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History of payment systems

By | Anna Melnikova

To date, the leaders in the international market among payment systems are undoubtedly companies such as MasterCard and Visa. Also, they are also called non-banking institutions that belong to certain banks. As for the history of the emergence of international payment systems, it began in the middle of the last century with the advent of so-called multifunctional cards on the trading market. One of the first issuing companies to use them was Diners Club from the United States. At that time, the use of payment systems was extremely simple and uncomplicated. The bottom line was that after visiting shops, cafes or restaurants, users of such cards left bills, and then Diners Club paid them. Well, after that there was compensation for the amounts paid by the companies themselves. Due to such simplicity and accessibility, this payment system was quite popular and in demand and thus cards began to be accepted since 1953 not only in the United States, but also in Cuba, Mexico, Canada, and also in the UK. A few years later, they covered almost all European countries, as well as the East and Asia. In the former USSR, payment cards were first used in the late sixties of the last century.

As for the complete dominance of the financial market of Visa and MasterCard, this is primarily due to fairly good and acceptable terms of service, regardless of the category of the client, plus the availability of a large number of different kinds of innovative products. These include “revolving” credit cards, as well as mass mailing of all sorts of proposals for cooperation by e-mail and much more.

What are the advantages and disadvantages of existing payment systems?

Before this system appeared, payment was made in cash or by bank checks. In the current century, after business began to massively move to the Internet, there was a need for the emergence and, accordingly, the use of electronic payment systems. Such know-how fully justified itself, because it greatly simplified the acceptance of payments on the Internet, although it was accompanied by some confusion and difficulties. Among the main advantages of payment systems should be highlighted such as:

  • Accessibility. Here you just need to have a bank account and a card, after which payment on the Internet can be carried out in a matter of minutes;
  • Speed. All payments are made within one minute, in comparison with bank transfers;
  • Security. To date, most of the most popular payment systems are protected by the latest versions of SSL protection protocols, and payments are made through the Net Pay aggregator. Thanks to this, maximum protection is ensured;
  • Profit. All bank and postal financial payments are subject to a fairly large commission, and through payment systems it is mainly about 1%;
  • Control. The entire history of electronic payments is on special servers of the system, and you can pull it out at any time.

As you can see, payment systems have an impressive number of advantages. As for the shortcomings, they are not significant and consist mainly in the following:

  • Mandatory availability of an Internet connection for financial transactions;
  • Access to the user’s personal and financial information. To make a payment, a mandatory action is the entry of personal data, which may subsequently become available to various authorities, for example, state ones.

From all this it can be seen that the advantages are much greater and they are more significant than the disadvantages present.

The largest payment systems

To date, according to the analytical site on instant payments www.instapay.today, there are a number of the most popular payment systems in the world. Among them, the most TOP are:

  • PAYPAL;
  • CONTACT;
  • ONPAY;
  • WEBMONEY;
  • SKRILL;
  • PAYTODO;
  • UNISTREAM;
  • WESTERN UNION;
  • PAYEER;
  • PERFECT MONEY and others.

In fact, there are much more electronic payment systems and all of them are not only popular, but also as reliable as possible. Thanks to this, they are trusted by millions of users living in many corners of planet Earth.

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