Photo: Debenhams on Flickr
With smartphones quickly becoming the newest vehicle for consumer spending, the question stumping experts isn’t if cash and credit cards will eventually die out but when.The majority say the transition could happen as soon as 2020, but others aren’t so positive.
A new study conducted by the Pew Research centre showed one-third of 1,000 respondents questioned said there’s no way people will trust technology enough in the next decade for the that prediction to ring true:
“For starters, not everyone will use a smartphone. Other analysts raised questions about whether credit card companies will move away from the current profitable system in the developed world. Other concerns include the potential susceptibility of (devices) to hackers, market fragmentation, and lack of interoperability of mobile finance systems due to the many different platforms being developed and implemented, and questions about whether consumers will feel comfortable storing the intimate details of their financial lives in the cloud,” according to Pew.
Let’s start with privacy fears. Plenty of research has already proven that the more consumers sync their personal and financial date with smartphones, the greater their risk of identity theft. Not to mention the fact that PayPal’s already caught heat for its less-than-stellar security setup.
Couple that with the fact that boomers have hardly warmed up to the idea of a cashless society as quickly as younger consumers and it’s hard to imagine such a huge leap occurring in less than a decade.
Chances are both sides have it right: We’ll ditch paper and plastic for sure. Technology just has to catch up to us first.
See what all the fuss is about: Take a tour of PayPal’s awesome mobile wallet tool >
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.