Top 15 – Types of Electronic Money

Types of Electronic Money-What are Electronic Money Types-What are the Main Types of a Electronic Money

Money that is stored in a bank vault. What you have is not money in the way that most people think of it. Electronic currency is quickly replacing cash because it is easy to use and safe. Let’s start by looking at the most common types of electronic money. 

People don’t keep electronic money in physical form like paper money or coins. Electronic systems and digital databases store it so that transactions can happen faster, instead of storing it physically. Central banks create the money that backs digital currency.

Top 15 – Different Types of Electronic Money

E-money is a different kind of money. You can hold a “digital alternative to cash” in your hand and then send it straight to your digital wallet. Payment cards, virtual cards, and payment accounts are all hardware and software-based ways to use electronic money. We will go over the types of electronic money in detail in this article. Read the disadvantages of paper money to go beyond the obvious to continue your education.


When using “hard” types of electronic money, one can expect final, fully secured transactions that follow a set of rules. If you want to, you can do business with a bank. Hardware-based products, like a chip card, store their buying power in a portable device with security features built in.


Developers created stablecoins when cryptocurrency prices fluctuated widely. Private currencies linked to a stable asset or currency are known as stablecoins. Without a central bank to back them up, they can work as de facto currencies.

Soft Currency

In other words, the soft currency is digital money that is easy to get back. The user can choose to cancel or change the price after making the payment. Credit cards, PayPal, and Interac are all usable for making purchases.

Specialized software is required to run software-based products on computers and mobile devices. Each device must connect to a central server in order to send or receive money. It is also possible to build system architectures that combine hardware and software.


One of the most popular types of electronic money is the digital currency Bitcoin. Cryptographic currency is based on encryption. If a cryptocurrency has a cryptographic shell around it, it is much harder to hack and much safer.

Bitcoin and Ethereum are the most important digital currencies. As an asset class, the values and market caps of cryptocurrencies have gone through the roof. Cryptocurrencies, such as Ethereum and Litecoin, are types of electronic money that use blockchain technology for secure transactions.

Payment Networks

Many types of cards, such as debit, credit, computer, and smartphone cards, can be used to transfer electronic currency. In other words, you can use it to transfer money between accounts and buy things online.

Mobile Financial Services

By “MFS,” people mean the many ways that you can send money from your phone. At the moment, mobile money transfers, mobile payments, and mobile banking are the most common ways to use MFS. This is another types of electronic money.

Identified and Unidentified

You can keep track of purchases made with a credit or debit card with Identified E-money. Banks can easily keep track of how money changes hands. When it can’t be figured out where the money came from, it is taken out of a bank.

Mobile Money Transfer (MMT)

With mobile money transfer services, customers can use their phones to send and receive money. One can send money either within the country or to another country.

Central Bank Digital Currencies (CBDCs)

The central bank issues money that is backed by a central bank (CBD). But they’re not the same as fiat currencies, which are also central banks’ debt obligations. CBDCs make it easier to implement monetary policy by setting up direct lines of communication between the government and the people who live there. Large-scale transactions involving banks include the use of CBDCs.

Online and Offline E-transactions

For online banking to third-party e-transactions, you need a stable internet connection. Since there is no bank involved, offline e-transactions do not require an internet connection. Anyone can use the electronic currency stored on a card, chip, or another medium.

Mobile Wallet (mWallet)

The Global System for Mobile Communications (GSMA) says that mWallet is a “data repository” that has enough information about consumers to make it possible to do financial transactions from a mobile phone.

It also has the intelligence to turn a consumer’s instruction sent through a mobile phone/bearer/application into a message that a financial institution can use to debit or credit bank accounts or payment instruments.

Mobile Payments

Another types of electronic money is money payment. Money transfer (MMT) is when two people exchange money, while mobile payments (MP) are when two businesses exchange money. You can use your phone to pay at the point of sale with mobile proximity payments.

Through NFC (Near Field Communication), the POS and the phone can talk to each other in this situation (NCR). Also, using a mobile device, you can pay for things like ringtones or online items that you want to use on your phone. Mobile bill payments are a type of mobile banking because you need to know the company’s bank account information.

Delivery Systems

Mobile phones, PCs, USB flash drives, and smart money cards, among other devices, can store electronic money. Also, credit and debit cards are examples of digital currency. You can send money with any payment method you want.

Electronic Wallet

Money stored on a card, phone, or another portable device. Digital money cards are what prepaid cards do. People spend all of the money in an e-wallet beforehand, and the card becomes invalid after use.

Mobile Banking

The connection between mobile phones and banks. Customers can make deposits, withdrawals, transfers, bill payments, and balance inquiries using their mobile devices. Most of the time, mobile banking apps give banks a brand-new way to market and sell their products.

Transformative models help people who don’t have access to traditional banking get that access. Virtual currencies are types of electronic money that are not backed by any physical asset but are accepted by some merchants.

Frequently Asked Questions

How is Electronic Money Stored?

Transferring money electronically is easy. Most businesses and people use banks that keep electronic records of their financial transactions. One can load fiat currencies onto digital wallets like PayPal and Square.

What is Electronic Money how is it Useful?

Electronic money, also known as e-money, stores a digital representation of money on a technical medium. People other than the issuer often use it for payment. People can use pre-paid bearer instruments without needing a bank account.

How Electronic Money is Created?

Banks make money by giving out loans. Commercial banks can’t make their own money because of the Federal Reserve System. ATMs display digital currency. Banking on loans enables the printing of new currency.


With everything taken into account, nations like China and Singapore, which have seen rapid growth in the financial technology sector, have made electronic money a central component of their payment and international financial systems. Electronic currency transactions are quick and risk-free. The process of using it is simple. Check out these types of electronic money to broaden your horizons.

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