From cash to crypto and plastic to pixels
The rapid adoption of technology and the digitisation of the fintech sector has led to a massive shift in payment processes and habits, and consumers are now faced with a number of payment choices, some more secure and efficient than others. But how did we get to where we are today?
Cash and cheques
In 2024, cash is no longer king and although some businesses still transact in real money, in reality, few people carry more than a handful of change and small notes around with them. Banking cash is expensive and the risks of transporting it are high. Cash is also of little use when it comes to e-commerce, leading us to become a largely cashless society.
Although only discontinued in South Africa in January 2021, the cheque as a method of payment is remembered and missed by only a handful of people. Cheques could be written out to a vendor even without there being funds available to cover a purchase and so many cheques issued against empty bank accounts were returned to sender, leaving the merchant without their money. Cheques were an inherently risky form of payment as they could be intercepted in the mail, signatures of issuers could easily be forged, and a cheque could be cancelled by the issuer before the intended beneficiary could cash it. Cheque fraud was a common problem for banks, merchants and consumers alike. RIP the chequebook!
Credit and debit cards
The introduction of ‘plastic’ revolutionised the payment landscape. Cards offered convenience for the user and although they were more secure than cheques, in the early days of transactions being recorded manually, unless vendors called the issuing bank for authorisation, once again purchases could be made when there were insufficient funds in the cardholder’s account. Once cards went online, this risk was eliminated for merchants, but lost and stolen cards and card cloning created a different set of risks.
Digital wallets and mobile payments
The rise in the use of smartphones spawned a number of digital wallets including Apple Pay, Samsung Pay and Google Wallet. These systems allowed users to leave cards at home and store them digitally, paying with a tap or scan of their device. Digital wallets and mobile payments remain popular, but they have evolved and become more sophisticated, faster, more efficient and more secure.
QR code payments
The last three years have seen a boom in QR code-based payments, which have gained traction due to their simplicity and widespread acceptance. For the many thousands of merchants that offer this option, QR codes have an added marketing advantage as they can gather consumer information, and track trends, user preferences and shopping patterns and habits, allowing them to tailor their marketing messaging.
For the user, QR codes offer an almost foolproof method of payment. Banking details are not shared with the vendor, rather the transaction happens directly between the QR code and your bank, making it a highly secure process. Additionally, the price of an item is encoded into the static QR code and therefore there can be no mistakes made at the point of sale.
E-commerce and online payments
The increasing number of digital shoppers has driven innovation in the online payment space, in which Scan to Pay has established itself as a leader, at the forefront of pioneering alternative payment solutions, some of which include:
Cryptocurrencies
Despite some misgivings about its stability, this adoption by a younger generation and the fact that giant retailer Pick ‘n Pay now accepts crypto, have made it more mainstream, including in Scan to Pay transactions.
Biometric payments
Most banking apps and indeed smart devices now require a fingerprint or facial recognition in order to access them. Iris, voice and fingerprint verification have been integrated into some payment processes for final authentication. More secure than PINs or passwords, biometrics rely on users’ unique physical traits to facilitate payments.
Contactless payments
The COVID-19 pandemic contributed to the rapid adoption of contactless payments which are powered by Near Field Communication (NFC). Payments are processed with a simple tap of the consumer’s smartphone on the point-of-sale terminal, or QR code.
Scan to Pay exemplifies the evolution of payments by combining the benefits of QR code technology with the demands of modern consumers, who increasingly rely on mobile devices to search and shop for products and services. Research shows that 13% of e-commerce shoppers who are not offered fast, convenient and secure payment options at the virtual checkout will abandon their cart, and the vendor will lose not only that sale but any future business from that consumer.
Scan to Pay has therefore evolved its landscape enabling e-commerce payments via QR codes not only on desktop but also by offering faster, more convenient, and secure mobile e-commerce checkout options with ‘Pay by Card’ and ‘Pay by App’.
From cash to cheques, to plastic banking cards and efts, the evolution of payments has come a long way in a short time. User experience, convenience and security issues have driven the changes, at the forefront of which is Scan to Pay technology, making it a leading alternative payment provider.
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