Different methods of electronic currency payments (existing or in trial phase) make their target to wholesale or retail markets, fund transfers and small-scale nickel and dime transactions. These methods have some advantages and disadvantages as well. Three top advantages and disadvantages of the electronic currency payment system are as under.
Advantages of Electronic Currency Payment Systems:
The existing electronic currency systems have different effects on privacy and confidentiality which vary from total anonymity to audited systems in which almost every aspect of each transaction is collected. Unlike real cash, electronic currency is anonymous and this is considered its most attractive feature. If some electronic currency amount is sent from a customer to a merchant, it is almost impossible to obtain information about the sender. Credit card companies seem to collect information related to customer’s spending habits and sell this data to third parties. When the parties involve in the electronic currency transactions, bank has no record of the customer. So, we can say electronic payment systems adequately protect the privacy rights of the customer.
