If you can’t touch it and it works online as payment, it is digital money.
Technology brings about so many new things that solve a lot of problems regarding exchanging money. One of the concerns that an electronic payment solves is how it saves us time. Imagine, being a cashier at a grocery who needs to accept a lot of payments. Now, people can scan to pay, and that saves the cashier a lot of time per transaction.
Electronic payment transactions also help us to get organized. It simplifies work processes and makes accounting a lot easier as there is no longer any need to write down a bunch of numbers. It can be automatically placed into the right file and computer.
Electronic payment transactions help protect our lives. Robbers target people who are carrying a lot of money. If the funds are stored in a digital wallet, it prevents those thieves from stealing the money. To add to that safety feature, many cell phones can be remotely locked in case it is taken, stopping the robbers in their tracks.
Money has evolved through time, varying depending on the geographical region. The standard form of money nowadays is state-backed banknotes. Also known as ‘cold hard cash’ it is in the form of paper money and coins. The most popular currency for general use is the US dollar. Most currency exchanges are based on a conversion from the dollar to the local currency. Most forms of digital money revolve around this state-backed currency, using it as a base for their exchange rates.
Any payment method that exists only in electronic form is digital money. It is intangible, meaning you can’t hold it or touch it. Digital money has an accountable value and is transferred online. The types of digital money include cybercurrency like Bitcoin, e-money, e-currency, digital currency, electronic currency, and e-currency. These forms typically can be used for payment transactions without having to pass traditional banking channels. However, a lot of the digital money going around the world is owned by banks, as using it is gets to lower their business costs instead of storing cash in vaults.
Digital money can be transferred and traded. Bitcoin, which is a cryptocurrency, is the most popular form of digital money. There are thousands of other cryptocurrencies, such as Stellar and Monero. Digital money exchanges ‘hands’ by means of technology. It can be transferred using a computer, cell phone, credit card, and cryptocurrency exchanges. It can be withdrawn as cash from ATMs or at a bank. Digital money may be deposited into financial accounts when exchanged into banknotes, and cashed out when the remittance service accepts that form of digital payment.
When you want to make a payment, there is no need to carry around cash anymore. A lot of retailers now accept electronic payment transactions. The most popular system is to hover a cell phone app in front of a contactless payment terminal. In a few seconds, the payment transaction can be completed.
It is a wise decision to go cashless as much as possible, as we need to save time – as that can never be bought back.