PAST AND FUTURE OF WAYS TO PAY
EARLY DAYS
The first trades were recorded in Egypt in 9000BC, as people began bartering surplus goods with each other. The first coins developed in China in 1100 BC, while in 600BC the first official state currency was launched in Turkey.
In early Roman days, soldiers were paid in salt, which is where the word “salary” is derived from.
In the sixth century AD, the first paper money began to be used in China, during the Tang dynasty. Then in 1250AD, the first major western European currency, the Florin, was developed in Florence.
In 1290AD, the first paper money was brought to Europe, from China, by Marco Polo. But the first European paper notes were not printed until 1661, in Sweden.
SCOTTISH COINS AND CURRENCY
In 1136, King David I of Scotland raided an English mint in Carlisle and began to create silver pennies in his own image – the first Scots royal coinage.
The coins were of similar worth to England’s and the two nations’ currencies were often mingled until David II ended this link in the 1350s. Scottish coins included pounds, groats, bawbees, dollars, shillings, unicorns and nobles.
After the union of the crowns in 1603, the currencies were linked once more, at a rate of 12 Scottish pounds to one English pound. After the act of union in 1707, the currencies were aligned.
In 1695, a year after the Bank of England was formed, the Bank of Scotland was founded and went on to produce the first pound note in 1704.
ENGLISH AND UK CURRENCY
The first Anglo Saxon pound, named after a pound weight of silver, with the £ logo being a fancy version of the L from the latin of Libra Pondo, meaning pound weight, was brought in by King Offa in 775. In 1078, William the Conqueror introduced the first shilling and it began to be commonly known as pound sterling by the 13th century. In England, King Henry VII was the first royal to appear on a minted pound coin, on a sovereign in 1489. By 1745, bank notes were printed from £20 to £1000, with the £10 introduced in 1759 and £5 after that.
CHEQUES
Some form of cheque was in use for centuries throughout the Arab world and the Roman empire and was brought to Europe by Florentine traders. The first British cheque was dated February 16, 1659, paid to a Mr Delboe from merchant Nicholas Vanacker, from city bankers Morris and Clayton. It is held in the Royal Bank of Scotland’s collection.
DECIMALISATION AND MODERN CURRENCY
In 1971, the traditional pounds, shillings and pence were replaced by decimalisation, with 1p, 2p, 5p, 10p and 50p coins introduced. The 20p was added in 1982, the pound coin in 1983 and the £2 in 1998. At the same time, £1, £10, £20, £50 and £100 notes were created, although the £1 was discontinued in England in 1988.
CARDS AND MODERN TECH
In 1946, the credit card was invented, with John Biggins’ Charg-It credit card. In 1951, the first UK credit card, Finders Services, was launched by Donald McCullough.
The first ATM was opened at a Barclays Bank branch in June 27, 1967, and then in 1987, the first UK debit cards were launched, with cashback unveiled in 1990. In 1998, debit card payments overtook cheques and in 2001 overtook credit cards. In 2006, chip and pin was launched in the UK and contactless payments in 2008. Apple Pay emerged in 2014, allowing mobile device payment for the first time.
THE FUTURE
Experts have predicted payments will be made by Alexa voice recognition technology and there will be increased use of cryptocurrencies like Bitcoin. In Sweden, people have been taking part in an experiment with implanted microchips in their hand.