Backtest · Payments · 1990–2025

Cash infrastructure kept out-filing online payments until 2015. The rate ran six-to-one the other way.

Online payment systems entered the patent record in 1995. Within three years they measured roughly 100%/yr against cash-payment infrastructure's 26%; by 2004 the reading was 331%. The world's cash-handling industry kept filing, and kept building, for another decade.

Computed from patents public at each date · no hindsight
01 · The consensus vs the rate

A century-old infrastructure kept filing. A 300%-a-year challenger kept compounding.

Cash-payment infrastructureOnline & mobile payments
The consensus · what the industry filed
New patent families per publication year
The rate · the signal
Estimated improvement rate per year, computed from patents public at each date
GetFocus platform export · 1990–2025 · what the platform would have said at the time, computed from patents public at each date
02 · The timeline · against the rate

Thirty years of payments history, against the fastest rate in this library.

Rate readings are platform output computed from patents public in each year. Note that the incumbent's own rate is respectable, this case is about the gap.

1995

Online payments enter the record.

The first online-payment filings appear as the commercial web opens. Cash infrastructure: ATMs, POS, cash handling, has been filing steadily for decades.

THE RATE READ
ONLINE 25.7% · CASH INFRA 26.1%
1998

PayPal's ancestor incorporates.

Confinity is founded; internet checkout becomes a product category. Three years in, the online series already reads four times the incumbent.

THE RATE READ
ONLINE 99.9% · CASH INFRA 25.6%
2004

Alipay launches into the reading of the decade.

China's e-commerce boom begins. The online series measures 331%/yr, more than ten times cash infrastructure. Banks worldwide keep expanding branch and ATM networks.

THE RATE READ
ONLINE 331.2% · CASH INFRA 28.3%
2007

M-Pesa proves a phone is a bank.

Mobile money launches in Kenya and reaches national scale within a few years, leapfrogging card and cash infrastructure entirely.

THE RATE READ
ONLINE 303% · CASH INFRA 29.6%
2010

Stripe reduces payments to seven lines of code.

Developer-first payments arrive; every website becomes a potential merchant. The reading peaks near 390%/yr.

THE RATE READ
ONLINE 390% · CASH INFRA 29.1%
2014

Apple Pay puts the wallet in the phone.

Contactless goes mainstream in the West. Cash-infrastructure filings still exceed online's, the consensus has not caught up.

THE RATE READ
ONLINE 229.7% · CASH INFRA 29.5%
2015

The filing crossover, twenty years late.

Online payment filings finally pass cash-payment infrastructure, two decades after the rate first pointed there.

THE RATE READ
ONLINE 233.3% · CASH INFRA 29.6%
2020

The pandemic settles it.

Contactless and wallet payments surge; cash usage collapses across advanced economies. The infrastructure built for cash starts to sit idle.

THE RATE READ
ONLINE 281.6% · CASH INFRA 32.1%
2023

The incumbent's bill arrives.

Diebold Nixdorf, the world's dominant ATM maker, files Chapter 11 on 1 June, restructuring $2.7 billion of debt in 71 days.

THE RATE READ
ONLINE 261.5% · CASH INFRA 32.9%
03 · The reasonable arguments at the time

Smart people chose the loser for defensible reasons.

The people who kept investing in cash infrastructure were not fools. Their arguments were institutional truths, about everything except the rate.

“Cash is universal and resilient.”

It works in a blackout, needs no account, and settles instantly.

All true, resilience arguments held ATM investment steady for twenty years while transaction volume migrated.

“Trust takes generations.”

Banks assumed consumers would never hand payment credentials to websites, then phones. Adoption followed the technology's rate, not the trust forecast.

“Regulation will slow it down.”

Payments are among the most regulated consumer technologies on earth. Regulation shaped who won online, it never changed whether online won.

“Our own numbers are fine.”

Cash infrastructure improved at a healthy 26–32%/yr throughout. A respectable rate is still the losing bet when the competitor runs at 200–390. The rate is comparative, always.

04 · The bill

What twenty extra years of cash infrastructure cost.

$2.7B
Debt restructured in Diebold Nixdorf's June 2023 Chapter 11
20 yrs
Between the rate divergence (mid-1990s) and the filing crossover (2015)
331%/yr
The online reading in 2004, while banks kept expanding cash networks
$2.7 billion restructured: Diebold Nixdorf, the world's leading ATM maker, filed Chapter 11 on 1 June 2023.
A stranding infrastructure: global ATM fleets peaked in the late 2010s and have declined since, as cash transactions collapsed across advanced economies.
Two decades of misdirected filings: the cash-payment industry out-filed online payments every single year until 2015, on a technology with a tenth of the improvement rate.
The counterfactual: every incumbent bank and processor could read the 331%/yr signal in 2004; the ones that did built the wallets everyone else now licenses.
05 · Beneath the rate

Same tempo, radically bigger leaps.

We forecast the improvement rate from two citation metrics, cycle time and knowledge flow. Both were visible the whole time.

Cycle time
Years between invention generations, shorter is faster
Knowledge flow
How much later work builds on each invention, higher is bigger leaps

Like storage, this contest was not decided by cycle time, both technologies iterated every four to seven years. It was decided by knowledge flow: online payments climbed past 3, the highest in this library, while cash infrastructure stayed under 1. Each online-payment generation redefined the field; each cash-infrastructure generation refined a machine.

Provenance. Every patent carries a filing date, so the record can be replayed: every improvement rate on this page uses only the patents that were public at the time. No hindsight enters the series. Chart data: GetFocus platform exports, August 2026. The historical facts below come from the public record.

Sources
  1. Bloomberg Law / Law360: Diebold Nixdorf Chapter 11 filing, S.D. Texas, 1 June 2023 ($2.7B funded debt; Jones Day case summary).
  2. Company histories: Confinity/PayPal (1998), Alipay (2004), M-Pesa (2007), Stripe (2010), Apple Pay (2014).
  3. Central-bank and BIS studies on declining cash usage in advanced economies, 2020–2023.
  4. GetFocus platform exports: cash-payment infrastructure vs online/mobile payment datasets, 1990–2025.
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