Money as we know it has changed throughout the course of civilization. Human beings have always been very industrious when it comes to transacting, where they always came up with various medium of exchanges to keep trade and commerce flowing. Societies which have been very skilled with finance and other trades involving the handling of money have always prospered whether it be ancient trading hot spots like Alexandria, Baghdad or modern-day commerce hubs like Hong Kong, Dubai or Singapore. Ever since barter trading system morphed into acceptance of money as medium of exchange, there has been a steady evolutionary path money has taken into becoming more divisible and fluid with time.
In this modern age of computers and Internet, ‘money changing hands' has become more of a metaphor owing to the virtual nature of money, where, by just a tap of a few buttons wires moneys to the far-flung corners of the globe. In recent decades, trade has been revolutionized by technology, E commerce has been the linchpin on which this quiet revolution has rested, making possible trade and commerce taking place on a magnitude not possible in the forgone era of paper currency and coinage.
E commerce is an umbrella term for all transactions and monetary exchanges taking places through electronic systems (in which computers play a huge role), making the exchange virtual in nature. While in essence, E commerce may just dwell in electronic transactions, but the term also encompasses activities which relate to marketing, advertising, electronic logistics of all goods of value (both physical and virtual) between willing sellers and buyers.
E commerce’s rise has coincided with the rise of the Internet as a dominant influence in our lives. Websites such as Amazon and Ebay among others have revolutionized we as a society transact with each other, creating wealth and prosperity not just for themselves, but also opening up avenues for regular people for trade by providing a safe and reliable platform to ply their goods and services. It could also be argued that world trade in general has been greatly facilitated by b2b websites ( websites which electronically connect exporters and importers ) such as Alibaba and Made-In-China, making possible for buyers and sellers from different parts of the globe to discover new opportunities through these websites.
The amazing advances through which flow of money has been amplified by E Commerce is truly unprecedented, which shows no signs of abating anytime soon. Soon a huge paradigm shift is again about to take place in the world of E Commerce when, the new smartphones are equipped with NFC chips (Near Field Communication) which would make mobile phones into virtual banks. Many futurologists tout it another major milestone in the dynamic history of E Commerce, claiming this new technology would once again revolutionize the way we transact through our electronic devices.
The billions of transactions that take place in the world of E Commerce every day may be virtual but their benign effects are very real, shaping the modern world of finance.