The A-Zs of Digital Payments
Consumers and merchants around the world have more payment choices than ever with the proliferation of digital wallets, peer-to-peer payment apps, mobile payment capabilities, payment processors and more. And with this proliferation of payment choices comes a proliferation in payment jargon.
For decades, large traditional banks owned the entire payments process, giving consumers and merchants only a few choices when it came to payment and acceptance, thus limiting the way consumers could pay for goods and services. It wasn’t that long ago that most people were issuing hand-written checks to pay their bills or filling out long complicated forms to get a loan or buy a car – and some are still doing both.
But like everything else that’s been affected by the digital revolution, advancements in payment technology is completely changing the way money flows between businesses, customers, and peers. The fintech revolution has leveled the financial playing field by introducing innovative, personalized financial products and services that meet the demands and preferences of today's consumer.
While fintech disruptors still have a ways to go, they threaten to take considerable market share away from legacy banks. Consumers and merchants around the world have more payment choices than ever with the proliferation of digital wallets, peer-to-peer payment apps, mobile payment capabilities, payment processors and more. Payment technology is still evolving and the potential to develop newer, better payment products are still far and wide. It’s not just about payment processing. Many tech startups are developing better products to address challenges at every stage of the payment cycle – products like new payment methods, online banking services, fraud protection, contactless payments, cryptocurrency, investment services, credit services and many more. This unbundling of traditional banking services presents businesses and customers with more choices of single service providers allowing for a more personalized financial experience.
Tech giants like Apple, Alphabet/Google, Alibaba, WeChat, and Amazon have already gotten into the payments and banking game, so there’s no sign of the payment revolution slowing down. And with the proliferation of payment choices comes a proliferation of payment jargon.
We’ve put together a quick cheat sheet on the A-Zs of payments so you can quiz and familiarize yourself with today’s digital payment landscape.
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