E Wallet usage, examples, applications, and how it relates to businesses.
Types of Systems
Centralized: PayPal, eCash, WebMoney, sell their electronic currency directly to
the end user.
Mobile sub-systems/Digital wallet: ApplePay, Google Wallet(which makes it easy
to carry all your credit/debit cards on your phone), contactless payment transfer in
order to facilitate easy payment. Venmo, mobile payment system through SMS,
Credit cards and non-major debit cards at 3% processing fee.
Decentralized: Bitcoin, LiteCoin, Nxt - a medium of exchange using cryptography
to secure the transactions and to control the creation of additional units of the
Hard vs. soft electronic currencies
Hard electronic currency is one that does not have services to dispute or reverse
charges. operating costs of the electronic currency system are greatly reduced by
not having to resolve payment disputes. Additionally, it allows the electronic
currency transactions to clear instantly, making the funds available immediately to
Soft electronic currency is one that allows for reversal of payments, for example in
case of fraud or disputes. Reversible payment methods generally have a "clearing
time" of 72 hours or more. Examples are PayPal and credit card. A hard currency
can be softened by using a trusted third party or an escrow service.
Notable Laws and Codes
Uniform Commercial Code (UCC) - harmonizing the law of sales and other
commercial transactions across the US.
Electronic Fund Transfer Act - The EFT Act(American) right to nominate the
financial institution to make payments, and stops a creditor or lender from
requiring a consumer to repay a loan/credit by electronic fund transfer, except
when there is an overdraft on checking plans.
Payment Services Directive - to increase EU competition/participation in the
payments industry also from non-banks, to level the playing field by joining
consumer protection/rights and obligations for payment providers and users.
Notable Laws Codes Continued...
E-Money Directive(EU) - Electronic money is a digital equivalent of cash, stored
on an electronic device or remotely at a server. One common type of e-money is
the ’electronic purse’, where users store relatively small amounts of money on
their payment card or other smart card, to use for making small payments.
Electronic Money Association(EMA) - trade body for electronic money issuers and
innovative payment service providers including payment institutions, banks and
payment schemes. Sub committees in: Money Laundering, Fraud, IT Security
E-Commerce adoption and transaction completion rate.
Easy money transfer between accounts and people.
Security with payment gateways that authorize credit card or direct payments
Gathering and using demographic data. Pre-marketing product launches.
Foreign money exchange, business to business transactions, online marketplaces
Case Study: SquareUp
Payment API - accept payments online, in store, or on the go
E-Commerce API - you can take payments with Square on your website,
integration, fast deposits, Dashboard reporting, handling chargebacks, PCI
Register API - build your own app for powering in-store or mobile payments,
hardware for taking credit/debit cards
Other APIs - Item and inventory management, Sales reporting and analytics,
Case Study: Circle
Compatible with thousands of digital wallets and online shopping sites that accept
Sign up with an email or phone number to pay and get paid instantly.
Personalize your money message
No fees to move money, and no limits on how much you send or receive each
week using your Circle account
Protect your money with features like PIN, touch ID and two device verification.