While credit cards and debit cards have become the primary means of conducting these transactions, a segment of the market, specifically individuals and small businesses, could not readily accept card payments from others. This demand for an alternative way to make payments on the Internet eventually led to the development of new payment options, such as PayPal.
Its impact on the banking system, which is rooted in the real economy, has been violent. Though shaken, it has endured. Now that the indicators point to a more favourable economic outlook, banks must put themselves in a position to effectively counter future risks. Europe now has a common regulatory framework for bank crisis management.