E-Commerce: 2/8/09

....ELECTRONIC CURRENCY....

Electronic currency is also known as e-money, electronic cash, digital money, digital cash or digital currency which refers to transactions carried out electronically with a net result of funds transferred from one party to another. Electronic currency may be either debit or credit.

Nowadays, electronic currency is being developed as a next-generation method of electronic settlement. Electronic currency is value information in electronic form that is backed by monetary value in actual circulation and can be used as a means of payment. Naturally, electronic currency must be safe from forgery.

The companies that using e-micropayment system are as follow:

Pay stone

Typically, paystone provides an inexpensive online payment method without the risk of charge backs from fraudulent credit card use. It can handle small financial transactions (micropayments) as low as $0.25 efficiently. A small business or individual now has a method of generating revenue from their website quickly, easily and inexpensively.

Pay Loadz

While payloadz is a service to sell intangible products such as software, e-books, digital art, manuals, articles and files. It is an automated delivery service. This means that seller can go on vacation without worrying about sending download links to the consumers every time a payment is made. These files can be either downloaded via hyperlink or sent via e-mail based upon seller's product. Payloadz also has an easy integration with PayPal. Payloadz services can be used depending upon seller’s sales and product’s file size.

Bit Pass

BitPass was an online payment system for digital content and services that founded in December 2002.It allows users to deposit money in an online account. The stored value amount can be used to pay for digital content and services. In addition, BitPass maintains a partner relationship with Microsoft, PayPal, the Royal Bank of Scotland and First Data.

References:

http://en.wikipedia.org/wiki/BitPass

http://www.gold-pages.net/Paystone.htm

http://en.wikipedia.org/wiki/Electronic_money

Mobile payment system in Malaysia: Its potential and consumers' adooption strategies

Mobile payment system is new and rapidly-adopting alternative payment method. A consumer can use a mobile phone to pay for wide range of services and digital or goods. For example pay the restaurant bill without interacting with any staff member.

One of the mobile payments systems in Malaysia is Mobile Money payment (MM Payment). Mobile Money is a PIN-based Mobile Payment Solution designed by Mobile Money International Sdn Bhd to address the limitations and bottlenecks created by cash, cheques and credit cards. MM Mobile Payment platform allows everyone to pay anyone, at anytime from anywhere with just one SMS. It also allows one to receive money from anyone, from anywhere, and anytime. MM Mobile Payment system has a strong security system as it is a closed loop payment system. The charter of Mobile Money is to provide Merchants and consumers with a convenient and secure Mobile Payment and Mobile Commerce platform.

Its potential and the consumer’s adopt strategies are as follow: Consumers are more comfortable with low-value transactions over such non-traditional means. Common applications will include payment for transportation, parking, restaurants, convenience stores, retail outlets, e-tickets to name a few - typically for low-value items. This helps especially when consumers are in need of cash but doesn’t have any in hand, therefore with mobile payments they do not need to even search for an ATM machine to withdraw the needed money for the payment.

Payment systems security is one of the main barriers to electronic and mobile commerce transactions. The key requirements for secure financial transactions in electronic environment include confidentiality, data integrity. Other security factors important for consumer adoption are anonymity and privacy, which relate to use policies of customers’ personal information and purchase records.

Since the mobile payment system has a big market in Malaysia, they should take some strategies to expand it. For example companies can try to educate consumers about mobile payments, how to use and introduce its functions (e.g. bill payment, mobile purchase). Beside companies can try to enhance the security so that user will have confidence with it and also can maintain the customer’s loyalty.

Reference

http://www.neowave.com.my/mobilemoney_overview.asp

http://www.mobile-money.com/

http://en.wikipedia.org/wiki/Mobile_payment

Credit Card Debts: Causes and Prevention

Credit card is any card that may be used repeatedly to borrow money or buy products and services on credit. It is issued by banks, savings and loans, retail stores, and other businesses. It has been found that there are many people who have been relying on their credit cards too much and are now in debt.

The CAUSES of credit card debts are as follow:

Missing payments

Many credit card users only pay the interest and the minimum amount of principal when the debt is due and never fully repaying the entire sum. Thus, the debt accumulates and increases via interest. Finally, the card users are unable to pay the debt.

Overspending

The prices of goods and services going up and not the income, but people still keep on spending as much as they got used to regardless of the reduced income. Thus, they will spend beyond their earnings. They choose to use credit card to purchase goods and services and to cover basic living expenses. However, they may found difficulties or unable to pay back the amount.

Having too Many Credit Cards

The more credit cards a person has, the more likely they are to use them. For example, a credit card holder will has more credit limit if he or she holding more than one card.

Gambling

Gambling is fun and entertaining but if it becomes addictive it'll be hard to stop. This won't become a problem if people spend their extra money for gambling. But borrowing money through the credit cards for gambling will surely lead the card users to a financial disaster.

The PREVENTATIONS of credit card debts are as follow:

Good Money Management

A monthly spending plan is essential. Without that, people have no idea where their money is going. Planning is no more difficult than writing down the expenses and income and reconciling the two. This will enable them to see clearly where their money goes. Besides, people should adjust their expenses based on their new income.

The smart card holder only spends what they can afford. They only use credit card when they are sure that they can pay the balance off at the end of the month.

Prioritize Debt Repayment

Credit card users are advisable to pay off their debts to get rid of the highest interest payment first. List all of your credit card debts, and the amount paying each month. Pay off the lowest amount first. Then use that money to start paying off the second lowest amount.

Cut Up the Extra Credit Cards

Pick the one with the lowest interest rate and cut up the rest. The one that been kept should be deemed an ‘emergency card.” Just use one or two cards and use them as a financial tool. Remember that a credit card is not the same as free money.

Get Professional Help

There are plenty of debt consolidation firms offering to help, but do bear in mind these companies ultimately make money from a card holder’s debt. There are four main agencies that offer free, impartial advice for those in debt: the Citizens Advice Bureau, the Consumer Credit Counselling Service, National Debtline, and Payplan. These are non-profit making organisations that guide those in debt through the options available to them.

It has been noted that it can be very difficult living without credit cards but a financial help site has acknowledged that they can also be very dangerous as many people are facing huge debts after using their card too often.

As a conclusion, credit cards should be used for emergencies only, unless people are plan on paying the entire balance off immediately.

References:

http://ezinearticles.com/?Why-Credit-Card-Abuse-Causes-So-Much-Debt&id=1018899

http://www.credit-land.com/articles/articles_page_68600_1881780_120.php

http://www.articlesbase.com/finance-articles/using-credit-cards-can-cause-debt-719910.html

http://www.insolvencyhelpline.co.uk/debt_special_situations/credit-card-debt.php

The application of pre-paid cash card for consumers.

What is the pre-paid cash card?

The prepaid card is far from a new idea. How many of us

have used a

prepaid gift card or a prepaid mobile phone SI

M card? The concept is basically the same. A prepaid card looks like a credit o

r debit card, and gives users the ability to p

urchase products and services with a card but with a crucial difference - you can only spend the balance that has been preloaded onto the card. This means there is no risk of running into debt as it has no credit or overdraft facility.

How do they work?

Money can be loaded on to a prepaid card by

cash at a bank, Post Office, at Payzone or PayPoint terminals, bank transfer, through your employer or even by another credit card.
When using for purchasing at a high street store, they wo

rk in exactly the same way as a credit or debit card - you simply hand the card to the cashier. You will be asked to enter your PIN number (supplied with the card) on an electro

nic keypad or to sign a payment slip so your s

ignature can be matched with that on the back of the card (if ther

e is no Chip on the card). The total amount will be taken from your card immediately and the transaction is complete.
To shop online, you'll find the item you want to buy and click on to the website's "checkout" page before filling in your details and those of your prepaid card. As long as you have enough cash loaded on your card (the website checks this by the usual means of an author

ization), the purchase is completed and your item will be shipped to you.

What does it uses?

The prepaid card may be a relatively new idea, but it has no shortage of uses, including:

• Buying groceries and petrol• As a replacement for travellers cheques or travel cash for a low cost alternative to paying for goods and services abroad
• Topping up your mobile phone• Internet shopping including eBay• Paying bills
• Transferring money to friends and family either in the UK or overseas (known as r

emittance)

• Withdrawing cash from an ATM

They have particular appeal to those including

• People who wish to use foreign currency on a h

oliday• Newly arrived immigrant, who although earning, cannot yet obtain credit due to having no credit footprint in the UK

• A person who has a poor credit rating or a history of bad debt who cannot get a credit card
• Parent of a young person travelling abroad.

Who provide the pre-paid cash card service?

As we know the 2 giant of credit card issuing co

mpany Visa and Master a ready provide this kind service. They also pro