The concept of "electronic money" appeared in everyday life of earthlings in the 90s of the last century. At the dawn of this century, citizens of thirty-seven countries already held e-wallets.
The main pros and cons of electronic money:
the ability to shop without leaving home, but the lack of official status in many countries;
a high level of payment security, but no less likely that the funds (and at the same time the personal data of the owner of the electronic wallet) will be at the disposal of fraudsters
The world's first transaction
It is known that the first electronic payment was made in America in 1972. The initiative belonged to the Federal Reserve Bank.
Thinking about the pros and cons of electronic money then never occurred to anyone. World Wide Web, familiar to modern users, was not yetexisted, and the development of electronic technology was just beginning.
One of the first "payments"
One of the first and most famous payment systems was WebMoney. The services of this "payment" are provided through a specialized program WM Keeper Classic or electronic application WM Keeper Light, opened in a browser.
Advantages and disadvantages of electronic money (not only WM) can be voiced as follows: unique opportunities (for example, instant transfer to anywhere in the world) and dependence on the "whims" of specialized devices.
Funds stored on WebMoney, the first users of this system could transfer abroad with lightning speed (via Western Union). But only if their electronic device is connected to the World Wide Web.
Development of electronic money: a bit of history
Officially, WebMoney began operations on November 24, 1998, although the first transaction was made a few days earlier. The advertising campaign of this payment system was well remembered by users who entered the first thousand registered customers. 30 WM were transferred to the accounts of these people. It is also known that the owners of the first electronic stores who connected to the "payment" were presented with 100 WM.
In April 2000, the WM title was renamed to WMZ (dollar equivalent). In the same year, the equivalent of the ruble (WMR) appeared, and WebMoney Transfer was recognized as one of the most popular"payments" used for online shopping.
In 2001, WebMoney launched a credit exchange (at the same time, another name for virtual money appeared in the system - the euro equivalent (WME)). This period, experts admit, was a real breakthrough for WebMoney on the European market. Now representatives of many states have been able to use the services of this payment system.
Pros and cons of electronic money (on the example of WebMoney)
Initially, the client base of the WebMoney system was not numerous. Users had to find opportunities: where and what to spend the contents of their virtual wallets. WM postal and telegraphic transfers became possible only at the very end of the last century - in 1999. At the same time, the system of certificates was introduced.
A WebMoney user's passport is a kind of indicator of his authority. The higher the level of the passport, the more trust the virtual wallet holder enjoys.
The main advantages of electronic money compared to paper money are the ability to instantly convert savings and ease of use. The owners of virtual wallets noted that the ease with which they operated the system created the effect of the absence of third parties (the work of WebMoney is organized on a person-to-person basis). And WebMoney representatives prudently reserved the right to disable certificates of unscrupulous clients, which greatly facilitated the fight against unscrupulous persons.
E-wallet holderquite a wide range of possibilities. Here are some of them:
pay for goods and services from anywhere in the world;
make calculations without leaving your workplace;
make money without going out and at home;
save your time;
set up automatic bulk payments consisting of small amounts. Do not forget about the lightning speed with which the procedure itself is performed, as well as the absence of the need to wait in line and count the change
The disadvantages include the fact that electronic coins are not required to be accepted. The seller has the right to refuse to accept online payment. In addition, if necessary, transfer funds from one "payment" to another, the holder of electronic wallets incurs quite significant losses.
Do not forget that in the event of a breakdown or destruction of a computer, smartphone and other necessary devices, the owner of an electronic wallet loses control over his savings.
About some types of electronic payment systems
The owners of "WebMoney" never forbade their users to exchange WM for the currency used by other virtual electronic money systems. One of the first such "payments" was E-Gold (in 1999 it already appeared on the world market). In 2002, this list was replenished with a payment system from Yandex.
Yandex. Money and WebMoney have a lot in common: the ability to make instant payments, wallet management through a browser, speed of mutual settlements andhigh level of transaction security.
The main differences between Yandex. Money and WebMoney is that the first was created for entrepreneurs working in the field of e-commerce, and the second - for individuals.
E-Gold is an international payment system. Wallet holders have one unique opportunity - to invest the funds stored in the system in precious metals. But this is not all the benefits. E-Gold electronic money can be obtained by converting funds depending on changes in the value of gold. The inconvenience of this "payment" is that in addition to withholding interest for the currency exchange, the system charges customers a monthly fee for the safety of funds.
One of the largest debit electronic payment systems is PayPal, which in 2002 became part of the world famous company eBay. PayPal account holders have the opportunity to work with eighteen types of currencies. This is the main advantage of this "payment".
PayPal's inconvenience is the need to transfer a small amount during registration. The system also collects from its users a commission for conducting transactions, however, only from the recipients of payments. The size of the commission depends on the physical location of the addressee and his status within the system.
Benefits
Each in-demand product has special advantages, due to which it can be attributed to the elements of prestige. Here are the benefits of electronic money:
use e-mailcurrency can be any person who knows how to work with a computer, smartphone or other device connected to the Web;
electronic payments can be made in stores that do not accept credit cards;
any person can convert one currency into another (or precious metal), regardless of education
Disadvantages of electronic money
Many users of the World Wide Web, who own electronic wallets, are gradually forgetting the meaning of the phrase "tenaciously hold money." As a result, careful attitude to money is replaced by neglect, which leads to unnecessary spending.
The amount of the commission charged from senders and recipients of electronic payments is not regulated at the legislative level.
Many stores (including e-money) do not accept e-money.
The holder of the e-wallet cannot make payments when there is no connection to the Network.
What is the difference between fiat and electronic money
Fiat currency is a means of payment recognized as legal in the territory of those countries where they are used. Fiat money, according to experts, does not have to be backed by gold, silver, or other physical commodities and reserves. The main condition for their existence is the trust of the state.
Electronic currency exists only on the Internet. If desired, any fiat currency can be converted to non-fiat. To do this, you must use either the appropriate option within the payment system orservices of a virtual exchange site. Pros and cons of electronic money related to this category:
the ability to exchange non-fiat currency for any other is associated with the need to pay for the exchange, which means losing money;
remote employee is spared the need to come for a salary. However, he can exchange electronic money for fiat money (in order to cash out earnings) only if there is the necessary amount of fiat money inside the payment system
Reasons for the invention of electronic currencies
According to some experts, the reason for the emergence of electronic currencies is the low degree of security of payment cards. To empty someone's account, it was enough for the offender to find out the bank card number.
Besides, the service of bank cards was so expensive that ordinary customers could not afford it.
