Here's how currency has been disrupted throughout history
The current payments landscape is moving at a blistering pace.
Mobile payments, for example, is a market growing at a 39.2% annual clip, and it will be worth nearly $3 trillion by 2020. At the same time, it’s almost impossible to keep up with the growth in the blockchain world. Every day, new technical problems are being solved, coin market caps are hitting new highs, and Bitcoin is dominating the news cycle.
But, payments hasn’t always been this fast-moving or exciting. In fact, right now is an anomalous moment in the sector – and we’re actually witnessing a rare intersection of multiple disruptive technologies coming to age at the same time.
A timeline of payment disruptions
Today’s infographic comes from Glance Technologies , and it shows a historical timeline of the major disruptions that have occurred in payments, ranging from the Chinese invention of paper money to the birth of Paypal.
It keys in on the new wealth created by these incredible technological advancements – and it also highlights the origins behind many of the crucial pieces of today’s payments landscape.
It took roughly 1,100 years to go from paper money to plastic, 50 years to go from plastic to digital, and just 10 years to go from digital to mobile.
What fundamental change in payments is the next big one that will be visible across all levels of society?
The next big shift
It may be too early to tell for sure what the next society-wide shift in payments will be, but there are definitely some obvious candidates.
Blockchain Even with the precipitous rise of Bitcoin and its incredible journey to $10,000 and beyond, it’s still easy to underestimate the real possibilities in a decentralized, blockchain-based payments world. Various types of payments will be automated with smart contracts , and many of the world’s largest banks are already deep in experimentation with digital currencies.
In an ultra rosy scenario, it’s even imaginable to say that fiat currency may one day be obsolete. There are still many challenges to overcome, of course, but the blockchain could soon be ubiquitous in everyday payments at a societal level.
100% Cash-Free Just like the blockchain, the idea of going cashless already has growing adoption – however, it is not yet something that dominates all facets of payments on a societal level. Right now, in the United States, just 38% of people said they would be willing to go completely cash-free.
With the market for mobile payments increasing at a 39.2% CAGR, a fully cash-free world might not be that far off, though.
Other While the two above trends are the most obvious, there are some dark horses out there. For example, biometrics is one that could change how payments are verified, adding a new layer of security to transactions. Instead of using a smartphone, plastic, or cash, could you be paying for every purchase with a simple fingerprint soon?
Regardless of which of these is the next ubiquitous technology, the next five years of the payments space will certainly be exciting to watch.
SOURCE: World Economic Forum