E-money

9 Key excerpts on "E-money"

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  eBook - PDF

  Cybercash

  The Coming Era of Electronic Money

  • Robert Guttmann(Author)
  • 2002(Publication Date)
  • Palgrave Macmillan

    (Publisher)

  The internet provides a centralized and global network which will eventually absorb and/or replace all the autonomous fund-transfer networks set up by banks during the first phase of money automation. E-money is about to be turned into cybercash. Any technology-driven and innovation-rich object, such as electronic money or for that matter cybercash, is inherently difficult to define. You are faced with the problem of having to describe a dynamic phenomenon within a comparatively static framework. This dilemma is clearly evident in the official central bank definitions of electronic money supplied by the BIS. Those definitions always refer to three specific E-money variants which at the time had already emerged as coexisting alternatives, but which also represent different stages in the leap from electronic money to cybercash. 9 10 Cybercash The first and least advanced form of E-money is referred to as access products (Bank for International Settlements, 1996b, pp. 3-4). These are electronic means of communication, such as computers, which enable consumers to access otherwise conventional payments services. Credit-card payments on the internet would fall in that category, as would most online banking activities. Check conversion, which replaces paper checks with ACH transfers, would also qualify. The second type of electronic money consists of 'stored-value' cards with which to execute payments via POS terminals, through devices that are directly connected to each other, or over open communication networks such as the internet. Such prepaid cards, which sometimes are also referred to as electronic purses, store value inasmuch as they contain a record of spendable funds in the card-holder's possession. This type of electronic money involves hardware, specifically the cards and connection devices (for example POS terminals, card readers attached to PCs).

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  Protocols for Secure Electronic Commerce

  • Mostafa Hashem Sherif(Author)
  • 2003(Publication Date)
  • CRC Press

    (Publisher)

  To clarify the presentation, three types of “emerging” monies, all of which are demateri-alized, will be distinguished: electronic money, virtual money, and digital money. 2.3.1 Electronic Money According to the Bank for International Settlements, “electronic money can be de fi ned as a monetary value measured in fi duciary units that is stored in an electronic device owned or available to the consumer” (Bank for Interna-tional Settlements, 1996, p. 13). It is thus a movable scriptural means of payment that carries the values in units of payment in an electronic store. This de fi nition corresponds to a binary form of scriptural money, stored on portable support, such as a smart card. The scriptural character of the elec-tronic money is related to the status of the issuer (because it is not issued FIGURE 2.10 Percentage in value of scriptural payments by bank cards in selected countries. 0.0 0.5 1.0 1.5 2.0 2.5 3.0 1990 1992 1994 1996 1998 2000 2002 Year Percentage Belgium Canada France Germany Italy Japan Netherlands Singapore Sweden Switzerland United Kingdom United States Money and Payment Systems 47 by the central bank) and to the traceability of the transactions and the movement of money. The units of payment contained in the cards or in the software are bought either with fi duciary money or by charging to a bank account. The discharg-ing power of these units is restricted to those merchants who accept them. This is the reason certain experts consider that electronic money does not exist in a strict sense, because it is neither legal tender nor does it have discharging power (Fay, 1997, p. 113). 2.3.2 Virtual Money Virtual money differs from electronic money in that its support, its repre-sentation, and its mode of payment do not take tangible forms. Virtual money can be contained in software programs that allow payments to be carried out on open networks, such as the Internet.

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  eBook - PDF

  The Future of Financial Markets

  • D. Mayes(Author)
  • 2006(Publication Date)
  • Palgrave Macmillan

    (Publisher)

  146 5 E-money: An Addendum An area where forecasts made 25 years ago, before European financial integration was firmly on the agenda, are rather surprisingly astray, is E-money. With the rapidly rising use of credit cards at the time and the replacement of paper-based giro by ATMs, in Finland at least (see Chapter 2 on payments), one would have expected that notes and coins would be steadily replaced by electronic cards (purses – see Box for a definition) for low value transactions. 1 Trial schemes were already being undertaken and the technology for reliable transactions exists and is in use. As it is, although notes and coins in circulation A definition of an electronic purse The key characteristics of an electronic ‘purse’ are that it is a ‘card’, whose value is purchased in advance, that can be used for a range of payments for different goods and services in different outlets for typical everyday small value retail payments that would otherwise have required coins or low denomination notes. A further require- ment that is sometimes added to differentiate such cards from debit cards is that the transaction can be completed on the spot between the card and the reader without recourse to a base station to check account information through a telecommunications link. 2 1 See Wenninger and Laster (1995) and ECB (1998) for definitions of what con- stitutes electronic purses and E-money in this context. 2 Strictly speaking they could be any shape or size sufficient to incorporate the electronic chip but there is now a worldwide standard size for cards, although thickness varies a little. D.G. Mayes et al., The Future of Financial Markets © David G. Mayes 2006 have fallen substantially in most countries compared to nominal income, this is more a result of the rise in the use of credit and debit cards for larger value transactions and the development of secure inter- est bearing highly liquid alternatives for cash balances.

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  Sovereign Money

  Beyond Reserve Banking

  • Joseph Huber(Author)
  • 2016(Publication Date)
  • Palgrave Macmillan

    (Publisher)

  While e-cash refers to mobile varieties of bankmoney on account, digital cash refers to currency units in a blockchain and is seen as a next step in the development of modern money 20 Sovereign Money beyond bankmoney on account, for example, as sovereign digital cash issued by the central banks and used in public circulation as a modern replacement for traditional solid cash. For now let us consider e-cash. E-cash takes the form of balances on a storage medium such as a magnetic strip or chip on a plastic card. E-cash cards are distinguished from prepaid cards. The latter are not subject to e-cash regulation and cannot be used as a means of payment. Instead, they are single-purpose devices issued by nonbank corpora- tions, for example for providing mobile-phone talk time or for provisioning a predetermined amount of electric current. The issuer of a prepaid card receives the respective amount of money in advance, in cash or via a credit card or by way of direct bankmoney transfer. The respective amount is registered in an account with the corporate issuer of the card. The balances in the account are drawn down as the customer uses the card. Unused balances are not normally redeemable. By contrast, e-cash is presented to the public as a means of payment in replacement of traditional solid cash. E-cash balances in an e-purse can be uploaded at a bank’s automated teller machine (ATM). The respective amount is registered on the chip, debited to the customer’s current account and cred- ited to a special e-cash clearing account of the bank, analogous to a bank’s open deposit account. Thus, the bankmoney liability is not booked out, as is the case with solid cash, but swapped for another such overnight bank liabil- ity in the e-cash clearing account.

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  Technology and American Democracy

  • Anthony Trotta(Author)
  • 2023(Publication Date)
  • Routledge

    (Publisher)

  In the modern U.S. system, understanding money relates to defining what constitutes fiat currency, which serves as the standard in practice by which official legal tender is predicated upon. Here, the conceptualization of money expands to include government taking an active role in creating a stable legal tender that is accepted on behalf of the populous as the means by which goods/services will be valued and that is collectively acknowledged as the medium of exchange in transacting for such. Lee, Johnson, and Joyce (2021, p. 76) explain that, in the traditional sense, “money is cash-paper money and coinage” in which the quantity of such “is strictly controlled by the government.” In the modern era, government issuance of official fiat currency within a given nation can be represented tangibly or digitally. Virga (2015, p. 514) notes that “fiat currencies, also known as ‘real money’ or ‘national currencies,’ are the coin and paper money that a nation assigns as its legal tender. E-money is a digital representation of fiat money used to electronically transfer money that has a legal tender status.” Lansky (2018, p. 19) adds to this definition by noting that “electronic money is a digital equivalent of cash.” Here, the idea of digital money or electronic money is that of virtual representations of fiat currency, which is the official legal tender created, regulated, and backed by the government. Ultimately, it is constitutionally faithful and functionally acceptable for fiat money to manifest tangibly and digitally in the modern era. In the United States, the creation, regulation, and backing of fiat currency in tangible form or digital form is the sole responsibility of the Congress. In that, the U.S. government exercises its constitutional power to fulfill duties such as coining, valuing, taxing, and preventing the counterfeiting of fiat money. Together, the tangible manifestations of fiat money (i.e

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  Changing Face of Money

  Will Electric Money Be Adopted in the United States?

  • Barbara Ann Good(Author)
  • 2014(Publication Date)
  • Taylor & Francis

    (Publisher)

  Applying these concepts to the new forms of electronic money, as described in the next chapter, shows that these new forms of money do not change the essence of money. Electronic money can function in the same manner as paper-based or commodity-based money. Electronic money provides for a medium of exchange, albeit not always as readily accepted at this time as currency and coin. However, it can also be used to conduct commerce over the Internet, a function that cannot be performed with either currency or coin.

  Electronic money is based on current monetary forms; that basis provides electronic money a unit of account. Being based on current monetary forms, electronic money provides essentially the same store of value as the underlying currency. The only possible difficulty could be a result of a technological glitch, such as value “stuck” on a card or lost in cyberspace.

  OTHER NEW PAYMENTS METHODS

  In order to examine how electronic money may diffuse through the economy of the United States, it is useful to look at what were the economic and social conditions when other money systems first appeared and diffused through the economy in the past. History can provide a sense of the type of change and the social and political environment in which the change occurred.

  Electronic money, although not a revolutionary concept, can be considered a new form of payment. Its acceptance in the global economy as a payments method may push its acceptance in the United States. In the past, the United States has been the leader (if not the innovator) in several new payments methods, especially paper money and credit cards. By looking at these payments innovations, parallels may be drawn and patterns examined that may help to predict the acceptance and diffusion of these new monies.

  “In almost every instance, major instability in the United States has been produced, or, at the very least, greatly intensified by monetary instability. Monetary instability in its turn has generally arisen either from governmental intervention or from controversy about what governmental policy should be.”23

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  Organisation Management in the Digital Economy

  Globalization Challenges

  • Anna Brzozowska, Dagmara Bubel, Larysa Nekrasenko(Authors)
  • 2022(Publication Date)
  • CRC Press

    (Publisher)

  Do not use the financial number when contacting the public. This can lead to the theft of the SIM card by scammers through re-issuance in the offices of the mobile operator.

  • Rule 7. When making purchases over the Internet from unknown persons, the bank recommends the use of cash on delivery.
  • Rule 8. When paying at verified sites of Internet giants, use an Internet card in your calculations.

  4.3.8 Digital and Virtual Money System Is an Alternative to C2C and D2C Models

  Money performs five basic functions: measures of value, means of circulation, means of payment, means of accumulating value and world money. They perform each of these functions in one of the forms. For example, money circulation is the movement of money in cash and non-cash form during servicing the circulation of goods and services.

  Cash is functions as means of payment and accumulation.

  Non-cash money exists as a record on accounts in credit and financial institutions. Long time, these records were mainly kept on paper and were directly perceived and processed by humans. If the information is stored not on paper but the computer and is also perceived and processed by electronic devices, this is the so-called EM.

  Most of the traditional money supply is bank money held on computers. This is also considered digital currency. One could argue that our increasingly cashless society means that all currencies are becoming digital, but they are not presented to us as such (Chaum, 1982 ).

  In conclusion, we summarise the classification of EM systems. Nowadays, monetary systems can be generalised into two large groups: centralised and decentralised.

  The centralised EM is under the control of banks and the government. In the centralised money system, currency can be exchanged electronically using debit and credit cards. These types of money systems are the following: Smart Cards, Magnetic Plastic Cards, EM and Wallets, Digital Currency and Mobile Digital Wallets. All these tools are electronic carriers of financial information.

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  eBook - ePub

  Money Talks

  Explaining How Money Really Works

  • Nina Bandelj, Frederick F. Wherry, Viviana A. Zelizer, Nina Bandelj, Frederick F. Wherry, Viviana A. Zelizer, Nina Bandelj, Frederick Wherry, Viviana Zelizer(Authors)
  • 2017(Publication Date)
  • Princeton University Press

    (Publisher)

  In recent years, the surge of new currencies and payment systems has transformed how we use money and how we think about it. Along with cash, credit cards, debit cards, and checks, we can now pay with Square, Google Wallet, Apple Pay, Venmo, as well as with a multiplying set of cryptocurrencies, most notably Bitcoin. Or consider how m-pesa, the mobile phone–based money transfer service, has opened up a crucial new form of payment for people in developing economies. And around the world, emerging local currency communities, barter arrangements, and other peer economies further broaden forms of exchange and payment. Meanwhile, leading economist Kenneth Rogoff in his The Curse of Cash (2016) advocates doing away with paper money. Bringing together a set of scholars from seven disciplines—namely, economics, anthropology, communication, sociology, political science, philosophy, and law— Money Talks represents a pioneering effort to document the multiple advances in monetary analysis and the changes in monetary forms. As they draw from a dazzling panoply of theories and empirical cases, the chapters illuminate money’s past, present, and future. Along the way, our authors grapple with perennial questions but also confront novel dilemmas about money’s constitution, its effects, and how we account for it. The chapters explore the vagaries of monetary practices. What explains the multiple ways in which we use, give, or save money? Are the monies we exchange in our private transactions fundamentally different than those used to trade in financial and corporate markets? Under what conditions, to what extent, and how does the expansion of monetary exchanges transform the prevailing quality of social life? Given the availability of money, how do people incorporate it into transactions that are not explicitly for market exchange? They also tackle macro-level issues involving the creation of money

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  Redefining Libraries in Digital Era

  • Sharma, Superna(Authors)
  • 2021(Publication Date)
  • Daya Publishing House

    (Publisher)

  www.quirk.biz / E-Marketsites E-Marketsites expands on web-based ERP to open up value chains. Buying communities can access preferred suppliers’ products and services, add to shopping carts, create requisition, and seek approval, receipt purchase orders and process electronic invoices with integration to suppliers’ supply chains and buyers’ financial systems. www.bznas.com/showthread.php?t=158 E-Mitra E-Mitra is an ambitious E-governance initiative of Government of Rajasthan, India which is being implemented in all 33 Districts of the state using Public-Private Partnership (PPP) model for the convenience and transparency to the citizen to deliver the services almost at their door-steps. www.emitra.gov.in / E-money E-money is also known as e-currency, electronic cash, electronic currency, digital money, digital cash, digital currency, cyber currency is money or scrip that is only exchanged electronically. Typically, this involves the use of computer networks, the internet and digital stored value systems. electronic HYPERLINK “ www.en.wikipedia.org/wiki/Electronic_funds_transfer ” funds transfer (EFT), direct deposit, digital gold currency and virtual currency, are all This ebook is exclusively for this university only. Cannot be resold/distributed. examples of electronic money. www.en.wikipedia.org/wiki/Electronic_money E-Music E-Music is an online music and audio book store that operates by subscription. It is headquartered in New York City with an office in London and owned by Dimensional Associates. E-Music was one of the first sites to sell music in the MP3 format, beginning in 1998. www.emusic.com / E-Newsletter An E-newsletter is a regularly distributed publication generally about one main topic that is of interest to its subscribers.

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