Will mobile eventually replace cash?

Mobile has been steadily rising in use and has changed the dynamics of how people communicate and do business. Already, the movement towards mobile has transformed how society across the globe operates, and it is now being kicked up a level. As smartphones now dominate, trends have shifted once again.

One big question is will mobile eventually replace cash?

Rise of mobile commerce

People are now constantly connected and the technologies built into these devices are adding more possibilities than with traditional mobile phones. Mobile commerce (often referred to as “m-commerce”) has long been on the rise, and research analysts had long projected a huge boom over the next couple of years.

Back in 2010 Mashable reported, “Globally, consumers are expected to spend $119 billion by 2015 through their mobile phones, accounting for about 8% of all e-commerce activity, according to ABI Research” and ” The total value of mobile payments around the world will quadruple from $170 billion in 2010 to $630 billion in 2014, according to Juniper Research.” 

That time has arrived and m-commerce continues to grow. The ways to use mobile to make purchases continues to be integrated with retail, however, mobile wallets still have yet to take off. In 2017, just 16 percent of people in one survey said they use this form of payment.

So the question remains, will mobile eventually replace cash?

A natural progression?

Credit cards have long been in use and still dominate payment methods in the United States. With the anticipated growth of the very convenient mobile commerce, it seems natural progression that a simplified and convenient way to make payment would also evolve. However, will consumer behavior hold this technology back from immediate adoption? Or will people learn to adapt like they have with other types of technology? Or is the problem with retailers being slow to adapt?

Future of mobile payments

Methods of mobile payment have been evolving, with the concept of e-wallets, it seems this is the future, as the newest method of replacing cash arises. It's already happened in China.

One of the initial problems with mobile wallets was security, conversions and compatibility issues, but these issues seem to be actively addressed as industry experts and retailers have been steadily working on these.

Society has long embraced convenience and with using a one-device-fits-all approach, using plastic and electronic methods to replace money appears to be the new generation of an increasingly cashless society. In modern society, convenience usually trumps all. Retailers recognize this and many are beginning to offer contactless payments. There is also a benefit to businesses as contactless payments allow faster processing and keep lines moving.

Will cash go extinct?

Will all being said, will people really adopt mobile wallets on a large scale? Will cash really go extinct? There is some evidence to suggest not yet, so mobile wallets eventually dominating are possible - although probably a bit of a ways off.

There is an exhibit down at the National Museum of American History in Washington D.C. that I find fascinating. It displays examples of the various types of ways people have used money throughout history. Will 20th century currency be replaced at some point during the 21st century and be shown in these types of museums?

Have you used mobile to make purchases instead of cash?