Electronic Money Supervisory Commission

Power of e-Money

Power of e-Money

  • Electronic money is increasingly popular today. It has a big and powerful impact to the economy.


    Advantages of using electronic money and to attest the power of its convenience.

    • Payment for services within the system;
    • Purchases from online stores;
    • Simplification of financial transactions within the Internet;
    • Low commission.

    Many people use electronic cash and feel there are relative benefits, there are also people who find disadvantages to using electronic cash. Just like with anything, there are pros and cons to electronic cash, debit and ATM cards.

    One form of electronic cash is debit cards. Debit cards are plastic cards electronically connected to a checking account. Debit cards can serve as checks and as ATM cards. When using a debit card as a check, the card is simply given to the clerk and it is then treated as a credit card. Debit cards can only be used at stores which accept credit cards. If there is not enough money in the account the card is linked to, the transaction will not be approved. This provides added security for the merchant over accepting a check. If the consumer chooses to use a debit card they will avoid the hassles of having to provide identification as when issuing a check.

    Here are some of the advantages of using electronic money:

    • Consumer convenience. Consumer no longer needs to count pack and transport money.
    • Low fees for transactions. Transactions inside the electronic payment system is not expensive that’s why consumers find e-money useful for small transactions.
    • Payer anonymity. E-money transactions often happen on the Internet through an online gateway where the identity of the payer is secured.
    • Security. The e-money can not be copied and reused when once it was spent over. in the user’s accounts.
    • Independence. Usually e-money does not dependent on any user location. It can be used anytime and anywhere.
    • Divisibility. A quantity of e-money can be subdivided into smaller parts of money.

    Others identified the power of money through the benefits that they can get from using it.

    Electronic money has brought lots of new opportunities and possibilities. Using digital money is very easy and convenient. With electronic money, people can send mass payments to freelancers, remote workers, and others. It can also be used to pay for utilities, cell phone services, and internet access, transfer money to others, pay for goods and services online and offline, trade and much more. Electronic transactions are carried out almost instantly, while problems such as lines, change, and other are done away with.

    Digital cash saves not only time but money as well. All transfers within one payment system are available at a little to no cost. By using electronic money you stay anonymous and you are the only person who has access to your personal data.

    Electronic payment systems allow for anonymous payments. All account information is known only to the owner of that account, everyone else sees just a wallet number.

    In order to withdraw money or replenish your account balance, you don’t have to go anywhere, sign service agreements, present documents, and copies. Deposits and withdrawals come into effect immediately, all this can be done from home.

    The other advantage of digital money is the speed. You can not only exchange your money from any place you want, but such a transaction would be completed much faster. With OKchanger, you can find the exchanger that will suit your needs the most. All you have to do is to log into your account and do what you need to do.

  • With digital money, you have access to your account from anywhere and at any time. You’ll need only internet access to control your funds and perform operations. The number of services that accept electronic money is constantly growing.

    OKchanger is a great tool for anyone who wants to exchange their money as fast and convenient as possible. The service displays information about hundreds of exchangers and puts it in a simple and user-friendly way. OKchanger’s charts and tables will help you decide what services to use, and user reviews will give you an idea of which services you can trust.

    • An example of article stating the power of e-money.

    In the Philippines e-money transactions soar past Php1 Trillion in 2016. It means that electronic money use more than tripled from only Php348 billion in 2013 based on the report released by Bangko Sentral ng Pilipinas (BSP). See how electronic money really in demand today for us to make our lives easier when it comes in doing business.

    With the help of regular users of using mobile e-wallet apps such as PLDT’s Smart Money and Globe’s G-Cash to pay for goods and services, this is the reason why the volume of electronic money transactions surged to Php1.1 trillion last year.

    The rising usage of e-money in transactions offers policy-makers the best hope for making financial services available to unbanked Filipinos, who make up 86 percent of the population, according to the BSP.

    According to a circular in 2009, the BSP defines e-money as “a monetary value electronically stored in convenient payment instruments that consumers can use to buy or pay for goods and services, to transfer or remit funds, and/or to withdraw funds.” It added that instruments used to store e-money include cash cards and electronic wallets, and cited PLDT’s Smart Money and Globe’s G-Cash as the most popular examples of e-money.

    Of the e-money transactions in 2016, 78.2 percent were coursed through banks, which is equivalent to Php870.1 billion. The BSP noted in the report that 119 banks are engaged in electronic banking as of end-2016. The remaining 21.8 percent or Php242 billion cover the e-money transactions of electronic money issuers and non-bank financial institutions.

    At the forefront of these e-money transactions are the financial services arms of the two big telcos. PayMaya, PLDT’s mobile money unit, ended 2016 with six million users, including Smart Money customers, according to a BusinessWorldreport. Meanwhile, Globe Telecom claimed that Mynt, its fintech unit, had some three million users, including G-Cash users, as of end-2016.

    “Digital technology provides unprecedented access to customers to a virtual financial services industry which in turn allows them to perform banking transactions and make payments anytime, anywhere and at their own convenience,” stated by Bangko Sentral ng Pilipinas (BSP).

    This upward trend is a step in the right direction for BSP’s push in promoting digital financial services. In 2015, BSP Governor Amando Tetangco Jr. revealed that only one percent of all financial transactions in the country are done electronically, with the rest being done through cash or checks.