The history of money and payments
One of the functions of money is to serve as a measure of value. It is important that the value of money remains stable. In times past, this was ensured by using precious metals as money. Now the stability of the value of money is the responsibility of monetary policy. Price stability is also important for fulfilling the other functions of money (medium of exchange and store of value). The stability of the value of money is measured by price indices, the most important of which is the Consumer Price Index.
Cash issued by the Bank of Finland has been used since 1811.
Although use of cash has decreased significantly, cash is still the main means of payment for part of the population.
Card payments became widespread in Finland in the 1960s. Cards acquired a magnetic strip in the 1970s. The chip feature, which became common in the 2000s, greatly increased payment security. Contactless payment became possible in 2013.
Mobile payment began to be used in Finland in the 2010s. Mobile payment means paying with a smartphone or other mobile device.
The field of payments is going digital. New players and payment methods are constantly entering the market. Will digital currencies become more common in payments in the future? Will we identify ourselves with facial features or the iris of the eye instead of a PIN code?
