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Smart Cards and Electronic Cash

In: Computers and Technology

Submitted By jcarey
Words 1387
Pages 6
Electronic Cash and Smart Cards

CMPS / ECBU 410: Management Information Systems

Prepared by
Joanna Carey

Fall 2012
Instructor: Dr. Seta Whitby

Table of Contents

I. Introduction

II. Body

III. Advantages/Disadvantages of Electronic Cash & Smart cards and paper based currency

IV. Conclusion

V. References

Introduction This research paper will closely investigate the relative importance between electronic and paper-based payments across the world. Although electronic payments are becoming more popular and easy to use, numerous surveys for payment instruments have shown the pace of change from an established payment method to a new payment method to be considerably slower than industry predictions. The movement to electronic payments and smart cards has been slow and has focused primarily on credit cards at the point of sale because bank emphasis is on expanding loan revenue and a historical reliance on checks which provide users with short-term credit. As technology continues to evolve the use of paper currency is becoming more obsolete. Although the modernization of digital money is changing into forms that don’t directly connect our electronic payments to our private information, such as smart cards, the transition into “cybercash” is still in the premature stages of development. This paper will highlight the advantages as well as the disadvantages of conducting business in a virtual world with peace of mind. The emerging role of smart cards lies the potential to provide a greater trust between a buyer and seller who only meet in the virtual reality.

Body The shift from traditional paper-based payments into electronic payments and traditional credit cards into “cyber cash” across the world will ultimately make electronic

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