Modern technologies change everything and money is not an exception. The digitalization of financial services is on the rise and people are quickly adopting new ways to pay.
Cash is losing its positions as the predominant payment method, being replaced by e-money which is gaining increasing popularity among people.
But what is e-money? And why is it different from the traditional payment instruments? Read on to find out!
Simply put, electronic money (also called e-money or digital cash) is the electronic equivalent of cash. E-money is stored digitally in an e-money account, such as LeuPay, or takes the form of a stored value on a plastic payment card. E-money allows users to make cashless transactions over the internet, with smart cards or smartphones.
The Directive 2009/110/EC is the official document which gives a clear definition of the term “e-money”. It also sets out the rules for the issuance of e-money within the European Union and the supervision of the business of electronic money institutions.
Key benefits of the electronic money
Electronic transactions are carried out instantly, eliminating problems such as long queues in stores and waiting for change. In addition, money transfers between virtual accounts take a few minutes, while a wire transfer may take days.
E-money can be used anytime, anywhere. It removes the hassle of currency exchange and this is why it’s ideal for international transfers and remote payments.
With e-money, you are guaranteed your personal information is not shared with anyone, thanks to advanced security measures like authentication and tokenization. What’s more, e-money cannot be copied or reused once it’s been spent and the risk of losing cash is entirely eliminated.
Record of all transactions
Unlike cash payments, digital transactions are recorded and you can keep track of each and every payment and expense.
LeuPay, for instance, provides comprehensive reporting of all account activities as well as real-time monitoring via the LeuPay mobile app.