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Electronic Money Movement

Electronic Money Movement. Salvatore Valela ICS 392-501 Dr. G.M. Welsch Winter Quarter 2001. Electronic Money Movement.

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Electronic Money Movement

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  1. Electronic Money Movement Salvatore Valela ICS 392-501 Dr. G.M. Welsch Winter Quarter 2001

  2. Electronic Money Movement • Offers alternative methods of transferring money from payee to payer. Allows for ease and security of transactions between customer and provider. Provides secure, seamless money transfer vehicles that will be the wave of the future.

  3. Table of Contents Slide Number Title 1 Title Page 2 Electronic Money Movement 3 Table of Contents 4 What is Money Movement 5 Electronic Money Movement 6 E-Currency 7 Bill Payments 8 E-Escrow Services 9 Smart Cards 10 Smart Cards (cont.) 11 Smart Cards (cont.) 12 Cyber Banks 13 Online Brokerage Houses 14 Advantages of Electronic Money Movement 15 Disadvantages of Electronic Money Movement 16 Conclusion 17 Data 18 Bibliography 19 Questions

  4. What is Money Movement? • Purchases • Banking • Office of the Treasury • Investments • Credit Vehicles • Bonds • Any Monetary Transaction

  5. Electronic Money Movement • E-Currency/Digital Cash • Bill Payment • E-Escrow Services • Smart Cards • Cyber Banks • Online Brokerage

  6. E-Currency • Electronic versions of currency that can be kept on software on a computer, in a mobile device, or on a microchip on a card or key chain. • Ecash Technologies

  7. Bill Payments • Bill payments on the internet have seen significant increases in the advent of online banking. Electronic bill payments services are expected to triple within the next year. • Checkfree.com

  8. E-Escrow Services • Gives users who make purchases on-line or face to face a neutral third party to collect and pay for services or merchandise. • PayPal.com

  9. Smart Cards • Offer the convenience of digital cash as well as traditional debit or credit cards on one medium for transactions. Can transfer funds from existing bank accounts to smart card from home. 300,000 used at the Olympics in Atlanta. • Mondex

  10. Smart Cards (cont.) • On-Chip Security • Chips on the card are programmed to automatically react to 'unusual' card behavior, such as very high levels of value redemption and temporarily close down. • Convenience • No need to go to the bank for cash. You can download “money” to your card from your bank account over the internet. • Security • Owners of a card can add a “lock” to the card that will prevent unauthorized access. This lock can be a pin that the owner creates and can change anytime.

  11. Smart Cards (cont.) • International • Smart Cards can detect denomination differences between the vendor and the customer and automatically compensate with current exchange rates. • Privacy • Smart Cards vendors do not collect information from their customers. Privacy is at same level as making a cash transaction.

  12. Cyber Banks • Banks that do not have a brick and mortar presence in the marketplace. These banks typically offer higher interest to customers and low fees to remain competitive. Some banks even offer free checks. • American Express

  13. Online Brokerage Houses • Offer trading of futures, stock, bonds, and any other publicly traded investment vehicle online. • E-Trade.com

  14. Advantages of Electronic Money Movement • Convenient • Fast • Secure • Low Cost • International • Trustworthy

  15. Disadvantages of Electronic Money Movement • Fraud • Physical Security • Customer Service • System Failure • Not Common • Physical Authentication

  16. Conclusion • Electronic money will be the wave of the future • Real money will not go away • Vendors need to provide a fault-proof mechanism of delivering electronic money products

  17. Consumer Payment Preferences (On a Scale of 1-5) Credit Card 3.6 Digital Cash 3.3 Check Account 3.2 ATM Card 2.8 Prepaid Card 2.6 *Source Electronic Payments International 12/00

  18. Bibliography • www.ecashtechnologies.com • www.checkfree.com • www.paypal.com • www.mondex.com • banking.americanexpress.com • www.etrade.com • Kelly Holland and Amy Cortese, "The Future of Money," Business Week (June 12, 1995):67. • Tom Taulli, "The Next Big Thing Since Sliced Bread?" Net Worth • Daniel Akst "In Cyberspace, Nobody Can Hear You Write a Check" Los Angeles Times Magazine (February 4, 1996): 20. • Ian Fala, "Electronic Account That Can Fill Your Digital Wallet" Mail On Sunday (November 12, 1995): 29 • Steven Levy, "The End of Money?" Newsweek (October 30, 1995): 62. • George Mannes, "Digital Dollars: Monetary Transactions on the Internet" Popular Mechanics Volume 173, No. 1 (January 1996): 53. • MasterCard International Press Release, "Visa, MasterCard & Technology Partners Publish Revised Secure Electronic Transaction Method" (6/26/96)

  19. Questions ?

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