With all the advances in technology will we be looking at new future ways to pay? How secure can we make our transactions to stop money being stolen in transit or being depleted through numerous below the surface fees? How can we cut out some of the middlemen from taking their slice?
PayPal was one such system, designed to leave us more in control of our money and whilst the founding principals were sound, it hasn’t quite achieved its target and become somewhat of a middleman itself. Though it is acknowledged, it has cut out a lot of the headaches associated with credit card processing fees.
However, there are new technologies hovering on the horizon, to make life easier for both the consumer and the merchant.
Twitpay
Twitpay is used through Twitter and powered by PayPal. Basically to send money to someone, you send them a tweet with “Twitpay” and the amount you owe them included. You have the option of including a memo. For example: @jimjones Twitpay $4 now up-to-date
Twitpay will look for all tweets referring to Twitpay, identifies your payment and puts it on your account. When you login to Twitpay.ne, you will see you owe @jimjones $4. To make the actual payment login into PayPal, then do a normal send transaction.
Essentially, this is a friendly social media interface for PayPal. It keeps a running total of monies owed, so makes it easy to keep across your balances. And did I mention its free?
Keep in mind this is an honours system. You don’t have to settle up even if you have promised to pay somebody. But with a public profile, others will know when you haven’t. Which could be a down side for future ways to pay.
Zong
Zong allows you to bill others via their mobile phone number, instead of them providing credit card information. This could be very handy given the number of people that don’t have cards. When someone makes a purchase using Zong, the amount owed is debited to their mobile phone account. However, it is an expensive service, as the phone companies can take anything between a 25%-50% cut from a merchant. Over time this will probably improve and get more competitive.
Square
Square promotes a device that will utilise your iPhone as a credit card reader. The touchscreen can be used for a signature and you get instant receipts via email or text. All transactions are then processed through Square. There are savings here for merchants, and a few other marketing and social advantages.
GetGiving
GetGiving is focused on micro donations to charities, by combining small amounts into a single monthly sum. GetGiving like TwitPay is also powered by PayPal.
Hub Culture
Hub Culture offers a virtual currency, known as ven, which can be used to buy and sell goods and services with other members. It’s available to anyone with an email address, and is extending worldwide.
Implications
It is interesting to see these alternate payment methods developing. But an important point to keep in mind is that, as yet, they are not too regulated, if at all. But that is not to say they won’t become the reality of our future ways to pay.
