Looking past a few decades we can easily see how far we have come. A lot has changed and developed, and online banking and banking in general is one who has seen very big changes. As the world becomes more and more digitized, the banking sector moves further into online space. This has helped the financial sector to grow further as now the finances of the whole world are connected with each other and making international transactions has never been easier.
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These developments have not slowed down, and each day the online financial sector is growing bigger and bigger. Recent blockchain developments have been the latest of newer innovations that pushed the financial sector further and currently we are witnessing the leap in development. So where are we exactly and what does the online payment landscape look like in 2023? Let’s take a look.
When it comes to online payment systems, nothing has come close to the usage of credit and debit cards. Does not matter which online store you visit, or which online service you want to purchase, if there is a way to make online payments, the possibilities that there will be credit and debit card payment options is close to 100%. With the development of SWIFT and mass adaptation of digital technologies, making online payments using credit cards has become instantaneous. What makes this even more advanced is the fact that the market is being dominated by two giant companies.
Looking at the credit and debit card market, we can see majority options will be either Mastercard or Visa, and if it’s neither, chances are high that they are owned by either of these two or are in partnership. This has made online payments much easier. Since banks have to work with just two companies in order to facilitate the majority of online payments, it made it easier to make this process faster and more streamlined. It can take just a few seconds for online payments with credit cards to go through and because of the mass scale adaptation, this payment system is here to stay and dominate for a long time.
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The newcomer to the online payment block, cryptocurrencies have been gathering popularity lately, and they have become firm competitors with traditional payment systems. A lot of companies started to accept cryptocurrencies as a form of payment, with Coinplay allowing users to use over 50 different cryptocurrencies for deposits and payments. These crypto developments have been going on for quite some time, but they have taken the spotlight only just recently.
The main reason for this popularization of cryptocurrencies as payment methods is thanks to the introduction and popularization of proof-of-stake protocol. Old cryptocurrencies such as Bitcoin use old proof-of-work protocols and because of this, their transactions might take hours to complete. But with the proof-of-stake this problem is removed and crypto transactions can be done within mere seconds. But despite this huge popularity, cryptocurrencies are still far away from becoming regular payment methods, like credit and debit cards are. The reasons for this are many, but one of the main reasons is the fact that cryptocurrencies are hugely volatile and most companies don’t want to deal with such risky assets.
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Online payment landscape in 2023 is diverse and yet dominated by one system. Credit and debit cards are the most widely used payment methods in the world and reasons for it are plenty. They are accepted almost everywhere, transactions are practically instantaneous, and in some cases there are no fees when making online payments using credit and debit cards. But despite this, cryptocurrencies have started to creep up and are showing up at more and more places. It is still too early to say anything concrete about the potential success of cryptocurrencies, but as things are moving forward, everybody should be ready as some changes might be coming into the way we make online payments.