The application of prepaid cash card for consumers

Prepaid cash card also known as debit card is growing in popularity, and it grew faster than any other form of payment, accounting for 75% of all the card growth from 2003 to 2006.

Many people using debit cards because of the ease, convenience, safety, financial limits, fraud protection and help you control your spending.

These are few examples of the prepaid cash card


Malaysia Touch 'n Go smart card

Pre-paid Visa Cash Card








U.S. Prepaid Debit Cards



International Prepaid Debit Cards

Hong Kong Octopus Card

Below are some of the prepaid cash card uses:

• to pay for the public transport like bus, LRT and toll
• help user to carry less cash while go shopping or doing online shopping as well keep your money safe in one of the prepaid card accounts.
• buying food in fast-food chain or convenient stall
• paying bills and tax such as rental, insurance and so on
• some of the prepaid cash card can be use as ATM card as well
• some of this card can also be used as a virtual traveler check
• Card to card transfer allow
• Topping up your mobile phone

For more information, please read Cards more popular than money

Mobile payment system in Malaysia: Its potentials and consumers’ adoption strategies

What is Mobile Payment System?

Mobile payments (also known as mobile web payments or WAP billing) are a collection of money from consumer via a mobile device such as their mobile phone, Smartphone, Personal Digital Assistant (PDA) or any other devices. Mobile payment allows you to make payments to selected merchants by using your mobile phones. Bill payments and purchase of goods and services are among the cashless transactions that can be made. To enjoy the benefits of mobile payments, you have to register and open an account with mobile payment service providers.






In Malaysia companies like Maxis and Celcom, they provide this kind of services by selling caller ringtone, true tone, and some wallpaper on their websites. In certain times they also send messages to their user to sell some concert ticket, some promotion as well.

Potentials:
The market for Mobile is large. This mobile payment is still under developing in Malaysia. It has potential to continue to grow as consumer’s confidence on mobile payment increased. Mobile payments services indeed have a great potential and advantage. Consumers are more comfortable with low-value transactions over such non-traditional means. Common applications will include payment for transportation, parking, restaurants, convenience stores, retail outlets, e-tickets to name a few – typically for low-value items. This helps especially when consumers are in need of cash but doesn’t have any in hand, therefore with mobile payments they do not need to even search for an ATM machine to withdraw the needed money for the payment.

Strategies:
1. Educate consumers about mobile payments, how to use and introduce its functions (e.g. bill payment, mobile purchase)
2. Enhance security and confidence to mobile users
3. Collaborate with more banks and companies to widen the ability to pay via mobile at the same time it helps to increased customer’s satisfaction and confidence
4. Maintain customer’s loyalty

Credit Card Debt : causes and prevention

Credit Card Debt is the unpaid balance on the credit card. This is not the minimum amount due, but is the total balance due on a respective line of credit.
Nowadays, credit card debts are major cause of bankruptcies each year. It is because many people have never realized of its consequences from financial and non financial perspectives when get a new credit card or not enough safety net when there is an incident happen.

There are several causes of credit card debts:

i) Financial Ignorance
Most of them do not have attend any financial training. It's on you to learn to save for a rainy day, as well as manage your money so you can own a house over the longer term.

ii) Poor money management
They do not having a monthly spending plan and not keeping track of your monthly bills makes you unaware of where your money is going.

iii) Less Income, More Expenses
This happens when monthly expenses are not cut down in line with the reduction in income. This obviously leads to a rise in debt. The family is forced to use their credit cards.

iv) Saving little or not at all
This happens when people do not saving their money or saving too little.



Here are some things to help you with debt prevention and management:

i) Budget
A budget allows you the freedom of having peace of mind knowing that all of your bills are paid and the money has been allocated ahead of time for these expenses.

ii) Savings plan
It may help you prevent yourself from getting into debt. Set aside a certain amount each month into a savings account. Saving with a goal in mind motivates many people to stick to their savings plan.

iii) Consolidate your debt into one payment using an unsecured loan
Although the rates will be higher than a secured loan, often it will be lower than your credit card rates and the payment will be lower as well. This will allow you to pay off your debt in a specified time period while paying less interest over the long run.


References:
http://en.wikipedia.org/wiki/Credit_card
http://www.creditcards.com/

Electronic Currency

What Does Electronic Currency Mean? E-currency System is a complete computerized monetary System, proposing to replace the present paper currency system. Initially it is planned to launch e- currency system as an alternative to credit or debit card system. Electronic Funds Transfer (EFT) and direct deposit are examples of electronic money.

Public-key cryptography and digital signatures (both blind and non-blind signatures) make electronic currency possible. It would take too long to go into detail how public-key cryptography and digital signatures work. But the basic gist is that banks and customers would have public-key encryption keys. Public-key encryption keys come in pairs. A private key known only to the owner, and a public key, made available to everyone.

Besides, Electronic currency trading is a method of trading currencies involves converting base currency to a foreign currency at the market exchange rates through an online brokerage account. And Electronic currency traders use analysis based on technical and fundamental indicators to help them forecast the movement of the currency pair being traded. Because currency trading by this method is wholly electronic, execution speeds are extremely fast, allowing the trader to quickly buy and sell currencies to cut losses and take profits at a moment's notice.

Technically electronic or digital money is a representation, or a system of debits and credits, used to exchange value, within another system, or itself as a standalone system, online or offline. Also sometimes the term electronic money is used to refer to the provider itself. A private currency may use gold to provide extra security, such as digital gold currency. Many systems will sell their electronic currency directly to the end user, such as Paypal and WebMoney, but other systems, such as e-gold, sell only through third party digital currency exchangers.

Theoretical developments in the area of decentralized money are underway that may rival traditional, centralized money. Systems of accounting such as Altruistic Economics are emerging that are entirely electronic, and can be more efficient and more realistic because they do not assume a zero-sum transaction model.

References:
1. http://projects.exeter.ac.uk/RDavies/arian/emoney.html
2.http://www.learncurrencytradingonline.com/electronic-currency-trading.html