Back in the day, people were skeptical in giving out their personal information via the internet, much less their credit card numbers. Today, smartphone apps like Google Pay and Apple Pay are bringing the digital wallet convenience to allow for mobile payments in the checkout line which could very easily bring us into a cashless economy in the near future. A digital wallet is software that allows an e-retailer to securely store credit card or bank information and simply requires a password in order to unlock the payment. With this system, the game is changing.
Security and Convenience Make Consumers Feel More at Ease
The apps we are using for mobile payment are incredibly hard to hack into, providing a higher level of security over plastic credit cards and cash that can be easily stolen and misused. Through the digital wallet, consumers are not out of luck if they forget their money at home – plus paying with your phone is faster than swiping your card! Digital wallets are allowing customers to forget about the inconvenience and security threats of having their money stolen at any moment. These options are making their way into every store, bringing the amount of cash and physical credit card use down significantly.
How much is Hard Currency Losing Out?
Online shopping and digital wallet options are making electronic payments more convenient; and cash is falling behind big time. Forbes noted that almost half of the respondents in a 2014 survey carried no cash or less than $20. In a 2016 poll, only 24% of respondents admit to using cash for purposes compared to 36% in 2011. Not only is this trend hurting hard cash, but the places where we would usually drop some cash like church collections and workers who require cash tips are being affected as well. These groups are scrambling to find new ways to collect funds in a cashless way. However, it is not predicted that cash will completely disappear any time soon, but thanks to ecommerce, digital wallets are falling comfortably into the primary source for most all consumers. Among millennials, electronic payment is the top option and being used more and more each day. As this trend continues to rise among the emerging generation, the only cash that will be found in your pockets will be virtual dollars in a digital wallet.
The ecommerce industry is booming and will continue to do so as more and newer trends arise through the years. Because of this, cash will likely become more obsolete as consumers switch to the convenience and security of digital wallets and online purchases. Hold onto you dollar bills now, because one day they will likely be gone.