The Age of Electronic Money and Mobile Payment

Johnny Walker
Chief Editor
15 September 2019 Updated on  Обновлено   1 February 2023

Just a few clicks allow you to find information, communicate with people and make mobile payments. Technology has gradually introduced the ‘electronic money’ (e-money) concept which has become an alternative to traditional notes and coins. Their main idea is to replace all physical media of money, especially bank cards.

Electronic money and Mobile payment

Definition of electronic money

This term refers to a specific monetary value which can be stored and transferred among smartphones and other electronic devices. This value is considered a legitimate payment instrument if it is accepted by at least the issuer and at least one institution. Making transfers using e-money is easy, and each transaction is unique.

Electronic money is a virtual payment instrument approved by a Directive of the European Parliament which was adopted in 2009. This type of currency is converted into central bank money and includes the issuer’s prepayment mechanism. Each file from which the electronic note is made has a specific identification number. As long as it is stored on the client’s hard disk, it remains hidden.

As soon as the financial institution debits an account, the file is decoded and serial numbers of the electronic note are recorded. This means that you cannot reuse the code after the purchase has been made. E-money can be stored in your gadgets and can be spent only once. You will be interested to know that this process takes as much time as a message is delivered to Viber or WhatsApp.

Fintech applications using electronic money

Welcome to the age of e-money! We’ll tell you about some useful services provided in the form of applications. They are widespread among those in Europe who are accustomed to using their smartphone instead of a credit card as a means of payment.

1. Revolut

This is a fintech application which is an alternative to traditional internet banking and which can save you time. The interface is convenient and easy to use. Using it, you can easily send money, make purchases online and convert different currencies. It takes no more than 30 seconds to set up a new account. Then you can send money in 29 different currencies to banks all over the world for free. If you’re using their debit card, transfers will be calculated in real time in accordance with the current rate and host country.

Revolut is a useful solution not only for transfers but also for making purchases for 150 different currencies. There is a free Standard tariff with small limits and Premium tariff for 7.99 euro per month. You can also create weekly and monthly budgets to better control your finances. Revolut has an active user base of 6 million people. Their mobile application will replace exhausting bank transfers.

2. N26 The Mobile Bank

N26 is the first mobile banking application which operates across the eurozone, the UK, Switzerland, and the USA. Currently, it has more than 3.5 million users. You can also make contactless mobile purchases using the Google Play service from Android smartphones. It takes a few seconds to register your account and you can immediately use all the features that will provide you with complete freedom over your money.

Each transaction is encrypted on servers for maximum data security. There is a way to block your card at a distance or impose restrictions on payments made abroad. Mastercard owners have additional opportunities to manage their finances, as well as to protect their 3D profile. Currently, N26 The Mobile Bank has 48,000 ratings on Google Play, 20,000 of which are 5-star.

3. Monzo Bank

Monzo Bank is another useful e-money transfer service which offers some of the best currency exchange rate. More than 1 million people use this mobile bank and their number is constantly increasing. Monzo Bank works with financial institutions around the world and does not charge any additional transaction fees. Sending and checking money takes only a few minutes.

Another important benefit is security, since the ability to decode the unique code is minimised for each transfer. Monzo Bank allows you to make free transfers up to 100 euro per month, and in other cases, the fee is fixed and amounts to 3%. The service offers 24-hour technical support and warns you with the notification on your smartphone if you spent too much e-money.


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