The historical transition of payment transactions

A long, long, time ago, standard money was non-existent. People would utilize other forms to make a payment transaction. Due to technology, payment methods have changed as well as money becoming digitalized. Advanced payment solutions have made such financial transactions get completed from nearly any place at any time. 

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Digital money

Nowadays, we use digital money to exchange for services and goods. Since time immemorial, people have made a payment transaction in the same manner that we engage in e-commerce. Though financial transactions centuries ago did not mean that money was exchanged, there was some sort of payment that had to be made.

Bartering 

The method of exchange for services and goods centuries ago was by bartering. It was advantageous as those who did the exchange were able to get what they needed. At that time, livestock such as sheep and cows were considered as the measure of wealth. The more livestock the person owned, the richer they were. Nowadays, bartering is popular again. There are sites for swapping where there is no cash involved and barter groups at social networking sites. Though there is no payment, the exchange is still something of value for another item of value. The measure of the value depends on what the person wants to gain from the exchange, such as food for a decorative vase.

Precious metals 

Before precious metals were forged into coins, shells and beads were exchanged. Precious metal coins were first made in Asia Minor by the ancient civilization that is known as Lydia. The first coins were made from silver or gold. This form of money established currency that can be carried, unlike livestock, and placed an equivalent value to the precious metal that was used. 

Measuring value

Unlike bartering, currency has a certain value. There are different kinds of currency in the world but most of these can be exchanged into other currencies such as that of the US dollar or Euro. If you are doing business, it is a wise decision to be able to own a debit card that can send and accept payments in either of these currencies.

Payment transactions

We are no longer in those times when we have to carry minted coins and paper bills for us to make a payment transaction. We do barter as an exchange for services and goods but do not need to make cash payments in this digital age. All we need to do is to go and make an online payment.

Mobile payments

By using our mobile phone, we can easily make a payment transaction. When we go to certain stores and even bus terminals, there are payment terminals. When we go online, we can make a payment. It is necessary for us to use the money form that is in times with the era that we are in. We must be progressive and use the form of money that is efficient and convenient. Currency has been around since ancient times. Therefore, if we still use cash, it is the traditional method that slows down our economic growth.