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The Future of Money and Payment System

Everything we see around us goes through its own life cycle. They sprout, grow, mature, and slowly disappear. The same also applies to money and how you earn and spend it. Money, as we know, is undergoing a major change therefore the way we make payments have also changed. In a sense all these are key indicators of our progress. Similarly, the current payment methods powered by cutting-edge technology boast our technological achievements of today.

As Digitization of Payments took wings, the economy was moving faster towards the goal of achieving an easy, suitable, fast, and safe payment method structure. Last six to seven years witnessed mammoth development in the Digital Payment methods and it is sure that the trend is going to continue in the coming years.

Customers have inclined towards seamless payments for most daily transactions – with high expectations for integrated and secure ways to pay for purchases and services rendered.

As the market is flooded with more than 3,000 digital currencies, it’s market full of both opportunity and controversy.

Decentralization is the future of currency

Decentralized currency, as defined, is peer-to-peer money, and digital currency all refer to bank-free methods of transferring wealth or ownership of any other commodity without needing a third party. It’s the future of money. It’s a whole new way of thinking about currency and capital and finance.

The future of currency will all come down to decentralization. That term is essential for changing the way currency currently operates. Every company wants to find new markets, and it wants as few barriers as possible, blocking its ability to sell to those markets. A decentralized currency makes doing business around the world more accessible. That’s the future of money. This freedom to send money digitally is how the world operates now. Globally we might still be made up of nation-states — but business is global and has no borders.

The decentralized currency (sample Bitcoin) can never be manipulated as it is limited to 21million Bitcoins in floating, released at a rate of 1800 every day. The supremacy of the currency lies in the factor that none in the world have the power to change the release rate and value is derived solely from the market and any individual, institution, or Government can impact the value. Making the currencies the most democratic and It’s all down to the people. Perhaps the most outstanding reason that decentralized currencies are the future of money is that they’re truly global. Just as decentralized currencies have no central authority that sets their value, so they also have no central location.

Digital Banking Becomes the new Normal

Experts predict that more banks and payment system will completely digitize their service offerings. Digitization is a win-win situation: The clients can cut-down on the time spent on brick-and-mortar banking transactions, while institutions can save money on office space and resources by moving a slice of their business fully online. There are a wide range of budgeting app that helps to stick on the monthly spending and savings targets.

Cashless Society

Many countries are encouraging digital payments in lieu of cash. It is futuristic to live in a world without physical money, it’s not too hard to believe considering the ease and convenience of digital payment systems which are making inroads in to the society. Many developed economies are embracing a no-cash lifestyle faster than others. For example, European countries like Sweden use digital transactions for 98 percent of the country’s commerce. The potential benefits of digital payment infrastructures are exciting and fruitful.

Data-Driven Currency

It’s natural that the future of money will involve data. New data insights are likely to change the way currency is looked upon. In the 2025s, data-driven money will create new opportunities for millions of people.

Digital Payments – What’s Next?

In future we could witness social media-initiated payments, voice activated payments, cryptocurrencies, biometric payments including facial recognition all becoming mainstream. But Whatsoever, its for certain the mobile payments and mobile wallets will gain mass adoption in the future and developing countries and societies will contribute substantially to this development.

Along with this NFC and QR will also see an uplift as a safe and fast payment solution. However, adoption of QR has been slower in many societies, this is projected to change due to its cost effectiveness as merchants will now require less infrastructure to process payments, whilst delivering more convenience for customers.

US, followed by the UK, are the second and third largest digital wallet markets, China topping the list, with ApplePay the most widely used product within both of these markets. Digital Wallet consumption will be driven further by e-commerce and PayPal - judged the worst business idea when it was first introduced in the era of cheques - is now the most used digital wallet in the world.

The biggest opportunity for growth and innovation within the digital payments landscape will be provided by the unbanked and underbanked segment which will contribute to the overall growth of digital payments.

Financial inclusion provides opportunities for fintechs to deliver products which provide true value and address real needs, and in developing countries like India, and norms will be bypassed completely for a more agile and flexible approach in the form of challenger banks.

The digital journey ahead of us is going to be exciting. Security and Trust will be at the forefront, as we continue to adopt digital payments across geographies. Thus, the demand for a secure, reliable, and robust payments infrastructure is always sort after.