Interesting research findings emerged this week in America to suggest that the ‘mobile wallet’ could replace cash and credit cards as the preferred method of payment of goods in little under a decade.

Just under two thirds (65%) of the tech expects that took part in Pew Research Center’s Internet & American Life Project feel that public trust in smart-device swiping will be at such a high level by 2020 that “cash and credit cards will have mostly disappeared from many of the transactions that occur in advanced countries”.

The benefits of the ‘mobile wallet’

• Convenience factor. Those people backing the ‘mobile wallet’ to become potentially one of the most significant cultural changes ever think the convenience factor will be the biggest appeal to consumers – and it’s easy to see why. It’ll be quick and easy to get in and out of shops.
• Personal shopper. Shoppers will be sent details of relevant deals directly to their smartphones depending on their location and purchasing history as they peruse the shops hunting for bargains. Information for in-store loyalty schemes will also be hosted on the cloud, making it even more useful.

Concerns over ‘mobile wallet’ integration

• Accessibility. Critics are quick to point out that not everyone owns a smartphone and so the theory of mobile payments becoming widespread is flawed from the off. While an estimated 45% of the population in the UK have a smartphone and this figure has increased dramatically over the past few years, there’s still some way to go before everybody has one.
• Security. Will members of the public be comfortable storing a wealth of financial information on the cloud? How secure is near-field communication (NFC) to protect from hackers? It may be some time before people are convinced that it’s a safe way to pay for goods, while changing consumer habits will also take time.

The whole concept of the ‘mobile wallet’ is certainly an interesting one and services such as Google Wallet already exist.

Will it, though, become as commonplace as some experts believe?

Photo courtesy of Dominik Syka on Flickr