The payment system has evolved with time. Initially, the barter system was used where the transaction of service and goods take place between two parties by coordinating with each other. The main problem which involves with barter system was a double coincidence of wants in which 2 people each demanding some service or good that the other person can provide. Also, it does not allow the parties to enter any future contracts for the purchase of goods. After the barter system commodity money was taken into use for transactions which further leads to the evolution of metallic money where metals were used for economic transactions. But with metallic money, there was a problem of uniformity of purity and weight of metals. This process of evolution ultimately gives way to currency notes which are also known as fiat money and are used in present times. The fiat money is issued by the country;'s government and is used universally. The process of evolution continues which further leads to electronic money which is also very common in present times. Electronic money includes the transfer of money electronically, credit cards, debit cards, etc.
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