Why Digital Wallets Are Destined To Be ‘The’ Payment Process

Money, taken at face value, is largely a symbolic one. It could be a herd of sheep, two loose pebbles or even a grain of sand; the value people agree to place on it has little to do with the physical value of money. The value of money was initially derived as a bartering tool and for the past 3,000 years has allowed civilizations to trade goods and services at rapid speed. Moving into the 20th century, money in the form of cash is slowly being eradicated by the advent of credit cards.

To offer a brief chronological history:

Cash

Fast forward from bartering to the exchange of cash money. Cash offered the benefit of being portable and, for the most part, held a consistent exchange rate. Cash continues to be one of the most widely accepted payment methods, but it is not without its downfalls. Because there is no way to prove a piece of money belongs to you, it is easy to steal or become the prize in a game of Finders Keepers. One major distinction: you can't make online purchases with cash.

Even if you happen to be someone who prefers to live off the grid, you know that unless you keep all of your money stuffed in a mattress, cash has to be replenished. Banks have found a way to make you pay for the service of turning your digital money into paper money. This happens when you pay ATM or check cashing fees. In that way, cash costs more to use.

Checks

When wealthy business owners struggled to fit wads of cash into the pockets of their trousers, they came up with a new plan: checks. Writing a check was the equivalent of handing somebody one piece of paper instead of multiple bills. The delay between the transfer of the check...

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