Electronic Currency

If this is true that money makes the world go around, does the world spin faster when money can circle the globe in a fraction of a second? “Money” itself a combination of factors, such as coins or paper, negotiable bonds, and now bits of data residing on computer servers or pulses of light pulses through fiber-optic network. Electronic currency (also known as e-money, electronic cash, electronic currency, digital money, digital cash or digital currency) is a script or money which only exchange electronically.

Most money in today’s world is electronic, and tangible cash is becoming less frequent. As a result of the use of internet / online banking, debit cards, online bill payment and internet business, paper money has become a thing of the past. Banks now offer many services to enable customers to transfer funds, contribute to their retirement plans (such as the Canadian Registered Retirement Savings Plan), purchase shares and provide various other services without having to handle physical cash or checks. Customers do not have to wait; this provides a lower-hassle environment. Furthermore, debit cards and online bill payment can immediately transfer funds from the personal account to a business’s account without any actual paper transfer of money. This provides a great convenience to consumers and businesses alike.

Although there are benefits points to digital cash, there are also significant weaknesses. These embrace fraud, failure of technology, as far as possible to track the loss of personal and interpersonal. Indeed, fraud over digital cash has become a pressing issue in recent years. Intrusion to bank accounts and bank records has led to a broad invasion of privacy and has promoted the identity theft. Moreover, there is also an imperative issue regarding the technology involved in digital cash. Power failures, loss of records and undependable software often cause a major setback in promoting the technology. Privacy issues have also been raised; there is a fear that the use of debit cards and the others electronic currency will lead to the creation by the banking industry of a global tracking system. IT researchers are working on anonymous electronic currency to try to address this privacy question.
Whilst there are continued resistances, many consumers enjoy the benefits of electronic currency. Yet, fraud, hacker, privacy and the like problem need to be resolved and provided the additional safety precautions.

http://www.kentlaw.edu/honorsscholars/2002students/jhsp.html
http://en.wikipedia.org/wiki/Electronic_currency
http://www.solarnavigator.net/venture_capital/electronic_money_transfers.htm
http://www.chicagofed.org/publications/electronicmoney/electronicmoney.pdf

Mobile Payment Systems in Malaysia: Its potentials and consumers’ adoption strategies

Mobile payment was first introduced in Malaysia by TeleMoney at the end of year 2001. In February 2005, another mobile payment service company, namely Mobile Money International Sdn.Bhd enters the market. Recently, with collaboration of Nokia, Visa & Maybank, and Malaysia’s Touch ‘n Go card Maxis launched the ‘World's first contactless mobile payment system’. It is as convenience as we never expected where transactions can be done by only key in numbers.

Potential

However, a lately Bank Negara Malaysia’s statistic shows that mobile banking usage is still low as compared to other e-payments (Figure 1). One of the reasons is there are other alternatives available conveniently i.e. ATM and internet banking. ATM machines are available around and can be reached conveniently. ATM also provides MEPS enable withdrawal and transfer between different banks. Internet banking on the other hand provides more services than mobile payment with the same charges such as checking statement promptly after fund transfer and online share application that cannot be apply through mobile payment. Moreover, the promotion on using mobile payment in Malaysia is not ‘hot’ enough to create awareness among Malaysian. In a nutshell, loads of efforts and collaboration between government, banks and merchants will be needed to increase the application of mobile payment among Malaysian due to high competitiveness with various e-payments. If not mobile payment merchant will definitely meet their draw back.

Figure 1 : statistic from Bank Negara Malaysia (source : payment system policy department, BNM)

Adoption strategies

Some of the widely adoption of mobile payment in Malaysia are:

• top up - reload airtime such as iTalk, Digi, or Celcom.
  
• pay bills - pays such as utilities bills, PTPTN loan, insurance bill, or Majlis Perbandaran.
  
• remit money overseas - such as to Indonesia, mostly use by foreign workers.
  
• pay friends - pay to friend through key-in their mobile phone number or bank transfer.
  
• pay merchants - applied when buying from stores.

Illustrations...


A customer using mobile to purchase a meal from a fast food outlet.







using Nokia 6212 for touch 'n go

















References:

http://mis-asia.com/news/articles/worlds-first-contactless-mobile-payment-system-launches-in-malaysia
http://www.fsa.go.jp/frtc/kenkyu/event/20090331/04-4.pdf
http://www.mobile-money.com/aboutus.htm
http://www.zdnetasia.com/news/communications/0,39044192,39001884,00.htm

Credit Card Debts: Causes and Prevention

I believe that everyone is familiar with credit card. It allows consumers to repeatedly borrow money or purchase products and services on credit. Normally, it is issued by banks, savings and loans, retail stores and other businesses. Credit cards suppose to make our life easier, but it gives rise to negative consequences in our society.

Today, credit card debt has become the main contributor to personal debt and cause for many financial problems. The following are some of the common causes of credit card debts.

1. Maintaining expenses on a reduced income ~ Excessive spending is one of the common causes of credit card debt. This is especially true if you continue to make charges after experiencing a reduction in your monthly income.
2. Poor money management ~ Spending without planning is likely to result in excessive expenses and inability to pay the monthly credit card bills. Higher interest rates will be charged on late payment and further increase your debts.
3. Not savings or saving too little ~ Those who are contributing very little or no funds to savings, are likely reach for their credit cards to cover any unexpected or emergency expenses.
4. Overspending ~ People often spend too much on things that they may not really need. As we live in a consumer culture, with glittery advertisements beckoning us to buy, around every corner, sometimes, we may use credit cards beyond our means.
5. Banking on windfall ~ Spending tomorrow’s money today is very tempting. Relying on credit cards to meet your monthly purchases will lead you down into credit card debt at the end.

Nevertheless, prevent is definitely better than cure. Here are some useful tips to prevent credit card debts.

1. Manage Your Finance ~ Plan for your money by listing out all income and expenses on a monthly basis. It is important to know exactly where all of your funds are going. With a great management plan, you won't need to pull out your credit card from your wallet.
2. Choose Credit Card Wisely ~ Be cautious when choosing credit card. Try to find the credit card offers the lowest interest rate by reviewing and comparing various offers in the market.
3. Control Spending ~ Be extremely careful with your spending once you get the credit card. Consider whether you can afford the amount credited at the end of the month each time you use credit card. Set a credit limit as low as possible but sufficient to meet your daily needs.
4. Always Pay on Time ~ Paying on time is one of the best solution to shun away from debt. This can restrict debt from being grow into a huge amount that contributes to financial problem.
5. View Credit Card the Same as with Cash ~ Keep an equal perspective regarding credit card and cash. This helps you to be more aware and keen on spending too much.

Be a wise consumer and use your credit cards cautiously and don’t let credit cards control you.

References:

http://www.cardratings.com/howtoavoidcreditcarddebt.html
http://www.3debtconsolidation.com/creditcardmistakes.html
http://www.bankrate.com/brm/news/debt/debt_manage_2004/top-10-causes.asp
http://www.buzzle.com/articles/tips-on-debt-prevention-and-management.html
http://www.stop-credit-card-debt.com/2008/07/24/tips-on-credit-card-debt-prevention/
http://learnfobia.com/category-Business-62/tutorial-Manage-and-Eliminate-your-Credit-Card-Debt-1989.html

- The Application of Pre-paid Cash Card for Consumers -

What Exactly Is A Prepaid Cash Card?

Prepaid cash cards look like credit and debit cards and they offer the same ability to purchase products and services 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 A Prepaid Cash Card Works?

You will be given a Pin number when you purchase a prepaid cash card, and once money has been credited, it can be used in the same way as a debit or credit card. For examples, online or telephone purchases. Money can be reloaded onto a prepaid card by cash at a bank, Post Office, or via a bank transfer.

Who Needs A Prepaid Cash Card?

For those who lack the discipline to manage their money, prepaid cash cards can be a lifesaver in that they don’t let a user spend more than he or she has. It is a great idea to get a prepaid cash card if you have a poor or no credit history whatsoever, and have a trouble to get approved credit cards.

What Are the Reasons to Apply a Prepaid Cash Card?

The following are the advantages and benefits if you have a prepaid cash card on hand:

1. No credit checks, which means you can get a card without worrying about your credit history. All prepaid card providers will carry out an identity check to confirm you are who you say you are.
2. To budget for yourself or help to manage your children's spending. Like a credit card, you get a full breakdown of spending on the card so you can see what has been purchased, who from and when.Thus, you will improve your credit rating without running the risk of acquiring any debt.
3. With a prepaid card, there is no chance of spending too much as you are limited to the amount you put on your card.
4. Prepaid cash cards are a good option if you are going overseas. They are popular with students heading off on gap years and children who go abroad on school trips as parents can reload them conveniently and efficiently. In addtion, prepaid cash cards offer a good alternative to travellers' cheques as they are safe and you will probably be offered a better rate of exchange as you spend.

Should You Get a Prepaid Cash Card Now?

Prepaid cash cards provide a great answer to problems dealing with bad credit, no credit and uncontrollable spending. By owning and using a prepaid credit card, a consumer can easily establish credit, build up or improve a credit rating and avoid falling into debt at the same time.

If you have decided to apply for a prepaid cash card, u may click the following link to search for further information: http://www.consumercreditcardguide.com/prepaid.php

No matter what you decide, practice smart spending and saving habits. Calculate your month-to-month expenses and plan for a small allowance for personal spending. Open up a savings account and cancel off any extra expenses that you have. Use your prepaid credit card as a stepping stone to better credit and more responsible financial behavior.

Reference Links:

1. http://www.moneysupermarket.com/c/prepaid-cards/guide/2


2. http://www.frankfordfinancial.com/prepaid-credit-card/prepaid-creditcard.htm


3. http://washingtonindependent.com/35944/prepaid-cash-cards-are-a-pricey-way-to-swipe