The Evolution Of The Transaction

Fransaction -THE EVOLUTION OF THE- HOW HUMANS HAVE PAID FOR THINGS OVER THE MILLENNIA Business transactions for early humans were rare because they used what is known as the PREHISTORIC AGE "gift economy." During this time, humans generally settled smaller communities where they had to rely on each other to survive by hunting and gathering. Within a group there was no bartering. Instead everything was shared and nothing was expected in return. BARTERING WHY DIDN'T EARLY HUMANS BARTER WITH THOSE IN THEIR COMMUNITY? uring this time, trade existed strictly as a way to exchange goods between Bartering is inherently competitive, as both parties are seeking to get strangers, two separate groups of the best deal. This type of competition would essentially undermine people, or to settle a dispute. trust, which was needed in order to survive as a community. --------------------- 9000-6000 BC: Cattle The earliest forms of bartering were done peer-to-peer by 1200 BC: Cowry Shells exchanging cattle. Cattle included cows, camels, goats, and other Cowry (or cowrie) shells are, to this day, considered the animals. Because there were various types of cattle, traders were longest and most widely used form of currency in history. able set a standard price, such as two goats for one cow. Cowrie shells come from mollusks found in the Pacific and Indian Oceans. They were used as currency because they were both rare and impossible to counterfeit. The shells were traded for everything from clothing to food. Cowry shells were still in use up until the 20th century. 1000 BC: Metal Cowries Inspired by the cowry shell, China eventually began to distribute bronze and copper imitations of the 1000 BC: Knives & Tools cowry shell. These replicas are widely regarded as the earliest Tools were also considered bartering known metal currency. These shells were eventually developed into material and acted as a currency of sorts. coins with holes so they could be strung together like a chain. 500 BC: Silver Coins Born Silver coins were created in Sardis, an ancient city in modern day Turkey. The coins were made 120 BC: Leather Money from electrum, a natural alloy of gold and silver. China pioneered the so-called "paper currency" These coins, which contained rare, inherently valuable by creating money out of pieces of white deer- metals, were used as general currency between two skin painted with colorful borders. parties to purchase various products. 806: Paper Currency 1535: Wampum Beads Paper currency first appeared in China as a by-product of Chinese block printing. The paper Made from clam shells, wampum beads were money came in form of certificates that represented actual cash so strung together and used by Native Americans to the consumer didn't have to send a large and heavy crate of cash to call a council or perform other tribal duties. The the merchant, The certificates were exchanged by merchants and could Europeans eventually adopted wampum as currency when be converted into actual cash. Ultimately, paper money caught on as it they reached America so they could trade with the natives. was easier to carry than metal money. 1821: The Gold Standard 1891: American Express Traveler's Cheques Following the introduction of the gold Sovereign coin in 1816, England officially adopted gold as its standard currency. All paper currency represented a certain amount of gold. When an item was paid for with a piece of paper, the new holder of the paper The traveler's cheque issued by American Express allowed travel- had the option to trade it to the bank for its weight in gold or use it to pay for ers to pay for items without having any cash on their person. The something else. Countries, such as Australia, Canada, France, Germany, and merchant could then exchange the cheques for actual money. the U.S. were quick to adopt the gold standard soon thereafter. 1930: The Gold Standard Ends 1946: CHARG-IT After the Great Depression the gold standard fell The First Bank apart. The need to fund military operations around the world contributed to this change, so Card Introduced paper money was no longer convertible into gold. Often considered the first credit card, "Charg-It' was introduced Backed by nothing other than the good faith of in 1946 by Brooklyn banker John Biggins. A customer could use the bank from which it was issued, paper money it for a purchase and the merchant would forward the bill to became what is known as a "fiat" currency. Biggins' bank. The bank would then reimburse the merchant and proceed to obtain payment from the purchaser. There were stipulations, however. Cardholders needed an account at Biggins' bank, and they could only make purchases locally. 1950: Diners Club Diners Club The Diners Club card was the first widely used credit card. It was used to pay for things generally related to travel and entertainment. 1966: Modern Credit Card By 1951 there were roughtly 20,000 people using it. The credit card as we know it today was introduced in 1966 when Bank of America established the BankAmericard brand, which was later known as Visa. As the card became more popular, third party companies began to sell 1972: Automated processing services to card members to reduce the cost for ATM merchants, consumers, and banks. Teller Machine Technically, the ATM was the first example of an electronic transac- tion where bankers could withdraw money from their bank account 1983: RFID without visiting their bank. The patent for Radio Frequency Identification (RFID) was granted to Charles Walton. RFID was later used in devices such as the nifty "FastTrak" payment system for vehicles driving on toll roads. It was also the predecessor for Near Field Communication (NFC) technology. 1994: Pizza Hut & Online Banking Following the creation of the Internet in 1990 by Tim Berners-Lee, Pizza Hut sold its goods online. Online banking Pizza Hut. was also established. Transactions are 1995: Amazon & eBay made by credit card. E-commerce giants Amazon ebY and eBay were both launched in 1995. Online transactions become normal. amazon 1997: Mobile Payment Mobile commerce was first integrated with Coca-Cola vending machines in Finland. Thirsty consumers could purchase a soda 1998: Billpoint Established via SMS text message. Coca-Cola Acquired by eBay in 1999, Billpoint was used exclusively by eBay as their person-to-person payment platform. BILLPOINT 1999: PayPal Established PayPal was established and quickly became the transaction platform of choice for eBay users. 2004: PayPal The Near Field By February 2000 there was an average of 200,000 Communication daily auctions advertising the Forum Established PayPal service while Billpoint By April 2000 The NFC Forum was established to had only around 4,000 auctions. there were over 1 million auctions develop the use of touch-based inter- promoting the PayPal service each day. actions in mobile devices for payment purposes, among other applications. The revolutionary technology allowed a consumer October 2002 to make a payment by waving their phone or PayPal was acquired by eBay for $1.5 billion, and eBay "smartcard" device near the reader. went on to completely phase out its use of Billpoint. *The rise of PayPal put an increasing amount of power into the middlemen's hands, as they received a substantial cut of the payment. 2007: Mobile Payment Developed With the release of the iPhone, 2010: Squaret mobile payment extended well Seeing a need for on-the-spot credit card beyond SMS text message and payment, Twitter's founder, Jack Dorsey, integrated into actual applications. launched Square-the latest advancement in mobile payment technology. Square's product: a simple square- shaped device that attaches directly to a mobile phone, through which you can receive payment by swiping a customer's credit card. tSquare charges 2.75 percent for each transaction. PRESENT: Various Technologies In Research As more people recognize the power of the transaction and the rise in mobile phone use, more technologies continue to be explored. FUTURE: Implants For decades it has been theorized that one day we would pay for items by swiping our computer chip-implanted hand over a scanner that is directly tied to our bank or credit account. Will this ever be a reality? We'll have to wait to find out. SOURCES: POSTCARBON, HOST MERCHANT SERVICES, NBB MUSEUM, Flowtown. CREDITCARDS.COM, SHVOONG PAYPAL, NFC-FORUM, SQUARE шшрluишииши Fransaction -THE EVOLUTION OF THE- HOW HUMANS HAVE PAID FOR THINGS OVER THE MILLENNIA Business transactions for early humans were rare because they used what is known as the PREHISTORIC AGE "gift economy." During this time, humans generally settled smaller communities where they had to rely on each other to survive by hunting and gathering. Within a group there was no bartering. Instead everything was shared and nothing was expected in return. BARTERING WHY DIDN'T EARLY HUMANS BARTER WITH THOSE IN THEIR COMMUNITY? uring this time, trade existed strictly as a way to exchange goods between Bartering is inherently competitive, as both parties are seeking to get strangers, two separate groups of the best deal. This type of competition would essentially undermine people, or to settle a dispute. trust, which was needed in order to survive as a community. --------------------- 9000-6000 BC: Cattle The earliest forms of bartering were done peer-to-peer by 1200 BC: Cowry Shells exchanging cattle. Cattle included cows, camels, goats, and other Cowry (or cowrie) shells are, to this day, considered the animals. Because there were various types of cattle, traders were longest and most widely used form of currency in history. able set a standard price, such as two goats for one cow. Cowrie shells come from mollusks found in the Pacific and Indian Oceans. They were used as currency because they were both rare and impossible to counterfeit. The shells were traded for everything from clothing to food. Cowry shells were still in use up until the 20th century. 1000 BC: Metal Cowries Inspired by the cowry shell, China eventually began to distribute bronze and copper imitations of the 1000 BC: Knives & Tools cowry shell. These replicas are widely regarded as the earliest Tools were also considered bartering known metal currency. These shells were eventually developed into material and acted as a currency of sorts. coins with holes so they could be strung together like a chain. 500 BC: Silver Coins Born Silver coins were created in Sardis, an ancient city in modern day Turkey. The coins were made 120 BC: Leather Money from electrum, a natural alloy of gold and silver. China pioneered the so-called "paper currency" These coins, which contained rare, inherently valuable by creating money out of pieces of white deer- metals, were used as general currency between two skin painted with colorful borders. parties to purchase various products. 806: Paper Currency 1535: Wampum Beads Paper currency first appeared in China as a by-product of Chinese block printing. The paper Made from clam shells, wampum beads were money came in form of certificates that represented actual cash so strung together and used by Native Americans to the consumer didn't have to send a large and heavy crate of cash to call a council or perform other tribal duties. The the merchant, The certificates were exchanged by merchants and could Europeans eventually adopted wampum as currency when be converted into actual cash. Ultimately, paper money caught on as it they reached America so they could trade with the natives. was easier to carry than metal money. 1821: The Gold Standard 1891: American Express Traveler's Cheques Following the introduction of the gold Sovereign coin in 1816, England officially adopted gold as its standard currency. All paper currency represented a certain amount of gold. When an item was paid for with a piece of paper, the new holder of the paper The traveler's cheque issued by American Express allowed travel- had the option to trade it to the bank for its weight in gold or use it to pay for ers to pay for items without having any cash on their person. The something else. Countries, such as Australia, Canada, France, Germany, and merchant could then exchange the cheques for actual money. the U.S. were quick to adopt the gold standard soon thereafter. 1930: The Gold Standard Ends 1946: CHARG-IT After the Great Depression the gold standard fell The First Bank apart. The need to fund military operations around the world contributed to this change, so Card Introduced paper money was no longer convertible into gold. Often considered the first credit card, "Charg-It' was introduced Backed by nothing other than the good faith of in 1946 by Brooklyn banker John Biggins. A customer could use the bank from which it was issued, paper money it for a purchase and the merchant would forward the bill to became what is known as a "fiat" currency. Biggins' bank. The bank would then reimburse the merchant and proceed to obtain payment from the purchaser. There were stipulations, however. Cardholders needed an account at Biggins' bank, and they could only make purchases locally. 1950: Diners Club Diners Club The Diners Club card was the first widely used credit card. It was used to pay for things generally related to travel and entertainment. 1966: Modern Credit Card By 1951 there were roughtly 20,000 people using it. The credit card as we know it today was introduced in 1966 when Bank of America established the BankAmericard brand, which was later known as Visa. As the card became more popular, third party companies began to sell 1972: Automated processing services to card members to reduce the cost for ΑTΜ merchants, consumers, and banks. Teller Machine Technically, the ATM was the first example of an electronic transac- tion where bankers could withdraw money from their bank account 1983: RFID without visiting their bank. The patent for Radio Frequency Identification (RFID) was granted to Charles Walton. RFID was later used in devices such as the nifty "FastTrak" payment system for vehicles driving on toll roads. It was also the predecessor for Near Field Communication (NFC) technology. 1994: Pizza Hut & Online Banking Following the creation of the Internet in 1990 by Tim Berners-Lee, Pizza Hut sold its goods online. Online banking Pizza Hut. was also established. Transactions are 1995: Amazon & eBay made by credit card. E-commerce giants Amazon ebY and eBay were both launched in 1995. Online transactions become normal. amazon 1997: Mobile Payment Mobile commerce was first integrated with Coca-Cola vending machines in Finland. Thirsty consumers could purchase a soda 1998: Billpoint Established via SMS text message. Coca-Cola Acquired by eBay in 1999, Billpoint was used exclusively by eBay as their person-to-person payment platform. BILLPOINT 1999: PayPal Established PayPal was established and quickly became the transaction platform of choice for eBay users. 2004: * РayPal The Near Field By February 2000 there was an average of 200,000 Communication daily auctions advertising the Forum Established PayPal service while Billpoint By April 2000 The NFC Forum was established to had only around 4,000 auctions. there were over 1 million auctions develop the use of touch-based inter- promoting the PayPal service each day. actions in mobile devices for payment purposes, among other applications. The revolutionary technology allowed a consumer October 2002 to make a payment by waving their phone or PayPal was acquired by eBay for $1.5 billion, and eBay "smartcard" device near the reader. went on to completely phase out its use of Billpoint. *The rise of PayPal put an increasing amount of power into the middlemen's hands, as they received a substantial cut of the payment. 2007: Mobile Payment Developed With the release of the iPhone, 2010: Squaret mobile payment extended well Seeing a need for on-the-spot credit card beyond SMS text message and payment, Twitter's founder, Jack Dorsey, integrated into actual applications. launched Square-the latest advancement in mobile payment technology. Square's product: a simple square- shaped device that attaches directly to a mobile phone, through which you can receive payment by swiping a customer's credit card. tSquare charges 2.75 percent for each transaction. PRESENT: Various Technologies In Research As more people recognize the power of the transaction and the rise in mobile phone use, more technologies continue to be explored. FUTURE: Implants For decades it has been theorized that one day we would pay for items by swiping our computer chip-implanted hand over a scanner that is directly tied to our bank or credit account. Will this ever be a reality? We'll have to wait to find out. SOURCES: POSTCARBON, HOST MERCHANT SERVICES, NBB MUSEUM, Flowtown. CREDITCARDS.COM, SHVOONG PAYPAL, NFC-FORUM, SQUARE Fransaction -THE EVOLUTION OF THE- HOW HUMANS HAVE PAID FOR THINGS OVER THE MILLENNIA Business transactions for early humans were rare because they used what is known as the PREHISTORIC AGE "gift economy." During this time, humans generally settled smaller communities where they had to rely on each other to survive by hunting and gathering. Within a group there was no bartering. Instead everything was shared and nothing was expected in return. BARTERING WHY DIDN'T EARLY HUMANS BARTER WITH THOSE IN THEIR COMMUNITY? uring this time, trade existed strictly as a way to exchange goods between Bartering is inherently competitive, as both parties are seeking to get strangers, two separate groups of the best deal. This type of competition would essentially undermine people, or to settle a dispute. trust, which was needed in order to survive as a community. --------------------- 9000-6000 BC: Cattle The earliest forms of bartering were done peer-to-peer by 1200 BC: Cowry Shells exchanging cattle. Cattle included cows, camels, goats, and other Cowry (or cowrie) shells are, to this day, considered the animals. Because there were various types of cattle, traders were longest and most widely used form of currency in history. able set a standard price, such as two goats for one cow. Cowrie shells come from mollusks found in the Pacific and Indian Oceans. They were used as currency because they were both rare and impossible to counterfeit. The shells were traded for everything from clothing to food. Cowry shells were still in use up until the 20th century. 1000 BC: Metal Cowries Inspired by the cowry shell, China eventually began to distribute bronze and copper imitations of the 1000 BC: Knives & Tools cowry shell. These replicas are widely regarded as the earliest Tools were also considered bartering known metal currency. These shells were eventually developed into material and acted as a currency of sorts. coins with holes so they could be strung together like a chain. 500 BC: Silver Coins Born Silver coins were created in Sardis, an ancient city in modern day Turkey. The coins were made 120 BC: Leather Money from electrum, a natural alloy of gold and silver. China pioneered the so-called "paper currency" These coins, which contained rare, inherently valuable by creating money out of pieces of white deer- metals, were used as general currency between two skin painted with colorful borders. parties to purchase various products. 806: Paper Currency 1535: Wampum Beads Paper currency first appeared in China as a by-product of Chinese block printing. The paper Made from clam shells, wampum beads were money came in form of certificates that represented actual cash so strung together and used by Native Americans to the consumer didn't have to send a large and heavy crate of cash to call a council or perform other tribal duties. The the merchant, The certificates were exchanged by merchants and could Europeans eventually adopted wampum as currency when be converted into actual cash. Ultimately, paper money caught on as it they reached America so they could trade with the natives. was easier to carry than metal money. 1821: The Gold Standard 1891: American Express Traveler's Cheques Following the introduction of the gold Sovereign coin in 1816, England officially adopted gold as its standard currency. All paper currency represented a certain amount of gold. When an item was paid for with a piece of paper, the new holder of the paper The traveler's cheque issued by American Express allowed travel- had the option to trade it to the bank for its weight in gold or use it to pay for ers to pay for items without having any cash on their person. The something else. Countries, such as Australia, Canada, France, Germany, and merchant could then exchange the cheques for actual money. the U.S. were quick to adopt the gold standard soon thereafter. 1930: The Gold Standard Ends 1946: CHARG-IT After the Great Depression the gold standard fell The First Bank apart. The need to fund military operations around the world contributed to this change, so Card Introduced paper money was no longer convertible into gold. Often considered the first credit card, "Charg-It' was introduced Backed by nothing other than the good faith of in 1946 by Brooklyn banker John Biggins. A customer could use the bank from which it was issued, paper money it for a purchase and the merchant would forward the bill to became what is known as a "fiat" currency. Biggins' bank. The bank would then reimburse the merchant and proceed to obtain payment from the purchaser. There were stipulations, however. Cardholders needed an account at Biggins' bank, and they could only make purchases locally. 1950: Diners Club Diners Club The Diners Club card was the first widely used credit card. It was used to pay for things generally related to travel and entertainment. 1966: Modern Credit Card By 1951 there were roughtly 20,000 people using it. The credit card as we know it today was introduced in 1966 when Bank of America established the BankAmericard brand, which was later known as Visa. As the card became more popular, third party companies began to sell 1972: Automated processing services to card members to reduce the cost for ΑTΜ merchants, consumers, and banks. Teller Machine Technically, the ATM was the first example of an electronic transac- tion where bankers could withdraw money from their bank account 1983: RFID without visiting their bank. The patent for Radio Frequency Identification (RFID) was granted to Charles Walton. RFID was later used in devices such as the nifty "FastTrak" payment system for vehicles driving on toll roads. It was also the predecessor for Near Field Communication (NFC) technology. 1994: Pizza Hut & Online Banking Following the creation of the Internet in 1990 by Tim Berners-Lee, Pizza Hut sold its goods online. Online banking Pizza Hut. was also established. Transactions are 1995: Amazon & eBay made by credit card. E-commerce giants Amazon ebY and eBay were both launched in 1995. Online transactions become normal. amazon 1997: Mobile Payment Mobile commerce was first integrated with Coca-Cola vending machines in Finland. Thirsty consumers could purchase a soda 1998: Billpoint Established via SMS text message. Coca-Cola Acquired by eBay in 1999, Billpoint was used exclusively by eBay as their person-to-person payment platform. BILLPOINT 1999: PayPal Established PayPal was established and quickly became the transaction platform of choice for eBay users. 2004: * РayPal The Near Field By February 2000 there was an average of 200,000 Communication daily auctions advertising the Forum Established PayPal service while Billpoint By April 2000 The NFC Forum was established to had only around 4,000 auctions. there were over 1 million auctions develop the use of touch-based inter- promoting the PayPal service each day. actions in mobile devices for payment purposes, among other applications. The revolutionary technology allowed a consumer October 2002 to make a payment by waving their phone or PayPal was acquired by eBay for $1.5 billion, and eBay "smartcard" device near the reader. went on to completely phase out its use of Billpoint. *The rise of PayPal put an increasing amount of power into the middlemen's hands, as they received a substantial cut of the payment. 2007: Mobile Payment Developed With the release of the iPhone, 2010: Squaret mobile payment extended well Seeing a need for on-the-spot credit card beyond SMS text message and payment, Twitter's founder, Jack Dorsey, integrated into actual applications. launched Square-the latest advancement in mobile payment technology. Square's product: a simple square- shaped device that attaches directly to a mobile phone, through which you can receive payment by swiping a customer's credit card. tSquare charges 2.75 percent for each transaction. PRESENT: Various Technologies In Research As more people recognize the power of the transaction and the rise in mobile phone use, more technologies continue to be explored. FUTURE: Implants For decades it has been theorized that one day we would pay for items by swiping our computer chip-implanted hand over a scanner that is directly tied to our bank or credit account. Will this ever be a reality? We'll have to wait to find out. SOURCES: POSTCARBON, HOST MERCHANT SERVICES, NBB MUSEUM, Flowtown. CREDITCARDS.COM, SHVOONG PAYPAL, NFC-FORUM, SQUARE Fransaction -THE EVOLUTION OF THE- HOW HUMANS HAVE PAID FOR THINGS OVER THE MILLENNIA Business transactions for early humans were rare because they used what is known as the PREHISTORIC AGE "gift economy." During this time, humans generally settled smaller communities where they had to rely on each other to survive by hunting and gathering. Within a group there was no bartering. Instead everything was shared and nothing was expected in return. BARTERING WHY DIDN'T EARLY HUMANS BARTER WITH THOSE IN THEIR COMMUNITY? uring this time, trade existed strictly as a way to exchange goods between Bartering is inherently competitive, as both parties are seeking to get strangers, two separate groups of the best deal. This type of competition would essentially undermine people, or to settle a dispute. trust, which was needed in order to survive as a community. --------------------- 9000-6000 BC: Cattle The earliest forms of bartering were done peer-to-peer by 1200 BC: Cowry Shells exchanging cattle. Cattle included cows, camels, goats, and other Cowry (or cowrie) shells are, to this day, considered the animals. Because there were various types of cattle, traders were longest and most widely used form of currency in history. able set a standard price, such as two goats for one cow. Cowrie shells come from mollusks found in the Pacific and Indian Oceans. They were used as currency because they were both rare and impossible to counterfeit. The shells were traded for everything from clothing to food. Cowry shells were still in use up until the 20th century. 1000 BC: Metal Cowries Inspired by the cowry shell, China eventually began to distribute bronze and copper imitations of the 1000 BC: Knives & Tools cowry shell. These replicas are widely regarded as the earliest Tools were also considered bartering known metal currency. These shells were eventually developed into material and acted as a currency of sorts. coins with holes so they could be strung together like a chain. 500 BC: Silver Coins Born Silver coins were created in Sardis, an ancient city in modern day Turkey. The coins were made 120 BC: Leather Money from electrum, a natural alloy of gold and silver. China pioneered the so-called "paper currency" These coins, which contained rare, inherently valuable by creating money out of pieces of white deer- metals, were used as general currency between two skin painted with colorful borders. parties to purchase various products. 806: Paper Currency 1535: Wampum Beads Paper currency first appeared in China as a by-product of Chinese block printing. The paper Made from clam shells, wampum beads were money came in form of certificates that represented actual cash so strung together and used by Native Americans to the consumer didn't have to send a large and heavy crate of cash to call a council or perform other tribal duties. The the merchant, The certificates were exchanged by merchants and could Europeans eventually adopted wampum as currency when be converted into actual cash. Ultimately, paper money caught on as it they reached America so they could trade with the natives. was easier to carry than metal money. 1821: The Gold Standard 1891: American Express Traveler's Cheques Following the introduction of the gold Sovereign coin in 1816, England officially adopted gold as its standard currency. All paper currency represented a certain amount of gold. When an item was paid for with a piece of paper, the new holder of the paper The traveler's cheque issued by American Express allowed travel- had the option to trade it to the bank for its weight in gold or use it to pay for ers to pay for items without having any cash on their person. The something else. Countries, such as Australia, Canada, France, Germany, and merchant could then exchange the cheques for actual money. the U.S. were quick to adopt the gold standard soon thereafter. 1930: The Gold Standard Ends 1946: CHARG-IT After the Great Depression the gold standard fell The First Bank apart. The need to fund military operations around the world contributed to this change, so Card Introduced paper money was no longer convertible into gold. Often considered the first credit card, "Charg-It' was introduced Backed by nothing other than the good faith of in 1946 by Brooklyn banker John Biggins. A customer could use the bank from which it was issued, paper money it for a purchase and the merchant would forward the bill to became what is known as a "fiat" currency. Biggins' bank. The bank would then reimburse the merchant and proceed to obtain payment from the purchaser. There were stipulations, however. Cardholders needed an account at Biggins' bank, and they could only make purchases locally. 1950: Diners Club Diners Club The Diners Club card was the first widely used credit card. It was used to pay for things generally related to travel and entertainment. 1966: Modern Credit Card By 1951 there were roughtly 20,000 people using it. The credit card as we know it today was introduced in 1966 when Bank of America established the BankAmericard brand, which was later known as Visa. As the card became more popular, third party companies began to sell 1972: Automated processing services to card members to reduce the cost for ΑTΜ merchants, consumers, and banks. Teller Machine Technically, the ATM was the first example of an electronic transac- tion where bankers could withdraw money from their bank account 1983: RFID without visiting their bank. The patent for Radio Frequency Identification (RFID) was granted to Charles Walton. RFID was later used in devices such as the nifty "FastTrak" payment system for vehicles driving on toll roads. It was also the predecessor for Near Field Communication (NFC) technology. 1994: Pizza Hut & Online Banking Following the creation of the Internet in 1990 by Tim Berners-Lee, Pizza Hut sold its goods online. Online banking Pizza Hut. was also established. Transactions are 1995: Amazon & eBay made by credit card. E-commerce giants Amazon ebY and eBay were both launched in 1995. Online transactions become normal. amazon 1997: Mobile Payment Mobile commerce was first integrated with Coca-Cola vending machines in Finland. Thirsty consumers could purchase a soda 1998: Billpoint Established via SMS text message. Coca-Cola Acquired by eBay in 1999, Billpoint was used exclusively by eBay as their person-to-person payment platform. BILLPOINT 1999: PayPal Established PayPal was established and quickly became the transaction platform of choice for eBay users. 2004: * РayPal The Near Field By February 2000 there was an average of 200,000 Communication daily auctions advertising the Forum Established PayPal service while Billpoint By April 2000 The NFC Forum was established to had only around 4,000 auctions. there were over 1 million auctions develop the use of touch-based inter- promoting the PayPal service each day. actions in mobile devices for payment purposes, among other applications. The revolutionary technology allowed a consumer October 2002 to make a payment by waving their phone or PayPal was acquired by eBay for $1.5 billion, and eBay "smartcard" device near the reader. went on to completely phase out its use of Billpoint. *The rise of PayPal put an increasing amount of power into the middlemen's hands, as they received a substantial cut of the payment. 2007: Mobile Payment Developed With the release of the iPhone, 2010: Squaret mobile payment extended well Seeing a need for on-the-spot credit card beyond SMS text message and payment, Twitter's founder, Jack Dorsey, integrated into actual applications. launched Square-the latest advancement in mobile payment technology. Square's product: a simple square- shaped device that attaches directly to a mobile phone, through which you can receive payment by swiping a customer's credit card. tSquare charges 2.75 percent for each transaction. PRESENT: Various Technologies In Research As more people recognize the power of the transaction and the rise in mobile phone use, more technologies continue to be explored. FUTURE: Implants For decades it has been theorized that one day we would pay for items by swiping our computer chip-implanted hand over a scanner that is directly tied to our bank or credit account. Will this ever be a reality? We'll have to wait to find out. SOURCES: POSTCARBON, HOST MERCHANT SERVICES, NBB MUSEUM, Flowtown. CREDITCARDS.COM, SHVOONG PAYPAL, NFC-FORUM, SQUARE Fransaction -THE EVOLUTION OF THE- HOW HUMANS HAVE PAID FOR THINGS OVER THE MILLENNIA Business transactions for early humans were rare because they used what is known as the PREHISTORIC AGE "gift economy." During this time, humans generally settled smaller communities where they had to rely on each other to survive by hunting and gathering. Within a group there was no bartering. Instead everything was shared and nothing was expected in return. BARTERING WHY DIDN'T EARLY HUMANS BARTER WITH THOSE IN THEIR COMMUNITY? uring this time, trade existed strictly as a way to exchange goods between Bartering is inherently competitive, as both parties are seeking to get strangers, two separate groups of the best deal. This type of competition would essentially undermine people, or to settle a dispute. trust, which was needed in order to survive as a community. --------------------- 9000-6000 BC: Cattle The earliest forms of bartering were done peer-to-peer by 1200 BC: Cowry Shells exchanging cattle. Cattle included cows, camels, goats, and other Cowry (or cowrie) shells are, to this day, considered the animals. Because there were various types of cattle, traders were longest and most widely used form of currency in history. able set a standard price, such as two goats for one cow. Cowrie shells come from mollusks found in the Pacific and Indian Oceans. They were used as currency because they were both rare and impossible to counterfeit. The shells were traded for everything from clothing to food. Cowry shells were still in use up until the 20th century. 1000 BC: Metal Cowries Inspired by the cowry shell, China eventually began to distribute bronze and copper imitations of the 1000 BC: Knives & Tools cowry shell. These replicas are widely regarded as the earliest Tools were also considered bartering known metal currency. These shells were eventually developed into material and acted as a currency of sorts. coins with holes so they could be strung together like a chain. 500 BC: Silver Coins Born Silver coins were created in Sardis, an ancient city in modern day Turkey. The coins were made 120 BC: Leather Money from electrum, a natural alloy of gold and silver. China pioneered the so-called "paper currency" These coins, which contained rare, inherently valuable by creating money out of pieces of white deer- metals, were used as general currency between two skin painted with colorful borders. parties to purchase various products. 806: Paper Currency 1535: Wampum Beads Paper currency first appeared in China as a by-product of Chinese block printing. The paper Made from clam shells, wampum beads were money came in form of certificates that represented actual cash so strung together and used by Native Americans to the consumer didn't have to send a large and heavy crate of cash to call a council or perform other tribal duties. The the merchant, The certificates were exchanged by merchants and could Europeans eventually adopted wampum as currency when be converted into actual cash. Ultimately, paper money caught on as it they reached America so they could trade with the natives. was easier to carry than metal money. 1821: The Gold Standard 1891: American Express Traveler's Cheques Following the introduction of the gold Sovereign coin in 1816, England officially adopted gold as its standard currency. All paper currency represented a certain amount of gold. When an item was paid for with a piece of paper, the new holder of the paper The traveler's cheque issued by American Express allowed travel- had the option to trade it to the bank for its weight in gold or use it to pay for ers to pay for items without having any cash on their person. The something else. Countries, such as Australia, Canada, France, Germany, and merchant could then exchange the cheques for actual money. the U.S. were quick to adopt the gold standard soon thereafter. 1930: The Gold Standard Ends 1946: CHARG-IT After the Great Depression the gold standard fell The First Bank apart. The need to fund military operations around the world contributed to this change, so Card Introduced paper money was no longer convertible into gold. Often considered the first credit card, "Charg-It' was introduced Backed by nothing other than the good faith of in 1946 by Brooklyn banker John Biggins. A customer could use the bank from which it was issued, paper money it for a purchase and the merchant would forward the bill to became what is known as a "fiat" currency. Biggins' bank. The bank would then reimburse the merchant and proceed to obtain payment from the purchaser. There were stipulations, however. Cardholders needed an account at Biggins' bank, and they could only make purchases locally. 1950: Diners Club Diners Club The Diners Club card was the first widely used credit card. It was used to pay for things generally related to travel and entertainment. 1966: Modern Credit Card By 1951 there were roughtly 20,000 people using it. The credit card as we know it today was introduced in 1966 when Bank of America established the BankAmericard brand, which was later known as Visa. As the card became more popular, third party companies began to sell 1972: Automated processing services to card members to reduce the cost for ΑTΜ merchants, consumers, and banks. Teller Machine Technically, the ATM was the first example of an electronic transac- tion where bankers could withdraw money from their bank account 1983: RFID without visiting their bank. The patent for Radio Frequency Identification (RFID) was granted to Charles Walton. RFID was later used in devices such as the nifty "FastTrak" payment system for vehicles driving on toll roads. It was also the predecessor for Near Field Communication (NFC) technology. 1994: Pizza Hut & Online Banking Following the creation of the Internet in 1990 by Tim Berners-Lee, Pizza Hut sold its goods online. Online banking Pizza Hut. was also established. Transactions are 1995: Amazon & eBay made by credit card. E-commerce giants Amazon ebY and eBay were both launched in 1995. Online transactions become normal. amazon 1997: Mobile Payment Mobile commerce was first integrated with Coca-Cola vending machines in Finland. Thirsty consumers could purchase a soda 1998: Billpoint Established via SMS text message. Coca-Cola Acquired by eBay in 1999, Billpoint was used exclusively by eBay as their person-to-person payment platform. BILLPOINT 1999: PayPal Established PayPal was established and quickly became the transaction platform of choice for eBay users. 2004: * РayPal The Near Field By February 2000 there was an average of 200,000 Communication daily auctions advertising the Forum Established PayPal service while Billpoint By April 2000 The NFC Forum was established to had only around 4,000 auctions. there were over 1 million auctions develop the use of touch-based inter- promoting the PayPal service each day. actions in mobile devices for payment purposes, among other applications. The revolutionary technology allowed a consumer October 2002 to make a payment by waving their phone or PayPal was acquired by eBay for $1.5 billion, and eBay "smartcard" device near the reader. went on to completely phase out its use of Billpoint. *The rise of PayPal put an increasing amount of power into the middlemen's hands, as they received a substantial cut of the payment. 2007: Mobile Payment Developed With the release of the iPhone, 2010: Squaret mobile payment extended well Seeing a need for on-the-spot credit card beyond SMS text message and payment, Twitter's founder, Jack Dorsey, integrated into actual applications. launched Square-the latest advancement in mobile payment technology. Square's product: a simple square- shaped device that attaches directly to a mobile phone, through which you can receive payment by swiping a customer's credit card. tSquare charges 2.75 percent for each transaction. PRESENT: Various Technologies In Research As more people recognize the power of the transaction and the rise in mobile phone use, more technologies continue to be explored. FUTURE: Implants For decades it has been theorized that one day we would pay for items by swiping our computer chip-implanted hand over a scanner that is directly tied to our bank or credit account. Will this ever be a reality? We'll have to wait to find out. SOURCES: POSTCARBON, HOST MERCHANT SERVICES, NBB MUSEUM, Flowtown. CREDITCARDS.COM, SHVOONG PAYPAL, NFC-FORUM, SQUARE Fransaction -THE EVOLUTION OF THE- HOW HUMANS HAVE PAID FOR THINGS OVER THE MILLENNIA Business transactions for early humans were rare because they used what is known as the PREHISTORIC AGE "gift economy." During this time, humans generally settled smaller communities where they had to rely on each other to survive by hunting and gathering. Within a group there was no bartering. Instead everything was shared and nothing was expected in return. BARTERING WHY DIDN'T EARLY HUMANS BARTER WITH THOSE IN THEIR COMMUNITY? uring this time, trade existed strictly as a way to exchange goods between Bartering is inherently competitive, as both parties are seeking to get strangers, two separate groups of the best deal. This type of competition would essentially undermine people, or to settle a dispute. trust, which was needed in order to survive as a community. --------------------- 9000-6000 BC: Cattle The earliest forms of bartering were done peer-to-peer by 1200 BC: Cowry Shells exchanging cattle. Cattle included cows, camels, goats, and other Cowry (or cowrie) shells are, to this day, considered the animals. Because there were various types of cattle, traders were longest and most widely used form of currency in history. able set a standard price, such as two goats for one cow. Cowrie shells come from mollusks found in the Pacific and Indian Oceans. They were used as currency because they were both rare and impossible to counterfeit. The shells were traded for everything from clothing to food. Cowry shells were still in use up until the 20th century. 1000 BC: Metal Cowries Inspired by the cowry shell, China eventually began to distribute bronze and copper imitations of the 1000 BC: Knives & Tools cowry shell. These replicas are widely regarded as the earliest Tools were also considered bartering known metal currency. These shells were eventually developed into material and acted as a currency of sorts. coins with holes so they could be strung together like a chain. 500 BC: Silver Coins Born Silver coins were created in Sardis, an ancient city in modern day Turkey. The coins were made 120 BC: Leather Money from electrum, a natural alloy of gold and silver. China pioneered the so-called "paper currency" These coins, which contained rare, inherently valuable by creating money out of pieces of white deer- metals, were used as general currency between two skin painted with colorful borders. parties to purchase various products. 806: Paper Currency 1535: Wampum Beads Paper currency first appeared in China as a by-product of Chinese block printing. The paper Made from clam shells, wampum beads were money came in form of certificates that represented actual cash so strung together and used by Native Americans to the consumer didn't have to send a large and heavy crate of cash to call a council or perform other tribal duties. The the merchant, The certificates were exchanged by merchants and could Europeans eventually adopted wampum as currency when be converted into actual cash. Ultimately, paper money caught on as it they reached America so they could trade with the natives. was easier to carry than metal money. 1821: The Gold Standard 1891: American Express Traveler's Cheques Following the introduction of the gold Sovereign coin in 1816, England officially adopted gold as its standard currency. All paper currency represented a certain amount of gold. When an item was paid for with a piece of paper, the new holder of the paper The traveler's cheque issued by American Express allowed travel- had the option to trade it to the bank for its weight in gold or use it to pay for ers to pay for items without having any cash on their person. The something else. Countries, such as Australia, Canada, France, Germany, and merchant could then exchange the cheques for actual money. the U.S. were quick to adopt the gold standard soon thereafter. 1930: The Gold Standard Ends 1946: CHARG-IT After the Great Depression the gold standard fell The First Bank apart. The need to fund military operations around the world contributed to this change, so Card Introduced paper money was no longer convertible into gold. Often considered the first credit card, "Charg-It' was introduced Backed by nothing other than the good faith of in 1946 by Brooklyn banker John Biggins. A customer could use the bank from which it was issued, paper money it for a purchase and the merchant would forward the bill to became what is known as a "fiat" currency. Biggins' bank. The bank would then reimburse the merchant and proceed to obtain payment from the purchaser. There were stipulations, however. Cardholders needed an account at Biggins' bank, and they could only make purchases locally. 1950: Diners Club Diners Club The Diners Club card was the first widely used credit card. It was used to pay for things generally related to travel and entertainment. 1966: Modern Credit Card By 1951 there were roughtly 20,000 people using it. The credit card as we know it today was introduced in 1966 when Bank of America established the BankAmericard brand, which was later known as Visa. As the card became more popular, third party companies began to sell 1972: Automated processing services to card members to reduce the cost for ΑTΜ merchants, consumers, and banks. Teller Machine Technically, the ATM was the first example of an electronic transac- tion where bankers could withdraw money from their bank account 1983: RFID without visiting their bank. The patent for Radio Frequency Identification (RFID) was granted to Charles Walton. RFID was later used in devices such as the nifty "FastTrak" payment system for vehicles driving on toll roads. It was also the predecessor for Near Field Communication (NFC) technology. 1994: Pizza Hut & Online Banking Following the creation of the Internet in 1990 by Tim Berners-Lee, Pizza Hut sold its goods online. Online banking Pizza Hut. was also established. Transactions are 1995: Amazon & eBay made by credit card. E-commerce giants Amazon ebY and eBay were both launched in 1995. Online transactions become normal. amazon 1997: Mobile Payment Mobile commerce was first integrated with Coca-Cola vending machines in Finland. Thirsty consumers could purchase a soda 1998: Billpoint Established via SMS text message. Coca-Cola Acquired by eBay in 1999, Billpoint was used exclusively by eBay as their person-to-person payment platform. BILLPOINT 1999: PayPal Established PayPal was established and quickly became the transaction platform of choice for eBay users. 2004: * РayPal The Near Field By February 2000 there was an average of 200,000 Communication daily auctions advertising the Forum Established PayPal service while Billpoint By April 2000 The NFC Forum was established to had only around 4,000 auctions. there were over 1 million auctions develop the use of touch-based inter- promoting the PayPal service each day. actions in mobile devices for payment purposes, among other applications. The revolutionary technology allowed a consumer October 2002 to make a payment by waving their phone or PayPal was acquired by eBay for $1.5 billion, and eBay "smartcard" device near the reader. went on to completely phase out its use of Billpoint. *The rise of PayPal put an increasing amount of power into the middlemen's hands, as they received a substantial cut of the payment. 2007: Mobile Payment Developed With the release of the iPhone, 2010: Squaret mobile payment extended well Seeing a need for on-the-spot credit card beyond SMS text message and payment, Twitter's founder, Jack Dorsey, integrated into actual applications. launched Square-the latest advancement in mobile payment technology. Square's product: a simple square- shaped device that attaches directly to a mobile phone, through which you can receive payment by swiping a customer's credit card. tSquare charges 2.75 percent for each transaction. PRESENT: Various Technologies In Research As more people recognize the power of the transaction and the rise in mobile phone use, more technologies continue to be explored. FUTURE: Implants For decades it has been theorized that one day we would pay for items by swiping our computer chip-implanted hand over a scanner that is directly tied to our bank or credit account. Will this ever be a reality? We'll have to wait to find out. SOURCES: POSTCARBON, HOST MERCHANT SERVICES, NBB MUSEUM, Flowtown. CREDITCARDS.COM, SHVOONG PAYPAL, NFC-FORUM, SQUARE Fransaction -THE EVOLUTION OF THE- HOW HUMANS HAVE PAID FOR THINGS OVER THE MILLENNIA Business transactions for early humans were rare because they used what is known as the PREHISTORIC AGE "gift economy." During this time, humans generally settled smaller communities where they had to rely on each other to survive by hunting and gathering. Within a group there was no bartering. Instead everything was shared and nothing was expected in return. BARTERING WHY DIDN'T EARLY HUMANS BARTER WITH THOSE IN THEIR COMMUNITY? uring this time, trade existed strictly as a way to exchange goods between Bartering is inherently competitive, as both parties are seeking to get strangers, two separate groups of the best deal. This type of competition would essentially undermine people, or to settle a dispute. trust, which was needed in order to survive as a community. --------------------- 9000-6000 BC: Cattle The earliest forms of bartering were done peer-to-peer by 1200 BC: Cowry Shells exchanging cattle. Cattle included cows, camels, goats, and other Cowry (or cowrie) shells are, to this day, considered the animals. Because there were various types of cattle, traders were longest and most widely used form of currency in history. able set a standard price, such as two goats for one cow. Cowrie shells come from mollusks found in the Pacific and Indian Oceans. They were used as currency because they were both rare and impossible to counterfeit. The shells were traded for everything from clothing to food. Cowry shells were still in use up until the 20th century. 1000 BC: Metal Cowries Inspired by the cowry shell, China eventually began to distribute bronze and copper imitations of the 1000 BC: Knives & Tools cowry shell. These replicas are widely regarded as the earliest Tools were also considered bartering known metal currency. These shells were eventually developed into material and acted as a currency of sorts. coins with holes so they could be strung together like a chain. 500 BC: Silver Coins Born Silver coins were created in Sardis, an ancient city in modern day Turkey. The coins were made 120 BC: Leather Money from electrum, a natural alloy of gold and silver. China pioneered the so-called "paper currency" These coins, which contained rare, inherently valuable by creating money out of pieces of white deer- metals, were used as general currency between two skin painted with colorful borders. parties to purchase various products. 806: Paper Currency 1535: Wampum Beads Paper currency first appeared in China as a by-product of Chinese block printing. The paper Made from clam shells, wampum beads were money came in form of certificates that represented actual cash so strung together and used by Native Americans to the consumer didn't have to send a large and heavy crate of cash to call a council or perform other tribal duties. The the merchant, The certificates were exchanged by merchants and could Europeans eventually adopted wampum as currency when be converted into actual cash. Ultimately, paper money caught on as it they reached America so they could trade with the natives. was easier to carry than metal money. 1821: The Gold Standard 1891: American Express Traveler's Cheques Following the introduction of the gold Sovereign coin in 1816, England officially adopted gold as its standard currency. All paper currency represented a certain amount of gold. When an item was paid for with a piece of paper, the new holder of the paper The traveler's cheque issued by American Express allowed travel- had the option to trade it to the bank for its weight in gold or use it to pay for ers to pay for items without having any cash on their person. The something else. Countries, such as Australia, Canada, France, Germany, and merchant could then exchange the cheques for actual money. the U.S. were quick to adopt the gold standard soon thereafter. 1930: The Gold Standard Ends 1946: CHARG-IT After the Great Depression the gold standard fell The First Bank apart. The need to fund military operations around the world contributed to this change, so Card Introduced paper money was no longer convertible into gold. Often considered the first credit card, "Charg-It' was introduced Backed by nothing other than the good faith of in 1946 by Brooklyn banker John Biggins. A customer could use the bank from which it was issued, paper money it for a purchase and the merchant would forward the bill to became what is known as a "fiat" currency. Biggins' bank. The bank would then reimburse the merchant and proceed to obtain payment from the purchaser. There were stipulations, however. Cardholders needed an account at Biggins' bank, and they could only make purchases locally. 1950: Diners Club Diners Club The Diners Club card was the first widely used credit card. It was used to pay for things generally related to travel and entertainment. 1966: Modern Credit Card By 1951 there were roughtly 20,000 people using it. The credit card as we know it today was introduced in 1966 when Bank of America established the BankAmericard brand, which was later known as Visa. As the card became more popular, third party companies began to sell 1972: Automated processing services to card members to reduce the cost for ΑTΜ merchants, consumers, and banks. Teller Machine Technically, the ATM was the first example of an electronic transac- tion where bankers could withdraw money from their bank account 1983: RFID without visiting their bank. The patent for Radio Frequency Identification (RFID) was granted to Charles Walton. RFID was later used in devices such as the nifty "FastTrak" payment system for vehicles driving on toll roads. It was also the predecessor for Near Field Communication (NFC) technology. 1994: Pizza Hut & Online Banking Following the creation of the Internet in 1990 by Tim Berners-Lee, Pizza Hut sold its goods online. Online banking Pizza Hut. was also established. Transactions are 1995: Amazon & eBay made by credit card. E-commerce giants Amazon ebY and eBay were both launched in 1995. Online transactions become normal. amazon 1997: Mobile Payment Mobile commerce was first integrated with Coca-Cola vending machines in Finland. Thirsty consumers could purchase a soda 1998: Billpoint Established via SMS text message. Coca-Cola Acquired by eBay in 1999, Billpoint was used exclusively by eBay as their person-to-person payment platform. BILLPOINT 1999: PayPal Established PayPal was established and quickly became the transaction platform of choice for eBay users. 2004: * РayPal The Near Field By February 2000 there was an average of 200,000 Communication daily auctions advertising the Forum Established PayPal service while Billpoint By April 2000 The NFC Forum was established to had only around 4,000 auctions. there were over 1 million auctions develop the use of touch-based inter- promoting the PayPal service each day. actions in mobile devices for payment purposes, among other applications. The revolutionary technology allowed a consumer October 2002 to make a payment by waving their phone or PayPal was acquired by eBay for $1.5 billion, and eBay "smartcard" device near the reader. went on to completely phase out its use of Billpoint. *The rise of PayPal put an increasing amount of power into the middlemen's hands, as they received a substantial cut of the payment. 2007: Mobile Payment Developed With the release of the iPhone, 2010: Squaret mobile payment extended well Seeing a need for on-the-spot credit card beyond SMS text message and payment, Twitter's founder, Jack Dorsey, integrated into actual applications. launched Square-the latest advancement in mobile payment technology. Square's product: a simple square- shaped device that attaches directly to a mobile phone, through which you can receive payment by swiping a customer's credit card. tSquare charges 2.75 percent for each transaction. PRESENT: Various Technologies In Research As more people recognize the power of the transaction and the rise in mobile phone use, more technologies continue to be explored. FUTURE: Implants For decades it has been theorized that one day we would pay for items by swiping our computer chip-implanted hand over a scanner that is directly tied to our bank or credit account. Will this ever be a reality? We'll have to wait to find out. SOURCES: POSTCARBON, HOST MERCHANT SERVICES, NBB MUSEUM, Flowtown. CREDITCARDS.COM, SHVOONG PAYPAL, NFC-FORUM, SQUARE