Nowadays, people strive for more mobility and freedom in financial issues. For convenient payments there are two options namely credit cards and electronic payment systems. Let’s observe their essence, benefits and different to decide whether one of them will beat another in the future.
All credit cards are being operated under a certain type of the payment systems. There are three global players on the world market which are most common in the modern banking system. These are VISA, EuroCard / MasterCard and American Express (AMEX).
Main World Payment Systems Are as Follows:
- VISA is the largest payment system, both in terms of the number of issued cards and in terms of the amount of payments: experts claim that it makes up more than $ 630 billion for only one year. The share of this payment system is about 50% in the world card market. The company had been established back in 1972 on the basis of Bank of America and was originally used for non-cash settlements only within the United States.
- EuroCard / MasterCard – the second largest payment system, which has issued more than 200 million bank cards. It occupies about 30% of this market. It was launched on the basis of the merger of the American company MasterCard and European Europay.
- American Express is the third largest payment system. This company has more than a century of history. Her first specialization was courier transportation; later the company took up vacations and various services (including financial ones) for tourists. The share of these cards on the world market is approximately 18%.
It is not difficult to calculate that only about 2% of the world market falls on the share of all other issuers of bank cards, of regional level. So credit cards comprise a very well-developed market with strong rules of games and high level of transparency.
An Internet payment system is a special technology that allows you to make various payments on the Web: pay for shops and banks, get royalty, replenish your mobile account, withdraw money from a bank card, etc. Today, online currency is no less important than paper money. On the Internet, you can count about 15 popular world payment systems like PayPal, WebMoney, EasyPay, Qiwi. To use their services a client has to register an online account using either official personal data or just e-mail or phone number. Payment systems in the Internet envisage a very high level of anonymity which leaves more space to fraud. One of them is “magic wallet” when a client making a payment unexpectedly got his money back doubled in amount. But this is only step to involve a freshman into financial pyramid.
So there are benefits of regular credit card payments over digital cash transactions:
- strong connection to a certain banking establishment which have physical headquarter and is easy to reach in case of dispute;
- A client can’t get a credit card and financial services without presenting ID to the bank, thus making all payment very transparent and 100% legal;
- All operations are better protection by the bank security service.
Expert claim that in a near future both types of payments system will operate on the market having own target audiences.