Business
How humans have sent each other money throughout history
How humans have sent each other money throughout history
Today, most currency is electronic, swirling over the internet from banks to businesses and even in and out of the Federal Reserve. But, of course, that hasn’t always been the case. Before the internet—before even the telegraph, before the idea of currency itself—various modes and technologies had to be invented in order for humankind to evolve methods of fair trade, compensation, and reimbursement. Before modes of currency were developed, bartering was the most common means for acquaintances to exchange goods and services; it required that both involved parties come to an agreement as to the innate value of what was up for exchange.
The earliest humans likely traded directly, bartering freshly gathered or hunted food for help chopping wood or other desirable goods and services. In some civilizations, forms of currency included shells and stones—including the massive, collective rai stones of the island nation of Yap and the almost sacred regard held for cowrie shells in West Africa. Coins came about as a way to carry precious metals in a standardized measure, and later simply common metals that were durable in the marketplace.
As societies evolved over time, financial technologies were developed to keep pace with not only growing populations but the advent of new and dynamic forms of business and commerce. Many such developments effectively began to replace the need for face-to-face financial transactions, instead using communications networks to move and transfer money with very little need for human intervention.
Global society continues to invent new means by which to handle its financial exchanges. In another 50 or 100 years, there may be new forms of currency transactions that we can’t even imagine today. MoneyTransfers.com compiled a history of how humans have exchanged money throughout history, from bank notes and wire transfers to blockchain technology and cryptocurrency.
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Early 800s: Muslim traders invent the sakk—an early form of the modern check
Today, paper checks are believed to be going the way of the dodo—the average person might have the same set for years or even longer, the need to use them diminishing by the year. But at one time, they were a cutting-edge development that also served an important purpose. Muslim traders in the 9th century often had to travel over huge distances because communities and settlements were sparse. Instead of today’s paper currency or plastic credit cards—both very light to carry—they were lugging around pounds and pounds of heavy metal coins. To both simplify the buying and selling of goods and to reduce the undue burden on traders (and their modes of transit, e.g., camels), the sakk was born. A kind of formalized IOU, the sakk enabled merchants to receive compensation directly from a trader’s bank account.
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1864: First money orders are sent through the U.S. Postal Service
A money order is a way to send money through the mail without having to send cash or a check. These have long been a way for people outside the traditional banking system to still send money for goods and services or to family in other areas. Money order systems were attempted by private enterprise in Britain as early as 1792, ultimately unsuccessfully, but the money order as a formal system began in earnest in the United States in 1864 through the national postal system.
It was popular among Civil War soldiers as a means of sending money home. Shortly thereafter, in 1869, foreign currency orders were allowed through the system as well. Britain officially launched its own system—referred to as postal orders, rather than money orders—in 1881. Today, many banks and credit unions offer fee-free accounts that even low-income people can afford to use. Even so, money orders remain a very popular way to send money with less risk of loss.
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1871: Western Union launches wire transfer service
In 1851, Western Union was founded as the New York and Mississippi Valley Printing Telegraph Company. We don’t see a lot of telegraphs today, but before the telephone they were a critical way of delivering information quickly. The Western Union company learned that they could piggyback their existing telegraph technology to do things like transmit financial information and stock market numbers—and, yes, money. Today, they operate a network of over 455,000 agents in 200 countries and territories and perform millions of money wire transfers each year both at bricks-and-mortar locations and via the internet.
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1920s & 1930s: Money laundering gains prominence during U.S. Prohibition
Money laundering is the process of taking money gained through illegal or illicit activities and, by filtering it through an intermediary, making it appear to have originated from legitimate sources. Contemporary society considers this to be criminal behavior, but hiding money is a crime of context, and context is never completely the same. In this regard, money laundering began thousands of years ago in China when merchants laundered profits after local governments prohibited various forms of commerce. Since then, black market dealings, bribery, extortion (think here of “protection” money paid to organized crime syndicates), and a myriad other illegal schemes gave rise to evermore devious methods of hiding and “cleaning” bad money.
When the 18th Amendment to the U.S. Constitution made the import, manufacturing, sale, and consumption of alcohol illegal in 1919, one perhaps natural result was an explosion of organized crime, with multiple outfits vying for the upper hand in the now-illicit world of drink. In order to hide their ill-gotten profits, crime syndicates would purchase legitimate businesses and then combine the financial streams of both legal and illegal operations. Such behavior led to the famous conviction of crime lord Al Capone for tax evasion, when prosecutors were able to prove that illegally obtained money went directly to him and was never declared to the government.
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1973: Founding of the Society for Worldwide Interbank Financial Telecommunication (SWIFT)
The Society for Worldwide Bank Interface Financial Telecommunication, or SWIFT, is an organization that helps smooth international banking transfers. Every country has slightly different legal systems and banking regulations, and bringing them together to move money around the world is a huge, complicated project. SWIFT was founded by 239 banks across 15 countries, and today it is used in more than 200 nations. As with wire transfers and other financial communications, SWIFT is a platform that provides a secure platform for financial transactions between international banking establishments. The international society has a domestic U.S. counterpart in the Automated Clearing House, which enables electronic funds transfers.
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1990s: Internet payment systems are introduced into consumer markets
Credit cards changed how people felt about spending against their own earnings. When the Diners Club card first appeared in the 1950s, it was an aspiration concept; it sold the idea of luxury, of being able to have what perhaps you couldn’t entirely afford. In the intervening decades, credit cards developed into an almost de facto method of buying, well, almost anything.
Then came the internet and almost everything about modern life was rapidly reshaped in ways almost no one could have predicted. By the 1990s, all transfers from the Federal Reserve to banks (and vice versa) were done electronically. The very first consumer internet buy is believed to be a pizza order in 1994 via Pizza Hut’s pizzanet.net website. Less than a year later, the world welcomed Amazon. Today, people now use direct deposit on accounts they only interact with online, and then spend that money online or through apps or other forms of smart payment. Researchers estimate that just 8% of currency in the entire world now exists as cash in circulation. In 2021, U.S. consumer online spending exceeded $870 billion—that’s 14% more than 2020.
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1997: The first digital wallet is created to pay for Coca-Cola at vending machines
Today, technologies like Apple Pay have made it quite commonplace to carry your financial information in a digital “wallet” in your smartphone. But it is surprising that the first instance of paying by mobile phone happened 25 years ago. In 1997, a very limited rollout of special Coca-Cola vending machines in Helsinki allowed people to have a Coke via text message.
Since then the concept of a digital wallet has gone from strength to strength. Google Wallet was introduced in 2011, followed shortly by Passbook by Apple, which has since morphed into Apple Pay. Different countries have their own proprietary versions of these services that conform to local regulations. In just the last few years, other retailers and vendors have begun to offer their own digital wallets, among them Walmart, Samsung, and Venmo.
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Late 1990s: Microtransactions are built into video games to convert currency to digital assets
We think of microtransactions as a 21st century innovation, with games like Candy Crush that squeeze users to spend $1 at a time on extra lives or to unlock content. But the first instance of microtransactions dates back to 1997, when a developer on a multi-user dungeon game used them to sell in-game credits players could redeem for character bonuses. MUDs are even far older than 1997, but they’d previously asked users to pay hourly for access.
The advent of web portal and internet service provider America Online—more commonly known as AOL—had normalized a different fee structure, the flat monthly rate, effectively killing the per-hour model. In order to diversify the possibilities for players and revenue generation alike, Iron Realms Entertainment founder Matt Mihaly launched Achaea as a free-to-play game that also offered players the chance to buy credits for enhanced abilities or character traits within the game.
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2000s: Blockchain is developed as a distributed ledger for monetary transactions
This list includes several financial technologies that are huge networks with centralized authorities, like Western Union and SWIFT. Blockchain is the opposite: a technology whose selling point is that there is no centralization. Transactions occur in, well, chains—with each subsequent transaction an additional link that also secures what came before it. While several pieces of tech that go into blockchain existed beforehand, the original blockchain was designed to support bitcoin in 2008, and new cryptocurrencies have continued to spring up since. Blockchain is closely linked with cryptocurrency at this point, but experts cite other opportunities to use it, such as for supply chain management.
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2010s: Rise of cash transfer apps enable daily microtransactions
If the development of modern financial transaction systems is a spectrum, on one end there are traditional financial networks like SWIFT, and at the other end are decentralized cryptocurrencies. Holding the middle ground, in a way, are peer-to-peer financial apps, which allow users to pay each other for pretty much anything, from pizza nights to shared Lyfts, or to support groups and organizations who use services such as Venmo or Cash App for fundraising and investment purposes. These apps typically allow very fast withdrawal or resending of funds, making them super flexible. The popular digital wallets Apple Pay and Google Pay both support peer-to-peer money as well. Today, you can even directly send money using many social media networks.
It’s well-documented that the surest, and often best, return on investments comes from playing the long game. But between stocks and real estate, which is the stronger bet?
To find out, financial planning firm Wealth Enhancement Group analyzed data from academic research, Standard and Poor’s, and Nareit to see how real estate compares to stocks as an investment.
Data going back to 1870 shows the well-established power of real estate as a powerful “long-run investment.” From 1870-2015, and after adjusting for inflation, real estate produced an average annual return of 7.05%, compared to 6.89% for equities. These findings, published in the 2019 issue of The Quarterly Journal of Economics, illustrate that stocks can deviate as much as 22% from their average, while housing only spreads out 10%. That’s because despite having comparable returns, stocks are inherently more volatile due to following the whims of the business cycle.
Real estate has inherent benefits, from unlocking cash flow and offering tax breaks to building equity and protecting investors from inflation. Investments here also help to diversify a portfolio, whether via physical properties or a real estate investment trust. Investors can track markets with standard resources that include the S&P CoreLogic Case-Shiller Home Price Indices, which tracks residential real estate prices; the Nareit U.S. Real Estate Index, which gathers data on the real estate investment trust, or REIT, industry; and the S&P 500, which tracks the stocks of 500 of the largest companies in the U.S.
High interest rates and a competitive market dampened the flurry of real-estate investments made in the last four years. The rise in interest rates equates to a bigger borrowing cost for investors, which can spell big reductions in profit margins. That, combined with the risk of high vacancies, difficult tenants, or hidden structural problems, can make real estate investing a less attractive option—especially for first-time investors.
Keep reading to learn more about whether real estate is a good investment today and how it stacks up against the stock market.
Wealth Enhancement Group
Stocks and housing have both done well
REITs can offer investors the stability of real estate returns without bidding wars or hefty down payments. A hybrid model of stocks and real estate, REITs allow the average person to invest in businesses that finance or own income-generating properties.
REITs delivered slightly better returns than the S&P 500 over the past 20-, 25-, and 50-year blocks. However, in the short term—the last 10 years, for instance—stocks outperformed REITs with a 12% return versus 9.5%, according to data compiled by The Motley Fool investor publication.
Whether a new normal is emerging that stocks will continue to offer higher REITs remains to be seen.
This year, the S&P 500 reached an all-time high, courtesy of investor enthusiasm in speculative tech such as artificial intelligence. However, just seven tech companies, dubbed “The Magnificent 7,” are responsible for an outsized amount of the S&P’s returns last year, creating worry that there may be a tech bubble.
While indexes keep a pulse on investment performance, they don’t always tell the whole story. The Case-Shiller Index only measures housing prices, for example, which leaves out rental income (profit) or maintenance costs (loss) when calculating the return on residential real estate investment.
Wealth Enhancement Group
Housing returns have been strong globally too
Like its American peers, the global real estate market in industrialized nations offers comparable returns to the international stock market.
Over the long term, returns on stocks in industrialized nations is 7%, including dividends, and 7.2% in global real estate, including rental income some investors receive from properties. Investing internationally may have more risk for American buyers, who are less likely to know local rules and regulations in foreign countries; however, global markets may offer opportunities for a higher return. For instance, Portugal’s real estate market is booming due to international visitors deciding to move there for a better quality of life. Portugal’s housing offers a 6.3% return in the long term, versus only 4.3% for its stock market.
For those with deep enough pockets to stay in, investing in housing will almost always bear out as long as the buyer has enough equity to manage unforeseen expenses and wait out vacancies or slumps in the market. Real estate promises to appreciate over the long term, offers an opportunity to collect rent for income, and allows investors to leverage borrowed capital to increase additional returns on investment.
Above all, though, the diversification of assets is the surest way to guarantee a strong return on investments. Spreading investments across different assets increases potential returns and mitigates risk.
Story editing by Nicole Caldwell. Copy editing by Paris Close. Photo selection by Lacy Kerrick.
This story originally appeared on Wealth Enhancement Group and was produced and
distributed in partnership with Stacker Studio.
In today’s digital climate, consuming sports has never been easier. Thanks to a plethora of streaming sites, alternative broadcasts, and advancements to home entertainment systems, the average fan has myriad options to watch and learn about their favorite teams at the touch of a button—all without ever having to leave the couch.
As a result, more and more sports venues have committed to improving and modernizing their facilities and fan experiences to compete with at-home audiences. Consider using mobile ticketing and parking passes, self-service kiosks for entry and ordering food, enhanced video boards, and jumbotrons that supply data analytics and high-definition replays. These innovations and upgrades are meant to draw more revenue and attract various sponsored partners. They also deliver unique and convenient in-person experiences that rival and outmatch traditional ways of enjoying games.
In Los Angeles, the Rams and Chargers’ SoFi Stadium has become the gold standard for football venues. It’s an architectural wonder with closer views, enhanced hospitality, and a translucent roof that cools the stadium’s internal temperature.
The Texas Rangers’ ballpark, Globe Life Field, added field-level suites and lounges that resemble the look and feel of a sports bar. Meanwhile, the Los Angeles Clippers are building a new arena (in addition to retail space, team offices, and an outdoor public plaza) that will seat 18,000 people and feature a fan section called The Wall, which will regulate attire and rooting interest.
It’s no longer acceptable to operate with old-school facilities and technology. Just look at Commanders Field (formerly FedExField), home of the Washington Commanders, which has faced criticism for its faulty barriers, leaking ceilings, poor food options, and long lines. Understandably, the team has been attempting to find a new location to build a state-of-the-art stadium and keep up with the demand for high-end amenities.
As more organizations audit their stadiums and arenas and keep up with technological innovations, Uniqode compiled a list of the latest tech advancements to coax—and keep—fans inside venues.
Jeff Gritchen/MediaNews Group/Orange County Register // Getty Images
Just Walk Out technology
After successfully installing its first cashierless grocery store in 2020, Amazon has continued to put its tracking technology into practice.
In 2023, the Seahawks incorporated Just Walk Out technology at various merchandise stores throughout Lumen Field, allowing fans to purchase items with a swipe and scan of their palms.
The radio-frequency identification system, which involves overhead cameras and computer vision, is a substitute for cashiers and eliminates long lines.
RFID is now found in a handful of stadiums and arenas nationwide. These stores have already curbed checkout wait times, eliminated theft, and freed up workers to assist shoppers, according to Jon Jenkins, vice president of Just Walk Out tech.
Billie Weiss/Boston Red Sox // Getty Images
Self-serve kiosks
In the same vein as Amazon’s self-scanning technology, self-serve kiosks have become a more integrated part of professional stadiums and arenas over the last few years. Some of these function as top-tier vending machines with canned beers and nonalcoholic drinks, shuffling lines quicker with virtual bartenders capable of spinning cocktails and mixed drinks.
The kiosks extend past beverages, as many college and professional venues have started using them to scan printed and digital tickets for more efficient entrance. It’s an effort to cut down lines and limit the more tedious aspects of in-person attendance, and it’s led various competing kiosk brands to provide their specific conveniences.
Kyle Rivas // Getty Images
Mobile ordering
Is there anything worse than navigating the concourse for food and alcohol and subsequently missing a go-ahead home run, clutch double play, or diving catch?
Within the last few years, more stadiums have eliminated those worries thanks to contactless mobile ordering. Fans can select food and drink items online on their phones to be delivered right to their seats. Nearly half of consumers said mobile app ordering would influence them to make more restaurant purchases, according to a 2020 study at PYMNTS. Another study showed a 22% increase in order size.
Many venues, including Yankee Stadium, have taken notice and now offer personalized deliveries in certain sections and established mobile order pick-up zones throughout the ballpark.
Darrian Traynor // Getty Images
QR codes at seats
Need to remember a player’s name? Want to look up an opponent’s statistics at halftime? The team at Digital Seat Media has you covered.
Thus far, the company has added seat tags to more than 50 venues—including two NFL stadiums—with QR codes to promote more engagement with the product on the field. After scanning the code, fans can access augmented reality features, look up rosters and scores, participate in sponsorship integrations, and answer fan polls on the mobile platform.
Boris Streubel/Getty Images for DFL // Getty Images
Real-time data analytics and generative AI
As more venues look to reinvigorate the in-stadium experience, some have started using generative artificial intelligence and real-time data analytics. Though not used widely yet, generative AI tools can create new content—text, imagery, or music—in conjunction with the game, providing updates, instant replays, and location-based dining suggestions
Last year, the Masters golf tournament even began including AI score projections in its mobile app. Real-time data is streamlining various stadium pitfalls, allowing operation managers to monitor staffing issues at busy food spots, adjust parking flows, and alert custodians to dirty or damaged bathrooms. The data also helps with security measures. Open up an app at a venue like the Honda Center in Anaheim, California, and report safety issues or belligerent fans to help better target disruptions and preserve an enjoyable experience.
Story editing by Nicole Caldwell. Copy editing by Paris Close. Photo selection by Lacy Kerrick.
This story originally appeared on Uniqode and was produced and
distributed in partnership with Stacker Studio.
Inflation has cooled substantially, but Americans are still feeling the strain of sky-high prices. Consumers have to spend more on the same products, from the grocery store to the gas pump, than ever before.
Increased import costs are part of the problem. The U.S. is the largest goods importer in the world, bringing in $3.2 trillion in 2022. Import costs rose dramatically in 2021 and 2022 due to shipping constraints, world events, and other supply chain interruptions and cost pressures. At the June 2022 peak, import costs for all commodities were up 18.6% compared to January 2020.
While import costs have since fallen most months—helping to lower inflation—they remain nearly 12% above what they were in 2020. And beginning in 2024, import costs began to rise again, with January seeing the highest one-month increase since March 2022.
Machinery Partner used Bureau of Labor Statistics data to identify the soaring import costs that have translated to higher costs for Americans. Imports in a few industries have had an outsized impact, helping drive some of the overall spikes. Crop production, primary metal manufacturing, petroleum and coal product manufacturing, and oil and gas extraction were the worst offenders, with costs for each industry remaining at least 20% above 2020.
Machinery Partner
Imports related to crops, oil, and metals are keeping costs up
At the mid-2022 peak, import costs related to oil, gas, petroleum, and coal products had the highest increases, doubling their pre-pandemic costs. Oil prices went up globally as leaders anticipated supply disruptions from the conflict in Ukraine. The U.S. and other allied countries put limits on Russian revenues from oil sales through a price cap of oil, gas, and coal from the country, which was enacted in 2022.
This activity around the world’s second-largest oil producer pushed prices up throughout the market and intensified fluctuations in crude oil prices. Previously, the U.S. had imported hundreds of thousands of oil barrels from Russia per day, making the country a leading source of U.S. oil. In turn, the ban affected costs in the U.S. beyond what occurred in the global economy.
Americans felt this at the pump—with gasoline prices surging 60% for consumers year-over-year in June 2022 and remaining elevated to this day—but also throughout the economy, as the entire supply chain has dealt with higher gas, oil, and coal prices.
Some of the pressure from petroleum and oil has shifted to new industries: crop production and primary metal manufacturing. In each of these sectors, import costs in January were up about 40% from 2020.
Primary metal manufacturing experienced record import price growth in 2021, which continued into early 2022. The subsequent monthly and yearly drops have not been substantial enough to bring costs down to pre-COVID levels. Bureau of Labor Statistics reporting shows that increasing alumina and aluminum production prices had the most significant influence on primary metal import prices. Aluminum is widely used in consumer products, from cars and parts to canned beverages, which in turn inflated rapidly.
Aluminum was in short supply in early 2022 after high energy costs—i.e., gas—led to production cuts in Europe, driving aluminum prices to a 13-year high. The U.S. also imposes tariffs on aluminum imports, which were implemented in 2018 to cut down on overcapacity and promote U.S. aluminum production. Suppliers, including Canada, Mexico, and European Union countries, have exemptions, but the tax still adds cost to imports.
U.S. agricultural imports have expanded in recent decades, with most products coming from Canada, Mexico, the EU, and South America. Common agricultural imports include fruits and vegetables—especially those that are tropical or out-of-season—as well as nuts, coffee, spices, and beverages. Turmoil with Russia was again a large contributor to cost increases in agricultural trade, alongside extreme weather events and disruptions in the supply chain. Americans felt these price hikes directly at the grocery store.
The U.S. imports significantly more than it exports, and added costs to those imports are felt far beyond its ports. If import prices continue to rise, overall inflation would likely follow, pushing already high prices even further for American consumers.
Story editing by Shannon Luders-Manuel. Copy editing by Kristen Wegrzyn.
This story originally appeared on Machinery Partner and was produced and
distributed in partnership with Stacker Studio.
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