In the recorded history of the world, physical currency has been always the standard payment form. But, since the millennium, that old payment instrument might find itself belonging to history books and money is only used to be displayed at museums. This is because, at an astonishing rate, digital money and electronic payment platforms are becoming more popular.
Digitalization of money
Then, a few decades ago, the money started to become digitalized with the rise of credit cards. Now, with digital money, there are digital wallets and e-banking that in certain countries, have become more popular than cash as a payment instrument. Some governments have payment infrastructures that support the digital payment system and even become cashless societies.
Nowadays, people go around and shop for the things that they need with just their mobile phones on hand. The increasing popularity of e-wallets as the preferred method of payment has also encouraged the developers of these online payment apps to add more payment features. Because of this, e-wallets have become more available to use for almost any money transaction you may have to do. When you open these digital wallets you are presented with various payment options to choose from such as payment for utilities, over the counter retail payments, bank transfers, and even the ability to purchase credits for your mobile service provider.
The level of convenience that these digital wallets have makes it unnecessary for a person to even need to open up a bank account or go through the process of having to apply for a credit card. You can keep all your funds within your account and get real-time accounting about your spending. You don’t even have to open up the e-wallet app when you making an online purchase through your mobile phone. All you have to do is to make your purchase and choose the option to pay through your digital wallet. When it comes to the safety of your funds in the online payment apps, as long as your app is from a trusted payment provider and is always kept updated, then you shouldn’t have a problem with any hackers.
Then, there is the rise of virtual money that only exists online. In the year that Bitcoin emerged, there was distrust in this money form. People were accustomed to using physical cash. Cryptocurrency has gained a poor reputation as it was said to be the choice of payment system by those who conduct illegal activity. In the same manner as cash, because of the veil of the internet, Bitcoin and a few other of the virtual currencies have become popular because of the anonymity that it provides. But, that is not the only reason why cryptocurrencies are not trusted. The main reason is that it is not in physical form.
For people who are used to handling cash, it might be inconceivable to accept cryptocurrency as real money and it may also be difficult to trust online payments. However, many do not realize that around 80 percent of most currencies are in digital form and only 20 percent is in banknotes and coins.