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Digital Money World

April 23rd, 2008

On-line payment companies

I first heard of Paypal about five years ago because someone I did writing work for, asked me if he could have my Palpal address so he could send the payment. I told him I didn’t have one, told him to pay it into my bank account, and gave him the details.  The international money transfer took more than a week to arrive and cost quite a sum in  bank charges. However, having worked with banks and financial institutions throughout my career, I trusted only them. I have had a Paypal account for three years now, and I use it a lot, just as many people who either work online, or receive payments from many different sources do.My account is denominated in different currencies, as I receive it that way. I hold three different currencies Euro, dollar and Sterling in the account, as I may need to pay for goods or services on the net, and so have the digital funds ready and waiting, so that at the click of a mouse, I can send the payment off and be sure it is received immediately. I now know that digots (digital currency) are also an investment instrument and more than just online money for those who don’t want to use their credit cards, or send and receive money via bank transfers. So what are the benefits or drawbacks of using Paypal? Well I will be writing about both Paypal and other online payment companies such as  Xoom, E gold, Net pay, E bullion and others, during the next month in a series of posts. This month I join Benson as co-author on this blog. Benson has written good  technical posts on Paypal which you can read up on. My posts will focus on everyman’s use of these payment systems, and the role they play  as financial instruments in investment, their expansion, the tax implications and their currency and trading opportunities and risks. My posts will cover one question asked each time with a short answer, along with a financial quote on each post. Please ask a short question as a comment if you have one, and I will endeavour to answer it. Moneypenny   

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