When we think about money, the first image that would come to mind would be a pile of cash. The use of money is for circulation. Though there is that amount that is tucked away for savings, it is still mean for spending like when there is an emergency. The concept of money is not stagnant that is why payment transactions happen all the time.
A promise to pay
Since money is used in a system that applies for liability and credit, one should note that its circulation is indeed a promise to pay. There is a need for credit as without, a payment system like Paxum.com would be too rigid to function. Even with simple bartering, there might be a time lag between acceptance of the goods and whatever is exchanged, thus there is that requirement for credit.
The time lag
Credit is based on trust, which is vital to finding the right company for money transfers. When we put our hard-earn cash into banking institutions, we need to trust them. If we use e-wallets, we also have to trust the company. For any form of a payment transaction, there is a time lag, even if it is known as instant, and that is where the ‘credit’ applies.
The foundation of our present money systems is state-backed currencies. The ways to transfer funds have drastically changed over the years, becoming much faster and more convenient due to digitalization. In the 50s, banking institutions provided us with credit cards. The credit system before that was to write a check. After around ten years, banks were dispensing cash via ATM, with the option for depositing checks. In the early 70s, banking institutions created a worldwide messaging network to streamline the transmission of the funds’ transfer instructions. This network is known as SWIFT – Society for Worldwide Interbank Financial Telecommunication.
Electronic payment transactions
Before the turn of the century, the Internet made it possible for us to make electronic payment transactions. Over the years, new payment systems have emerged to include that of payment apps and digital wallets created by money transfer experts. With the speed of delivery, and factoring in concerns such as no fees, lower costs, and fair exchange rates, the convenience of using the leading money transfer services fits the nearly all the payment transaction requirements of both business entities and individuals.
For the global economy
The methods of how monetary forms go from one’s ‘hand’ to another define our global economy. There are innovative solutions based on traditional methods and the digitalized form. The most common payment transaction, especially for global companies, still use state-backed currencies.
Advanced payment solutions
For trade payments and individual remittances, international money transfers have evolved to be able to maximize the use of technology. The leading international money transfer services companies have various methods for payment transactions and have mobile apps to make it more convenient to send and receive money online. This money transfer service also makes it possible for their clients to have virtual USA And EU accounts for receiving local SEPA and ACH payments.