Electronic money, E-cash, or E-money is the digital equivalent of money, so it is not held in any physical form. It is usually recorded electronically on a stored-value card.
E-currency transactions are generally made over the Internet, or with smart cards that are linked to a bank account. A lot of people are also using mobile phones to make such transactions.
When is e-money used?/When do we use e-money?
E-money is used, for example, when you receive your paycheck through direct deposit, or when you spend money with credit or debit cards. E-money can be used anytime, anywhere, making it the best form of money to use for international transactions.
In the US, only a small fraction of the currency in circulation exists in physical form.
What are the advantages of using e-money?
The best part about e-money is that it’s almost instant – no lines at the bank or the post office. It’s really convenient, too – all you need is access to the Internet. It is also a lot easier to keep track of all your expenses. Virtual accounts usually contain the history of all transactions that show you what, when and where you spent your money, with you being able to check it anytime you want.