I am an artist in OtherCountry. You want to buy art from me. How do you do it?
Physical money? Okay. You now need a way to track that YOU sent 40 bucks in the mail and that I received 40 bucks in the mail and that is (at least) two different national postal services involved. And now I need a way to convert 40 YourLandia dollars into OtherCountry pounds. AND we need to make sure all of that happened quickly enough that exchange rates didn’t meaningfully change
Digital money? Who is running the site? How many different sites do I need to have accounts on to accept payment from all the countries I want to sell to?
At the end of the day: For any transaction that is not face to face transfer of hard currency (and even then but…), you need an intermediary that both parties trust. Payment processors are that intermediary. Sometimes they are the person taking my IOU and turning it into money so that you can give me a hamburger. Sometimes that is effectively a courier making sure your money gets to me no matter where on the planet we are.
It is what lets us have transactions that aren’t “Okay, you drop your armor and I’ll drop my money and then we’ll slowly change places and… who the fuck just ran out of the bushes to steal the money I put down while waiting for you to put down your armor? And why are you now both doing the Carlton?”
I am an artist in OtherCountry. You want to buy art from me. How do you do it?
Physical money? Okay. You now need a way to track that YOU sent 40 bucks in the mail and that I received 40 bucks in the mail and that is (at least) two different national postal services involved. And now I need a way to convert 40 YourLandia dollars into OtherCountry pounds. AND we need to make sure all of that happened quickly enough that exchange rates didn’t meaningfully change
Digital money? Who is running the site? How many different sites do I need to have accounts on to accept payment from all the countries I want to sell to?
At the end of the day: For any transaction that is not face to face transfer of hard currency (and even then but…), you need an intermediary that both parties trust. Payment processors are that intermediary. Sometimes they are the person taking my IOU and turning it into money so that you can give me a hamburger. Sometimes that is effectively a courier making sure your money gets to me no matter where on the planet we are.
It is what lets us have transactions that aren’t “Okay, you drop your armor and I’ll drop my money and then we’ll slowly change places and… who the fuck just ran out of the bushes to steal the money I put down while waiting for you to put down your armor? And why are you now both doing the Carlton?”
Hmmm. Something still isn’t clicking in my head.