{"id":13171,"date":"2023-09-30T03:59:00","date_gmt":"2023-09-30T03:59:00","guid":{"rendered":"https:\/\/businessyield.com\/?p=13171"},"modified":"2023-10-31T12:23:39","modified_gmt":"2023-10-31T12:23:39","slug":"electronic-money","status":"publish","type":"post","link":"https:\/\/businessyield.com\/funding-trends\/electronic-money\/","title":{"rendered":"ELECTRONIC MONEY: How It Works, Advantages and, Disadvantages","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"\n
Electronic money refers to money that is present in bank computer systems and can be used to facilitate electronic transactions. Examples of e-money are bank deposits, electronic fund transfers<\/a>, payment processors, and digital currencies.<\/p>\n\n\n\n Electronic money is used for transactions worldwide. While it can be exchanged for fiat currency, electronic money is most commonly used through electronic banking systems and is monitored through electronic processing. Since only a fraction of the currency is used in physical form, the vast majority is held in bank vaults and is covered by central banks.<\/p>\n\n\n\n There are two types of electronic currency: hard electronic currency and soft electronic currency.<\/p>\n\n\n\n This type of electronic money does not allow cancellation of fees, meaning only irreversible transactions are supported. The advantage of this type is that the operating costs of the electronic currency system are reduced.<\/p>\n\n\n\n The soft electronic money enables payments to be canceled. Payment will only be canceled in the event of a dispute or fraud. The reversible payment time is 72 hours or more. Some examples of this type are Credit Card<\/a> and Pay Pal.<\/p>\n\n\n\n Electronic money systems evolve every day. Some of the developments are: It can be used with secured credit cards for a variety of establishments, and the linked bank accounts can be used with the internet to exchange money with a secure micropayment system such as Pay Pal.<\/p>\n\n\n\n Like physical paper money, electronic money also has the following four functions:<\/p>\n\n\n\n Store of value<\/strong>: Like physical currency, electronic money is also a store of value. The only difference is that with electronic money, the value is stored electronically until it is physically withdrawn.<\/p>\n\n\n\n Medium of exchange:<\/strong> Electronic money is a medium of exchange. It is used to pay for the purchase of a good or service.<\/p>\n\n\n\n Unit of Account: <\/strong>Like paper money, electronic money provides a common measure of the value of the goods and\/or services being processed.<\/p>\n\n\n\n An electronic payment system is a way of handling or paying for goods and services through an electronic medium without the use of checks or cash. Also known as an electronic payment system or online payment system.<\/p>\n\n\n\n The electronic payment system has grown more and more in recent decades due to the increasing spread of internet banking and shopping. As the world continues to advance as technology advances, we can watch the rise of electronic payment systems and payment processing devices. As these grow, improve, and increasingly provide secure online payments, the percentage of check and cash transactions will decrease.<\/p>\n\n\n\n One of the most popular online payment methods are credit and debit cards. There are also alternative payment methods such as bank transfers, electronic wallets, smart cards, or Bitcoin<\/a> wallets (Bitcoin is the most popular cryptocurrency).<\/p>\n\n\n\n Electronic payment methods could be divided into two areas: credit payment systems and cash payment systems.<\/p>\n\n\n\n Electronic money offers several benefits to the global economy, including:<\/p>\n\n\n\n Electronic money has the following disadvantages:<\/p>\n\n\n\nHow does<\/strong> electronic money work<\/strong>?<\/span><\/h2>\n\n\n\n
Types of<\/strong> electronic money<\/span><\/h2>\n\n\n\n
Hard electronic money<\/span><\/h3>\n\n\n\n
Soft electronic money<\/span><\/h3>\n\n\n\n
Features of<\/strong> electronic money<\/span><\/h2>\n\n\n\n
Electronic Payment System<\/span><\/h2>\n\n\n\n
Electronic payment methods<\/span><\/h2>\n\n\n\n
Loan payment system<\/span><\/h3>\n\n\n\n
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Cash payment system<\/span><\/h3>\n\n\n\n
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Electronic money advantages<\/strong><\/span><\/h2>\n\n\n\n
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Cons of electronic money<\/span><\/h2>\n\n\n\n
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Electronic money institution<\/strong><\/span><\/h2>\n\n\n\n