Digital Money

AAA

DEFINITION of 'Digital Money'

Any means of payment that exists purely in electronic form. Digital money is not tangible like a dollar bill or a coin. It is accounted for and transferred using computers. Digital money is exchanged using technologies such as smartphones, credit cards and the internet. It can be turned into physical money by, for example, withdrawing cash at an ATM.

INVESTOPEDIA EXPLAINS 'Digital Money'

Financial services companies facilitate digital money transfers and foster online transactions between complete strangers across long distances. Without digital money, many online retail websites would operate much less efficiently. Digital money also makes it possible to bank online or via smartphone, eliminating the need to use cash or to visit a bank in person.

RELATED TERMS
  1. Electronic Commerce - ecommerce

    A type of business model, or segment of a larger business model, ...
  2. Secure Electronic Transaction - ...

    A form of protocol for electronic credit card payments. As the ...
  3. Automated Clearing House - ACH

    An electronic funds-transfer system run by the National Automated ...
  4. Debit Card

    An electronic card issued by a bank which allows bank clients ...
  5. Automated Teller Machine - ATM

    An electronic banking outlet, which allows customers to complete ...
  6. Showrooming

    The practice of examining merchandise or products in a store ...
Related Articles
  1. Personal Finance

    The Pros And Cons Of Internet Banks

    Learn how internet banking services stack up against those of their brick-and-mortar peers.
  2. Options & Futures

    Automating Your Bill Payments

    Automation can be a painless (and free) way to remove the stress of bill scheduling from your life - if you do it right.
  3. Trading Systems & Software

    The Global Electronic Stock Market

    The way trading is conducted is changing rapidly as exchanges turn toward automation.
  4. Budgeting

    What are the pros and cons of digital gift cards (e-gift cards)?

    Examine the pros and cons of gift cards. Learn about protection in case of loss, monitoring spending by teens and wasted small balances.
  5. Investing Basics

    Who are Amazon's (AMZN) main competitors?

    Learn about companies such as Google, Alibaba Group, Walmart and Target that Amazon competes with in each of its different revenue segments.
  6. Savings

    What transactions cannot be made using prepaid credit cards?

    Find out about the transactions that are restricted when you use a prepaid credit card, and find out about other ways to use a prepaid card.
  7. Investing News

    What PayPal’s Split From EBay Means For Customers

    EBay announced Tuesday that it will be splitting from PayPal to make the payment company its own entity.
  8. Investing

    5 Most Expensive Ebay Auctions

    Check out the most expensive items listed on eBay - items that are sure to bring a hefty profit to the seller if sold.
  9. Investing

    Choosing The Winners In The Click-And-Mortar Game

    E-tailing has changed the way consumers do nearly everything. Do you know how to pick the best retailer?
  10. Before you just reserve a room on the hotel Web site, check out these six discount Web sites.
    Personal Finance

    Websites That Save You Money On Hotel Rooms

    Before you just reserve a room through the hotel, check out these six discount websites. But watch out for traps like nonrefundable reservations.

You May Also Like

Hot Definitions
  1. Commodity

    1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often ...
  2. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  3. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  4. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  5. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  6. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
Trading Center