Virtual money is a special type of electronic money and its appearance is linked to the Internet opportunities. Nowadays there are a vast number of different services rendered in the Internet and paid by cybercash.
Thus it is possible to make shopping in the cybershops, to visit a cyber casino, to take up the shares, to use the analytical information, to get the consulting services, etc. For the goods and services payments via Internet there are some cyber payments systems intended for quick and secure settlements between the numerous of users. Money in these systems are represented by digits, thus it is called digital money.
Digital money could be kept on a computer hard drive or on a memory of smart cards (microprocessing plastic cards). The emission of digital money is also performed by bank which serves the cyber payment system. The issued digital money are provided by the means kept on the client’s banking account. Special security measures and tariff policy make the usage of these cards cost effective and reliable.
Nowadays throughout the entire world the co-branded plastic cards are very popular. Recently they are actively implementing into the CIS countries. Co-branded credit and depositary cards are the cards issued by banks and some companies collaboratively. They allow not only making payments of the goods and services but either give an opportunity to receive discounts and bonuses form a company- partner of the bank.
Abroad the co-brands constitute the best part of all plastic cards. Thus in Europe every fifth card is co-branded and in USA – every second.
The most successful and numerous cards are the cards which are issued in cooperation with the gross trade networks and supermarkets, they consist about 60 % of all the co-brands in the world. On the second place are the projects with the airline companies (about 10 %), then the projects with the petrol station chains and cellular service providers follow (5 % of each).
The most attractive in such cards for consumers is «cashback» – bonuses calculation for each purchase, usually it is 1-2% from the goods cost. The amount accrues gradually and in the end of the year the client can get it.
As to the co-brands with the airline companies here the client gets not only a money interest but the bonus miles either which in following can allow to get a free of charge ticket, to upgrade a service class or to book a hotel room.
Such projects require a heavy spending, large marketing work and motivation of both sides. It is not enough only to issue the card, it is necessary to implement it into the market actively. Herein it should be noted that the usage of co-branded plastic cards is very profitable form of sales. According to the statistics the turnover of these cards in the sales and service networks is on 30 % higher than of common.
The most perspective sphere in Kazakhstan is telecommunications because nowadays the cellular service providers have one of the most numerous clients base, because today the mobile phones are available for almost all.
The comprehension questions
1. List the types of metal money circulation.
2. What three kinds of bimetallism do you know?
3. Explore the meaning and name the types of gold monometallism.
4. Explain the meaning of paper money and tell about their evolution.
5. What kinds of credit money do you know?
