Payments went on for decades, for star players who legitimately had name/image/likeness value in the market (to boosters). Now it is everybody at the college level, including walk-ons. Along with individual deals for the small minority of collegiate athletes who actually have marketing value, athletic department collectives (funded by wealthy alumni) ensure everybody gets paid. Guys like Cody Campbell, Phil Knight, and John Ruiz openly give their alma maters blank checks (in attempt) to buy their way to championships. It's also rampant in high school, even for some young men who won't ever play football at the college level.
I played P4 college football 25yrs ago, at a school with a legendary basketball coach known to hookup players with a specific booster. My experience: it was no secret that the best players were getting envelopes, but me and the other ~80 roster guys who were keeping the bench warm weren't. I got hooked up by my position coach with a cushy on campus job, but I did have to actually show up and they were pretty strict with works hours and pay being within NCAA guidelines. Athletic departments weren't even allowed to provide unlimited food/supplements (meal allowances) to athletes until 2014, now they're hooking up guys who haven't played a down with the VP of sales at the local Porsche dealership. I had an incentive to graduate in 4yrs and move onto the real world (I wasn't an NFL prospect and needed to start making money to support myself), now guys are suing the NCAA to get 6th, 7th, 8th years of eligibility to stick around at schools like Montana, because they're making more there as a backup LB than they would in the real workforce.
As a pretty staunch free market guy, I don't have an opinion about whether the current system is better than the (under the table) one I played in. But, I can say that the transferring and players getting extra years of eligibility that are a result of the new system is an absolute mess.