E – PURSE

E-purse

An electronic purse or e-purse is a stored value or prepaid product in which a record of the funds or value is stored on an electronic device which is in the consumers’ possession and is available to the consumer for multipurpose use. The loading of value onto the device is akin to the withdrawal of cash from an ATM. Most of the e-purses relate to use of reloadable cards. The money is loaded on cards by transfer of balances from bank accounts through ATMs or in some cases through the telephone or internet, on receipt of equivalent monetary value. These can be used for making payment for purchases which are generally of low value. Pre paid cards are also called e-purse. In India, quite a few banks have started issuing prepaid cards.