Evolution of Payments – Over the time, financial transactions have undergone significant transformation. In lieu of tangible currency or checks, we currently rely on digital transactions. They are simpler and faster. In ancient times, individuals were required to either use paper currency or engage in interpersonal communication to make payments. Currently, it is possible to make online payments without requiring physical interaction.

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The Evolution of Payments – Outlook

In the present era, diverse payment methods such as phone payments, mobile wallets, and contactless card-free transactions have become convenient and accessible alternatives. Doing business in the digital realm has been made effortless by the advent of e-commerce. The convenience and security of payment processes are being improved through the implementation of new technology.

This will enable a wider range of individuals and companies to conduct transactions with greater ease than previously possible. Payment methods that are considered to be the most longstanding, facile to utilize, extensively adopted, preferred, and universally embraced across the globe As this is a widely acknowledged methodology, mutual communication is rendered unnecessary.

The financial transaction of remunerating a provider for goods or services involves the transfer of funds from a consumer to the provider as compensation for obtaining said products. In the context of domestic commerce, it is customary to engage in payments in the local currency using cash during transactions. The remittance may be transacted by means of either physical banknotes and coins or a judicious combination of both modes of currency.

Evolution of Payments – Methods

Cash Payments – The oldest, easiest, most commonly utilized, most preferred, and most acceptable method of payment across the globe.


This method does not require the exchange of any details, as it is a widely accepted method. Ans this still remains the king and most sexiest method. However, due to the worldwide cash crisis, security concerns, and inflation, most economies are moving away from cash payments and towards a cashless society. Cash given by a consumer to a provider of goods or services as compensation for receiving those products In most domestic business transactions.

Cash payment will typically be made in the currency of the country where the transaction takes place, either in paper currency, in coins, or in an appropriate combination.

Electronic/Internet Payments – Commonly used for remittance services (international and domestic). This is a very common instrument for corporate customers, people with internet access who are highly educated, and those who are tech savvy.


It does not need any more explanation, as it is a self-explanatory product. Most organizations in the travel, hotel, and event industries and government sectors use this method of payment.

Since the customer is usually required to enter personal details, the entire communication on the “Submit Order’ page i.e. at payment gateway is often carried out through the HTTPS protocol. To validate the request of the payment page result, a signed request is often used, which is the result of the hash function in which the parameters of an application are confirmed by a “secret word” known only to the merchant and payment gateway. To validate the request for the payment page result, sometimes the IP of the requesting server has to be verified.

Plastic Cards (Debit, Credit, real time value & Stored Value) – Plastic cards are in use mostly in the USA and Europe, while less usage is noted in developing markets. Mobile money, or mobile payments, will struggle to take off in countries where cards have already been established as the principal payment method and where cash can be hard to obtain.


There’s a good chance for mobile payments to (possibly) take off in such economies, but in the US and Europe, there are literally billions of cards already. In the US in particular, most of their acquisition infrastructure is non-EVM compliant, therefore opening up for security breaches. As of today, mobile payments do not offer something superior or any incentive for consumers to switch from plastic payments to mobile payments. Handing over a card is normal and obvious behavior, while mobile payments are not.

Mobile Payments – Apple Pay, in payments years, is an infant – just about 6 months old. It’s barely crawling – and is making everyone else run – fast and hard in the direction of making mobile payments a reality.


Mobile payment getting exploded or nothing wrong in saying Global Payment War or World Payment War , after apple pay now its MS etc. Owing to pervasive global financial instability, heightened concerns regarding the safety of traditional cash payments, and the growing issue of inflationary pressures, a significant number of economies have begun shifting their focus towards the adoption of a digital economy.

Proximity Payments/Contactless Payments: Proximity payments generally refer to contactless payments in which the payment credential is stored in the mobile device and is exchanged over the air, based on NFC technology, with a dedicated and compatible payment terminal.

In other words, the mobile device acts as a contactless payment card, thus becoming a new payment form factor. Contactless payment could also be used remotely, for example, to make an online purchase by swiping the mobile device over a contactless NFC reader plugged into a personal computer (PC).

Food For Thought

Among other things, Apple’s Second Coming of the Mobile Payment Solution was meant to fix our credit card security system. Only, according to (unconfirmed) reports, it’s doing exactly the opposite. Facebook launched money transfer services, which is yet another second, but we need to wait for our comments.

However, it is essential to ensure that a comprehensive understanding of the real and accurate problems is established before identifying any solution. Consequently, the relevant inquiries and concerns surrounding this issue require answers.

In order to develop innovative products, services, and solutions for financial technology and banking, it is essential to have a team with a blend of technical and business experts who can comprehend the importance and application of artificial intelligence.


Conclusion – Recent advancements in technology have facilitated the development of innovative machines that possess the ability to generate intelligent payments that are infused with in-built payment knowledge. The PI manual, presently in development, captured my interest, particularly with its thorough dissection of complex PI principles, such as regression and artificial intelligence components, presented in a pedagogical style reminiscent of a teacher instructing pupils in a classroom setting. The recommended approach entails employing linear regression analysis for continuous outcomes and logistic regression for binary results.

Posted by V Sharma

A Technology Specialist boasting 22+ years of exposure to Fintech, Insuretech, and Investtech with proficiency in Data Science, Advanced Analytics, AI (Machine Learning, Neural Networks, Deep Learning), and Blockchain (Trust Assessment, Tokenization, Digital Assets). Demonstrated effectiveness in Mobile Financial Services (Cross Border Remittances, Mobile Money, Mobile Banking, Payments), IT Service Management, Software Engineering, and Mobile Telecom (Mobile Data, Billing, Prepaid Charging Services). Proven success in launching start-ups and new business units - domestically and internationally - with hands-on exposure to engineering and business strategy. "A fervent Physics enthusiast with a self-proclaimed avocation for photography" in my spare time.

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