2. Electronic cash(E-cash)
• Electronic cash is token money in the form of
bits.
• It is an anonymous electronic cash system that
is equivalent to printed bank notes except that
it is transferred thru networks with bits of
info.
• Examples of e-cash include; prepaid cards,
smart cards e.g DR cards
3. Digital wallet
1. Is a system that securely stores user’s
payment info & passwords for numerous
payment method and websites
2. A digital wallet refers to an electronic device
that allows an individual to
make electronic commerce transactions. This
can include purchasing items on-line with a
computer or using a smartphone to purchase
something at a store.
4. (ii) Electronic cheque
• An electronic cheque is a form of payment made
via the internet that is designed to perform the
same function as a general paper cheque.
• It takes less time to be processed but it has got
many security features such as :
i) digital signatures &
ii) authentication
.they are typically used on orders processed online.
5. Credit cards
• Is a payment card issued to users as a method of
payment.
• They are issued to users(cardholder) by a
financial company giving the holder option to
borrow funds.
• CR cards are mainly used for short time financing
and they are charged an interest on them.
• A credit card is linked to a customer’s current
account
6. Accumulating balance
• This system allows users to make multiple
purchases, which will be totalled up and billed
for at the end of a time period.
• Customers make frequent purchases of items
with a smaller value and these will then b
used by the digital wallets to sum them up
and this reduces inconvenience on the user’s
side
7. Stored value card
• Is a payments card with a monetary value
stored on the card itself, not an external
account maintained by a bank
• SVCs maybe anonymous e.g gift cards.
• SVCs are prepaid money cards and may be
disposed when the value is used up or else the
card maybe topped up.
• Funds in a SVC has got an expiring date
8. SVCs contd
• Funds stored in a SVC are physically stored on
the card in the form of binary coded data.
• The value can be accessed using a magnetic
stripe embedded in the card.
