The future of money
For years banks and credit card companies have held a strangle hold over the movement of money and charged exorbitant rates for doing so. Now this is changing and fast.
Michale Ivey the founder of Twitpay has devised a system, using code that PayPal made available to him, that allows people to make payments using tweets. The way it works is you include the recipients’ username in their message. For example, posting the update “@johnsmith twitpay $10 for lunch” would deliver the cash to that Twitterer’s Twitpay account. Simple and brilliant!
Hundreds of engineers and entrepreneurs are now revolutionising the payment industry, attacking the payment ecosystem and seeking out ways to pull down the stronghold the banks and credit card companies have built.
Here are some examples:
- Square, a new company founded by Twitter cocreator Jack Dorsey, lets anyone accept physical credit card payments using an attachment on their iPhone, any other a smartphone or computer by plugging in a free sugar-cube-sized device — no expensive card reader required.
- A startup called Obopay, which has received funding from Nokia, allows phone owners to transfer money to one another with nothing more than a PIN.
- Amazon.com and Google are both distributing their shopping cart technologies across the Internet, letting even the lowliest etailers process credit cards for less than the old price, cutting out middlemen, and figuring out ways to bundle payments to sidestep the credit card companies’ constant nickel-and-diming.
- Facebook appears to be building its own payment system for virtual goods purchased on its social network and on external sites.
- Apple has given iTunes developers the ability to charge subscription fees through their applications, making iTunes the gateway for an entirely new breed of transaction.
About 20 percent of all online transactions now take place over so-called alternative payment systems, according to consulting firm Javelin Strategy and Research. It expects that number to grow to nearly 30 percent in just three years.
This is going to revolutionise the way we use money eroding the monopoly that banks have. Serves them right for causing the Great Recession
I’m looking forward to the day that we can all bypass banks. Zopa is another example of the new breed of talented companies that is reshaping the world of finance. Zopa is a lending and borrowing exchange where real people sidestep the banks to get a better deal. I’m going to research and write an article on innovative companies that are changing the world of finance so what this space.


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