Electronic Currency

What is Electronic currency or money? The Electronic currency is known as e-money, digital currency and digital cash which refer to the money which is exchanged only electronically. The electronic currency which is involved use of the computer networks through the internet and digital stored value systems. Examples of the E-currency are Electronic Funds Transfer (EFT) and direct deposit.

The main focuses of the E-currency development are focused the following:
• Being able to use it through a wider range of hardware like secured credit card
• Linked bank accounts that would generally be used over the internet which to exchange with the secure micropayment system.

Nowadays, the E-currency is widely used by the internet as the medium of internet related commercial actions such as online shopping and etc. The services of e-currency is allows people to use their credit card to make their payment. So, the electronic currency is provide many advantages which are convenience and privacy because the e-currency just only the transaction at the internet not like the traditional way, the e-currency can do it at anywhere that have a computer, so that is very convenience to the users. Besides, the others benefits are lower transaction fees, increased efficiency of transactions and it will increase many new opportunities with the expansion of economic activities on the internet. However, there has a big risk for the e-currency which is required to provide the owners credit card information to the merchant that they do no know them very well.

The e-currency service companies such as e-gold, paypal and EMO can provide both the buyers and merchant the convenient way to send and receive the payment just by clicking the button and the deal is done. None of the payment methods in the world right now can provide this kind of efficiency capability.

Types of E-currencies
(1) Hard Curreny - PayPal
PayPal is the serves as an electronic alternative to the traditional paper methods like cheques and money orders.

(2) Precious metal – e-gold
E-gold is a digital gold currency which operated by Gold & Silver Reserve Inc., and backed by gold

(3) Non-gold backed or both gold examples such as e-bullion


Related Links:
http://en.wikipedia.org/wiki/Electronic_money
http://en.wikipedia.org/wiki/PayPal

Credit card debts : Causes and Preventions

CREDIT CARD DEBT

Credit card debt: Causes and Prevention

Firstly, credit card has been used as a necessity among undergraduates, children, family member and many others for the purpose of buying things on credits as it is ease to use. There are many other reasons that cause credit card debts. The causes are as follows:

· Low income, high expenses

It happens when the main wage earner of the household loses his job in economic downturn where many retrenchment are carried out but monthly expenses are not cut down in line with the reduction in income. This obviously leads to a rise in debt. Thus, the family is forced to use their credit cards for groceries, utilities, and others as a ways to cope their financial difficulties.

· Poor money management

Poor money management is one of the top reasons why so many families accumulate lots of debt. Not having a monthly spending plan and not keeping track of your monthly bills makes you unaware of where your money is going. While your money is going towards purchasing useless items, you might also be charging your necessary purchases on your credit card, forcing you to pay interest on these purchases every month.

· Non financial communication

Communicate your current financial health with your spouse and your children and make them aware that if you cannot afford a certain item, they should not ask for it. For example, if your 16 year old son wants a new nice hot sports car, communicate to him that you cannot afford it. Instead, he should go for a smaller car that gets him from option A to B.

· Financial ignorance

This is the upmost key consideration such as saving and investing your personal finances are not taught in school. It's on you to learn to save for a rainy day, as well as manage your money so you can own a house over the longer term. Without this knowledge, you might just use your credit card without knowing your financial strength and limitation.

· Perception

For an illustration, many people hope to win the lottery but the chances of that happening are less than 1%. Thus, it means that we shouldn't spend tomorrow's saved money today just because you expect a promotion in your job or are expecting some miracle to happen. Mostly, perception to gain something without hard work will most likely go wrong more easily than going right.

The causes of credit card debts are as above but there are still many other causes. On the other hand, the following are some of the prevention methods to overcome credit card debts:

· Get rid of credit card

The first and hardest thing you need to do is get rid of your credit cards. In our society this may seem to be an impossible requirement. It’s not. People have lots of excuses for not doing it. These include the assertion that no one wants to accept checks anymore, or that they have to have a credit card to take advantage of online shopping opportunities. These sound plausible, but there are perfectly workable answers and for all of these “problems.”

· Get a debit card

The most obvious solution is to get a debit card. Modern debit cards will work in any machine that accepts credit cards, and they are accepted for online shopping as well. Naturally, if you are using a debit card you cannot spend more money than you have, but that’s why they are a superb tool when you’re trying to get rid of credit card debt.

· Set a budget cash flows from credit counseling centre

Get help from a consumer credit counseling centre where they help you work out different payment options for your credit cards where they will set up a budget and you must stick to it. Most importantly is to be realistic about your expenses and your financial needs, and then draw up a detailed monthly plan to allow yourself review your actual expenses with the budgeted expenses.

Finally, preventing from credit card debt will be the best way as compared to overcome credit card debts. There are many others prevention methods which are all depend on our action taken.

Mobile Payment Systems in Malaysia: Its Potentials and Consumers’ Adoption Strategies

Mobile payment is new and rapidly adoption alternative payment method in Asia and Europe. There are instead of paying with cash, check or credit cards. For example, consumer use mobile phone to pay for wide range od services or hard goods such as :
>Music, videos, ringtones

>Transportion fare, packing meters and other services

>Books, magazines , ticket

Nowadays, Malaysian have convenient way to conduct mobile commerce using a GSM cellular phone. Telemoney is the mobile payment service via multi-channel access internet and wireless transaction and it is fully opetational in the first quarter of 2002. It is a free service provided by banks and telco dependence which customer with a credit card or debit card with a cellular phone register for this phone. GSM phone and telemoney personal identify number are connecting to credit card, debit card, stored valued card, bank account or phone account.

Nokia company have provided credit card users in Malaysia a chance to buy items using mobile phones. Nokia company using Vise’s Wave readers. This is a system that deduct a payment from credit card when an Near-Feild Communication (NFC) mobile is pressed against it. Besides that, only Nokia 3220 can support the Visa Wave service.

There is some advantages for using mobilem payment system :

For users: an opportunity to become engaged in the formal banking sector, to facilitate and reduce the costs of remittances, and to enable financial transactions without the costs and risks associated with the use of cash, including theft and travel to pay in person;
For operators: a significant increase in text messaging revenues and a large drop in customer churn
For consumers: m-commerce is more secure and flexible than cash, allowing consumers to make payments remotely
For banks: an increase in their customer reach and the added cash float available to the bank
For retailers: added business opportunities through the sale of prepaid account credits
For micro-finance institutions: the ability to advance funds into remote areas and have regular repayments that do not significantly inconvenience the user
For service industries and utilities: the ability to get payments electronically from a significant portion of the overall population

Refernce Links :

http://premium-mobile.com/content/malaysia-to-trial-mobile-payment-from-visa/
http://en.wikipedia.org/wiki/Mobile_Payment
http://www.zdnetasia.com/news/communications/0,39044192,39001884,00.htm

The application of pre-paid cash card for comsumers

Due to the technology advancement in today's world, there is a significant change in the form of payment in the market which transformed from paying cash traditionally to electronic payment through prepaid cash card which is more convenient. The prepaid cash card is a stored-value card that reload in advance by consumers for an amount of money for future use. In short, prepaid cash card is actually similar to the concept of prepaid card of mobile phone in which consumers pay in advance a certain amount and use it at their convenience. The convenient that brought by prepaid cash card has contribute to the increase usage of prepaid cash card in the market and it is replacing cash payment instruments day by day.

There are certain examples of prepaid cash card in the followings:

1. Touch 'n Go (TNG) and SmartTAG in Malaysia

Touch 'n Go card is a prepaid cash card that using contactless smartcard technology which looks similar to credit card. It is an electronic purse that can be used at all highways in Malaysia, public transports in Klang Valley, selected parking sites and theme park since it is pre-loaded with electronic cash.

The benefit of using Touch 'n Go card is that it enhances the speed of paying for low value but high volume transactions such as paying tolls and parking fees. Besides, it shorten the time of consumers to queue when paying their bills and bring a lot of convenient to consumers to complete the transaction.

SmartTAG a vehicle on-board unit that works in combination with Touch 'n Go card that allowa consumers to pay toll by drive-through without stopping their cars. It is works with Touch 'n Go card via infrared in high speed which will cut down time during paying the tolls.


The application of Touch 'n Go and SmartTag:

1. Highway such as PLUS, SecondLink, Penang Bridge, LDP & Kerinchi Link,Grandsaga, SILK and etc.
2. Public Transport. For instance, Rapid KL, STAR Line, Putra Line, KTM, Monorail and others.
3. Parking at selected sites like hospitals, shopping malls, public transport stations and hotels.
4. Theme parks such as Bukit Merah Lake Town Resort.

2. Ez-link card in Singapore

The size of ez-link card is similar to Touch 'n go card in Malaysia which is thin and compact. A chip and antenna are build into the card and it is using radio wave through wireless communication.

The benefit by using the card is that it ensure secure, fast and reliable transmission of data. The effective and dependable encryption techniques prevent eavesdropping (data being stealed by others) and fraudulent use.

The application of ez-link card:

1. The ez-link card can be used to paid for food and beverage at McDonald, Chills Cafe, Shangri-la Hotel and so on.
2. Convenience store : 7-eleven
3. Government service and hospitals.
4. Shopping and retail stores such as Cathay Cineleisure, etc.
5. Private bus services like Metro Tours Singapore, Premier buses and Transit Network Consortium Ltd.

3. Octopus card in Hong Kong

Octopus card is a electronic payment system that widely used in Hong Kong using contactless smartcard. Each octopus has a built-in microchip containing an electeonic purse and other application which can accurately record the transaction details.Octopus is used for purchases on public transport, convenience stores, fast food shops, supermarket, schools and even for office used and residential premises access control. Due to its innovative use of technologies, it has been awarded as Chairman's Award of the World Information Technology and Services Alliance's 2006 Global IT Execellence Award.

The application of Octopus Card:

1. Octopus is available at over 2,000 different service providers including public transportation services, apparel stores, bakeries, car parks, cinemas, convenience stores, fast food chains, household stores, leisure facilities, personal care stores, photo finishing stores, photocopiers, supermarkets, and vending machines.
2. Cardholders can use Octopus card to pay by using the discounts or loyalty programs that provided by a number of service providers.

useful links:
1. http://www.touchngo.com.my/
2. http://www.ezlink.com.sg/
3. http://www.octopuscards.com/consumer/en/index.jsp