Electronic money, or e-money, would be the money balance registered electronically on a stored-value card. These cards have got microprocessors embedded that can be loaded with a financial value. Another kind of electronic money is network money, software that permits the transfer of value on computer networks, specially the world-wide-web. Electronic funds are a floating claim over a private bank or any other financial institution that's not linked with any particular bank account." Illustrations of digital money are bank deposits, digital funds move, direct pay in, settlement processors, and electronic currencies.

Digital funds may either be centralized, and then there is a central point of control over the funds supply, or decentralized, where the control over the money supply may be found from various sources. Electronic money that's decentralized is also recognized as electronic currencies. The key difference between E-money and digital currencies is the fact that E-money does not affect the valuation on the fiat currency (USD, EUR) it symbolizes, but digital currency isn't equivalent to any fiat currency. Basically, all digital currency is Electronic money, but Electronic money is not at all times digital currency. Many mobile sub-systems have already been introduced in the past few years including Google Wallet and even Apple Pay.


Past

In 1983, a study paper by David Chaum introduced the concept of digital cash." In 1990, he founded DigiCash, a digital cash company, in Amsterdam to commercialize the ideas in his research." It filed for bankruptcy in 1998."" In 1999, Chaum left the company.

In 1997, Coca Cola offered purchasing from vending machines using mobile payments." Following that PayPal emerged in 1998." Other system such as e-gold followed suit, but faced issues since it was used by scammers and it was raided by US Feds in 2005." In 2008, bitcoin was announced, which marked the beginning of Digital currencies."

Shawn Wikoff covers the Electronic money Law

Since 2001, the European Union has implemented the E-Money Directive "on the taking up, pursuit and prudential supervision of the business of electronic money institutions" last amended in 2009." Questions on the real nature of EU electronic money have come to light, since calls have been made in connection with the 2007 EU Payment Services Directive favoring the use of merging payment organizations and electronic money institutions. Such a merger could mean that electronic money is of the same nature as bank money or scriptural money.
In the usa, electronic funds are governed by Article 4A of the Uniform Commercial Code for wholesale trades and the Electronic Fund Transfer Act for client transactions. Provider's accountability and customer's accountability are controlled under Regulation E.

Uses of electronic money around the world

Hong Kong's Octopus card model: Launched in 1997 as being an electronic purse for public transportation, is one of effective and fully developed implementation of contactless smart cards used for mass transit payments. After only 5 years, 25 % of Octopus card transactions are unrelated to transit, and accepted by much more than 160 merchants."

London Transport's Oyster card system: Oyster is a plastic smartcard which could hold prepaid credit, Travelcards and Bus & Tram season tickets. You can use an Oyster card to travel on bus, Tube, tram, DLR, London Overground and most National Rail services in London."

Japan's FeliCa: A contactless RFID smart card, used in a variety of ways such as in ticketing systems for public transportation, e-money, and residence door keys."

Netherlands' Chipknip: As an electronic cash system used in the Netherlands, all ATM cards issued by the Dutch banks had value that could be loaded via Chipknip loading stations. For people without a bank, pre-paid Chipknip cards could be purchased at various locations in the Netherlands. As of January 1, 2015, you can no longer pay with Chipknip."

Belgium's Proton: An electronic purse application for debit cards in Belgium. Introduced in February 1995, as a means to replace cash for small transactions. The system was retired in December 31, 2014."


The specialist Shawn Wikoff gives information about Centralized systems:

Many systems-such as PayPal, eCash, WebMoney, Payoneer, cashU, and Hub Culture's Ven will sell their electronic digital currency directly towards the owner. Others only sell through other digital currency exchangers. The M-Pesa system is employed to transfer money through mobile phones in Africa, India, Afghanistan, and Eastern Europe. Some community currencies, like some local exchange trading strategies (LETS) and the Community Exchange System, work with electronic transactions.
Mobile sub-systems/Digital wallets
Numerous electronic money systems use contactless settlement transfer so as to facilitate uncomplicated payment and provides the payee more confidence in not letting go of their electronic wallet through the financial transaction.

In 1994 Mondex and National Westminster Bank provided an 'electronic purse' to residents of Swindon
In about 2005 Telefónica and BBVA Bank introduced a payment system in Spain called Mobipay which used easy short message service facilities of feature cell phones designed for pay-as you go services including cabs and pre-pay phone recharges via a BBVA current bank-account debit.

In Jan 2010, Venmo launched as a mobile payment system through SMS, which transformed into a social app were friends can pay each other for minor expenses like a cup of coffee, rent and paying your share of the restaurant bill when you forget your wallet." It is popular with college students, but has some security issues." It can be linked to your bank account, credit/debit card or have a loaded value to limit the amount of loss in case of a security breach. Credit cards and non-major debit cards incur a 3% processing fee."

On September 19, 2011, Google Wallet was released in the US only, which makes it easy to carry all your credit/debit cards on your phone."

In 2012 O2 (Ireland) (owned by Telefónica)launched Easytrip to pay road tolls which were charged to the mobile phone account or prepay credit.

O2 (United Kingdom) invented O2 Wallet at about the same time. The wallet can be charged with regular bank accounts or cards and discharged by participating retailers using a technique known as 'money messages' The service closed in 2014

On September 9, 2014 Apple Pay was announced at the iPhone 6 event. In October 2014 it was released as an update to work on iPhone 6 and Apple Watch. It is very similar to Google Wallet, but for Apple devices only."

GNU Taler is an anonymous, open source electronic payment system currently (September 2015) in development.

Shawn Wikoff explains Decentralized systems

Cryptocurrencies allow electronic money systems to be decentralized, systems include:

Bitcoin, a peer-to-peer electronic monetary system based on cryptography.
Litecoin, originally based on the bitcoin protocol, intended to improve upon its alleged inefficiencies.
Ripple monetary system, a monetary system based on trust networks.
Dogecoin, a Litecoin-derived system meant by its author to reach broader demographics.
Nxt, conceived as flexible platform to build applications and financial services around.


Hard vs. soft electronic currencies

A hard electronic currency is one that does not have services to dispute or reverse charges. In other words, it is akin to cash in that it only supports non-reversible transactions. Reversing transactions, even in case of a legitimate error, unauthorized use, or failure of a vendor to supply goods is difficult, if not impossible. The advantage of this arrangement is that the operating costs of the electronic currency system are greatly reduced by not having to resolve payment disputes. Additionally, it allows the electronic currency transactions to clear instantly, making the funds available immediately to the recipient. This means that using hard electronic currency is more akin to a cash transaction. Examples are Western Union, KlickEx and Bitcoin.

A soft electronic currency is one that allows for reversal of payments, for example in case of fraud or disputes. Reversible payment methods generally have a "clearing time" of 72 hours or more. Examples are PayPal and credit card. A hard currency can be softened by using a trusted third party or an escrow service.

Automated invoicing (commonly known as e-invoicing) can be described as method of electronic billing. E-invoicing systems are used by dealing associates, similar to shoppers and their suppliers, to present and monitor transactional records between each other and ensure the terms of their dealing arrangements have been met. These kinds of forms consist of statements, buy orders placed, debit information, credit notes, fee terms instructions, and remittance slips.

Shawn Wikoff: E-invoicing includes a a few different modern advances and entry possible choices and it's utilized as an umbrella term to describe almost any way an invoice is electronically offered to customers for settlement.
The most important responsibility on the accounts payable department will be to ensure all outstanding invoices from its producers are approved, prepared, and compensated. Processing an invoice incorporates documenting crucial data within the invoice and providing it on the company's fiscal or bookkeeping systems. As soon as the feed is completed, the bills must go through the business's business process to be paid out.

A good e-invoice is actually a structured invoice info given in Digital Data Interchange or XML forms, most likely by using World wide web-structured web applications. These files could be exchanged in various ways this includes EDI, XML, or CSV documents. They might be uploaded utilizing electronic mails, digital printers, internet apps, or FTP online sites. Shawn Wikoff:The corporation might use imaging application to capture data from PDF or paper invoices and also input it within their invoicing program. This specific simplifies the registering process while positively impacting on sustainability efforts. Various companies their very own in-house e-invoicing approach; however, most companies hire a third-party firm to employ and assist e-invoicing procedures and also to store the info on their own servers.

Shawn Wikoff: E-invoicing History
Ever since the mid-1960s, companies begun establishing data links along with dealing partners to be able to transfer records, which include bills and purchase orders. Inspired from the concept of a paperless workplace and much more efficient transfer of data, these people established the first EDI solutions. These proprietary systems were definitely fairly powerful, although inflexible. Each and every set of trading partners seemed to their very own technique for electronic data interchange. There wasn't any standard that any trading partners could choose to adopt. Recognizing this, the Accredited Standards Committee X12, a standards organization underneath the umbrella of ANSI, moved to standardize EDI systems. The result is well-known today as the ANSI X12 EDI standard. This continued to be the leading way to exchange transactional data files between buying and selling partners until the 1990s, when firms that offered better quality software web applications started to appear. All these new web-based software have capabilities that focused on both the distributor together with client. They empowered for online submission of individual receipts as well as EDI file uploads, like the CSV , PDF, and XML formats. These solutions allow distributors to offer receipts to the clientele for coordinating as well as approval inside a web program. Manufacturers are also able to see a status for all of the statements they submitted to their clientele without the need of immediate access for the consumers' systems. This is due to all of the transactional data is residing in the data centers on the third-party business which offers the invoicing web software package. This unique transactional info may be regulated by the customer as a way to control how much information the vendor is able to look at.

Seeing as corporations advance into the online era, more and more are turning to automated invoicing products to systemize their accounts payable sectors. The 2012 Global E-Invoicing Study illustrated the rate at which electronic invoicing is growing. Based on the study, 73% of respondents implemented electronic invoicing to some degree in 2012, a fourteen% raise from 2011. Provider resistance to e-invoicing has reduced from 46% in 2011 to Twenty-six% in 2012. According to a process of research done by the GXS in 2013, The european countries is implementing governing administration legislation motivating corporations for taking digital invoicing practices. The United States treasury approximated that putting into action e-invoicing all over the entire governing administration would cut back service fees by fifty% and save $four hundred and fifty mil each and every year.

Application

To enable e-invoicing, there ought to be an existing method of taking a look at the trades, frequently an ERP or accounting method. Routing and requirements ought to be established in a job specifications. This often will involve persons in accounts payable, IT, and often purchasing. Once routing is established to the system, validation policies might be created to lower the volume of invoice exceptions. Further admission might be created to easily reject flaws, three-way fit receipts, buy purchases, and also other documents. Acceptance may also inform suppliers of acceptance or rejections. When the e-invoicing specification is finalized and evaluation is complete, the business's suppliers are related digitally, and the e-invoicing method is ready.

I have a generous background in applying essential strategies and also features to companies of all sizes to reduce operating costs.

I got even more than twenty years practice in business to business associations, sales as well as the ability to spot and in addition adjust problems that may occur.
I'll say that I am realistically good not just at recognizing challenges that may have a damaging influence on a company financial success but at the same time on offering suitable solutions and put into practice state-of-the-art methods, and applications critical for businesses of all sizes.

I worked with modest, average plus enterprise establishments in extremely competitive sectors like:IT, HR , financial, judiciary , merchandising , provider management, taxation matters, accountancy, utilities, health-care and beyond and implemented approaches and technologies such as: business software application , pay solutions, epayables, electronic transaction, rebate based payment methods, cash management, monetizing accounts payable, income techniques, monetizing accounts, technology integration, consulting services,data center solutions and furthermore not only worked out the actual problems but in addition had a beneficial effect on the organization grow overtime.

Shawn Wikoff B2B specialist and also business partner