How technology has changed traditional payments?

How technology has changed traditional payments?

Everything is changing so fast that we stopped seeing it. Have you ever realised how much mobile payment has changed? And how it has improved our lives? Just think, do you remember how 5 years ago you were happy that you can log in to the banking site and pay your bills with that? Now you can place a standing order in your mobile app and don’t even think about it.

Although, payment methods for purchasing goods or services have been developing for so many years, paying with our phones improved drastically through just a few years. When it comes to settling up, people started the bartering system, with using livestock, then shells, deerskin, gold, metal coins, then charge cards, and most recently credit cards and electronic payments.
1983 is the year, when David Chaum, an American cryptographer, started working on creating digital cash. And that’s how cryptocurrencies began and the revolution right away. 

If you keep money on your mobile phone, that means you have a mobile wallet. There are many ways of mobile payments that can be distinguished such as: pay per SMS or phone number, QR payments, cloud-based payments, Near Sound Data Transfer (NSDT), Near Field Communication (NFC), etc. We will explain you the most popular ones:

  • QR (quick response) payments – method used for paying retailers. At the check-out, after entering the amount by the cashier, the user shows a unique QR code, which is being scanned. Once the payer is identified, the system takes the money from a mobile wallet.
  • Payment by phone number – this type of transaction operates within a single platform. By entering a phone number, money is transferred immediately.
  • NFC payments – it works as a communication protocol that creates a wireless connection between an NFC-enabled device and a point of sales (POS) terminal. That makes transactions highly secure, because credit card details are stored in interim tokens instead of passing them to the retailer.

The overwhelming majority of users are millennials, who easily adopted the mobile wallets. And will continue to use this way of payment as well as grow used to other brand-new technologies.

Nowadays, Fintech is gaining more and more popularity. Behind the term there are companies that connect finance and technology. In general, Fintech refers to any business that wants to improve financial processes. Although mobile banking is offered by every bank, fintech companies moved this way of payment further. The rise of neobanks – which don’t have any physical location, but offer their customers saving, investments, payments and even loans completely by using a mobile device.

Cryptocurrency and blockchain are different technologies but are also a part of those apps. It means that all those three can work together, delivering new services of managing your funds. Applications are introducing costumers to the market by offering ways to invest and to start saving money. Simply, mobile apps have changed the way how we do business.

The number of people using their smartphones to pay everywhere is highly increasing. Paying with NFC technology or QR code readers in a bar, in a shop or simply at home has become natural and thanks to advanced biometrics as well as AI algorithms more secure. Not only easiness stands for this method, but also the fact that mobile wallet transactions are twice faster than physical card ones.
At Beegoz.com you can pay easily with your mobile phone from any part of the world and enjoy your purchased good instantly. 

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