Well, exchanging goods as well as services is not a new thing; people have been doing this throughout the ages. Therefore, here, we are going to make a brief breakdown of the history of payment (payment evolution). So, don’t miss the following points:
Bartering And Livestock
Well, if we talk about the history of payment, the first two names that come into our mind are Bartering and Livestock. Well, these two are the oldest ways through which people used to exchange goods. Bartering was basically an advantageous method through which both parties could get what they needed the most. In other words, it was a kind of trading where one person exchanged his services for another person’s services or goods. On the other side, Livestock was considered as a wealth which people could actually accumulate. Cows and sheep were inextricably associated with this group and people in the past had a tendency to gather such wealth as much as possible.
Precious Metal Coins
During the time of Bartering and Livestock, the currency was not easily portable and this was how the invention of metal coins was made. People of ancient civilizations used to have shells and beads as coins. Gradually, they started using precious metals in order to make coins. Well, the fact is that people who belonged to the ancient civilization of Lydia were the first to use gold as well as silver coins. These currencies were portable and valuable and so, it had gained huge success during that time.
Another material that people used for the currency was leather. Mostly, people in ancient China used to make leather money or banknotes from white deer skins. Nowadays, you can compare it to the bills that we generally use in our society.
You might be surprised to know that Chinese people first developed paper money. However, the time was not good for them as it was very difficult for them to determine as well as maintain the value of the paper currency. Challenges came in several forms such as the production of currency and inflation. The paper currency went in and out during ancient history.
England established Gold as as the standard value in 1816. After that, Europe started following this and eventually, gold became a standard currency and the value of other currencies was set by making its value in gold. Before that, silver and gold were used mostly for dollars.
Gold-Backed U.S. Dollar
The United States established the Federal Reserve System in 1913 and it was the official central bank that maintained the overall financial interest of the nation. Federal Reserve Bank ensured that checks, as well as notes, would be honored and people could redeem this for gold.
The United States dissuaded gold standard in 1933 so that the Americans could not cash in the currency for gold. It was done because the national gold supply was being depleted and deflation arose. Well, from this point of time, the Federal Bank became the official upholder of the monetary system. However, the U.S. Government allowed the foreign countries to trade dollars for gold and it was done till 1971.
Credit Card payments
A credit card is a kind of revolution in the history of payments and it was introduced in the 20th century. Basically, some retailers such as gas stations, department stores and many more started generating individual credit card terminals and they issued credit cards to the consumers. It made the whole payment system more convenient. Along with this, we must talk about the Diners Club that actually gave a special ability to the consumers so that they could purchase meals from various restaurants situated in New York.
With the advancement of technology, online shopping started gaining huge popularity. Probably, Pizza Hut was the first retailer that executed e-commerce transactions and online payment. In 1994, they launched their website that allowed people to order pizza online.
People started using mobile payment in 1997 and Coca-Cola received credit for offering mobile payment transactions during this time. Well, as a matter of fact, mobile payment has been gaining huge popularity since then.
At present, we have various options through which we can make payments. The main reason behind it is advanced technology. Now, people can even do online bill payment using online bill payment services. If you are a businessman, these advanced payment options will definitely help you to enhance your business by providing various merchant services. We have made a brief breakdown of several advanced payment options. So, go through the following points to know more about them:
Credit And Debit Machines: Credit and debit machines are one of the advanced machines that will give you an ultimate solution regarding transaction processing. It is a wireless device and therefore if you have a restaurant business, it will be very helpful for you.
Gift Cards: Gift cards are another useful advanced payment option through which you can promote your business effectively.
There are many other advanced payment options and if you are looking for an all-in-one solution get in touch with International Payment Solutions for the best experience.