“Cash is king”, is still true for the most part, especially in more developing countries, but statistics are starting to show that cash transactions worldwide are steady decreasing. The number of transactions is also increasing and many are considered ‘cashless’ such as online payments and credit/debit card transactions. Below we’ll have a look at the various types of payment methods that are currently being used to give us a glimpse of the future.
1) Cash
The main medium for financial transactions is cash. Countries have different currencies, mainly in the form of coins or notes, and cash is the most common form of legal tender. It is mainly used for smaller transactions and is favoured because we immediately know the value of what we have in our hands thanks to the numbers printed on the coins and notes.
The pros are the immediate exchange completes a transaction but the cons are it can easily be lost, stolen, damaged or even counterfeited.
2) Cheques
Pretty much outdated in developed countries since they don’t allow for immediate transfer of money, cheques are usually used for larger transactions and are feeless, but their slow speed means they are on course to be obsolete by the end of the decade.
3) Debit card
If you have a bank account, you can usually get a physical (or virtual) debit card to make transactions with and withdraw funds from ATMs. A debit card will only allow you to withdraw or spend what is available in your account and this has made it the second most popular method of payment for many years, behind cash. Most stores accept debit card payments as the payment systems offered are affordable and the business will be able to accept more customers and transactions if they increase their available payment methods. No matter if you are purchasing revitalash makeup from a department store or a lottery ticket from your local convenience store, debit cards are likely to be accepted.
4) Credit card
If you have good credit, your bank may offer you the chance to sign up for a credit card. The money available on these cards is the bank’s and you as the customer will pay it back with interest. Paying on time and in full will make you seem trustworthy with the bank and build better credit with them, allowing you to borrow more in the future. Many stores offer their own credit cards and give their customers discounts for shopping with them using it. This is an incentive to keep them shopping and spending within their ecosystem.
5) Mobile payments
Some mobile-only apps such as Venmo basically give you a digital bank account and allow you to pay using QR codes, emails or phone numbers linked to their user’s accounts. This is very convenient and is growing a rate soon to take over debit cards.
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