In the 13th century, Kublai Khan decreed that money will be in the form of paper. He did so to encourage trade within his empire, as the various places had different coins. What Kublai Khan did to make a simplified payment system using paper money is the foundation of our monetary systems today.
Global economy
As we have different forms of money such as state-back currencies, these must go through an exchange. The exchange is the place where you can hold them in a virtual account. We also have virtual money like Bitcoin and other cryptocurrencies. Hence, the rise of Bitcoin and other cryptocurrencies as a mode of payment. However, the acceptance of cryptocurrencies is not yet worldwide.
Speed of transactions
We use several payment methods to include that of credit cards and e-checks. These various forms of money are exchanged to enable people in different nations to use it as payment. Making online payments and using electronic methods for transactions has boosted our global economy, as money changes hands fast.
The payment transaction choices
When it comes to making digital transactions, we are reliant on our mobile devices. The limits that we have when it comes to paying digitally is because of the payment terminals. Online, the methods of payments that are accepted websites also vary. Our choices of how to pay depend on the digital payment infrastructure of the region. Our choices also depend on where our funds come from, like that of a bank account, and if it can be accepted by the terminal for payment.
Using an ATM to pay bills
One of the most popular ways to pay is electronically, especially for bills payment. Most bank ATMs accept electronic payments for utilities and other facilities. We use an ATM by keying in the details to authorize a transaction to move funds from our bank accounts to settle our pending bills.
Scan-to-pay
Using our mobile devices, we can scan-to-pay at various payment terminals. These modes of payment use contactless technology. To be able to pay, we must have an app in our mobile device that is connected to our source of funds. We can also use QR codes that work as vouchers and in-store rewards like earned points to pay for transactions.
Making online payments
There are many online payment methods that include those of credit cards. Some websites require forms to be filled with the information that is required to authorize a payment transaction. There are the ones that only require an email address and the amount to be sent for funds to be transferred.
Bank-to-bank transfers
On a decline due to the length of time of a transfer and the high cost of the fees, there are now local bank-to-bank transfers that require no payment and can be done instantly. However, international bank transfers still take days and the transaction fees make it prohibitive. Many people seek other ways to send money internationally such as using a money services company.
Money services
Our funds come from various sources. We have bank accounts and can get funds from our e-wallets. When all these sources are integrated into one app, you can pay with ease. There is this money services app from a reliable company that has the functionalities that you need to use your various sources of funds for transferring money and making payments.