Issuance of electronic money and its application and use on the domestic market, bring significant benefits to participants in the sales process - the presence of cash is reduced and competition in the non-cash market is increased.
How does the customer get electronic money?
The user obtains electronic money by simply transferring funds from his “regular” bank account to a dedicated account of the Electronic Money Institution, either by direct payment or by payment card. The institution is obliged to issue electronic money in the amount of received funds immediately after receiving the funds, i.e. make it available to the user and provide all the functionality of electronic money, for safe and comfortable use.
Where can electronic money be used for payments?
In order for a physical person or an entity to be able to accept electronic money, they must contract the service of accepting electronic money with the institution which is the issuer of electronic money.
Electronic money in general, is stored under a unique electronic wallet code. Each activity of electronic wallet such as top-up, electronic money purchase or electronic payment is kept under a unique transaction code, which is recorded in the electronic money record system of the Issuer's Institution, and is reflected in increasing / decreasing the balance on the dedicated electronic money Issuer's account in a commercial bank.
Strategic outlook and expectations of this technology
One of the strategic rationales for this project was the implementation and use of electronic money in the field of e-commerce business as well as the support for the development of e-government by enabling such payment for services, both through the eGovernment portal and at physical counters of state administration, state faculties and others. Introduction of electronic money in these segments brings significant effectiveness and time saving for all parties in the process.
By enabling this technology in the market, the respective migration of the payment portfolio from the physical/material form of cards to the digitized form of electronic money is likely to happen. This trend will then help further strengthen the market position of Chip Card as well as open a new business opportunities for the company.