Electronic money has many names, like e-money, digital money and e-currency. It is a type of money that is digitally stored compared to tangible paper or coin currency. You can easily use e-money via online and wireless transfers. E-money is the easiest way to make purchases and to receive payments anytime anywhere, 24 x 7, 365 days of the year.
The use of E-money is likely to keep increasing because of the on-going pandemic which gives an impetus to avoid unnecessary physical transactions. Though there are several advantages to switch to E-money, there are also few drawbacks which can scare the customers in terms of fraud, privacy issues, bad credit history, etc.
To get a more clear look, here are some pros and cons of E-money
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Pros |
Cons |
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Lesser pick pocketing because there's no tangible money to steal. |
Chances of leaking personal information to a possible data breach. |
|
Effective with handling, storing, and depositing paper money. |
Not everyone has a bank account to enjoy cashless money. |
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Less money laundering because there's always a digital paper trail |
During data breach if all your money is taken away by fraud then you will have no money to rely on. |
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Easier currency exchange while traveling internationally |
Universal truth is that virtual money is harder to save than physical cash. |
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Cash Management Costs Money like deposits, lockers, etc |
The temptation to overspend may increase. |