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Business Technology (Peer to Peer Payment Systems)

In: Science

Submitted By echief
Words 1165
Pages 5
Peer-to-Peer Payment Applications
History

Payment systems have existed throughout time. From the ancient days where merchants exchanged goods for other goods in a barter system, to the days when the concept of currency was developed, to the modern day checkbook and wire transfer of funds, there has always been a way for one person to give money to another. However, all of these methods are cumbersome, and require either a physical activity (writing a check or completing a wire transfer), or exchanging physical currency. This complicates the process, requiring two people to meet in person, one to have physical currency (or to have and write a check), and then the eventual deposit of the recipient’s funds into a bank account.
However, with the rise of the internet and the proliferation of smartphones, a major innovation has been made in the way that people exchange money. To clarify, this is not talking about a person paying an established business, but rather paying someone for babysitting, mowing a lawn, splitting the cost of gas, or paying back a friend for a meal. This innovation is Image from WashingtonPost.com
Image from WashingtonPost.com known as peer-to-peer payment systems. The need for a quick, easy way to pay someone, split a bill, share utilities payments, or contribute to a fundraiser became apparent in a society that carries less and less cash. Most millenialls do not even carry cash on their person anymore, and thus, if they needed to pay a friend, it would require a trip to the ATM, a drive to the meet the other friend, and then for that friend to deposit those funds. The mobile application marketplace created various applications that allow users to send money to a friend, relative or family member with the ease and simplicity of sending a text message (Meola, 2016). No longer will one have to search for an ATM, withdraw cash and go…...

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