Latest News
HomeColumnsFeatured ArticlesThe evolution of digital payments in the 21st century
Featured articles

The evolution of digital payments in the 21st century

Digital technology has revolutionised how people pay for goods and services in the 21st century

There are now a plethora of ways to pay for goods and services digitally, some of which have proved to be far more popular than others. Read on as we take a closer look at how digital payments have evolved over in recent years and assess where things are heading.

Technology has completely transformed numerous elements of daily life over the last couple of decades and that is certainly the case where making payments is concerned.

It does not seem too long ago that debit and credit cards were being widely viewed as the ‘next big thing’, but things have moved on significantly since then.

There are now a plethora of ways to pay for goods and services digitally, some of which have proved to be far more popular than others.

Read on as we take a closer look at how digital payments have evolved over in recent years and assess where things are heading.

Debit & credit cards
The initial significant move towards cashless payments occurred in 1958 when the Bank of America issued the first general purpose credit card.

Things accelerated thereafter, with brands such as Visa and MasterCard becoming commonplace across the world as an alternative to cash payments.

Security did prove to be a major headache for card issuers, although the technology has undoubtedly improved massively since the first cards were launched.

Numerous industries have benefited from the introduction of debit and credit cards, with the online gambling sector perhaps one of the most noteworthy.

Players looking to step up from free slots to play real money games were able to make card payments to fund their casino account remotely.

This added level of convenience kicked off a massive boom in the gambling industry, helping to make it one of the most lucrative businesses around.


Four out of five Americans prefer to bank online rather than visit their branch – Photo by Karolina Grabowska from Pexels

Online banking
Another hugely important development in the evolution of digital payments was the introduction of online banking services towards the end of the 1990s.  

The attraction of web-based banking included reduced overheads for the banks, increased integration of services and far greater convenience for consumers.

Many people were understandably wary about switching to online banking, with concerns over safety and security the driving factors behind their cautiousness.

However, fast forward to today and the majority of people in the developed world now regularly use some form of online banking service.

That point is perfectly highlighted by people in the United States, with research showing that 80 percent of Americans would rather bank digitally than visit a land-based branch.

e-Wallets
e-Wallets initially sprang to prominence when the two parent companies of PayPal – Confinity and X.com – merged in 2000.

eBay’s subsequent acquisition of PayPal for $1.5 billion a couple of years later cemented its status as a trustworthy digital payment method.

Advancements in mobile technology helped to power increased use of e-Wallets, with products such as Google Wallet and Apple Pay becoming hugely popular over the past few years.

Analysts have estimated that more than $500 billion of mobile payments were made in the US last year, highlighting the shift towards this method.

The additional layer of security offered by e-Wallets is one of the major attractions for consumers, giving them confidence that their personal data is kept safe.


Launch of Bitcoin in 2009 ramped up public interest in cryptocurrencies – Photo by Worldspectrum from Pexels

Cryptocurrency
Although there had been previous attempts to create online currencies with ledgers secured by encryption, it was not until Bitcoin’s arrival in 2009 that people finally started to take notice.

Cryptocurrencies such as Bitcoin use secure decentralised technology to process payments anonymously, meaning that people do not have to reveal their personal financial details.

The system operates on a public ledger called blockchain which records every single transaction, each of which can be accessed by all users on the network.

Lower operational costs have made cryptocurrency hugely appealing to various sectors including the food industry, online gaming, sports organisations and charities.

Its growing popularity can also be seen by the increasing amount of occasions that people send their friends and family cryptocurrency as a digital gift during the holiday season.

Open banking
Open Banking has been tipped to shake-up the digital payments sector after making huge inroads across Europe over the past few years.

Many experts have forecast that services such as Trustly could go global as the preferred payment method in e-Commerce, financial services, online gaming and travel.

In simple terms, Trustly provides users with the ability to make mobile payments directly from their bank account in a secure manner.

It uses the same secure encryption tech as banks and has already received regulatory backing from the Swedish Financial Supervisory Authority.

Open Banking gives consumers much greater control of their finances and provides merchants with peace of mind that payments will be honoured.

Main photo by Karolina Grabowska from Pexels

News Editor - TravelDailyNews Media Network | + Posts

Tatiana is the news coordinator for TravelDailyNews Media Network (traveldailynews.gr, traveldailynews.com and traveldailynews.asia). Her role includes monitoring the hundreds of news sources of TravelDailyNews Media Network and skimming the most important according to our strategy.

She holds a Bachelor's degree in Communication & Mass Media from Panteion University of Political & Social Studies of Athens and she has been editor and editor-in-chief in various economic magazines and newspapers.

28/03/2024
27/03/2024
26/03/2024
25/03/2024
22/03/2024