The greatest benefit with eCash is that allows individuals to make financial transactions online in real-time. Because financial information is stored electronically, consumers no longer have to carry cash, only mobile devices or smart cards to complete a transaction. eCash also gives merchants more opportunities to partake in commerce.
Those are a just a few of the benefits of eCash. Here’s a closer look at the advantages that users and merchants can enjoy.
Instead of waiting for a bank to approve a transaction, such as for a check to clear, users can send and exchange funds instantly without ever having to step inside of a bank. In fact, you can use electronic payment systems anywhere in the world, as long as you can get online. Furthermore, eCash prevents consumers from having to pay withdrawal fees that are commonly by banks whenever you visit the ATM or the interest rates that incur with credit cards. In fact, people can exchange money directly to each other without the involvement of a third party.
Merchants also have a lot to gain by embracing eCash systems. For starters, these systems can become a marketing tool for their eCommerce business. When a merchant uses a payment system, whether it’s PayPal, Apple Pay, or Primecoin, the consumer can feel secure in making a purchase of the site since the online marketplace uses a trusted payment system. Some payment systems also provide merchants with coupons to help entice consumers. Another perk is that the fees charged by eCash payment systems are usually lower than what credit card companies charge.
eCash also gives merchants from anywhere in the world to partake in the global marketplace. For example, an online merchant in India can sell their products to anyone in the world and accept payments with just one-click of a button. Family members in Uganda can exchange funds between each other, even if none of them have a traditional bank account.
Finally, both merchants and customers can enjoy the security, and if needed the anonymity, that eCash provides. Since each transaction still needs to be verified, the chances of fraud are greatly reduced.
This was touched upon earlier, but one of the greatest advantages of eCash is that it’s going to increase the opportunities for international exchange. No matter where you live in the world, you can sell your product to international consumers and receive a payment in real-time. For example, you could be a record shop in Germany that sells a $20 vinyl to a customer in Australia or a clothing manufacturer in America who sells products to customers in Brazil for $15 a shirt. Not only are the fees cheaper, it makes it easier to sell items to a global marketplace by using a fast, secure, and convenient eCash system.