1. Electronic money
Electronic money is based on the electronic financial network. It uses commercial electronic machines and various transaction cards as the medium, electronic computer technology and communication technology as the means, and is stored in the bank’s computer system or user’s mobile phone in the form of electronic data (binary data). It can be circulated and paid through the computer network system or mobile phone in the form of electronic information transmission.
Electronic money has the following characteristics:
(1) It relies on electronic computer technology for storage, payment and circulation;
(2) It can be widely used in the fields of production, exchange, distribution and consumption;
(3) It integrates multiple functions such as savings, credit and non-cash settlement;
(4) Electronic money is easy to use, safe, fast and reliable;
(5) The use of electronic money in the primary stage usually uses bank cards (micro cards, smart cards) as the medium. Electronic money is usually transmitted on a dedicated network and processed by POS machines and ATM machines.
2. Electronic payment
The main types of electronic payment include:
(1) Online payment. Online payment, also known as network payment or online payment, is a form of electronic payment. It is based on the Internet and uses certain digital financial instruments supported by financial institutions to conduct financial exchanges between buyers and sellers, thereby realizing the processes of monetary payment, cash flow, fund settlement, query statistics, etc. from buyers to financial institutions and sellers, thereby providing financial payment for e-commerce services and other services, including online banking of various banks.
(2) Electronic currency. The so-called electronic currency is based on financial electronic networks, with commercial electronic machines and various transaction cards as media, electronic computer technology and communication technology as means, stored in the bank’s computer system in the form of electronic data, and transmitted in the form of electronic information through computer network systems to realize circulation and payment functions. Bitcoin is a relatively popular one recently.
(3) Bank card. Bank card refers to a general term for various cards issued by commercial banks to the public, which have all or part of the functions of consumer credit, transfer settlement, cash deposit and withdrawal, etc., and are used as settlement and payment tools, including credit cards.
(4) Electronic check. The so-called electronic check, also known as digital check, is a traditional check that has all its contents digitized and digitized to form an electronic version of a standard format. With the help of computer networks, it can be transmitted and processed between customers, between banks and customers, and between banks, thereby realizing the payment and settlement of funds between bank customers.
(5) Internet banking. Internet banking has two meanings: one is the concept of institution, which refers to the network that conducts business through information networks; the other is the concept of business, which refers to the financial services provided by banks through information networks, including emerging businesses brought about by the application of information technology by traditional banks.
(6) Electronic payment system. The electronic payment system is an important part of the e-commerce system. It refers to the system in which consumers, merchants and financial institutions use secure e-commerce means to exchange goods or services, that is, to use modern payment means to securely transmit payment information to banks or corresponding processing institutions through the network to realize electronic payment.
(7) Mobile payment. Mobile payment refers to commercial transactions such as bank transfers, bill payments and shopping conducted by both parties through communication devices in a wireless manner. For example, domestic mobile banking and QuickPass; Apple Pay of Apple Inc. in the United States.
(8) Digital certificates. Digital certificates are issued by an authoritative and impartial third-party organization, namely the CA center. Encryption technology with digital certificates as the core can encrypt and decrypt information transmitted on the network, digitally sign and verify signatures, ensure the confidentiality and integrity of information transmitted online, the authenticity of the identity of the transaction entity, and the non-repudiation of signature information, thereby ensuring the security of network applications.
(9) The concept of third-party payment. A third-party payment platform refers to an online payment platform invested and operated by a non-bank third-party organization. For example, Alipay, WeChat Pay, Alibaba’s Huabei, JD’s Baitiao, etc.
Because the qualifications of electronic currency issuers vary and their credit varies greatly, the value of currency must be considered. In addition, confidentiality must be maintained. To prevent malicious hackers from invading mobile phones and computers, secure software or mobile APPs must be selected, and passwords should preferably be set with a combination of letters, numbers, and text.