Would you picture there was a time when you would swap goods for other goods in return? It was called a barter system where goods and chattels were traded for tea, weapons, food, spices, even skulls back in 6000 BC.
Luckily, digital payment systems offer the best ways to pay and be paid for everyone and everywhere. Today, we have numerous picks regarding digital payments for instance internet banking, mobile wallets, plastic currency otherwise known as credit or debit cards, etc.
Why money is considered the biggest invention in three centuries? For the reason that it is making the trade market flexible.
Consider going to a market to sell a chicken, you get $20 as cash for it. From there you go to another shop to buy some fresh bread for breakfast and the person who sells the bread can later buy something from the money you give him.
That is how the biggest problems with the trade are instantly solved with the money.
With each passing year, our interaction with payments is progressing as how we pay and what we buy.
Digital payments have shifted the way many of us transact. Therefore, it is become vital to know how digital payment systems work and how they benefit the economy.
A new revolution in the Digital Payment System
Samsung has presented a new way to pay by saying a ‘NO’ to bulky wallets. The new digital card allows you to combine your credit and debit card onto your Samsung smartphones or a smartwatch permitting you to move transactions from one card to another.
In an era where nearly every other human is depending on their cell phones to perform daily tasks, the new virtual Samsung Pay Cash Account App lets you manage your money and budget just like you manage wallets.
Sang W. Ahn. Vice President and Division Head at Samsung Electronics America said:
“We envision a future in which people can leave their cash and card at home, take care of everyday financial matters easily, and earn rewards all along the way.”
What is the digital payment system?
Digital payment is any payment that is sent online through the use of numerous electronic mediums without cash or cheques involved. It’s a wholly new phenomenon implemented by millions of people worldwide, ‘plastic cards’ are swiped to make a transaction without face-to-face interaction.
You all must have debit cards; you go to a coffee shop to purchase a hot chocolate, you swipe the card and enter your PIN on a machine. That machine takes the money out of your debit card and you can enjoy your favorite cup of Hot Choco with a red-velvet cheesecake, maybe.
That is how debit cards have eliminated the use of carrying cash or physical cheques all along. A plastic card can be used instead.
How does the Digital Payment System Work?
If you’re planning to buy new shoes online or pay your home bills, you need to understand how electronic payment system work.
For a digital payment system to take place, you must have a bank account to make the payment. Apart from you the sender, the receiver too must have the medium of transmission to accept the payment.
The bank is the main entity that controls the transfer of your money. The money is drawn from your bank account and given to the retailer. Just to avoid confusion, the money is not given to the retailer as physical cash or cheque but transferred to his account.
The fourth participant that holds the merchant to the acquirer to the issuer is the payment networks known as VISA, MasterCard, or American Express, etc. Every time you make a transaction, some amount is deducted from your account and they make money on that interest charged.
Consumers wish to stay digital forever
Customers are more accustomed to shopping and banking digitally. More logically, they are inclined to paying their bills online. As per a survey, approximately 70-75 percent of the respondents prefer a digital payment system such as to pay one-time bills via a website and mobile app channels.
Amazon and Google are the ones that caused ripples in the consumer market by presenting “digital wallets’ a few years back. It enabled consumers to store all of their credit and debit card data in those ‘wallets’ to use while shopping.
Now that it has gained immense popularity, you have PayPal one touch, Apple Pay, Venmo, Samsung Pay, and eWallet.
Like Apple says: cashless made effortlessly
Apple Payis a mobile payment digital wallet service by Apple Incorporation that offers contactless and secure purchases in stores with Face ID. The app is functional on iPhone, Apple Watch, iPad, and Mac to successively store between 8-12 debit or credit cards including Visa, MasterCard, and American Express.
Latest in biometric
Up till now, you could unlock your cell phone screens or home security systems with biometrics but biometrics now deliver a substitute to traditional chip and PIN cards.
The good news is you don’t have to remember complex security PINs anymore!
Famous payment networks such as MasterCard and Visa have already started working on this technology to give their consumers a pain-less payment process.
Digital payment systems offer convenience & accessibility; you can pay anytime from anywhere.
Digital payment is much more secure than traditional transactions.
The Digital payment system offers easy access to payment information to avoid ambiguity and confusion while tracking payments.
Build your payment gateway from scratch
Nextbridge provides an easily accessible way to build your customized payment gateway. Do you have an existing system in place? You can always upgrade to make your desired changes as per market demands.
You can hire your remote development team NOW to make payment a strategic benefit for you.