Advent of internet has almost brought a revolution across the entire world. Everything has become so easy and less troublesome. In short, we can say that today we can do almost anything and everything by being online. Business, dating, friendship, marriage and so forth can be easily performed with a click of a mouse, nothing is impossible in today’s world. Transaction, selling, and buying have been brought closer to us and made mush easier with the onset of online means of payment technique. There are varied types of ways through which the online transactions can be carried out without much of a hassle. Not only in terms of purchasing and selling products one can also carry out major business payments and so forth by using the various types of electronic money.
The market potential of these companies has increased tremendously and by many-folds the business outgrows. The electronic payment can be in other terms referred to as electronic currency or electronic cash or digital currency or digital cash or digital money. In this technique the money can exchanged only through the electronic medium. Here comes the use of internet, computers and digital stored value systems. Direct deposit and Electronic Funds Transfer (EFT) are the main types of electronic money. Though the use of the various types of electronic money has not experienced a considerable popularity; however it is being tried out in different parts of the globe. Countries like Singapore and Hong Kong are widely using this technique of electronic cash system. This technique is basically used for debits and credits or for exchanging values, be it online or offline.
Sometime the providers themselves are also referred to as electronic money, such as the digital gold currency. E-currency system generally comprise gold, non-gold (mainly currency) or both non-gold and gold. WebMoney and Paypal are some similar types of systems. In this case, the end users can purchase the electronic currency directly. However, there are other systems as well which use the digital currency exchangers during the electronic money transactions.
Usage of paper money in today’s world has become a troublesome issue, especially due to the increase of crime. Hence, introduction of internet, online trading, debit cards, online banking and so forth, the usage of paper money and risk have lessened. Waiting in lines at the bank counters have become an obsolete means of transaction nowadays. Saving time has become the priority of one and all and electronic money facilitates the customers to save time. Convenient to the users, lessening of paper work and immediate transfer of money and funds are the other advantages of electronic money. Against all these advantages, there are some specific disadvantages which stand against electronic money. Lessening of human interaction, breakdown of systems, technical problems, and tracking of individuals during frauds are some of the major disadvantages of electronic money. Power failure or problem in particular software might hamper important transactions and other works to a large extent. Constant research and development are being carried out throughout the countries to get rid of these disadvantages and start off with the usage of various types of electronic money, making everyone’s life less stressful.
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