Electronic money systems are the systems that use electronic means of exchange such as debit cards and credit cards over cash. Most of the developed countries rely upon electronic payment of exchanges and the use of cash is less in these countries. Electronic money systems are advanced forms of exchange.
Benefits of Electronic Money Systems
People use credit cards while purchasing things instead of paying cash and it is true that cash payments are known as traditional ways. Electronic money systems benefit the economy and country in several ways.
- The state doesn’t have to print a lot of money which is costly and if the country will print more money inflation will eventually rise.
- Through electronic systems, the transactions are tracked and through these countries can have control over illegal activities like money laundering.
- People become more exposed to advanced technology and people get the awareness of how advanced technology works efficiently.
- Electronic systems provide you security from street thefts. You don’t keep cash in your pockets and if your credit card gets stolen you can immediately block the card by complaining to the bank.
- Electronic money is also hassled less when it comes to an international transaction. It also allows you to exchange foreign currencies.