The business world is always changing. As a business owner, you need to evolve as the times do. This includes accepting different forms of payment, including eCash.

There are still some business that only accept physical cash, but they are dwindling in number. As consumers look for ways to conveniently pay for goods and services, physical cash is disappearing from transactions.

Interestingly, we could also see a move away from digital forms of payment like credit cards. If you are going to do business in today’s tech-heavy world, you need to consider accepting eCash.

What is eCash?

eCash is electronic money that can be used for a number of transactions. The idea is that it is easy to move money from one account to another. You can make use of encoded cards for the transaction, or you can even use a digital wallet for your eCash.

There are benefits to eCash, including that it gets rid of transactional middlemen, allowing you to directly accept payments from your customers. This can be valuable when you are conducting business. Here are three other reasons that your business should consider accepting eCash:

1. Low Transaction Costs

Unlike credit card processors which charge up to 3% or more per transaction, eCash transactions are low-cost. In some cases, the direct transfer is free. This is a great advantage to business owners who watch their margins and want to keep their costs low.

Until now, financial services companies have had the advantage and could set their prices. Now, more than any other time, we have more options. Technology makes it possible for you to save money while smoothing your transactions with customers.

2. Accept Small Amounts

One of the reasons eCash was created was for the Internet. It was designed for shareware providers and others to charge smaller amounts, such as $0.10 or $0.30 for visits or certain small actions.

With credit cards, it’s not worth it to accept such small amounts, especially as the per-transaction costs can add up when you have a lot of people visiting. With eCash, it’s much more cost-efficient to accept small amounts of money.

It makes you flexible, and is great for your customers.

3. No Messing with Exchange Rates

eCash doesn’t come with exchange rates. One of the reasons that there is a thriving economy growing up around Bitcoin is the fact that it doesn’t require exchange rates.

Digital money is transferred without the need to convert from one currency to another. You don’t have to worry about multiple steps that can reduce the cost-efficiency involved. It’s a great way to do business with people in other countries without the need to set up foreign bank accounts and worry about whether your currency is higher or lower relative to your customer’s currency.

Bottom Line

eCash is coming. There are a number of types of digital money out there right now, but the reality is that all of them offer convenience and other benefits that you don’t see with physical cash, or even with credit cards.

This type of money is easy for consumers to store and use, and it can also be cost-effective for business owners who want to reduce their fees and cut out the middleman.

I'm Miranda and I'm a freelance financial journalist and money expert. My specialties are investing, small business/entrepreneurship and personal finance. The journey to business success and financial freedom is best undertaken with fellow travelers.

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