Electronic money has many names, like e-money, digital money and e-currency. It is a type of money that is digitally stored compared to tangible paper or coin currency. You can easily use e-money via online and wireless transfers. E-money is the easiest way to make purchases and to receive payments anytime anywhere, 24 x 7, 365 days of the year.

The use of E-money is likely to keep increasing because of the on-going pandemic which gives an impetus to avoid unnecessary physical transactions. Though there are several advantages to switch to E-money, there are also few drawbacks which can scare the customers in terms of fraud, privacy issues, bad credit history, etc.

To get a more clear look, here are some pros and cons of E-money

Pros

Cons

Lesser pick pocketing because there's no tangible money to steal.

Chances of leaking personal information to a possible data breach.

Effective with handling, storing, and depositing paper money.

Not everyone has a bank account to enjoy cashless money.

Less money laundering because there's always a digital paper trail

During data breach if all your money is taken away by fraud then you will have no money to rely on.

Easier currency exchange while traveling internationally

Universal truth is that virtual money is harder to save than physical cash.

Cash Management Costs Money like deposits, lockers, etc

The temptation to overspend may increase.