The impact of electronic fund transfer on the global economy is the main topic on the agenda of our time. Most people know the amazing advances in technology. However, what few people understand is how electronic funds transfer can have a huge impact on our lives.
The history of the financial world started with the evolution of banks and savings banks. Initially, banks didn’t exist.
The early banking system was nothing but a clearing house for debits and credits. At that time, banks were a new concept, and what was more, it took time for the word bank to spread.
First there was gold coinage, then there was money order, there was a transfer of physical cash from one account to another, and then there was a deposit of money order, and so on. After one year, it is possible to say that this system of transferring funds was known as banking.
Later, there was also the development of public or private banking, the first time when banks would lend money in the form of checks, credit notes, and deposits. It took another twelve years to develop the banking industry. This gave birth to the modern world of banking and finance.
With the development of electronic money, came the advent of electronic commerce. The future was set to revolutionize the way we exchange payments in business. There was nothing more difficult to imagine than to receive money without any physical presence.
The evolution of debit and credit cards is one of the major causes for the success of this technological revolution. These have become the most commonly used means of transferring funds. The impact of electronic fund transfer on the global economy was made possible by the introduction of electronic money cards.
In the previous centuries, there was no such thing as electronic payment. What was more, there was no way to pay through the air – the only option was through the use of paper currency.
Nowadays, if you want to pay with a card, there is no need to go anywhere. A swipe of your card will provide you with a kind of instant connection, in which you are granted access to your account.
The invention of electronic money cards allowed the exchange of money through the internet. Through the internet, your personal identification number (PIN) is required for every transaction. Your account can be funded by means of the traditional banking system as well.
The evolution of electronic money has the biggest impact on our economy because it improves the ability of consumers to communicate with their customers. These devices not only help consumers pay for products, but also allow them to pay their suppliers directly, and to pay government departments directly.
We cannot ignore the impact of such advancement. The impact of electronic fund transfer on the global economy will be a blessing, both in the sense that it brings comfort and prosperity to the many who use these cards, and in the sense that it improves the efficiency of national governments.