Evolution and change hit different spaces including how we make payments. Therefore, as a business, you must be ready to embrace this regardless of your field. Additionally, in this era of online platforms, an increasing number of financial transactions are online. With this, the concern is on security. It is no wonder systems have been in place to take care of these. A perfect example is one that interestingly, was birthed way ahead of its time; eCash. It handled the transfer of funds anonymously. However, what exactly is it? Are there any benefits realized from using the system in your business? Read on as we discuss these below.
What is eCash
Electronic cash, eCash, is electronic cash that allows several transactions without the use of physical money. With eCash, it is easy to transfer money from one account to the next. Therefore, it is a shift in how people pay for goods and services.
This system was birthed in 1983 by David Chaum to allow the anonymous transfer of funds. The introduction and realization of this idea were back in 1990 in David’s company, DigiCash. This was one of the pioneers of electronic money and refers to both the company and the currency David Chaum developed.
As much as the internet was not that popular when eCash was introduced, it later rose in popularity. This was in the 1990s when digital companies took off, and big banks across the globe had the intention of utilizing the system. Unfortunately, in1998 DigiCash ran bankrupt.
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How Does eCash Work?
Interestingly, eCash was in place long before the internet was widely accepted and used by the public. So, what was the main concept behind eCash? This system worked based on a blind signature; a type of signature that blind the contents of a message before signing. So, you cannot see the contents of the message before you sign. With this, no user creates any link between the spend transactions and withdrawals.
Besides, the model required users to download money from their banks which it would then store on their hard drives. When the users were ready to make an online purchase, they would transfer funds to the merchants using their digital wallets. So, how would the merchant get the funds? He would also need a similar digital wallet software which would be operated by the eCash bank for verification.
Once the verification of the funds is through, the merchant would pay the transaction fees for it to be uploaded to the banks. Remember, the fees incurred were majorly between the traditional ad consumers.
Notably, the concept of eCash has revolutionized over the years, allowing online payments. Besides, eCash companies may charge a small fee on the transactions or you may not incur any charges at all.
Benefits of eCash
With an increasing number of the public embracing the Internet, no doubt there were potential problems. After all, accepting and adapting to change is not easy. Thankfully, eCash is an evolution that came in as a new way of enhancing transactions. However, do you need it? The following are some of the benefits of eCash to business owners and consumers alike;
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Does Not Interfere With Exchange Rates
One of the things you may be concerned about with different currencies is figuring out which one is higher or lower depending on whoever you are having the transactions with. If you are a crypto enthusiast, you no doubt know it is universal and keeps you off the hassle of exchange rates. Thankfully, eCash as digital money does not require it either. It allows transactions without converting your money from one currency to the next, making international purchases easier.
Therefore, if you do business with individuals from different countries, you don’t need to have an account in a foreign account. Rather, you can enjoy the efficiency of eCash. Besides, if you hate the struggles and steps involved in exchanging currencies this is the way to go. Even with cryptocurrency payments, you can easily make them without exchange rate charges.
Reduces Middlemen
As a business owner, one of your concerns is how to complete the transactions with your consumers. How will you get the payments? At times, there is the involvement of middlemen. The longer the chain of middlemen is involved, the more time is consumed. Thankfully eCash is here to change all that.
It allows you to accept payments directly from your clients. Furthermore, it connects you to consumers from different parts of the globe. Therefore, if you run a business, eCash is a valuable system worth embracing.
Has Sensible Transactional Costs
As earlier mentioned, eCash transactions may involve low to no fees charged at all. On the other hand, when you buy items online using a credit card, the charges per transaction could be 3% or even more. besides, businesses pay fees monthly to process the cards.
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So, if you want to reduce the transaction costs in your business low, you can embrace eCash. After all, some direct transfers with the customers cost nothing. How convenient and cost-saving for both business owners and consumers! Therefore, its use can be made more available widely for many people to reduce the cost of items online and to allow customers to save on purchases.
Accepts Small Amounts
Speaking of transactional costs, MasterCards are quite expensive for users with small amounts. On the other hand, eCash is more cost-efficient and accepts small amounts.
During the introduction of eCash into the Internet world when users visited or performed tasks on the shareware provider’s sites, they could pay small amounts such as $0.10 or even $0.30. Therefore, eCash is a flexible way of completing transactions with your customers.
Embrace The Change
The eCash revolution is coming with a bang. You can have different electronic cash in different forms now. So, if you are still stuck with using physical cash or traditional credit cash, why not allow eCash a convenient experience? Whether you are a business owner or a consumer, this is the way to go to reduce middlemen, embrace globalization and pay sensible transaction fees. Therefore, this is a concept that was tried in the past and is a concept still being worked on. If more people embrace it, they can realize its efficiency and convenience.
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