The future of Digital Payment solutions>
Some financial experts have made the forecast that in ten years’ time many societies around the world will be operating without cash. Say goodbye to banknotes and coins, soon enough stores will display signs indicating that they will only accept contactless cards or mobile payment methods.
This has worried some but the trend is quite indisputable: a report from 2018 shows the projected decrease of cash payments over the next 4 years.
Chart by MerchantSavvy.co.uk | Data Source: Worldpay's 2018 Global Payment Report
What is interesting to note is that while cash payments are in a steady decline, there is an equally abrupt upward change with Mobile Payments. This is due to the rapid expansion of the Internet to all sectors of public and private life. In addition, new payment solutions are developed every year which compete with both cash and bank cards.
[DID YOU KNOW? In China, 525.1 million people now use mobile payments rather than cash!]
Countries like China are seeing a boom in Mobile Payments. Phone applications such as WeChat or Alipay allow the Chinese to pay with their phones in almost all shops and stores in their country.
In Denmark, a growing number of stores and restaurants allow you to pay by scanning a QR code with an app in your phone, allowing them to instantly deduct the funds from their bank account. Naturally, this is a concern for many: while cash also has its risks, contactless cards and mobile applications can easily be abused by thieves and fraudsters.
If the trend continues, governments may decide to stop printing and coining money in the near future. Many experts have voiced concerns against such a move, and financial experts usually address two sensitive topics if we choose to move to a cashless society.
First, the security of digital payment solutions is not as rigid as one would like it to be; a hacker can potentially drain the bank accounts of tens of thousands of users. The second point often addressed is that rural areas and economically poor regions will face an unfair disadvantage, as they don’t necessarily have the means to own mobile phones or even open bank accounts.
The world is currently geared for rapid change and we have to be ready to adapt quickly to the new trends. Will a cashless society be the next step in the evolution of human civilization?
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