In this generation, sending money anywhere in the world is just a few clicks away thanks to technology, but ever wonder on how and where did it start?
The Barter System
The Mesopotamia and Phoenicia tribes during the 6000 B.C. used the barter system where trading goods or services between two parties with the use of food, weapons, wool, silk, spices etc. Traders from West to East exchange their goods for centuries using this system.
Hawala System
This system is an informal method of transferring money from one location to another without any money physically moving. The word “Hawala” originates from an Arabic term for trading or trust. It was generally used in the Middle East, Africa, and on the Indian subcontinent and was developed during the 8th century. It provides as an alternative to the traditional method of bank transfer by using a network of hawaladars, or hawala dealers in different geographical locations.
Coins and Paper Currency
By 500 B.C.E, coins made of silver and gold alloy started circulating in Turkey, Greece, Persia, and Macedonia. The use of coins made it easier between nations and gave way to negotiations in trading.
Paper currency was first used in China between 600 and 900 C.E. When the rest of the world started using bills and coins, the problem of being stolen or lost was alarming that in the 16th century, checks began to gain popularity for both businesses and individuals.
TELEGRAPHS, GOVERNMENTS, CREDIT CARDS
Sending money and checks to different places using ships or horses may take months to complete until 1851 where The New York & Mississippi Valley Printing Telegraph Company was founded, which was later renamed the Western Union Telegraph Company in 1856 where it made the transaction faster and brought businesses to the modern era when it launched the Wire Transfer in 1872 through its telegraph network.
Many countries established Central Banks to standardized and stabilized currencies. In 1950s the use of credit cards gained fame for the day-to-day transactions of individuals whether in buying groceries, paying for services, eating in restaurants etc.
SWIFT AND ONLINE MONEY TRANSFER
Due to international wire transfer becoming more mainstream in the late 19th century, the Society for Worldwide Interbank Financial Telecommunication (SWIFT) was founded in the late 20th century – 1973, to expedite international payments. When it went live in 1979, it started with only 239 banks from 15 countries to efficiently and a secure way to communicate cross-border payments. It does not actually move money; their network transmits messages between banks that allow the banks to make transfers. Now, there are over 11,000 financial institutions in over 212 different countries in their system.
In 1998, the first online transfer company was established – PayPal. It revolutionized the money transfer game as it made it cheaper than what the banks were charging.
How about today?
Individuals and businesses have a lot of options when it comes to international money transfer online especially with its booming industry. Globalization and changes in consumers’ lifestyle and behavior made remittances essential and the rise of the various international funds transfer platforms.
Entre Biz offers a secure, fast, and cost-effective way of sending money whether it’s for your personal or business transfers. Entre Biz offers a zero-balance online account, in multiple currencies, for you to experience a simpler way of transferring funds and saying goodbye to the old way of money transfers. You may download the mobile app today or check the Entre Biz website for more information and services. The app helps you send money abroad for a fraction of the cost.
Bitcoin, a digital currency of the 21st century is the new way of sending money by using a peer-to-peer system without an intermediary. The transactions are verified by network nodes and recorded through Blockchain, a permanent and unfalsifiable record of every transaction. Entre Biz will also soon launch its cryptocurrency services to cater to the market’s needs.
No one knows what the future holds when it comes to international money transfer. We can just wait and see for new breakthroughs that will change the way we send money.
About Entre Biz
The Mesopotamia and Phoenicia tribes during the 6000 B.C. used the barter system where trading goods or services between two parties with the use of food, weapons, wool, silk, spices etc. Traders from West to East exchange their goods for centuries using this system.
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