New technologies have been changing our life, and money is not an exception. Nowadays, electronic money has become increasingly popular among people around the world. The traditional ways of the monetary exchange have developed into electronic ones. And this is not surprising, because it is really convenient way for:
- Internet users, who can pay for different goods and services in on-line shops, pay for utilities, various fines and even for staying in the hotel.
- Website owners, who use electronic money to pay for all the services needed for normal functioning of their websites;
- Employers, having an opportunity to pay for accomplished work to freelancers;
To understand why electronic money is so popular let’s clarify what is it and what is the place of e-money in scheme of the payment instruments.
What is electronic money?
Electronic money (also called e-money, e-cash or digital cash) is the digital equivalent of cash, stored on a technical device, for example, on a computer or plastic card.
E-money and other forms of money
What are the main differences between e-money and other forms of money?
Firstly, e-money products use cryptography to authenticate and protect transactions, unlike cash, which only physical security features are used for. Secondly, e-money does not need to be physically exchanged like banknotes and coins. In this way, it can be more comfortable used for remote payments. Finally, unlike cash, electronic money received by the beneficiary cannot be used again.