The $4.1T digital payments ecosystem is revolutionizing currencies, how we transact, and it could very soon replace notes and coins.
A global pandemic, technical advancements, and innovations mean that all the stars are aligned for a continuing boom in digital payments as the preferred method of transacting for trillions of dollars of goods and services each year.
Blockchain’s disruptive technology, an encrypted digital ledger has facilitated cryptocurrencies and the world’s first digital currency, Bitcoin.
Despite, Bitcoin’s scalability problem the growth of Bitcoin as a digital payment solution is expected to increase, particularly for some developing countries.
“A global pandemic, technical advancements, and innovations mean that all the stars are aligned for a continuing boom in digital payments”
WEALTH TRAINING COMPANY
The 2020 pandemic economy has contributed to a structural shift in the digital payments landscape
In other words, contactless and cashless transactions are increasingly becoming the consumer’s choice for transacting. Put simply the rise of contactless digital payments is a macro trend, which will lead to the eventual fading out of notes and coins.
So, if investing early in a macro trend is the holy grail to profitable investing, then who are the players in the digital payments space?
Cryptocurrencies, particularly Bitcoin has been viewed more as a speculative vehicle, and if it could resolve its scalability issue its use as a media of exchange, particularly among the smartphone generation would take off. Bitcoin is already being used amongst the global tech-savvy community, it has become their global currency.
“Cryptocurrencies, particularly Bitcoin has been viewed more as a speculative vehicle”
WEALTH TRAINING COMPANY
The first digital payment electronic money transfer service was launched by Paypal in 1999
It was a huge success from the beginning. PayPal’s user base grew by nearly 10% daily. Tesla CEO Elon Musk and venture capitalist Peter Thiel were among its co-founders.
In 2003 Alibaba launches Alipay in China. The mobile digital payment platform was a huge success, with its leveraging digital wallets accepted by merchants in over 50 countries and regions.
“By 2023, over $2 trillion of mobile payment transactions could be authenticated by biometric technology” – Wealth Training Company
With the wide adoption of smartphones, M-PESA created the first digital payment system for mobile phones
Kenya-based M-PESA launched its mobile banking and microfinancing service. Today, it has over 37 million active users on its platform across Africa.
The first decentralized digital payments network in the world was launched by Satoshi Nakamoto, the name used by the presumed pseudonymous person or persons who developed bitcoin, in 2009.
Four years later, 2013 WeChat Pay evolved into a popular digital payment messaging platform.
In just five years, WeChat Pay monthly active users surpassed 800 million.
Apple then jumps on the digital payments revolution and launches Apple Pay.
By 2023, over $2 trillion of mobile payment transactions could be authenticated by biometric technology.
As technological advances continue to unfold, advances in digital payment technologies are creating ripple effects globally
Messaging-app digital payments are expected to boom. So, Facebook Messenger, WhatsApp, and WeChat can leverage the reach of billions of users.
Voice-activated commands could become more widely adopted going forward.
Paying for gas, groceries, or retail via voice could also soar.
Regarding, cryptocurrencies already over one million digital payment transactions take place daily using digital currencies.
Moreover, Square, Stripe, and Clover are driving new mobile digital payment processing integrations.
So the future of digital payments in the four revolution is looking bright.