Electronic Money and Non Cash Payment Methods
Over time, e-banking software technology has advanced a lot. An example of this is a new mode of payment: electronic money. Digital cash stored on an electronic device or at a server is known as electronic or e-money. E-money is part of E-wallet service. The E-wallet service includes an E-wallet or purse used to store relatively small amounts of money. Additionally, using this service, people can access e-money through smart phones or an internet payment account.
Differentiating e-money from other forms of non-cash payment methods
Often, people confuse e-money with other forms of non-cash payment methods: This is a mistake that you must not make. Unlike other forms of non-cash payment methods, you can use e-money for multipurpose payments. The purpose of other non-cash payment methods with co-branded prepaid cards is to provide you access to traditional payment modes through electronic mediums. E-money does not do that. Instead, it substitutes cash.
E-money and cash many attributes. However, to use e-money, you must purchase the digital equivalent of notes and coins. In a lot of ways, e-money is similar to debit or credit card. However, there is one major difference: unlike debit or credit card, electronic money does not need any third party authorization.