The Evolution of Payments: From Barter to Metaverse
- Arany Mák
- Apr 28
- 3 min read
Updated: 3 days ago
Hey payment enthusiasts and financial adventurers, welcome to this rollercoaster ride through the crazy world of payments! Hold on tight as we travel back in time, ride the waves of trends, and even venture into the mind-boggling realm of the metaverse. Trust me; you won't need a virtual reality headset for this mind-blowing journey!
Barter and Beyond - The Way We Payed
Picture this - cavemen exchanging rocks for some freshly caught fish. Yeah, that's how payments started! From bartering to coins, paper money, and checks, humanity's journey to modern finance was one giant trust-building exercise. It's like telling someone, "I promise this piece of paper is worth a lot of money!" And they believe it! Impressive, right?
Payments Landscape - A Wild Roster of Players
Meet the cool kids in the payment playground:
Issuers: The "issuing bank" - they dish out the credit cards like candy on Halloween.
Acquirers: The "acquiring bank" - they welcome the payments from the cardholders like open arms.
Card Networks: The "card schemes" - they're like the glue that sticks everyone together in this crazy financial party.
Payment Processors: The magicians who make your payments disappear in the blink of an eye.
Payment Gateways: The VIP bouncers who let your payment into the party.
Independent Sales Organizations: The cool cats that sell payment services and show off their dance moves.
Payment Facilitators: The ultimate party hosts who make sure everyone's payments go smoothly.
The Global Payment Evolution - Consumers Demand More
Fasten your seatbelts; we're about to dive into the hottest payment trends that are shaking up the industry:
Trend 1 • Next-Gen Payment Methods: Gen Z, Millennials, and Alpha consumers are taking over, forcing us to embrace digital products like never before. I mean, we might as well call them "native digital payment pros"!
Trend 2 • Instant Payments: No more waiting like it's a slow-motion scene from a movie. Real-Time Payments are here, baby! It's like hitting "send" on a message, and boom, the money's there. Just make sure you don't hit "send" by mistake, or it's gone forever!
1.Payment initiation by Payer
2.Payer Bank reserves the amount in the account
3.Payer Bank sends the payment to IPS
4.IPS validates the payment
5.IPS forwards the payment to Beneficiary Bank
6.Beneficiary Bank validates and confirms acceptance to IPS & Payment confirmation to the Beneficiary
7. IPS forwards acceptance
8. Payer Bank informs Payer about the successful payment execution
Trend 3 • Buy Now, Pay Later (BNPL): Who needs adulting when you can "Buy Now" and "Pay Later"? It's like a financial time machine, except you get to enjoy the goodies before you go broke!
Trend 4 • Future Readiness: Cryptocurrency: Welcome to the wild world of digital coins! It's like Monopoly money, but with real value. Crypto fans are saying, "Who needs banks when you have blockchain?"
Trend 5 • Open and Closed Mobile Wallets: It's like having your wallet on your phone, but with extra features. We've got closed wallets, semi-closed wallets, and open wallets. Sounds like a party with exclusive invites!
Trend 6 • Embedded Finance: Non-financial companies playing finance games? It's like your favorite sports star suddenly becoming a chef. Don't be surprised; it's happening, and it's fabulous!
Trend 7 • Artificial Intelligence and Machine Learning: Robots fighting fraud - it's like a superhero movie, but instead of saving the world, they're saving your money!
Trend 8 • The Metaverse: Get ready to experience real life on virtual steroids! Avatars, social interactions, work, sports - all in one funky online universe. Just make sure to watch your virtual wallet; it's easy to splurge when you're not spending real money!
Trend 9 • Digitalization of B2B Payments: Business people, get ready for a tech upgrade! BigTech companies are eyeing the B2B playground, and they're bringing their A-game!
Trend 10 • Blockchain & DLT: Picture a super-secure digital ledger with no meddling middlemen. It's like the perfect alibi for your financial transactions!
So there you have it, the incredible world of payments! From bartering in caves to playing with digital currencies in the metaverse, payments have come a long way. And who knows what the future holds? Maybe we'll pay with our thoughts or just make wishes to make it rain money!
Until next time, keep paying and stay fabulous! Cha-ching!
Comments