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New payment methods lead to technological change worldwide

In recent years, virtual markets for startups, cryptocurrencies, P2P and fintech have been increasing rapidly. The pandemic played a fundamental role in accelerating the well-known technological revolution 5.0.

In the 90s, we could see how society gave way to a new stage led by the opening of the internet and.com companies.

At present, fintechs are leading the way into a new revolution that provides new payment options.

Some of the new payment options that are leading the new technological revolution and the change in user preferences are:

1. Cryptocurrencies.

2. Fintech and P2P.

3. Virtual payment platforms.

Cryptocurrencies

Cryptocurrencies are one of the newest payment options for millions of people around the world.

In this sense, it is how various exchanges are providing their users with integrated debit cards, which allow them to load them with balances in Bitcoin, USDT, among other cryptocurrencies, and later be able to go to a store and make purchases.

These types of cards are growing rapidly in regions such as Europe, the USA and Latin America, among others.

Javier Castro Acuña, Bitnovo's business controller, states: “However, there are already other payment gateways more in line with the cryptocurrency philosophy of being your own custodian and not leaving your funds in the hands of third parties. With these solutions, anyone who has cryptocurrencies in a wallet can make a real payment with them just by scanning a QR code in the physical or online store, without giving up custody of them to an exchange or having to be their user, being a 100% crypto use experience registered in the blockchain instead of virtualization as happens in payment with cards"

Fintech and P2P

Fintech companies are usually known as those that mix the concepts of finance and technology.

There are various types of companies that are part of the fintech world, and are revolutionizing the virtual payment industry worldwide.

One of the best-known payment methods provided by fintechs is P2P, or peer-to-peer payments.

Globally, the P2P market is experiencing accelerated growth thanks to the increasing penetration of smartphones in the payments landscape and the evolution of the digitization of the industry.

According to data provided by Globe Newswire, the P2P payment market grew from 2.62 billion dollars to 3.04 billion dollars, evidencing a compound annual interest rate of 16.4%.

Virtual payment platforms

Virtual payment platforms such as PayPal and Payoneer, among others, have grown drastically.

Virtual payment platforms allow millions of people around the world to send and receive money in a matter of seconds.

These types of platforms are usually integrated as means of payment in various international companies, such as Kiwi.com for flight companies and Airbnb, for hosting companies, among others.

Conclusion

Users are increasingly looking for more effective means of payment at a lower cost, with greater speed of transactions, and with higher levels of security.

Each payment method, from cryptocurrencies to fintech to virtual payment platforms, has differences and similarities.

Depending on the type of payment method that the user chooses, they may have a different level of commission, speed, and security.

Author

Juan Frers Allan

Professor at the University of Buenos Aires in the School of Economics. Professor at the University of Chile in Fintech and Cryptocurrencies course. Researcher at the University of Buenos Aires.

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