E-money, or electronic money, is money that you exchange electronically, as opposed to actual currency notes or coins. Generally, you conduct e-money or e-currency transactions over the Internet, or with smart cards that are linked to a bank account. More and more people are also using mobile phones to make such transactions.
With e-money, there is anonymity. It is not the same case with liquid cash or credit and debit cards. E-money transactions mostly happen on the Internet through an online gateway where the identity of the payer is secured and behind the screens. The person on the other side receives the payment from the payer but does not necessarily know the identity of the person behind the money paid.
E-money can be used anytime and anywhere. It is probably the best form of money to use for international transactions, as there are no hassles of currency exchange. It is reliable, faster than paper checks and drafts, and has low costs of transaction. Today, with e-money becoming more popular, banks are competing to reduce transfer costs and provide accountholders with good deals. If you send someone a check, it will take a few days to clear. But with an online money transaction, the money reaches the other person’s account almost instantly. These transactions can be made after the bank has closed, and even on holidays.
When you carry a large amount of money, there is always a chance of it being lost or stolen. E-money is safer than currency in this regard. Every transaction requires you to provide a personal identification number (PIN) for the payment to be completed. Electronic funds transfers can be more secure than cash or check transactions. All you have to do is take some simple precautions to make sure that your card or online account is not misused.
Record of Transactions
Each and every transaction made with electronic money is recorded in the bank’s and the user’s online records. These records have all the essential information about the transaction: the name of the payer, the name of the receiver, the date, place and time it took place. This makes it more dependable, and users can access their record of transactions at any time of the day.