The future of payments: sending money will be as easy as messaging a friend

When your grandfather was sending money to your grandmother or to any other person it took him nearly a day to be spent in the post office and it took dozens of days or even weeks for the operator to deliver transaction to another city or country. Now it takes you from a couple of minutes to several days, depends on the variety of factors. What changes — you don’t need to know the name of the receiver and his address to make the most amount of transactions. If it is a crypto transaction all you need is just an e-Wallet address. Moreover, soon there will be e-Wallets for all kind of currencies — from fiat to crypto. For example, the MicroMoney company is preparing a launch of the first in the world one for all e-Wallet soon. Although, still sending money is not as fast and comfortable as it might be.

Leading world digital agencies forecast that by 2020 the global payments infrastructure would become entirely digitized. This means accounts would be managed, using digital signatures and that only the owner of the private key could carry out transactions. As easy as messaging a friend.

Today you have a wide choice of different communications methods to send a message to a friend in the USA or in China — such as email, WhatsApp, Viber or Facebook — and your friend will get the message instantaneously. The contemporary payments infrastructure still lags far behind developments in the communications channels sphere.

(We are not taking into consideration services like PayPal, which business model very much look like a trusted bank model.)

There is a huge number of payment systems and their integration requires different resources. Each transaction can accrue commission payments, which could be really high. And still, it could take several days to move transaction from the sender to the recipient if they are in different countries and especially if countries don’t have a special financial legacy about border crossing transactions. Payments even can get lost during transactions between the parties. And unfortunately, the level of fraud of internet payments is significantly high.

So, there are a few main problems.

The biggest trouble is poor integration between different payment systems themselves. Not all services could be connected with each other. Sometimes you may even pay an extra fee for your transaction. Also, the market for payments processing is extensively occupied by Visa, MasterCard, Alipay, PayPal, Swift, and several others. This monopolies along with closed APIs act to prevent direct collaboration and integration processes between incumbents and users. These giants aiming to preserve their special status. Regulators fail to receive real-time market information. The advantages of advanced systems with closed proprietary infrastructure nevertheless inhibit large-scale innovation. All this sounds ridiculous, that’s why it is rapidly changing. It is obvious now that all assets need to be saved in a uniform digital format (money, securities, etc.), all asset management systems need to interact using the same protocols (e.g. as a language of communication) and asset management systems need to be able to interact with each other on a principle of mutual trust. Standards must correspond to Open Source principles, without requiring users to pay license fees, and all rules should be described in detail for all market players.

In this model, the role of banks will be in the KYC process, risk management, and the provision of infrastructure. Everything else will be automated. Sending money will be as easy as texting in a Facebook chat, with the whole thing taking place virtually.

How will it change the system?

Security will rise, and asset management will be carried out using cryptographic keys. Online experience for users will become simpler and cheaper. А wide range of ways of making payments will be available, and at any specific moment, users can choose the one which offers them the optimal speed and lowest commissions.

This is how we see the future, this is the future we are working for.

MicroMoney Int. is a Fintech company, working towards the goal of global financial inclusion. We made a mobile app, which gathers 10,000 parameters analyzing person’s smartphone. We analyze Big Data using our AI Neural Network Scoring and this is enough to obtain a loan approval decision in just 15 minutes. We want business to scale our model and use our technologies to make the world better and faster. Money is not the most important thing in life, but as our clients say sometimes just $20 can inspire and give force. Message with words of support in our digital world comes in seconds, financially support should be operated on the same speed.