Historically buying goods and paying for them was a fairly simple thing, you chose your item and paid your cash in a face-to face-transaction. This way of shopping has, however, been replaced over time with many options that some say give more spending power freedom while others say bring more problems.
Let’s take a look at the way out spending has changed and how we might be paying for our goods and services in the future. From mobile payments to cryptocurrencies, Credit Angel’s infographic looks at the pros and cons of a cashless society and what the future holds for our finances.
Spending Power
These days we live in a technological age and our spending power is no exception to this. Gone are the days of carrying stacks of cash in your wallet or a cheque book in your purse, now it’s all done digitally. The latest development has been contact-less currency and it doesn’t stop there. There are three main ways to pay for your purchases today, the most common at the moment is credit and debit cards along with the addition of a contact-less function, has given even more freedom of spending power.
The contact-less method of paying for goods is simple and needs only a device compatible with your bank, this could be a card, a smart phone, a watch or even a key fob. Your details are encrypted in this device and a simple swipe over the necessary receiver and your payment is complete. Currently the normal ceiling for contact-less payments is set at £30 but it is possible to raise this with certain perimeters. There are 108.4 million cards in the UK with contact-less capabilities and 20% of all transactions across Europe are contact-less at present.
Another form of payment gaining in popularity is the mobile payment where the payee needs simply to have a device like a smart phone or tablet to send or receive money. The technology needed for this form of payment is still evolving and obviously needs a worldwide system to be workable. The move to online shopping is a reflection of the huge increase in mobile spending as more and more people shop from the comfort of their own homes and offices.
Cryptocurrency
The lesser known forms of paying for your goods are known as cryptocurrency, the most common of these is Bitcoin. Cryptocurrencies tend to be unpredictable and many financial institutions are still not convinced of their use in the future.
All-in-all the move away from what was once the norm in the methods we pay for things has brought with it problems and benefits alike.
Author Bio: Ruth Walker writes on behalf of Credit Angel.
About Credit Angel:
Credit Angel’s mission is to provide UK consumers with the tools to understand their credit rating and to empower them to make the right credit decisions. Credit Angel offers great services and provides information in an understandable and usable format, empowering customers to proactively manage their credit like experts.
