Money, money, money: Payments become electronic

Long before money was invented, people already engaged in barter or trade. Historically, our forefathers gave objects, believed to be of great value, in exchange of another (be it goods or services). They traded goods such as animals, weapons, shells, pearls and other objects that are considered rare and of great significance or importance. Then the use of metal objects became a medium of exchange which later on evolved to coins and eventually in the form of paper. Then came along the Internet and with it came a lot of changes and that included business. Exchange of goods and services via the internet or e-commerce became a way of life.

The history of currency continued as it evolved to what is called e-money. E-money, as stated by Bangko Sentral ng Pilipinas, “is monetary value electronically stored in an instrument or device, accepted as a means of payment by persons other than the issuer.” Unlike coins and paper money that physically exists, e-money’s value is digitally stored in smart cards, smartphones and/or computers that are linked to a particular bank account. Of course much like e-commerce, convenience played a big role. At present, more and more products and services go online. Hence, the demand for emoney increased as well becoming a more popular mode of payment offering less travel time and costs, faster transaction and fewer risks. Yes, just like any other transactions, use of emoney has its own risks. Remember, you are in the Internet; and in the Internet, there is no such thing as zerorisks. But whatever the form of currency you prefer, its main objective remains the same and that is it represents a standard of value that one can use as a method of payment. At right is a list of e-money you can consider when making online transactions: