For economies to flourish, the fundamental device is money. Without its existence, practically speaking, autonomous individuals cannot have economic activities. Even now that money is digitized, it still adheres to the use of cash.
Forms of money
Money has relative worth and can be stored for future use. This medium of exchange has historically changed to take on various forms. It had evolved from shells to that of precious metals then stamped metals, to become paper certificates then for it to be fiat money in the form of electronic currency.
It has come to that point in history that electronic currency is a common form of exchange as it is at this stage of the evolution of payment. These advanced payment methods include making a contactless mobile payment and an online payment by using a virtual terminal. Electronic currency is our world’s new form of money as it can be stored and also exchanged like when making an online payment.
A great majority of the technologies that emerge are placing electronic currency as the latest configuration into the payment systems. A payment system is the means by which the funds are transferred from the sender to the recipient. Currently, there are payment systems for products and services to be exchanged for wire transfers, debit or credit authorizations, paper checks, and cash.
Financial services products
The term ‘wire transfer’ for the commercial and banking communities primarily applies to those large-dollar payment systems. This payment system is in stark contrast with the latest developments for the retail payment systems that transfer electronic currency upon the initiation of the consumers via the use of financial services products such as e-wallets that get store value. Consumers can initiate an online payment using these e-wallets.
Stored value products
There are retail payment systems that have developed for electronic transactions. Although, such stored value products that can be used for payments have been around for a long time, these are now readily available in form that can be used on line. The traditional type of stored value products include mass transit tokens, gift certificates, and traveler’s checks. There are now smart cards, digital coins, online gift certificates, and online payment apps that can store value.
All throughout history, people have made exchanges for something that has value. Bartering is one of the oldest methods of exchange and there is money. Though money has always been something that we can touch, during this digital age, a large percentage of those banknotes and coins are now digitized. When money is digitized, it is much easier to transfer in just a few minutes to nearly all places in the world.
E-wallets are fast replacing physical wallets in some countries such as Sweden, Korea, Japan, and China. The speed of payment transactions is one of the reasons why this form of money is preferred by many. Electronic currency is here to stay and there will be more technological advancements in the near future that shall make it possible for more people to get to make online payments with ease.