Mobile applications are changing everything about the American experience, and money is no exception.
The Pew Research Center’s Internet & American Life Project recently released a report on the future of mobile money. One of the issues the study addresses is the extent at which mobile technologies facilitate financial transactions, and the speed at which consumers are adopting the technology.
Consumers are getting increasingly comfortable with the greater access mobile technology provides to their finances. Pew’s study shows that 21% of mobile phone users use mobile banking services. Those who use mobile banking services mostly do so to check account balances and review purchase activities.
The comfort level, however, seems to have its boundaries.
Consumers show reluctance when it comes to using their mobile devices to conduct financial transactions. In Pew’s study of mobile banking service users, only 12% used their mobile device to make payments.
While the mobile payment sector races to make the technology available and easy to use, consumer concerns about privacy and security stall its adoption rates.
Unlike cassette tapes that bumped 8-track tape players into oblivion, only to experience a similar fate when CDs were introduced, cash has demonstrated incredible resilience.
There was a time when merchants only accepted cash. Then came along checks. Next it was credit cards. Now, we are entering the mobile payment era, which will emerge as another form of payment that co-exists compatibly with its predecessors.
As mobile payments gain in popularity, cash needs to watch its back. It has already lost ground. According to an April 11, 2012 Rasmussen Report survey, 43% of Americans have gone a full week without using cash or coins as a means of payment.
While many argue that cash will always have relevancy in our society, its days as king are numbered.