Advantages of E-Cash


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E-cash is a system that allows users to make transactions over the Internet in real time. In order to pay with e-cash, a user must store information on his personal computer in an electronic wallet or–to avoid computer storage–subscribe to a service like PayPal. To complete a transaction, a user transfers money from his wallet to another user’s wallet or to a merchant’s wallet (or from his PayPal account to a merchant or user’s PayPal account).

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Users

E-cash transactions are advantageous for individual users. User-to-user transactions occur without waiting for a check to clear a recipient’s bank account. Consumers find e-cash handy because they avoid paying fees to banks for debit-card use, and they don’t incur debt on credit cards for small purchases. With e-cash systems like PayPal and DigiCash, you can transfer money easily without having to visit a bank and withdraw cash.

 

Merchants

Merchants can also benefit from using e-cash systems as a marketing tool to attract customers to their online marketplaces. For example, DigiCash markets its program to merchants wanting to keep customers on their site. When a user pays with e-cash, she makes an instant transfer of cash from her digital wallet to a merchant’s digital wallet.

 

PayPal offers merchants a free option to add its functionality to their website. With PayPal, merchants pay lower fees than credit-card fees for transactions over a certain dollar amount.

 

Why not target a merchant’s marketing strategies to online shoppers? DigiCash, for instance, notes how merchants use real-time coupons to entice consumers to buy instantly instead of surfing to other websites for comparison shopping.

 

International Exchange

A big advantage of e-cash is the possibility for international exchange. If you are a Chinese toy merchant, you can sell a $2 toy to an American consumer. A transaction is easy to complete with a service like PayPal. You will receive your customer’s payment in real time and not pay a fee if the transaction is lower than PayPal’s payment threshold. Of course the consumer still has to wait for the product to be delivered–but processing a payment will not delay you in shipping your toy from China to the American consumer.

 

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BMS Team

We, at BMS.co.in, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to contact@bms.co.in.

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