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Technological Advancements in Digital Payment Solutions

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Centuries ago, there was no easy way to transfer money or goods across countries. The population relied heavily on trade routes and caravans to carry payments to their designated destination. Over time, payment solutions evolved and became a bit more streamlined. Wire transfers allowed banks and individuals to send cash to various continents quickly and easily. While wire transfers were a huge development for businesses, the evolution of payment solutions didn’t stop there. Prepaid card solutions, legacy payment networks, and Bitcoin have made it even easier to spend, send, and receive payments worldwide.

Legacy Payment Solutions

It’s estimated that there are 248 million credit card holders in the United States alone. Most consumers utilize cards for payments, especially on a global scale. Legacy payment networks refer to the networks of credit card providers that have been in place for years. These companies allow individuals who carry their cards to pay for goods and services no matter where they are. For example, if an individual from England travels to Argentina, their major credit card will function in Argentina just as it does in England. The individual simply has to swipe their credit card with participating vendors, and enjoy the instantaneous transfer of money to pay for their goods and services. Legacy payment networks have streamlined the digital payment scene and made monetary transactions simple and stress-free. Because most vendors accept the major legacy participants, like Visa and MasterCard, cards can be used in most areas of the world.

Payment Aggregators

Payment aggregators are a solution used mainly by smaller businesses or e-merchants. These payment options allow small business to swipe credit cards or take payments through smaller card readers and apps. Instead of processing the payment themselves, the processing is handled by the aggregator. The merchant then receives the payment from the aggregator. Consider that, when shopping for a handmade good online, you plug in your credit card information to process the purchase. Instead of that payment being processed directly by the e-merchant you ordered from, the payment is sent to a payment aggregator to ensure that the payment is processed correctly. After processing, the payment is forwarded on to the e-merchant. This allows small businesses and e-merchants to accept worldwide payments without fear of fraud. It’s simple and easy to apply for a payment aggregator and can typically be attained within a day. Because of the simplicity of the process, many businesses opt for an aggregator payment solution as opposed to other global payment options.

Pile of credit cards on table, closeup

Prepaid Cards

While credit cards offer an easy-to-use global payment system, it’s not the only way to pay. More and more consumers are choosing to use a prepaid card for transactions. These cards can be swiped and used worldwide just as any other card can be. The difference is, prepaid cards aren’t tied to your bank account or high credit limit. Instead, you choose the amount of money that’s loaded on to your card. You can load as much or as little as you want to and then reload funds as you please. Using a prepaid digital payment solution reduces the risk of fraud and prevents identity theft.

Mobile Payments

With the increased use of smartphones, it’s only natural that they became usable as digital payment solutions. Instead of having to use a physical card, it’s now possible for those with mobile phones to store their card and account information virtually and use it to pay for goods and services. Innovations such as these make it easier for merchants to accept payments worldwide. Instead of needing a card reader or a physical card, the patron simply has to use their mobile payment service. The cutting-edge security coding allows for payment protection for both the payer and the recipient.

There are numerous other solutions on top of credit card, mobile, and  prepaid solutions. Whether you’re a business or an individual, it’s important to remain secure in your  transactions and choose a solution that suits your needs. WaveCrest Holdingsis dedicated to providing digital payment solutions that work on a corporate and personal level. Whether you’re exploring merchant solutions or you’re looking to better manage your budget and corporate spending, allow WaveCrest to find a payment that meets your needs.

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