The Starting Point
The first form of electronic banking that appeared in the ‘60s is the automated teller machine (ATM) – old fashion digital payments machine. Initially, the first ATM was installed in America by the City Bank of New York in 1961 but was subsequently withdrawn after 6 months due to a lack of trust from the bank’s customers. Since then, with the development of the internet and the simultaneous evolution of the banking systems, electronic banking transactions were created which relieve people from waiting queues, thus choosing the flexibility of their free time and their fast service through various services provided.
The Evolution
The services provided by electronic banking are studied separately for each of the aforementioned categories. In particular, internet banking is the main pillar of electronic banking in terms of the number of services it offers. The services provided can be distinguished into the following categories: a) financial transactions, b) information transactions, c) applications, d) other types of services
The evolution of fintech has a key role in digital payment evolution. The task of digital payment consolidation is not an easy one. The starting point was building the trust of customers. Initially, it was a strange way to make a payment and it was considered an unreliable and unsafe method. Nowadays, digital payments dominate the global market through their advantages as a method.
Advantages:
- Instant payment
- Higher payment security
- Convenience
- Cost-efficient
- Harder to get stollen
- Transparent
- Contactless
Moreover, It is obvious that a lot of different ways and types of digital payments have been developed over the years. The superiority of these new technologies has transformed business models across the world. For example, due to globalization, cross-border payments have a huge demand. Which are made simpler and instant interest parents in relation to the traditional way. There are a lot of new technologies like blockchain which can enhance digital payments even more.
To conclude, the transformation into a digital ecosystem is real. In the case of digital payments, business and technology have been fused together to remodel the old way business was done.
