It’s hard to imagine a world without the convenience of electronic payments. Most people in the US utilize e-payments as a fast, secure, and trusted method for purchasing goods as we increasingly live in a cashless society. Online payments would be impossible without this technology, and it helps to protect our transactions in all other areas. Consequently, online casinos have been using electronic payments since their inception in the early 1990s.
In this article, we will take a brief look at the history of e-payments and bring you to the present day. This overview will also consider how this technology has changed our lives and how it will continue to evolve.
Early years of electronic payments
Western Union is credited with creating the first electronic payment system. In 1871, they launched the Electronic Transfer Fund (ETF) system. It utilized telegraph technology, which used wires laid between stations to transmit electronic signals over long distances. The system revolutionized communication across the USA and introduced a new era of fast and accurate data transfer systems.
The 1870s to the 1960s saw a gradual change in these systems, driven by technological advances. The US Federal Reserve started using the telegraph system to send money in the 1910s, resulting in a huge economic change and contributing to the early development of a stable US currency.
From there, progress was slow until the introduction of the first credit card in the form of Diner’s Club International in 1950. One day Frank McNamara went to dinner with his wife. He forgot his wallet, and so she had to pay. Embarrassed by this, Frank created the Diners Club, which led to the development of the first credit card. American Express went on to create the first plastic credit card in 1959, and so began a whole new way of managing everyday payments.
The banking system added computing power to its facilities during the 1970s. 1974 saw the launch of the Automated Clearing House (ACH), which provided a central clearing house for electronic payments across the USA. It is still in use today and facilitates payments for businesses and individuals as it continues to grow with the market.
How the internet changed everything
It is hard to overstate the effect the internet has had on every aspect of our lives. From making the smallest purchase to playing on our favorite online casino, the internet has transformed everything. In fact, the development of the internet has spurred the development of electronic payments and online casinos alike.
If we look back to the very early days of the internet, we can see that two events really contributed to the online world that we have today. In 1994 Pizza Hut decided to allow customers to order pizza online. The simple act of ordering pizza online meant that customers were able to appreciate the convenience that the internet brings. Also, in the same year, Amazon was born. Of course, Amazon completely changed the way we shop.
Both of these businesses required speedy and trustworthy online payment methods. Therefore, the needs of online businesses drove the development of e-payment methods. In those days, the major payment companies were Millicent (founded in 1995), CyberCoin, and ECash (both in 1996). However, online casinos were able to develop their services because they could manage all of their payments electronically.
Electronic payment methods
As technology and consumer requirements change, so do the number of systems. In today’s dynamic market, there is an extensive array of electronic payment options, including the swift and efficient payTo instant payment method. Below, we will briefly examine the major methods on offer.
Debit cards
These cards are very commonly used for online payments and online casinos. By being directly linked to the customer’s account, they can help casino players manage their finances. They can only play up to the value of the money in the account. The cards also have the advantage of having lower transaction fees than many credit cards. All banks offer debit cards, even online banks.
Credit cards
The great advantage of these cards is that they allow customers to effectively borrow from credit card companies. Companies give customers a credit limit, and they can spend up to that limit, and any amount borrowed is subject to interest. Using a credit card is a very popular way of managing online payments at casinos, and some of the best-known credit cards are Mastercard, Apple card, and Shell Credit Card. However, if you’re thinking of having a quick game at an online casino, look no further than this list of the best Mastercard casinos.
E-wallets
These are online accounts or platforms where the customer can either deposit money into the account or link it to a bank account. It is becoming more favored by casino players because it means that you don’t have to put any personal banking details into the casino site. Some of the most popular e-wallets are PayPal, Neteller, and Skrill.
Cryptocurrency
No discussion of electronic payment methods would be complete without a mention of cryptocurrencies. From its birth in 2008, to the introduction of the first ever mining pool, to the beast we have seen it become today, cryptocurrency is quite different from other electronic payment methods out there. This is because they are not based on existing currencies like the USD but are completely new digital currencies. Casino players are interested in using them because they offer instant payments and very low fees.
Summary
It can be said that the history of electronic payments in the US is intrinsically bound to the advancement of technology. At every point, the needs of several businesses and individuals have driven development in e-payments making every payment activity seamless and fast.