Electronic cash (e-cash) is a new technology for on-line systems for making payments as it is the combination of computers accompanied with security as well as privacy as compared to paper cash. E-cash provides some interesting properties that makes it an exciting option for payment using the Internet.
E-cash emphasizes for replacement of cash as the principal payment vehicle in consumer-oriented electronic payments.
The predominance of cash gives an opportunity for a business practice that increases the purchasing process where customers largely make use of cash. In order to outdate cash, the electronic payment systems need to have few qualities of cash that current credit and debit cards lack. For example, cash is negotiable, meaning it can be given or traded to someone else. Cash is legal tender, meaning the payee is obligated to take it. Cash is a bearer instrument, meaning that possession is prima facie proof of ownership. Also, cash can be held and used by anyone even those who don’t have a bank account and cash places no risk on the part of the acceptor that the medium of exchange may not be good.
Now, comparing the cash to credit and debit cards. These can’t be given away because, these are identification cards which the issuer owns and it is restricted to one user. Credit and debit cards are not legal tender,& merchants can refuse to accept them. Similarly, checks require either personal knowledge of the payer or a check guarantee system. Hence, to really create a novel electronic payment method, we need to do more than recreate the convenience that is offered by credit and debit cards.
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