Mobile Phones to Replace Cash
Imagine walking out the house each morning with no wallet, no money, no credit cards; just your keys and your mobile phone.
According to research commissioned by PayPal, shoppers will be able to purchase their high street goods via their mobile phones by 2016.
PizzaExpress and Starbucks are already allowing customers to pay in-house via their iPhone App. Other retail stores, such as River Island, All Saints, Next and Topshop all have apps allowing customers to browse and pay for products from their phone. Many UK retailers, such as ASOS, AlexandAlexa, Ted Baker, The Book Depository and House of Fraser already allow their customers to checkout online using PayPal, where card details are stored in their account.
You can imagine the implications of this exciting digital switch over the next five years, for busy business men rushing from meeting to meeting, and families with small children, who are more likely to pay for convenience if it means lunching at a restaurant allowing them to express checkout from their phone.
Increased competition between high street stores and restaurants, will put brand names under more pressure to invest in digital technology and mobile applications, allowing their customers to download free applications onto their smart phone. More people will choose smarter phones as part of their next contract deal.
The merge of the high street with online payments, means future generations will find it natural to be cashless. By contrast, it is likely that many elderly people who do not have mobile phones, will continue to purchase their goods via old fashion methods.
The negative effects of reducing cash spending, could mean more debt problems, if individuals are not monitoring their spend levels. The quick and convenient selection of a digital ‘buy now’ button could become an addiction for many consumers. Although increased sales is good news for high street stores, increased debt problems is not.