The payment industry is an important part of modern society and shapes the way we live our lives. Let's take a look at how it impacts us as individuals in this article! Macropay’s Adam J Clarke imparts key insight into the future of the payment industry.
Short History of Payments
The first money was invented when people came up with a way of recording debts. This innovation can be attributed to the Sumerians, who created several different modes of recording value such as marked shells or stones which served as accounting units back then. However, it wasn't until 3100 BC that these earliest forms of money started being used for trading purposes.
On another note, in ancient times, people would often use their animals as collateral to secure loans. In this way the most valuable assets that they had - sheep and grapes- became worth something when it came time for repayment of debt. The history behind interest-bearing loans goes back into Mesopotamia.
The first bank in England was founded by a group of London merchants who loaned money to King William II, and as repayment received exclusive rights for themselves to establish "The Bank Of England."
Virtual currencies are all the rage right now. One of them is Bitcoin, which was first introduced in 2009!
Payments Affect the Future
The pandemic has forced changes in the way people shop and pay. They're now using less cash while adopting instant payments for purchases instead of paying face to face. However, it is unclear if these recent trends will become permanent.
Here are the few clear trends that will eventually usher in the new time of payments:
Less Cash, More Digital
Cash payments declined by 16% worldwide in 2020. The demand for high-tech payment systems is accelerating and the need to fill this gap in our market has never been more pressing.
All of these signal a major growth in the payments sector, particularly in FinTech.
Global Purchases
When we think about the global economy, it is hard not to be worried. The recent unrest in countries like Ukraine has caused many international traders and businesses who rely on trade fear that this will cause a major disruption which could lead to an economic crisis worldwide!
Trading and purchasing goods overseas begin with payment. Difficulties in fulfilling overseas orders due to factors like increase in transportation cost or scarcity of supply can affect the total number of purchases.
The more people pay online, the cheaper the service gets. However, the less people use online payment services, the more the service will get expensive. This is because people will have to cover the operating cost.
The Customer is King
The need for highly personalised payment experiences is universal, regardless of nationality and gender. As technology becomes more advanced with open banking data, companies are able to build relevant services that cater specifically for each customer's needs.
Payments Shape Society
The payments industry is an evolving technology that has been around for centuries. It's likely to continue changing in the future, but one thing will remain constant: we'll always need money and trades settlement.
At present, the rise of digital payments and its revolutionary effect on the whole world can already be seen. Macropay’s CEO & Founder Adam J Clarke notes that “alternative payment methods are critical. [It is] life or death customer experience.” It's clear that in this day and age, it is virtually impossible to be successful without offering your customers more than one way of paying.
For more interesting payment insights, check out Macropay.
Sign in to leave a comment.