What is digital money and why is it needed?


Digital money is a system for storing various currencies using modern technologies. In particular computers.

In simple terms, electronic money refers to cash flows stored in so-called electronic wallets. We can say that this describes a currency that circulates not in the form of cash, but in electronic payment systems.

An electronic wallet is a storage of digital money. A set of data available to a financial organization that emphasizes a citizen’s right to use certain finances. Often, electronic wallets are simply called payment systems.

Types of electronic money

As a rule, the following classifications apply to any virtual money:

  1. Access method: smart card/network based.
  2. Access level: anonymous/personalized.
  3. Government influence on digital money: fiat/non-fiat.

The most popular payment systems in Russia are:

  • Yandex money;
  • MoneyMail;
  • QIWI;
  • Skrill (formerly MoneyBookers);
  • WebMoney;
  • Rapida;
  • RBK Money;
  • PayPal;
  • Mondex,
  • "One Wallet";
  • Z-Payment;
  • Liqpay;
  • PayCash;
  • EasyPay.
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Based on smart cards

This type of digital money is a plastic medium with a microprocessor on which is recorded the equivalent of the cost paid by the client to the original issuing organization in advance. Cards are issued by banks or non-banking organizations. Using plastic, the client can pay for purchases and services at all points of acceptance of such a payment instrument. Cards are issued multi-purpose or branded (telephone, for example). The tool is suitable for making a payment transaction or withdrawing funds through an ATM.

Among the variety of plastic cards, there are two types: debit (for storing one’s own funds, savings, payments) and credit (the owner of the plastic card spends money within a certain limit, which will then be required to be reimbursed to the issuing organization). A popular option for digital cash based on smart cards are products of the VisaCash and Mondex payment systems.

Network based

To use this cash option, the user needs to install a special program on his smartphone or computer. Money is suitable for purchases in online stores, virtual casinos, games and other transactions. They are multi-purpose and are accepted not only by issuing organizations, but also by other companies. Among the most famous network-based electronic payment systems are: Yandex.Money, Webmoney, Cybercash, Rupay. This type of service has a high level of security.


What are the pros and cons of digital money? Let's start with the shortcomings. After all, every user should know about them. And at the same time we will dispel some myths.

The disadvantages of digital money include:

  1. Legal regulation. In most countries, it is not yet entirely clear how to legally work with electronic media. In addition, there are official prohibitions on the use of digital money in some areas. For example, they will not be able to pay for the purchase of an apartment or car.
  2. Daily life. Another very dubious drawback. Not everyone is familiar with digital money. And they can't be used everywhere. Some people claim that it will be possible to work without problems with electronic means only on the Internet. In practice this is not the case. Especially when you consider that the majority of electronic payment systems offer a special form of storing money (more on that later). This service allows you to freely use available funds.
  3. Difficult to use. Digital money today is strongly tied to technological progress. Just a few years ago this feature was a serious drawback. For example, if a person’s internet or electricity is cut off, they will not be able to access funds.

We have studied the disadvantages of electronic money. But they also have enough advantages. After all, today users are working more and more with a similar interpretation of tools.

Disadvantages of digital money

The disadvantages of digital money include:

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  1. Questionable legal grounds. In many countries today it is not entirely clear how electronic media can be used correctly and legally. In addition, there are official prohibitions on the use of digital currencies in certain industrial and commercial areas. For example, you cannot buy a car or an apartment with electronic currency.
  2. Low prevalence of electronic money in everyday use. There are many people who have not even heard of digital money. And as noted above, using electronic money is not possible in any case. There is an opinion that they can always be used without problems when shopping online, but in practice this is not always the case.
  3. Difficult to use. Today, digital currencies are directly dependent on technological progress. More recently, this was considered a major disadvantage. For example, when the electricity in an apartment goes out or there is no Internet, a person cannot manage his funds. Today, in the age of gadgets, this is no longer so relevant.

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But it should be noted that digital money also has enough advantages.

Positive sides

Now about the positives. Electronic money is very convenient. It is important to understand that the bulk of their shortcomings are already being perfectly eliminated. In particular, if you choose a good storage facility.

So, the advantages of digital money include:

  1. Mobility. For digital media there is no concept of size. In addition, a person will always be able to use his money. All funds will be at hand. This is very captivating. You no longer need to stand in line to pay receipts and taxes; you can easily transfer money anywhere in the world.
  2. Full automation. There is no human factor when working with digital money. All operations are performed by computers and then recorded. In electronic payment systems there is no concept of change. And thanks to saving the history of transactions, a person will be able to understand where this or that money went.
  3. Safety. It is almost impossible to lose electronic funds. They will not be stolen from your hands, and a person will not forget where he put them. All finances are stored in a special electronic wallet. Electronic money can only be lost if the corresponding storage facility is hacked. Fortunately, such situations are extremely rare.
  4. Freedom. When working with digital finance, the user may not provide information about himself. For most operations, it is enough to know the account details of the recipient of the funds.
  5. Comfort of use. Today, technological progress does not stand still. And now digital money can be used almost everywhere. The main thing is to choose the right e-wallet. Paying digitally is allowed wherever there is cashless payment.

As you can already see, the components being studied have a lot of advantages. But what else do users need to know? How to work with electronic money and wallets?

Examples of digital media

It is important to understand that electronic money is different. And they all allow you to work with different currencies. Therefore, it is not entirely clear how digital media differ. It is customary to classify them by storage systems.

Let's look at the most common types. Examples of digital money:

  • cryptocurrency;
  • "Yandex. Money";
  • PayPal;
  • Qiwi;
  • Webmoney.

These are not all types of electronic media. But users work with the listed options most often.

Blurred concept

The definition of digital money is vague. On the one hand, we found out what it is. On the other hand, some people claim that any non-cash transactions are actions with electronic means. Is it really?

Yes and no. After all, many banks offer Internet banking. In this case, the funds will be stored in an account opened in advance, and management will be carried out using computer technology. Therefore, it is not always possible to understand what digital tools are.

But as we have already said, this term is usually used to describe money stored on an electronic wallet. It is with this interpretation that we will work further.

About wallets and their use

We found out what electronic money is. An electronic wallet is a repository of relevant finances. Such payment systems are in great demand. Especially when shopping online.

Electronic wallets, like money, are diverse. Most often, people work with the WebMoney, Yandex. Money", "Qiwi", "PayPal". How can I use a wallet of one type or another?

The main functionality of the digital (electronic) money storage includes:

  • paying bills (any);
  • checking taxes and fines;
  • payment for purchases on the Internet;
  • payment for receiving certain services;
  • mobile phone account replenishment;
  • making money transfers.

Almost like a regular wallet with money! The difference is that cash does not appear in this case. Cashless payments only.

Under certain circumstances, the user can cash out digital funds. For example, by making a money transfer via the Contact system.

indicators required for licensing:

  1. State specific conditions. A company that applies for a license must have at least three directors on staff. They must have the appropriate level of qualifications and experience in the financial sector or in the field of electronic currencies.
  2. The company must have an office with the necessary staff to ensure and maintain records of quality activities.
  3. Mandatory availability of initial capital in the amount of 50 - 100 thousand euros for companies with a small cash turnover. For companies planning to carry out full-fledged work, this amount is 400 thousand euros.
  4. A state fee for filing an application for a license must also be paid.

The main and undoubted advantage of acquiring a license to work with electronic money is that, by obtaining permission in one country and after the certification procedure, the company can provide its services throughout the European Union.

The procedure for applying for an EMI includes two stages: provision of a business plan with all financial indicators and verification of the owners and future management of the company.

specialists will provide you with professional services for full legal support, selection of documents and consultation on this issue.

Tags: EMI licenses EMI license Electronic money license Electronic money

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Types of wallets

It is also important to understand that modern electronic wallets try to protect as much as possible. To achieve this, payment systems introduce various restrictions and several types of accounts.

The most common among them are:

  • initial (anonymous);
  • standard, formal (nominal);
  • confirmed.

In the first case, the citizen does not provide any information about himself. Such wallets are severely limited in terms of storage limits in the account, transactions and amounts that can be withdrawn from the account per day/week/month. Formal certificates (profiles) require the user to upload passport data and provide personal information. This is the most common scenario. The wallet has large limits, but not all restrictions have been removed from it yet.

Confirmed accounts allow you to work with all options of a particular wallet. In this case, restrictions will be minimal. Usually you have to confirm your identity at the payment system service center (for example, in Euroset communication stores). Such certificates are used by individual entrepreneurs.

About media

As we have already said, previously electronic funds were very problematic to use. But now this problem has been eliminated in many payment systems. The thing is that digital money can be stored on different media.

The following scenarios are possible:

  • electronic invoice (required);
  • bank card linked to the wallet;
  • virtual card.

When opening an electronic wallet, the user is required to be issued a special account (like a bank account). This is the money depository.

Many services like Yandex. Money" allow you to produce special bank cards linked to an electronic account. Under such circumstances, all the money in the wallet immediately ends up on the card. It is very comfortable! Thanks to this feature, digital funds are now almost no different from money stored on a bank card of a regular bank.

A virtual card is an analogue of a physical medium. Used for ease of use on the Internet. With the help of such “plastic” you can pay for purchases on the Internet with special comfort. A striking example of such a product is the WebMoney card.

Electronic money and forms of its use

As a rule, electronic funds are used in online business. This payment instrument is considered as one of the forms of market economy. Using virtual money, you can make payments between clients and companies, while avoiding a large number of unnecessary expenses or loss of time. Due to the technical component, electronic payments are carried out instantly, which distinguishes this method from banking transactions.

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Internet payments

One of the reasons why Russians are starting to use electronic money systems is the ability to instantly make payments via the Internet. The service is available around the clock. You can send money to any other accounts using the details of organizations, individuals, other wallets, in the form of payments for housing and communal services or cellular communications, etc. All transactions are saved by the system and tracked. Instead of the traditional client signature, an electronic digital signature is used - the most reliable way to protect user funds.

Credit cards

Another option for using virtual funds is credit cards. Using a physical plastic medium, the owner of an electronic wallet can spend virtual savings when paying for purchases in supermarkets, hotels and anywhere where bank cards are accepted. However, in this case, it is important not to transfer personal data to third parties so as not to lose money. It is especially dangerous to save details of such cards in online stores.


Quick service terminals and ATMs are another convenient way to use your virtual savings. To receive cash, you need to issue an online card in the payment system with bank details, but without physical media. It is issued instantly and allows you not only to receive cash through ATMs, but also to pay for purchases online. Using bank terminals, users can not only withdraw money from virtual wallets, but also replenish online accounts.

Bank checks

To get cash from financial institutions, you can consider using electronic savings such as issuing bank checks. There are several ways in this case:

  1. Transfer of funds to a bank account with subsequent withdrawal.
  2. Transfer of virtual savings to a bank that will exchange them for cash.
  3. Sending electronic money using an international payment system with the possibility of receiving it at any bank.

Beginning of work

How to get started with an electronic wallet and digital money? It is enough to register in one or another payment system.

For example, you can do this:

  1. Go to the Webmoney website.
  2. Click on the “Registration” button.
  3. Provide your mobile phone number.
  4. Click on the “Continue” button.
  5. Fill out the registration form. Here you must indicate the e-mail that will be linked to the wallet.
  6. Create a login password and repeat it.
  7. Click on the “Register” button.
  8. Confirm the operation. To do this, you need to enter a special code sent by SMS.

That's all. Now the user will have a “WebMoney” wallet. The user will see his account, which will allow him to work with digital means. In your “Personal Account” you can upload scans of your passport and receive a formal certificate.


Linking an Internet wallet in this system occurs by mobile phone number.

The platform simplifies the management of your own funds and allows the use of:

  1. Russian rubles;
  2. Dollars;
  3. Euro;
  4. Kazakhstan tenge.

The advantages of working with the platform include:

  • easy balance replenishment - payment terminals are located in all major retail chains;
  • low commission for withdrawal: 1.6% when transferring to an account, 2% when withdrawing to a card;
  • free transfer of funds to the accounts of other users of the QIWI system.

Ordering a special Visa card linked to a wallet allows you to make payments without commission. Despite all the advantages of this platform, not all online stores and services accept payments through it.

Virtual card

A WebMoney card can be issued only after the user gets rid of the anonymous profile. This means virtual “plastic”.

To order it you need:

  1. Log in to your wallet.
  2. Open the WM map page.
  3. Click on the “Order” button.
  4. Select the type of plastic.
  5. Click on the “Next” button.
  6. Indicate whether SMS notification is required.
  7. Check the box next to the “Confirm” line.
  8. Click on the “Confirmation” button.
  9. Pay for plastic through the Merchant system, indicating the details from your bank card.

Ready! Now you can use the virtual card. This task does not cause any difficulties.

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