Experts: Most People Will Make Purchases Via Phones By 2020
A number of recent indicators including a newly released survey by Pew indicate that there is an expectation that cash and credit cards will become obsolete by the end of the next decade.
- According to the Pew Internet & American Life Project 65% of the respondents believe that most people will have fully adopted the "mobile wallet" as their day-to-day means of paying by 2020.
- The audience of this study was over from over 1,000 respondents.
- Current applications that enable electronic transactions are Google Wallet and Square.
- Another indication of the growing trend is in a report from comScore where 38% of smartphone owners used their smartphones to make purchases.
- An earlier Pew study noted that one-third of smartphone owners had used their phone to do some sort of banking (such as checking their balances or paying bills) and that nearly half (46%) had paid for an app with their phone.
Editor’s Note: While Experton Group agrees that the trend is in this direction, there is a lot that must be done to ensure that electronic transactions from handheld devices are not compromised. This is a multi-sided challenge as the solution must take legal, regulatory and practical aspects into consideration.
It is expected that a financial and technical consortium needs to be created to address the challenges and opportunities created by this trend. This will not occur overnight.
IT executives should be wary of early adoption.