Various electronic currencies are gaining popularity day by day. This is due, first of all, to the widespread development of freelancing - remote work. Since payments to freelancers are carried out mainly through electronic money (a little less often - through transfer to a card), it was remote specialists who turned out to be pioneers in the use of electronic money. Like any financial instrument, electronic currencies are not without their pros and cons. However, first it’s worth understanding what this means of payment is.

Electronic money is understood as a certain currency that exists only in electronic form. Here it is worth mentioning right away that you can not only transfer electronic currency to your bank card, but also cash out the funds available in your wallet. You can also replenish electronic wallets using bank cards, or in cash through special payment terminals.

Electronic money such as Qiwi, WebMoney, and Yandex.Money have gained the greatest popularity in the Russian-speaking segment of the Internet. It is possible to analyze the advantages and disadvantages of each of the listed systems for a long time and persistently. The only question of choice is which tool will be most convenient for you.

Pros of electronic money

So, the conversation needs to start with the advantages that electronic money has. This may include, first of all, Ease of use. It is easy to make transfers from an electronic wallet, conveniently pay for various services, and even make purchases in stores that accept digital currency. You can easily make monthly payments for housing and communal services, and even repay loans using electronic money.

It is also worth noting that you can instantly transfer money from your wallet to a bank card - this is simply an irreplaceable advantage if the bulk of your income comes in the form of virtual money. And you can cash out electronic money, for example, using a money transfer.

The next point that attracts attention is very high level of security for digital wallets. You protect your own savings not only with a traditional password, but also with a number of other means, including SMS login confirmation, and many others. In some payment systems, it is even possible to block a wallet by IP address - that is, you can only access your wallet from a preset address and nothing else. In a word, electronic money is far superior in terms of security to both cash (which can literally be snatched from your pocket) and bank cards (which can also be accessed through technical means or fraudulent actions).

Unlike bank cards, the annual maintenance of an electronic wallet is absolutely free. This will allow you to save part of your own funds, which in the case of a card would be spent on maintenance, as well as SMS information.

Disadvantages of electronic money

Unfortunately, electronic currency is not without its drawbacks. And first of all, it is necessary to mention the most significant of them - the presence of a large number of various commissions. You will have to pay money to withdraw funds to the card. You will pay utilities with a commission. And even when transferring a certain amount of money to your friend or business partner, you will be charged a commission. All this makes the process of using electronic money not as pleasant and cheap as it might seem at first glance.

Another disadvantage of electronic money is low transaction speed. Indeed, in some cases you will have to wait several days, for example, if you transfer money from a wallet to a card. However, sometimes electronic payment systems work very quickly, and you receive the result of the transaction instantly.

Another disadvantage is the not very convenient registration process in payment systems. Of course, a large number of checks and certifying information is quite justified, because for the payment system, cooperation with an obscure anonymous person is also a big risk. However, in order to fully use all the functions of payment systems, you may be required to present your passport details, as well as other documents confirming your identity. It is worth mentioning that document verification can also take up to several days, which means that you are wasting your time.

Conclusion

So, what conclusions can be drawn by summarizing all the pros and cons. Of course, electronic money is the most modern and advanced means of payment. And they are used, for the most part, by those whose work takes place mainly online. However, a large number of different “buts” that one has to face when using virtual money do not allow us to talk about them as an absolutely universal tool.

If you run a business on the Internet, or have any permanent source of income on the World Wide Web, then using electronic wallets will be completely justified for you. In other cases, this is rather meaningless, since the presence of commissions for almost all operations makes the operation of electronic money not very profitable.

Interesting video on this topic:

And although electronic money entered our lives not so long ago, it already has many positive reviews among users. At the moment, the most popular electronic payment systems in the Russian Federation are Qiwi (https://qiwi.com/), Yandex.Money and Webmoney.

What are the advantages of using electronic money?

• Payment for services within the system;
• Payment for purchases in online stores;
• Simplification of financial transactions on the Internet;
• Low commission.

Of course, the main advantage of an electronic wallet is that you can always pay utilities, top up your phone balance, pay for television and Internet access using your computer and an account in the electronic wallet.

People who find it difficult to find a job in real life can try their luck on the Internet: there is a job for almost everyone here. At the same time, it is not necessary to have a certain education; you can work without leaving home, where wages will be paid to an electronic account - for example, in the same Qiwi system, in which you can transfer it to a bank card at any time and cash it out at any ATM.

Another advantage is online shopping. You can choose any products, equipment, things by reading reviews about the selected product and drawing conclusions. This will at least save time on trips to stores.

What are the disadvantages of electronic wallets?

Electronic money, like the entire Internet sphere, is susceptible to hacking, despite advanced protection and constantly improving specialists. If you come up with a simple password, it will be easier to hack your account. Therefore, you need to come up with complex passwords that will protect your data and funds in your account. However, all financial transactions are confirmed using a “linked” phone.

The second disadvantage is that when withdrawing funds there is a commission, and in some electronic payment systems it is quite noticeable. For example, Yandex.Money “takes” 3% +15 rubles of the amount for each transaction.

And these are, perhaps, all the disadvantages. Whether it’s worth sacrificing time or starting to use electronic money is up to you to decide.

Advantages and disadvantages of electronic money

Since the advent of money as such a concept, it has been extremely inconvenient to use. Previously, many of these were objects such as animal skins, sacks of grain, huge stone blocks or rare shells such as cowries. With each millennium, people moved to a more convenient form of money. People sought to simplify the money itself and improve the monetary system, that is, to create money that was easy to use. Now is the age of modern technology - which has brought humanity to one of the most common and practical forms of money - electronic.

Before revealing the essence of electronic money, I would like to talk about the history of its origin and development. Their history begins in the 50s of the 20th century, when there was a transition from paper to keeping records in bank accounts to electronic media. The next stage in the development of such money in the 80s was the appearance of a microchip built into a plastic card. True, the new type of electronic money has not yet canceled settlements between the recipient of the money and the bank.

However, electronic money was already characterized by anonymity. Such money was not accounted for in the bank accounts of system clients, and the payer’s personal data was not registered when making the payment. But at that time, the recipient did not have the opportunity to make payments using electronic money; he could only receive their cash equivalent from the servicing bank.

With the advent of another type of electronic money in the 90s, this problem was partially solved. Consumers and suppliers of goods were able to transfer funds to each other without the participation of a bank. During the period of rapid development of Internet technologies at the turn of the century, about twenty Internet payment systems were created in Japan, the European Union and the United States.

Today, electronic money is most widespread in Japan, where they are used to pay not only on the Internet, but also for purchases in regular stores, for parking and public transport.

So what is electronic money? In fact, it is difficult to define this money. It seems like it’s money, but it doesn’t seem like it. But one thing is for sure - this is a means that is used to pay for goods and services, and it has the same value as real money. Their only area of ​​application is the Internet. You can also use them to book a ticket, make a donation, and pay for housing and communal services, commercial television, mobile communications and the Internet.

Electronic money is often confused with bank plastic cards, but this is not entirely true. Such money does not exist in a bank account, but on a special device that is located in the holder’s possession, and performing any transaction using a bank card necessarily requires access to a specific bank account. It is important to understand that electronic money, despite its virtuality, does not arise on its own. That is, the electronic wallet must be replenished with real money. There are several ways to top up: using a bank card at an ATM or information kiosk, in cash at the post office or at a bank cash desk. You can also accept electronic money to your wallet from anyone, the main thing is that this person has the intention of transferring it. In the same way, electronic money can turn into real money - it can be “withdrawn” from an electronic wallet.

Electronic money is divided into two types: smart card-based and network-based. Based on the first option, anyone can come to the issuing bank and get a card with a microchip, the so-called electronic wallet. When paying with it, information is read from the electronic chip on the buyer’s card and transferred to the seller’s storage media. Then the seller presents this information electronically to the issuing bank, which in turn is obliged to repay the electronic money by exchanging it for real money. It is important to know that when creating an electronic wallet - a separate personal account is not opened for the client, as in the case of plastic cards - the bank's obligations to electronic money holders are reflected in one account for all clients. Among the most well-known electronic money systems based on smart cards are the international systems Mondex, Proton, Visa Cash.

Now let's look at payment systems for payments on the Internet. Typically, an Internet user enters into an agreement with such an organization; to do this, he needs to register on the payment system website, after which he becomes a client of the system and receives an electronic wallet. A well-known example of such organizations is WebMoney (webmoney) - this is a universal means for payments on the Internet, an entire environment of financial relationships, which is used today by millions of people around the world.

Electronic money has a “long” number of advantages compared to traditional ones: ease of use - now there are many payment systems with which you can cash out electronic money. Today, working with these systems is so simple that even a child can handle it. Safety of funds - losing electronic money is much more difficult than a regular wallet; this money cannot be counterfeited. Ease of use - electronic money is stored on a thin plastic card - and it is much easier than a wallet full of paper bills; it is possible to pay for goods and services not only in your own country, but also abroad, since in our time more than In two hundred countries there are centers where you can cash out money - it’s very convenient. Time is money. Another of the most important advantages of electronic money is speed; transactions with such money are completed in 2-3 seconds. A regular bank transfer takes from a few hours to a few days. Free service - registering and opening an electronic wallet is absolutely free. Ideal qualitative uniformity - individual copies of electronic money do not have unique properties (such as scratches on coins or blots on banknotes).

Unfortunately, electronic money also has significant disadvantages. Each electronic money system requires special technical equipment and software, so not all sellers of goods and services can accept them for payment. The security of the system cannot be considered perfect, because there will always be someone who can hack the system. There is no guarantee of stability, since electronic money is not provided by the state, unlike real money. Another drawback is psychological, the lack of trust in electronic money on the part of the population, since the repayment of such money is guaranteed exclusively by the issuing organization. There is no recognition - without special electronic devices it is impossible to easily and quickly determine what kind of item or amount it is. Another not unimportant drawback is the commission percentage charged for each operation used. If we talk about Russia, then another disadvantage is the poor recognition of electronic money. Without special electronic devices, it is impossible to quickly determine what kind of money it is.

Electronic money is now becoming commonplace. This means they have both advantages and disadvantages. When adequately assessing electronic money, you need to take into account all the pros and cons. Personally, I myself have used electronic money several times; this is a very convenient option for paying for goods that cannot be purchased in Russia or even the city of Vladivostok. This process took a small amount of time and in general it is a comfortable method of payment, since you don’t need to go anywhere, the whole procedure took place at home, sitting at your desk. But, personally, it is more convenient for me to pay for services with real cash; this is a method justified by time and history, in which I am confident.

In many countries, electronic money is the means of payment for almost every purchase. Maybe in our country this process will soon become commonplace and people of different ages, young and old, will enjoy the ease of using electronic money while sitting at their computer.

Information sources

money electronic payment

1. D.A. Belyaev newspaper “About money. Komi Republic"

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 were already holders of electronic wallets.

The main pros and cons of electronic money:

• the ability to make purchases without leaving home, but the lack of official status in many countries;

• a high level of payment security, but an equally high probability 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.

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.

It had not yet occurred to anyone to think about the pros and cons of electronic money. The World Wide Web, familiar to modern users, did not yet exist, and the development of electronic technologies 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 the specialized Classic program or the WM Keeper Light electronic application opened in the browser.

The advantages and disadvantages of electronic money (not only WM) can be stated as follows: unique capabilities (for example, instant transfers to anywhere in the world) and dependence on the “whims” of specialized devices.

The first users of this system could transfer funds stored on WebMoney abroad with lightning speed (via Western Union). But only on condition that their electronic device is connected to the World Wide Web.

Development of electronic money: a little history

WebMoney officially began its activities on November 24, 1998, although the first transaction was carried out a few days earlier. The advertising campaign of this payment system was well remembered by users who were among the first thousand registered clients. 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 system were given 100 WM.

In April 2000, the WM title was renamed 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 - euro equivalent (WME)). This period, experts admit, was a real breakthrough for WebMoney on the pan-European market. Now representatives of many countries have been able to use the services of this payment system.

Pros and cons of electronic money (using the example of WebMoney)

Initially, the WebMoney system's client base was not large. Users had to look for opportunities: where and what to spend the contents of their virtual wallets on. The implementation of postal and telegraphic WM transfers became possible only at the very end of the last century - in 1999. At the same time, a system of certificates was introduced.

A WebMoney user's certificate is a kind of indicator of his authority. The higher the level of the certificate, the more trust the virtual wallet holder enjoys.

The main advantages of electronic money over paper money are the ability to instantly convert savings and ease of use. Owners of virtual wallets noted that the ease with which they operated the system created the effect of the absence of third parties (WebMoney’s work is organized on a person to person basis). And WebMoney representatives prudently reserved the right to disable the certificates of unscrupulous clients, which greatly facilitated the fight against unscrupulous individuals.

The holder of an electronic wallet is provided with a fairly large list of opportunities. Here are some of them:

• pay for goods and services from anywhere in the world;

• make calculations without leaving your workplace;

• earn money without leaving home;

• save your time;

• establish automatic execution of mass payments consisting of small amounts. Don’t forget about the lightning speed with which the procedure itself is carried out, as well as the absence of the need to wait your turn and count out 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 it is necessary to transfer funds from one “payment” to another, the holder of electronic wallets incurs quite significant losses.

We should not forget that if a computer, smartphone or other necessary equipment is broken or destroyed, the owner of the electronic wallet loses control over his savings.

About some types of electronic payment systems

The owners of WebMoney have never prohibited their users from exchanging 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 supplemented by the Yandex payment system.

Yandex.Money and WebMoney have a lot in common: the ability to make instant payments, manage your wallet through a browser, speed of mutual settlements and a high level of transaction security.

The main differences between Yandex.Money and WebMoney are that the first was created for entrepreneurs working in the field and the second for individuals.

E-Gold is an international payment system. Wallet holders have one unique opportunity - to invest funds stored in the system in precious metals. But these are not all the advantages. 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 deducting interest on currency exchange, the system charges clients 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 eBay company. PayPal account holders have the opportunity to work with eighteen types of currencies. This is the main advantage of this “payment”.

The disadvantage of PayPal is the need to transfer a small amount during registration. The system also charges its users transaction fees, although only from payment recipients. The size of the commission depends on the physical location of the recipient and his status within the system.

Advantages

Each popular product has special advantages, thanks to which it can be classified as elements of prestige. Here are the advantages of electronic money:

• Any person who knows how to operate a computer, smartphone or other device connected to the Internet can use electronic currency;

• You can pay electronically in stores that do not accept credit cards;

• Anyone can convert one currency into another (or into a 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 on to money.” As a result, a careful attitude towards money gives way to neglect, which leads to unnecessary spending.

The amount of commission charged to senders and recipients of electronic payments is not regulated at the legislative level.

Many stores (including electronic ones) do not accept electronic money.

The holder of an electronic wallet cannot make payments if there is no connection to the Network.

What is the difference between fiat and electronic money

Fiat currency refers to means of payment that are recognized as legal in the countries where they are used. Fiat money, according to experts, does not necessarily have to be backed by gold, silver or other physical goods and reserves. The main condition for their existence is the trust of the state.

Exists only on the Internet. If desired, any one can be converted into non-fiat. To do this, you need to use either the appropriate option within the payment system or the services of a virtual exchange site. Pros and cons of electronic money belonging 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;

• the remote employee is freed from the need to come to collect his salary. However, he can exchange electronic money for fiat money (in order to cash out earnings) only if the required amount of fiat money is available within 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, the offender only had to find out the bank card number.

In addition, servicing bank cards was so expensive that ordinary customers could not afford this pleasure.

Many modern users have heard the term “digital money”. But not everyone understands what it is. But you need to know about this. After all, digital technologies are an integral part of the life of a modern person. And electronic money is becoming more and more common in practice. 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 describes a currency that circulates not in the form of cash, but in electronic payment systems.

An electronic wallet is a storage of digital money. A set of data available to a financial organization that emphasizes a citizen’s right to use certain finances. Often, electronic wallets are simply called payment systems.

Flaws

What are the pros and cons of digital money? Let's start with the shortcomings. After all, every user should know about them. And at the same time we will dispel some myths.

The disadvantages of digital money include:

1. Legal regulation. In most countries, it is not yet entirely clear how to legally work with electronic media. In addition, there are official prohibitions 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.
2. Daily life. Another very dubious drawback. Not everyone is familiar with digital money. And they can't be used everywhere. Some people claim that it will be possible to work without problems with electronic means only on the Internet. In practice this is not the case. Especially when you consider that the majority of electronic payment systems offer a special form of storing money (more on that later). This service allows you to freely use available funds.
3. Difficult to use. Digital money today is strongly tied to technological progress. Just a few years ago this feature was a serious drawback. For example, if a person’s internet or electricity is cut off, they will not be able to access funds.

We have studied the disadvantages of electronic money. But they also have enough advantages. After all, today users are working more and more with a similar interpretation of tools.

Positive sides

Now about the positives. Electronic money is very convenient. It is important to understand that the bulk of their shortcomings are already being perfectly eliminated. In particular, if you choose a good storage facility.

So, the advantages of digital money include:

1. Mobility. For digital media there is no concept of size. In addition, a person will always be able to use his money. All funds will be at hand. This is very captivating. You no longer need to stand in line to pay receipts and taxes; you can easily transfer money anywhere in the world.
2. Full automation. There is no human factor when working with digital money. All operations are performed by computers and then recorded. In electronic payment systems there is no concept of change. And thanks to saving the history of transactions, a person will be able to understand where this or that money went.
3. Safety. It is almost impossible to lose electronic funds. They will not be stolen from your hands, and a person will not forget where he put them. All finances are stored in a special electronic wallet. Electronic money can only be lost if the corresponding storage facility is hacked. Fortunately, such situations are extremely rare.
4. 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 the funds.
5. 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 e-wallet. Paying digitally is allowed wherever there is cashless payment.

As you can already see, the components being studied have a lot of advantages. But what else do users need to know? How to work with electronic money and wallets?

Examples of digital media

It is important to understand that electronic money is different. And they all allow you to work with different currencies. Therefore, it is not entirely clear how digital media differ. It is customary to classify them by storage systems.

Let's look at the most common types. Examples of digital money:

• cryptocurrency;
• "Yandex money";
• PayPal;
• Qiwi;
• Webmoney.

These are not all types of electronic media. But users work with the listed options most often.

Blurred 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 non-cash transactions are actions with electronic means. Is it really?

Yes and no. After all, many banks offer Internet banking. In this case, the funds will be stored in an account opened in advance, and management will be carried out using computer technology. Therefore, it is not always possible to understand what digital tools are.

But as we have already said, this term is usually used to describe money stored on 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 storage includes:

• paying bills (any);
• checking taxes and fines;
• payment for purchases on the Internet;
• payment for receiving certain services;
• mobile phone account replenishment;
• making money transfers.

Almost like a regular wallet with money! The difference is that cash does not appear in this case. Cashless payments only.

Under certain circumstances, the user can cash out digital funds. For example, by making a money transfer via the Contact system.

Types of wallets

It is also important to understand that modern electronic wallets try to protect as much as possible. To achieve this, payment systems introduce various restrictions and several types of accounts.

The most common among them are:

• initial (anonymous);
• standard, formal (nominal);
• confirmed.

In the first case, the citizen does not provide any information about himself. Such wallets are severely limited in terms of storage limits in the account, transactions and amounts that can be withdrawn from the account per day/week/month. Formal certificates (profiles) require the user to upload passport data and provide personal information. This is the most common scenario. The wallet has large limits, but not all restrictions have been removed from it yet.

Confirmed accounts allow you to work with all options of a particular wallet. In this case, restrictions will be minimal. Usually you have to confirm your identity at the payment system service center (for example, in Euroset communication stores). Such certificates are used by individual entrepreneurs.

About media

As we have already said, previously electronic funds were very problematic to use. But now this problem has been eliminated 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 linked to the wallet;
• virtual card.

When opening an electronic wallet, the user is required to be issued a special account (like a bank account). This is the money depository.

Many services like Yandex.Money allow you to create special bank cards linked to an electronic account. Under such circumstances, all the money in the wallet immediately ends up on the card. It is very comfortable! Thanks to this feature, digital funds are now almost no different from money stored on a bank card of a regular bank.

A virtual card is an analogue of a physical medium. Used for ease of use on the Internet. With the help of such “plastic” you can 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 get started with an electronic wallet and digital money? It is enough to register in one or another payment system.

For example, you can do this:

1. Go to the Webmoney website.
2. Click on the "Registration" button.
3. Provide your mobile phone number.
4. Click on the "Continue" button.
5. Fill out the registration form. Here you must indicate the e-mail that will be linked to the wallet.
6. Create a login password and repeat it.
7. Click on the "Register" button.
8. Confirm the operation. To do this, you need to enter a special code sent via SMS.

That's all. Now the user will have a "WebMoney" wallet. The user will see his account, which will allow him to work with digital means. In your “Personal Account” you can upload scans of your passport and receive a formal certificate.

Virtual card

The WebMoney card can be issued only after the user gets rid of the anonymous profile. This means virtual “plastic”.

To order it you need:

1. Log in to your wallet.
2. Open the WM map page.
3. Click on the "Order" button.
4. Select the type of plastic.
5. Click on the "Next" button.
6. Indicate whether SMS notification is required.
7. Check the box next to "Confirm".
8. Click on the "Confirmation" button.
9. Pay for plastic through the "Merchant" system, indicating the details from your bank card.

Ready! Now you can use the virtual card. This task does not cause any difficulties.

Conclusion

In today's world, the future of digital money is uncertain. But we can say with confidence that most countries are trying to introduce such means and introduce laws that allow them to control relevant finances. Electronic payment services are improving every year.

Already, there is almost no difference between a bank card and plastic linked to an electronic wallet. This means that digital tools are in demand. They replace cash. Working with that kind of money is a pleasure!