Let’s talk global payment systems, such as PSI-Pay, since the inception of Bitcoin there’s has been an incessant demand for convenient and secure alternatives to traditional banking. The interest in cryptocurrency and other electronic payment systems is currently enjoying a surge in popularity. This is due to a rise in media attention. It seems that the media loves to cover cryptocurrencies; which has helped change the way digital wallets, e-coins and virtual money are regarded.
Comparing Electronic Money and Bitcoins
When a performing currency is overused, people will seek other ways to pay for goods and services. Cash money and credit cards have been used to the point of redundancy. Bitcoins entered the market in 2009. The emergence of this type of virtual currency hasn’t been without its share of bumps. There have been rapid increases and dramatic declines in Bitcoins core value as a traded commodity. However, this hasn’t dampered the interest in digital currency as the wave of the future. If anything Bitcoin has allowed for further development of e-money. E-money is the monetary equivalent of cash. It can be substituted for cash, anywhere payment is sought. However, unlike cash transactions, the receipt is stored, rather than dispensed at checkout.
There are various differences between Bitcoin transactions and electronic currency (e-money). E money is regulated, much like the Federal Reserve does the dollar. A central bank handles and processes the flow of transactions through customer accounts. With Bitcoins, customers must fund their accounts with linked credit cards or a traditional bank account. E-money accounts allows users to pay for online purchases through a downloaded application (app). Cash never changes hand and the flow never stops moving.
Bitcoin on the other hand, relies on a network of users, referred to as peers. This integrated system of peer-to-peer transactions doesn’t have a regulating authority. Because the money isn’t guaranteed or backed by cash reserves, the value of Bitcoin goes in up and down cycles, in response to user demand.
Keeping onto another electronic currency provider, PSI Pay reported a record year in 2015. PSI Pay is regulated by Fin Tech. Fin Tech is a UK governing body, which insures the cash value of PSI transactions. In 2015, PSI-Pay increased volume in the major categories of business growth and income revenue. This announcement came after the company also recorded phenomenal expansion for calendar year, 2014.
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