Value transfer system
Encyclopedia
A value transfer system refers to any system, mechanism, or network of people that receives money
for the purpose of making the funds or an equivalent value payable to a third party in another geographic location, whether or not in the same form.
A value transfer system may fall into one or more of these groups:
Money
Money is any object or record that is generally accepted as payment for goods and services and repayment of debts in a given country or socio-economic context. The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of value; and, occasionally in the past,...
for the purpose of making the funds or an equivalent value payable to a third party in another geographic location, whether or not in the same form.
A value transfer system may fall into one or more of these groups:
- Informal value transfer systemInformal value transfer systemAn informal value transfer system refers to any system, mechanism, or network of people that receives money for the purpose of making the funds or an equivalent value payable to a third party in another geographic location, whether or not in the same form...
s, e.g. hawalaHawalaHawala is an informal value transfer system based on the performance and honor of a huge network of money brokers, which are primarily located in the Middle East, North Africa, the Horn of Africa, and South Asia...
.
- Retail value transfer systems:
- Traditional retail value transfer systems, e.g. Western UnionWestern UnionThe Western Union Company is a financial services and communications company based in the United States. Its North American headquarters is in Englewood, Colorado. Up until 2006, Western Union was the best-known U.S...
. (Also, bankBankA bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
s and post officePost officeA post office is a facility forming part of a postal system for the posting, receipt, sorting, handling, transmission or delivery of mail.Post offices offer mail-related services such as post office boxes, postage and packaging supplies...
s usually support various forms of transferring funds.) - InternetInternetThe Internet is a global system of interconnected computer networks that use the standard Internet protocol suite to serve billions of users worldwide...
-only value transfer systems, e.g. PayPalPayPalPayPal is an American-based global e-commerce business allowing payments and money transfers to be made through the Internet. Online money transfers serve as electronic alternatives to paying with traditional paper methods, such as checks and money orders....
, eGold or Electronic moneyElectronic moneyElectronic money is money or scrip that is only exchanged electronically. Typically, this involves the use of computer networks, the internet and digital stored value systems...
. - Combined Retail/Internet value transfer systems, e.g. cash at retail in exchange for electronic money such as PaidByCash.
- Traditional retail value transfer systems, e.g. Western Union
- Institutional formal value transfer systems, e.g. SWIFTSwiftThe swifts are a family, Apodidae, of highly aerial birds. They are superficially similar to swallows, but are actually not closely related to passerine species at all; swifts are in the separate order Apodiformes, which they share with hummingbirds...
(International), LVTS (Canada), FedwireFedwireFormally known as the Federal Reserve Wire Network, Fedwire is a Real Time Gross Settlement Funds Transfer system operated by the Federal Reserve Banks that enables financial institutions to electronically transfer funds between its more than 9,289 participants...
(USA), KlickExKlickExKlickEx is a smart market company whose "registered user only" interbank retail systems include a patent pending Private electronic market, providing low cost electronic foreign exchange clearing services to selected clients Australia, New Zealand and the South Pacific.From the Company...
(Polynesia).
External links
- http://www.systemics.com/docs/papers/monpol.html 1996 paper: The Effect of Internet Value Transfer Category:Financial economics