The evolution of payments: From the days of bartering to mobile payments

Money as a mode of exchange of goods and services as we witness today has been in prevalence since the very early days of humankind, although very hard to pin it precisely. Bartering system was one of the early modes of payments, originating in the Asian and Middle East regions. Exchange of goods and services between people were very common and later found its way out with the difficulties arising in the weighing of services or goods and their value. Coins were later instated and that was the onset of value of goods and services. These systems were sometime in the 1700 B.C’s and fast forward it to the past few decades and we had traditional shopping, where you had to physically vouch for shops and get your desired goods and services. If the current and future payment systems are to be considered, everything is now mobile.

Commerce, since the very early days of bartering till now has witnessed tremendous change, all due to the rise of the Internet and subsequent mobile devices. With commerce and trading going completely online, we have options abound for making payments these days. We have credit cards, debit cards, net banking, Bitcoins, Mobile wallet and with every year passing, we are witnessing the surge in mobile payments. These payment modes have defined and transformed the way we make purchases. During the times of traditional commerce, a new terminology called ‘E-commerce’ was introduced and it made the best use of combining internet into the banking and payment modes. People were very sceptical in the beginnings as to how these online commerce and payments would turn out to be. There was a lot implied regarding the security of one’s personal accounts while making transactions through the newly originated mode of payment.

Technology evolves constantly and with does away with all of the misconceptions and illusions regarding the online payments. With the advent of secured server scripts and Https, these online modes of payment became even more tightly constructed while offering users the flexibility to access and make use of them whenever needed. These well-structured online payments have resulted into other online payment alternatives over the past decade, like PayPal. PayPal offered a completely new way to make payments online, providing the reliability and security as you would have with a top-notch bank. PayPal went on to evolve and expand its reach on the market and enjoyed a huge share in online payments industry. It grew to an extent that even online casinos that accept PayPal are witnessing a surge. PayPal went on to grow such that it is now widely accepted by millions of businesses and individuals.

mobile-payments

Mobile payments are now the future with all major corporates like have entered the picture with the likes of Google WalletApple Pay and more are lining up to have a piece of this new mint. Everything that we knew of in the past is now quickly becoming obsolete with the rapid pace that technology is evolving right now. Cash based payments, although still in use widely over different countries, it is quickly becoming obsolete with the mobile payments making it unviable to carry wads of cash around. Cash is now just yesteryear, with only 18% of payments in UK being made through cash.

What we are witnessing is just the beginning in the form of online and mobile payments. An ecosystem as big and vast as payments will sure go on to evolve with evolving technology and human trends.

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