The Wallet is Empty but the Account is Full

In a recent Mashable web site article, it appears that your wallet and everything in it involving payment will be antiquated by 2015.

Given that the prediction was offered up by PayPal president Scott Thompson at the announcement of its 100 million active accounts, it does smack of favoritism -- PayPal benefitting from the prediction becoming true.

Yet you have to admit, it is a real possibility.

With the ever-increasing use of smart phone technology, digital currency is gaining speed and local stores through large retailers will undoubtedly get the software to accept these kind of transactions in four or five years. The precursors of Mastercard’s PayPass and Exxon/Mobil’s Speedpass have proven that consumers appreciate “less time in checkout, less fumbling with paper.” And of course, despite the horror stories of mistaken identity and horrible snafus –resources like E-Z-Pass is practically a given when driving on major roadways – especially when there’s a discount when using it vs. cash.

Is there another side to this story?  Whenever there’s a new technology or distribution system, there is always the concern of losing what is the norm.

Direct marketing, catalogs, the internet  offering ecommerce sites in 1996, these were all developments that led to predictions of the death of retail stores. Didn’t happen.

Cable, satellite dish, the internet, smart phones, tablet technology that could lead to the death of broadcast television.  Didn’t happen.

E-books leading to the death of published books –no resuscitation measures just yet. However,  retailers like Borders which have failed to heed the signs of alternate distribution channels for reading material are not doing well financially.

So the death of cash and limited use of credit cards is probably not our immediate future. Your wallet and its contents will remain useful for a while longer. But you can bet that while we adapt to alternate payment strategies, consumers will have to get used to keeping even better track of their money and payments– whether it’s digital or not.