The emergence of electronic payments was a turning point in the world of e-commerce. Digital and electronic payments could never be better defined in terms of convenience and speed that would best suit today's fast paced world. Among the numerous and increasing methods of digital payments electronic money is a leading option. Electronic money refers to the currency electronically stored on electronic systems and digital databases, as opposed to physical paper and coin money, and is backed by fiat currency.
In this post, we’ll tell you all about the advantages and disadvantages of electronic money and why you should consider making e-money payments or accept it on your online webstore.
E-money payments will come with a hefty number of advantages you might be interested to hear before you start accepting them on your own online webstore. Here is some of them:
Compared to traditional methods like wire transfers and chacks, e-money is considered a far more convenient option. With e-money transactions, your customers will no longer have to spend time in long queues,waiting for their turn to cash out a check. The use of electronic money brings increased flexibility and convenience to the table and helps you optimize your business since you or customers will get the opportunity to pay you online at any time of day or night, from any part of the world.
As the use of digital and online payments is becoming widespread, the number of people using cash for their payments is decreasing, making it necessary for you as an online retailer or vendor to bring your customers the convenience and flexibility they desire. This can not only benefit them, but you’ll also get paid by global customers and thus increase your sales evermore than before.
Traditional methods of payment will often charge you with extra and unwanted fees that are unnecessary to pay. However, e-money transfers will usually come with usually no fees or very small ones. This might seem like a small share to even notice but in the long run it will save both businesses and individuals hundreds to thousands of dollars in transaction fees and help businesses attract new customers evermore.
The usage of electronic money will give you the opportunity to keep track of your customers by storing a digital historical record of each and every transaction made. Using e-money you’ll get to track your payment, manage your funds, budgeting and so on. This is also a bold reason why e-money payments are becoming more and more popular day after day.
With every positive thing there comes a number of drawbacks too. Here are some of the disadvantages of e-money payments, in case you want to weigh it all and decide what’s best for you and your business:
Although e-money payments are much more accepted and developed than a decade ago, they are still exposed to fraudulent activities and cybersecurity issues. However, no one can actually scam you if you take great care of your private data and information. It is not only your job, but also your payment processor to guarantee and prioritize the safety of your funds.
As previously mentioned multiple times before, all crypto and e-money transactions are irreversible, meaning that they can not be returned once finalized. Therefore, you need to make one hundred percent sure before initiating any transfer. This is because there are no regulatory or higher forces behind crypto and e-money transactions and there is actually nowhere for them to be tracked or charged back.
For the same reasons as it was mentioned above, if someone steals your money or you get caught up in online scams or cyber security attacks, there is no where you can claim your money back or set up a dispute for the return of your money. This is because without sufficient information about the person who performed the transaction, though, it can be difficult to win the claim and receive a refund.
The usage of e-money payments can be done two ways, each of which will come with a number of extra expenses for you. If you want to do it all on your own, you’ll have to deal with the expenses of hiring a team of experts and developers to do the job for you, otherwise you’ll have to get help from payment processors who will help you by taking care of the whole process on your behalf. However, bear in mind that the advantages it brings about may weigh more than the costs.
In this article, we went through and discussed some of the boldest points to consider about e-money payments. Despite all the drawbacks we mentioned above, the usage of e-money will be to your benefit more than you expect it to be. However, whether for paying someone in e-money or accepting e-money payments, you’ll need a reputable payment provider.
Our recommended payment provider is PayPax. PayPax is a crypto and e-money payment solution that lets you accept payments in more than 50 cryptocurrencies and digital money including stablecoins, tokens, and most popular forms of e-money like Perfect MOney, Webmoney or PayPal.
The service enables everyone to make crypto and e-money payments conveniently. However, convenience always comes with a fee. In that case, PayPax offers competitive fees, updated based on mid-market data.
Plus, for those online businesses and retailers who aim to bring convenience to their online store by accepting e-money payments, PayPax offers an online payment gateway, open source API and instant payments for them to easily integrate their payment methods and bring the most cost-effective solutions to expand their business ever more globally.