Looking back and going further, the government expects the banks and payment companies to boost digital payments up to 30 billion in the current fiscal year 2018-19. This speculation and ambitiousness have surfaced because of an evolution of the digital payments sector that has happened over a period of time.
As this evolution has brought optimistic predictions for the coming time, in this article, you may find some interesting facts about Digital Payments’ Sector.
The Evolution of Digital Payments’ Sector
The early 90s
The digital wallet space has been in existence since the ’90s and set the base for digital payments ever since then. In the early 90s itself, online payment services began operating for the masses.
It was in 1994 when Standard Federal Credit Union was recognized as the first financial institution that offered online internet banking services to all its members.
Millicent (founded in 1995), Ecash, and CyberCoin (founded in 1996) were some of the new and popular players at that time who joined the digital wallet industry.
On the desktops of the personal computers in this era were the digital wallets stored on them. Eventually, early 2000s witnessed the emerging of new digital wallets which were extremely compatible with wireless and all other mobile devices and would be stored on a central server owned by a digital wallet vendor or Internet service provider (ISP). Although these wallets were less compatible considering the technology and other factors that may have not been in favor, they were still an aid.
In order to deal with various shortcomings, enterprises like MasterCard, Visa, American Express, IBM, Microsoft, Trintech, and CyberCash established a digital wallet standard. They defined Electronic Commerce Modeling Language (ECML) as a standard mechanism to explicitly define a format for online order forms that could incorporate digital wallet technology from any vendor.
It was only in 2014 when a digital payments’ landscape happened and with the launch/arrival of some more digital payment methods and according to a report, 2015-2016 were known to be a watershed period in the digital payments industry’s history. Moreover, between 2015-2017, the total value of the mobile payments’ industry doubled and has reached the level where it is set to take control over the transactions’ scenario.