In broad terms, electronic money (e-money) is a secure way to store monetary value on hardware devices, such as computers and smartphones. E-money is used to make and accept payments to and from persons and organizations other than the e-money issuers.
Make no mistake: e-money is money! However, e-money is money that only exists in the computer systems of financial institutions. Only a small fraction of the money in circulation around the world is in physical form. Additionally, the actual e-money-bearing devices act as prepaid digital financial instruments that do not necessarily involve bank accounts in transactions.