to advanced security measures like authentication and tokenization. What’s more, e-money cannot be copied or reused once it’s been spent and the risk of losing cash is entirely eliminated.

Thank You !

Article by Shashi Sewwandi From Big BrainTechnologies Unit.