What is the future of electronic payment systems?

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2016-06-12 00:00:00:

The development of mankind is invariably associated with the improvement of an equally important component of our life - payment systems. Initially, there was barter, after which people switched to gold. The precious metal was replaced by coins and banknotes, and then - non-cash payments. At the present stage, there is an era of payment systems that operate in the global network and open endless opportunities for customers. But what is the future of electronic currencies? Can they replace fiat currency in the future, or is the potential for new money too weak?

A little about history and benefits

Electronic currency is virtual money that is tied to national currency and serves as a "substitute" for money. Such currency is used for making payments, making payments for goods and services, making transactions in favor of other users, and so on. But what is the future of electronic payment systems, whose money has no tangible expression?

To understand the future of electronic money, it is worth looking a little into the past - at a time when the virtual currency was just beginning to form. The first beginnings appeared in the 90s, at a time when the so-called smart cards began to gain popularity. At that time, the owner of the electronic currency had a plastic card and a computer chip in his hands. Over time, the PayPal system appeared, which offered customers to send money via e-mail or via a mobile phone. By the end of the 20th century, payment systems emerged, implying the creation of your own Internet wallet. In Russia, the pioneer was the WebMoney system, which from the first days of its appearance became popular with millions of users.

What are the features of payment systems? Here it is worth highlighting the following:

Saving space in a real wallet.
No need to print banknotes or minting coins.
Persistence. Electronic currency is not subject to wear and tear, even with prolonged use.
Simplification of the process of storing funds.
Anti-counterfeiting and high security.

I would like to note right away a number of advantages of EPS:

Minimum commission. If in the case of payment cards you have to pay 3-5% of the total transaction amount, then in payment systems the percentage is lower.
Ease of registration. To start a wallet, it is enough to spend no more than 5-10 minutes of time. Opening a bank account and obtaining a plastic card will be more difficult. In particular, a pile of documents and a personal visit to the institution will be required.
Safety. During the existence of payment systems, not a single situation has been recorded when the EPS was hacked and the funds were withdrawn from the users wallet through the fault of the payment system. As a rule, problems arise due to the carelessness of the users themselves.

The closest competitors of virtual currency are bank cards (credit and plastic), which today occupy a leading position in the field of non-cash payments.

What are the downsides to the future of electronic money?

The advantages discussed above allow one to judge the effectiveness and prospects of virtual currencies. But this is only one side of the "coin". The future of electronic currencies is not so bright for several reasons:

Confidentiality. Until recently, confidentiality was one of the main components of the success of virtual money. Now the future of electronic money is in question. People were attracted by the opportunity to make transactions, but at the same time remain incognito. Today this plus is leveled. With the release of strict laws, network users are forced to go through identification, that is, provide complete information about themselves - full name, residence address, TIN, and so on. Not everyone is ready to work in such conditions.
Insecurity. If the money that is in the bank is insured by the state, then the electronic currency is only by the issuer. This makes the future of electronic payment systems less bright. Here, government intervention is desirable, which would approve of the virtual currency and take it under its "wing".
Limited service. Despite the active introduction of payment systems, not all stores and companies are ready to accept virtual currency as a payment. For this reason, user options are still limited. Of course, the situation is gradually changing for the better, but how it will be in the future is still unclear.

What is the future of electronic money?

Against the background of the above, you can think about the future of virtual currency. And the first thing I would like to note is the role of traders in this process. In the coming years, market players will focus on finding reliable partners that would increase their profits. According to the research, in 2015, almost 90% of traders invested money in new areas - the development of applications for mobile devices, payment systems, cryptocurrency and many other market innovations.

Payment networks are developing every day, the number of transactions is growing, and the number of users is increasing. This is primarily achieved through cooperation with large e-commerce companies. On the other hand, there is no certainty yet that such cooperation will last long. The situation is also influenced by the popularity of payment systems, which are increasing every day. Thus, the number of electronic wallets on the market is increasing, which allow you to forget about plastic cards and switch to more profitable systems. For example, in the same Alipay, there are more than 300 million wallets that are not tied to bank cards.

But banking institutions that develop networks and create online services do not remain in the “tail” either. Against this background, the future of electronic currencies becomes vague, because it is becoming more and more difficult to compete with banks. Financial institutions are redesigning working models, creating new products, optimizing their internal network. Over time, users will have a choice between virtual currency and banking. In such fierce competition, anything is possible, and the future of electronic payment systems is in question.

It remains only to observe the development of the situation, because the future of electronic currencies depends on a number of factors - the position of the authorities, the actions of payment systems and the conditions that new users receive.