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Definition

digital cash (eCash)

Digital cash is a system of purchasing cash credits in relatively small amounts, storing the credits in your computer, and then spending them when making electronic purchases over the Internet. Theoretically, digital cash could be spent in very small increments, such as tenths of a cent (U.S.) or less. Most merchants accepting digital cash so far, however, use it as an alternative to other forms of payment for somewhat higher price purchases. There are several commercial approaches to digital cash on the Web. Among these are eCash from DigiCash and Cybercash.

Digital cash can also be stored on an electronically sensitive card. See smart card and micropayment .

This was last updated in May 2011
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