Over the past decade, smartphone and a wallet with cash and credit cards have become total essentials for everybody to carry around. Only several years ago using checkbooks along with the rising popularity of plastic credit cards with a magnetic strip seemed to become outdated. Still, the evolution of business and technology has its own influence on the payment system.
That’s when electronic payments have merged together to create solid payment methods with no additional use of cash and even cards making the last ones “a thing of the past”. Now that you can travel without your credit card, maybe you do not need it at all? Let’s find out.
Stores Refuse Processing Credit Card Payments
The latest move by the Canadian Walmart proves that some of the retail stores have no interest in sponsoring this form of payment. North America’s largest retail supermarket chain applied to Visa Walmart refused accepting purchases paid with Visa credit cards considering their fees “to remain unacceptably high”. In fact, the store’s annual commission reaches up to $100 million each year.
People all over the world think carrying several credit cards in their wallets is super inconvenient. They could simply mess up the time of their next debt payment, not to mention most of the people possess smartphones with cool payment apps which is a great substitution to the majority of traditional checkbooks and wallets. But even though it sounds quite clear, the practical appliance needs to be supported by new innovative projects.
Trends in Mobile Payments
The number of smartphone users has increased all over the world: over 2.7 billion people now have access to the new technology of digital payment, the volume of which in 2015 has reached to the point of $450 billion indicating a slow “death” for bank cards.
The digital wallet revolution is widely supported, especially in economy-developed countries, like Australia, Japan, and the USA. However, mobile phone money transactions are rapidly supported in India, Kenya, Philippines, and many other countries, where most of the people live in remote villages with no availability to reach their financial institutions.
Companies Support Digital Payment
Multiple companies are now working on providing a cashless and cardless future, including giants like PayPal, Coin, Apple, Google, etc. Last year the Coin company launched the second version of their Coin gadget that allows people to digitally store of their credit, debit, and gift cards, manage them in one place and make purchases.
Not to say that Apple Pay and its analogs Google Wallet, Square Wallet, and many others managed to turn IOS and Android phones into an actual online wallet letting its users purchase things at stores and through apps in an easy, secure, and private way.
The use of those payment gadgets is a huge step ahead as they offer consumers a convenient and simple mode of financial transactions using smartphones that we’re used to always carry around with ourselves.
How It Works
For those, who didn’t know, there are 3 ways of performing the mobile payment: through SMS or USSD (equal to sending messages); Mobile Internet (Internet access is necessary) and through Contactless or Near Field Communication, in other words, short radio transmission (the same as with using credit cards).
The main problem is that most of the world would prefer switching to NFC instead of commonly used SMS/USSD and Mobile Internet nowadays explaining Near Field Communication doesn’t require a network connection and there’s only NFC reader/writer necessary for the transaction (besides the smartphone itself). Another Bluetooth Low Energy technology can operate offline as well – moreover, it even enables the money transfer without the phone’s direct contact with the payment outlets for payments.
Related: 4 Apps to Send Money
How Fast Would We Adopt This Technology?
The world’s economic situation is not stable, which means some of our post-industrialized countries would likely adopt the cashless technologies, meanwhile, some of the world’s yet developing countries are still dependent on cash transactions because most of their population has no access to bank accounts.
Moreover, in spite of the fact that people are fully introduced to the new digital technology of payment, they still feel very unsafe to perform their money transactions through smartphones apps and rather rely on traditional payment methods. It is still a question when we’d be ready to substitute our credit cards to electronic smartphone wallets.