How you plan to pay for a purchase of goods or services can make a difference in the way you save both time and money. While there are millions of people in the world that have no other option to use cash as their payment instrument, in several developing and developed nations, the choices of payment methods are several. The Internet enables us to be connected to more than just our social network. We also have the global payment systems that we can access to send and receive funds online.
Cash is one of the most common payment instruments. Banknotes and coins are used by each country as they have issued their own currency. The most popular currencies that are exchanged are US dollars and Euros. With the digitalization of cash, there are now digitized payment instruments. These payment instruments encompass what form of money that can be sent online which is digital money or those alternative currencies such as Bitcoin. As good as cash, when funds are sent online, there is a payment method that has to be used.
There are several payment methods. One of the most common payment methods for making a payment transaction nowadays is by using an electronic wallet, also known as an e-wallet. An e-wallet is a peer-to-peer application that can send and receive funds instantly. The payer and the payee both need to have a valid account with the same e-wallet payment provider. There are other payment methods that include bank transfer, debit cards, and credit cards.
Cash as a payment instrument
Since the first coinage was used in the country of Lydia, money has a standardized value. The Lydian coinage had different weights to provide a different value for the coinage. The coinage was used in the marketplace, and the acceptance of these as a payment instrument brought about the growth of economic activity in the region.
Ancient Greek coins
The Lydians had their own currency, and so did the ancient Greeks. Alexander the Great created coins made from silver and gold, precious metals that are commodities that are in demand. The mercenary soldiers that went to war to conquer the various areas to become part of that Greek empire were paid using these coins. The soldiers then used the coins for the marketplace exchange in the area that they conquered. These new citizens had to pay taxes, and instead of doing the mandated hard labor, they can pay with the coins. Thus, the coins circulated, making the area have the use of the currency that identifies their area as under Greek rule.
The various cash payment instruments are the currencies of each nation. There is no single currency that is acceptable for a physical payment transaction in all other nations. There is no global currency but online payment makes it possible to make a payment transaction to nearly anywhere in the world. These remittances can be sent as US dollars and then converted online to become that of the local currency for use in that country.