The Rise of Digital Payment Systems

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A long time ago, in a place before the internet existed, cash was king, we as consumers now progress to making cashless payments via cards, mobile phones and applications, the transition is both familiar and mindboggling.

Online payments go back to the mid-1990s, with Stanford Federal Credit Union credited as the first ever to offer online banking. There is much debate regarding the first Ecommerce transaction with the fun fact of Sting getting the award. With the creation of PayPal in 1998, the digital payment platform expanded, offering more efficient ways to send and receive money around the world.

Digital payments enhance business transactions by streamlining the process and eliminate cash handling risks. Amazon established its presence in 1994 creating an online marketplace for books and quickly expanded to include a variety of other products utilising the use of online payment technology.

The transition from cash was accelerated during Covid 19. Through bank transfers, mobile money, QR codes, consumers today routinely shop online and conduct secure transactions without having to step foot inside a store.


Biometric verifications like facial recognition, iris scans and voice authentication are used to verify an individuals identity before processing a payment. A voice print of a person accessing bank account information can be captured and stored in a database. When the person again accesses the bank, a new voice print is recorded and compared to one in the database and if they match the persons identity is confirmed.

Cryptocurrencies, such as Bitcoin, offer alternative currency options to cash through crypto tokens which allow for payments to be made through an online system. This process is done through a record-keeping system called Blockchain which records transactions in a shared database and business network.

Today that the total transaction value in digital payments is estimated at 11 trillion, individuals can swiftly complete transactions at any time of the day or night and this convenience for customers has generated better sales for companies in what is truly a global market.

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