Payments are the core of every economy in the world. Nowadays, we pay for goods and retail services easily, but it wasn’t like that in the past. Gone are the days when you had to wait in line at the bank to pay for some service, and we say good riddance. Payments have evolved tremendously in the past decade or two, with a modern web of digital transactions that make everything easier.
Payment systems have evolved thanks to digital platforms and completely changed the way we pay for anything in retail and online. Let’s take a look at how they’ve evolved in recent years and see what the future has in store.
Tech-Driven Evolution
One of the reasons why payment systems have evolved so much in the past decade is improved technologies. New technological advances and services such as online casinos have paved the way for greater adoption of digital payment systems.
For example, a couple of decades ago, online casino players could only deposit and withdraw with their cards or bank transfers, which was not ideal. Transactions were slow and many had high fees. But, the online casino industry is always paying attention to the latest tech discoveries, and such was the case with fintech. Nowadays, you can pay with all kinds of payment systems to fund your casino account, and it gets even better when you discover pay by mobile casinos.
And it’s not just online gambling – many retail stores have moved their businesses online thanks to the convenience of digital payment methods. It’s much easier to buy anything in retail and online these days and it’s all thanks to innovative financial technologies.
From Cash Transfers to Modern Tech Solutions
Although the change seems pretty recent, the evolution of payments has unfolded over a long time. It has taken decades to make major shifts, and even centuries if you take a look back at the earliest payment systems – cash transfers and cheques. Credit cards came next, and now it’s the era of modern fintech solutions.
Cash Transfers
For better or worse, cash transfers still dominate the retail industry. While things have certainly changed compared to the past, most transactions nowadays are still made in cash, no matter how hard the industry tries to phase them out. It’s not the most ideal solution, too. Cash transfers are limited in scope and the risk of theft or loss is much higher than, for example, e-wallets. Plus, you can’t use cash to pay for goods and services online, so it’s pretty clear that the retail industry—and many others—have moved past it.
Cheques
Cheques payments are all but eradicated now. While there are still some banks that encourage the use of cheques, you won’t find this payment method available in retail. Cheques were created as an alternative to physical cash, improving the security and convenience of payments. However, they were also slow to process, especially as the retail industry and commerce went global. As a result, this payment system is now considered outdated as most industries have switched to more modern solutions.
Credit Cards
Introduced in the 1950s, credit and debit cards are the backbone of in-person and online payments in retail. They completely changed the way we pay for goods and services and also boosted consumer purchasing power. With the arrival of cards, businesses could now capture larger markets and offer a more convenient and faster way to pay to their customers.
More importantly, credit and debit cards eliminated the burden of cash handling, which meant safer payments too, for both businesses and consumers. Cards were a turning point for the financial industry decades ago, and are still a staple of modern economies.
E-wallets and Digital Payments
The first fully digital payment systems hit the market in the early 2000s. It was all thanks to the rise of the Internet and mobile technologies, as well as the rise of online retail and online gambling sites. Many modern digital payment systems emerged in the 2000s such as PayPal. They were another turning point for the financial industry, making online shopping and gaming a breeze. More importantly, online payment solutions made transfers much safer.
With e-wallets and digital payments, customers could link their cards or bank accounts to a preferred payment system and pay for goods and services online. E-wallets grew popular year by year, eventually evolving into mobile wallets such as Google Pay and Apple Pay. Nearly every big tech company has a digital payment solution, allowing customers to make contactless payments through wearables, without needing to carry any cash on them.
Prepaid Cards
Prepaid cards emerged as a flexible payment solution for customers without access to traditional banking services or credit cards. Or those who simply don’t want to use them. Over recent years, prepaid cards added new features such as virtual payments, making them more versatile in the evolving fintech landscape.
Nowadays, you can buy prepaid cards at retail stores or online in different currencies and denominations. They’re typically redeemed by using unique PIN codes, making them more secure than other payment systems.
Cryptocurrencies
Bitcoin’s white paper in 2009 ushered in a new era of payments. Cryptocurrencies offer a decentralised solution that promises extra security. It’s a far cry from traditional banking services, utilizing the blockchain as a base for seemingly untouchable payments.
While adoption is still not at the desired level, more and more retail and online businesses are starting to warm up to it. It’s a growing segment in the evolving payments landscape and one we’ll see more and more often in the future.
Conclusion
From bank transfers and slow cheques to cryptocurrencies, payments have evolved a lot in recent times. The retail industry is always looking for new and innovative payments that will make transactions easier for its customers.
Modern payment solutions are aimed at customers who don’t want to use their bank accounts or simply prefer a decentralised payment system. Thanks to the fintech revolution, payments are safer and easier than in the past, and it will only get better in the future.
