FinTech Currency Technology
Currency
Foreign Exchange, Cryptocurrency and Digital Wallets make up the largest aspects of the FinTech revolution in Currency.
Foreign Exchange
This is one area that as a consumer you can almost feel the banks taking advantage of you. Whether it’s the currency conversion fees that are added to the ‘pedestrian’ exchange rate they give you or the additional fees a bank charges for you to access your own cash. The introduction of digital wallets, cryptocurrency and new approaches to foreign exchange and payments all form part of the FinTech currency movement. By introducing the ability for you to trade currency with a traveller looking to come to Australia when you’re looking to travel to the USA and again the middleman role is greatly reduced. Even companies can benefit from working with other companies looking to swap foreign currency at the same time using a matching website. Other ways the foreign exchange market is advancing with technology is by using real time information to increase the efficiencies of transactions. Foreign exchange is changing and on this site you will find an increasing number of businesses out to save you time and money.
Cryptocurrency
Perhaps the biggest movement in currency is the introduction of cryptocurrencies. While Bitcoin is the most widely discussed there is a large number of viable cryptocurrencies that are fighting for dominance with Bitcoin seeming to lead the charge. We may even end up with a number of new currencies. However what all these currencies have in common is that they are global currencies that have very little costs associated with their use. Compare this to the fees your bank charges you for your transaction account, international transfer fees, point of sales costs and a myriad of other fees, and the value of these digital alternatives starts to grow. They have been getting a bad reputation because it is much harder to track what they are being spent on than our existing online payments system. As such, they are being used by criminals to carry out illegal activities. The problem with this view is that it ignores the fact that cash has been used to achieve the same result for as long as we have been able to track any kind of payment process.
It must be pointed out that the number one concern of these new currencies is that everyone needs to believe they have a finite value if they are to succeed. If enough people stop believing in their worth then they quickly become worthless.
Digital Wallets
There are a number of new technologies in the market today and there are new wallets popping up every day. A digital wallet acts just like the one you carry in your pocket now, or the purse you have in your handbag. They are a place for you to hold all of your currency. Whether this currency is Australian dollars or Bitcoins you hold them electronically on your computer, tablet or mobile phone. One important thing to remember is that like you don’t carry all your money in your physical wallet nor should you have all your funds in just one digital wallet. Competition is very high in this field with the biggest names in payments and technology trying to dominate this space. Apple, Google, PayPal, Visa, Mastercard and others are all trying to be the provider you choose as your everyday digital wallet. There are also many smaller organisations looking to help save you money and add value to your wallet. While some may link to your existing payments accounts they still facilitate the payments and transfer of funds like you would achieve with the cash in your pocket. With such dominant players in this segment of the market the largest players are driving innovation through the acquisition of the best new technologies that hit the market. It may seem like dealing with these multinationals is against the FinTech movement but if it leads to greater efficiency and greater value for you then the outcome speaks for itself.
