What is e-money?
Electronic money or e-money is monetary value stored digitally. Digital currency allows users to make cashless payments using technical devices like computers, mobile phones or cards. The money is not held in physical form (coins and notes) but the value is moved electronically from account to account; buyer to seller; customer to supplier etc. At any time, you can transfer the electronically stored funds to your brick-and-mortar bank account, draw real money from an ATM in its physical form or use the e-money to go on making digital transactions.
How to open an e-money account
It only takes a few minutes to open an e-money account, as you can see when you open a virtual bank account in Europe. All you will need is a device and Internet access. Choose an e-money provider and fill in the online form with the relevant personal details, e-mail address and mobile phone number. Then enter your bank details or credit card details to link your e-money account to a physical bank account. Your information will be processed instantly and you can start making transactions from your new e-money account by logging in with your password and username.
E-money and mobile apps
When you download an e-money app to your smartphone you can use it to access all of your accounts from anywhere in the world, at any time. Your e-money app provides an e-wallet where you can store your accounts and have them at your fingertips at all times – including bank accounts, credit cards and e-money accounts. Using your e-money app you can send money to people even if they don’t have an e-money app by using their e-mail address or mobile phone number. An e-money app can be used by business people to stay up-dated on their finances; make mobile money transfers; mobile payments and control their business accounts through their phones. An e-money app can perform the functions of a money transfer app as well as additional functions and services including bank transfers, currency conversion, cards etc.
What is an e-wallet?
E-wallet is a software application on an electronic device where monetary value is stored as e-money and your payment information is saved so that you can make purchases using your stored funds.
An e-wallet or electronic wallet stores your credit cards, e-money accounts and bank account payment details on a digital device like a computer, smartphone or card. You can then make purchases from your e-wallet using the e-wallet app. To be more specific about the terminology – a digital wallet can be accessed via either a computer or a mobile device but a mobile wallet is only accessed via a mobile device. They are both referred to as e-wallet. The e-wallet is made up of software and encrypted payment information (e.g. shipping and billing details). Merchants offering an e-wallet payment option will see more conversions as customers will find checkout more streamlined and secure. Once you have installed e-wallet software on your mobile device or computer, the e-wallet can be used to make payments from your bank account, card or e-money. You can preload your e-wallet with e-money, and spend it using the e-wallet. Examples of e-wallets are PayPal, Skrill, Neteller and EcoPayz, ApplePay, Visa Checkout, Android Pay and many more..