Many modern users have heard the term digital money. But not everyone understands what it is. But you need to know about it. After all, digital technology is an integral part of the life of a modern person. And electronic money is found in practice more and more often. But what is it? And how can you use these objects?
Terminology
Digital money is a system for storing various currencies using modern technologies. In particular computers.
In simple terms, electronic money refers to cash flows stored in so-called electronic wallets. We can say that this way describes a currency that has a turnover not in the form of cash, but in electronic payment systems.
An electronic wallet is a repository of digital money. The totality of data available to a financial institution that emphasize the citizen’s right to use certain finances. Often, e-wallets are simply called payment systems.
disadvantages
What are the pros and cons of digital money? Let's start with the flaws. After all, every user should know about them. And at the same time we will dispel some myths.
The disadvantages of digital money are:
- Legal regulation. In most countries, it is not yet clear how to work with the law by electronic means. In addition, there are official bans on the use of digital money in some areas. For example, they will not be able to pay for the purchase of an apartment or car.
- Everyday life. Another very dubious flaw. Not everyone knows digital money. And you can not use them everywhere. Some claim that with electronic means it will be possible to work without problems only on the Internet. In practice, this is not so. Especially when you consider that the bulk of electronic payment systems offer a special form of storing money (more on that later). This service allows you to freely use the available funds.
- Difficulty of use. Digital money today is strongly tied to technological progress. A few years ago, this feature was a serious drawback. For example, if a person’s Internet or light is turned off, he will not be able to access the funds.
The disadvantages of electronic money we studied. But they have enough advantages. Indeed, today users are increasingly working with a similar interpretation of funds.
Positive sides
Now about the pros. Electronic money is very convenient. It is important to understand that the bulk of their shortcomings are already perfectly eliminated today. In particular, if you pick up a good repository of funds.
So, the advantages of digital money include:
- Mobility. For digital media there is no concept of size. In addition, a person can always use his money. All funds will be at hand. This is very captivating. You no longer have to stand in line to pay for receipts and taxes; you can easily transfer money anywhere in the world.
- Full automation. The human factor when working with digital money is missing. All operations are performed by computers, and then recorded. In electronic payment systems there is no concept of change. And thanks to the preservation of the history of operations, a person will be able to understand where this or that money went.
- Security. Losing electronic means is almost impossible. They will not be stolen, people will not forget where they put them.All finances are stored in a special electronic wallet. Electronic money can be lost only in the event of hacking the corresponding store. Fortunately, such situations are extremely rare.
- Freedom. When working with digital finance, the user may not provide information about himself. For most operations, it is enough to know the account details of the recipient of funds.
- Comfort of use. Today, technological progress does not stand still. And now digital money can be used almost everywhere. The main thing is to choose the right electronic wallet. Paying by digital means is allowed wherever there is a bank transfer.
As you can already see, the studied components have a lot of advantages. But what else do users need to know? How to work with electronic money and wallets?
Digital Media Examples
It is important to understand that electronic money is different. And they all allow you to work with various currencies. Therefore, it is not entirely clear how digital media differ. It is customary to classify them by storage systems.
Consider the most common types. Examples of digital money:
- cryptocurrency
- "Yandex money";
- PayPal
- Qiwi;
- Webmoney.
These are far from all types of electronic media. But with these options, users work most often.
Fuzzy concept
The definition of digital money is vague. On the one hand, we found out what it is. On the other hand, some people claim that any cashless transactions are actions with electronic means. Is it really?
Yes and no. After all, many banks offer online banking. In this case, the funds will be stored in an account opened in advance, and management is carried out through computer technology. Therefore, it is not always possible to understand what digital means are.
But as we have said, still usually this term describes the money stored in an electronic wallet. It is with this interpretation that we will work further.
About wallets and their use
We found out what electronic money is. An electronic wallet is a repository of relevant finances. Such payment systems are in great demand. Especially when shopping online.
Electronic wallets, like money, are diverse. Most often, people work with the systems "WebMoney", "Yandex. Money", "Qiwi", "PayPal". How can I use a wallet of one type or another?
The main functionality of the digital (electronic) money repository includes:
- payment of bills (any);
- checking taxes and fines;
- payment for online purchases;
- payment for receiving certain services;
- replenishment of a mobile phone account;
- making money transfers.
Almost like an ordinary wallet with money! The difference is that cash does not appear in this case. Only cashless payments.
In certain circumstances, the user can cash out digital funds. For example, by making a money transfer through the Contact system.
Wallet Types
It is also important to understand that modern electronic wallets try to protect to the maximum. For this, payment systems introduce various restrictions and several types of accounts.
Among them, most often distinguish:
- initial (anonymous);
- standard, formal (nominal);
- confirmed.
In the first case, the citizen does not provide any information about himself. Such wallets are very limited in terms of the amount of storage funds in the account, in transactions and in the amounts that can be withdrawn from the account per day / week / month. Formal certificates (profiles) require the user to download passport data and indicate personal information. This is the most common scenario. The wallet has large limits, but not all restrictions have been removed from it yet.
Verified accounts allow you to work with all the options of a wallet. In this case, the restrictions will be minimal.Usually you have to confirm your identity in the service center of the payment system (for example, in Euroset communication stores). Such certificates are used by IP.
About media
As we have said, before electronic money was very problematic to use. But now this problem has been fixed in many payment systems. The thing is that digital money can be stored on different media.
The following scenarios are possible:
- electronic invoice (required);
- bank card tied to a wallet;
- virtual card.
When opening an electronic wallet, a user is given a special account (like a bank account). This is the repository of money.
Many services such as Yandex.Money allow you to make special bank cards tied to an electronic account. Under such circumstances, all the money in the wallet immediately appears on the card. It is very convenient! Thanks to this feature, digital funds are now almost no different from the money stored on a bank card of an ordinary bank.
A virtual card is an analogue of a physical medium. Used for ease of use on the Web. With the help of such "plastic" it is allowed to pay for purchases on the Internet with special comfort. A striking example of such a product is the WebMoney card.
Beginning of work
How to start working with an electronic wallet and with digital money? It is enough to register in a particular payment system.
For example, you can do this:
- Go to the Webmoney website.
- Click on the "Register" button.
- Indicate mobile number.
- Click on the "Continue" button.
- Fill out the registration form. Here you must indicate the e-mail, which will be tied to the wallet.
- Create a password to enter and repeat it.
- Click on the "Register" button.
- Confirm the operation. To do this, you need to enter a special code sent in SMS.
That's all. Now the user will have a WebMoney wallet. The user will see his account, which will allow you to work with digital tools. In the "My Account" you can download passport scans and get a formal certificate.
Virtual card
The WebMoney card can be issued only after the user gets rid of the anonymous profile. Implied virtual "plastic."
To order it, you need:
- Go to your wallet.
- Open the WM-card page.
- Click on the "Order" button.
- Choose the type of plastic.
- Click on the "Next" button.
- Indicate whether to use SMS informing.
- Check the box next to "Confirm."
- Click on the "Confirm" button.
- Pay for plastic through the Merchant system, indicating the data from a bank card.
Done! Now you can use the virtual card. This task does not cause any difficulties.
Conclusion
In the modern world, the future of digital money is not precisely defined. But with confidence we can say that most countries are trying to introduce such funds and introduce laws to control the relevant finances. Electronic payment services are improved every year.
Already, there is almost no difference between a bank card and plastic tied to an electronic wallet. So, digital media is in demand. They replace cash. Working with such money is a real pleasure!