2023-11-29 13:00:38
At the turn of the 21st century, a technological revolution shook the foundations of financial and business habits established for centuries. The meteoric rise of new digital technologies and the rise of computing power have made it possible to achieve what once seemed unimaginable: the dematerialization of money. In 1990, the United States led the way by authorizing digital money transfers between banks. Since then, this trend has continued to accelerate, radically transforming the way we perceive and use money.
These new technologies have revolutionized the world of payments. QR codes have made payments faster than ever with a simple scan. Contactless payment, using NFC technology, has simplified transactions, while facial recognition, embodied by Apple Pay, offers increased security.
However, the real revolution has been driven by blockchain, a technology underlying cryptocurrencies like Bitcoin, which offers unique advantages, such as transparency and security. It is therefore not surprising that major institutions, including the European Central Bank, are exploring the creation of digital currencies, as are 114 countries around the world that are considering central bank digital currencies.
Major industry players, such as technology giants (GAFAM) and payment companies (Visa, MasterCard), have played a crucial role in the widespread adoption of digital payments. They have invested heavily in these technologies and encouraged consumers to adopt them. Additionally, governments have adjusted regulations to facilitate the transition to these new payment methods.
The transition to a cashless world is undeniable and has accelerated in recent years, with added momentum from the global impact of the COVID-19 pandemic. Digital payments have gained popularity because they offer increased security compared to cash, which can be linked to illegal activities, such as money laundering, arms and drug trafficking, and other criminal activities.
Contactless payment has seen dramatic growth since allowed payment limits were increased, from 41% of card purchases in 2019 to 62% in 2022. Even higher rates have been seen in some countries, such as the Greece, Cyprus, the Netherlands and Slovakia, where this trend has exceeded 80%. Online payments have also increased from 6% to 17% of daily purchases between 2019 and 2022, while mobile payment apps now represent 3% of total payments.
In conclusion, digital payments have revolutionized the way we manage our finances. However, it is essential to remain vigilant, as no technology is free of vulnerabilities. Despite the significant decrease in the use of cash, it is essential to find a balance between different payment methods to ensure convenient and secure access for all. For more details, readers can follow this link to a more complete version of this article.
Sources :
The French and new means of payment | Comarketing-News
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To learn more regarding the topic, please find my research paper titled “Towards the End of Cash”.
About Rami BEN DALY
Training in Master 2 AES Electronic Commerce course at the University of Strasbourg
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