Electronic money is replacing papers and coins.
Photo from mangpages’ flickr
We get more incentives when we use our debit/credit card to pay for our purchases. Points accumulate to discounts and even cash. It is more convenient as you only have to scan your card, no counting of paper money and no burden of the clinking coins. I don’t see why we won’t use this.
Apple is rumored to be developing “Near Field Communication” feature in their devices. When brought to fruition, people can use their iPhone and iPad to do the paying for them. The latest software of Apple though has Passbook. It has the all the coupons you need. Another coupon managing application that is more accessible to most smartphones is Groupon.
75% of the world’s population has mobile phones (Fitzpatrick, 2012). As smartphones increase in popularity, its functionality of being a wallet is emerging. You can now use PayPal for store transactions, a leap from their famous online paying platform. Google Wallet keeps the record of your debit and credit accounts for in-store and online use. All you need to do is tap your phone to pay.
Money has changed many times, and maybe we’re seeing another cycle right now. It is argued that the oldest form of money is cattle, around 9000 to 6000 B.C.. Then money, well, became easier to tame as people used the “most widely and longest used currency in history”, Cowrie shells. And through the course, it became bronze, copper, leather, paper and gold (NOVA, 1996).
It’s rather queer that the modern money is transitioning from tangible to abstract. The future of money is imaginary but still agreed money. People would have to believe that they’re working for money that will go directly to their bank and accessible via their phone. They won’t have to see them. Oh, I guess neither will we see our wallets.
Do you like the future’s electronic money?
SourcesThe History of Money; Nova
Apple Plans Service That Lets IPhone Users Pay With Handsets; Bloomberg
75% of World Has Access to Mobile Phones; Mashable
Inspired by BennyBuzz’s Future of Money
Moment Matters 
No coin/paper money is brilliant for government. One one think it is modernization of commerce. Nope. The IRS is licking their chops. No more underground economy.
Soon enough- just scan the barcode implanted in say your hand or forehead. Hmmm- another old idea. Let’s see, where have I heard that before!! 😉
Sent from my iPhone
IRS isn’t the only one licking their chops. Banks and credit card companies love it too. They may not be charging the consumer (yet) but they are charging the businesses and those fees will/are being passed on to you. Electronic money is not free!
Nope, I like using cash. I know businesses aren’t being charged for my use of plastic to pay, I also like that my purchases aren’t tracked when I use cash. I will be a last hold out when paper money and coins are obsolete.
I agree with you. Besides no business has EVER turned away legit green and coin money. It is also easier to keep track of your money amount and where it goes.
Isn’t that the truth. When I look in my wallet I want to see the money stay there. I hate to part with it and I am more apt to see where I might have spent money I shouldn’t have.
As long as its safe, I’m up for it. Although the whole tracking issue has its pros & cons…
I don’t think it is a good idea at all as said above it isn’t free someone is paying for it. I know where I live a lot of places now have a set amount if you don’t spend that much or more they won’t let you use a card to pay. When you pay for gas if you don’t pay with cash they are charging 6cents or more a gallon for putting it on a card. If it is a credit card you are not only paying intrestest on what you buy or pay but some places now charge you a fee to pay them with a card and not cash because they are getting fee’s for each card they take. I think the pay me to take your payment thing is crazy but it is happening more and more places and I can’t believe more people are not complaining.
Plus what happens when your money is supposed to be put where ever when you get paid or when you pay for something at the store and for whatever reason it don’t get done right or something happens and it don’t get changed to the right person. What kind of night mare are you going to go threw to get it taken care of when all you can get on the phone is a machine?
I agree with you. We are some businesses have lost business because they wouldn’t take minimum amount (under $5) so people went elsewhere to buy things. Never mind cash hasn’t charged for using it. Months ago, the banks were warning they were going to charge $5 a month for the use of debt cards because a lot of people used them to pay for purchases. Had to back off because people decided to close their accounts and move their money elsewhere. Proving there is power in numbers!!
I go other places if I don’t have $5 or more. I feel they are forcing you into spending more money than you wanted too. I also only buy gas with cash. I use to do everything with my card now I keep my cash on me not in the bank so that I don’t have to worry about it anymore.
The sooner the better, I say.
My first reaction is “never.” But then, never is rather a strong word. One will never know. For me, I have been on cash basis for the last three years. But when reserving for hotel and paying for airline tickets, things in that nature, there is no way to avoid not paying with a credit/debit card. I do not use my debit card for purchases at all. Knowing friends who have gone through identify thefts and bank accounts hacked, I minimize the potential by restricting the use of my credit card and giving third parties my information. So far, it really helps me managing my spending…get what I need and not what I want (at least most of the time.)
There should be more of us following your methods!
They will especially be missed when the electricity goes out (i.e. northeast) and the plastic don’t work.
Reblogged this on Welcome to Hakes' Virtual Cafe.
Right on!!
Nicely done.Very thought proviking on issues such as autonomy (or lack thereof) and sytemic financial market risk.I beleive the intangible component you refer to in your piece is component of the current financial distress the worldwide market is under.
A must-read on the subject is G. Edward Griffin’s “The Creature from Jekyll Island“. I think you’re right; the trend is currently away from tangible money, just as we moved away from gold-backed money that held true value. If you’re not reading anything right now, go pick it up. Today, seriously.
This one I have to comment on. Call me old fashioned–maybe even paranoid- but what I’ve been seeing for some time is the insiduous infringement on our rights as humans/citiizens. You want to be paid in script? Or trust another that you’re being paid at all? I’m not a sci-fi fan, but I remember once reading about a robotic society–where robots rule and us humans work for them. Don’t remember title/author but it was before the advent of PCs–and my first one of those was a Commodore 64. .
There are definite positives and negatives……..I definitely won’t miss coins though……:)…….happy my post “It’s Time to Stop Running” was a blessing to you
Yes and no. I like to immediate access unfortunately it’s also easier to spend.
Actually, I believe, money is more worthless now than ever before. Not linked to any commodity, it used to be gold. May as well trade in monopoly money.
Today’s money is just fancy bits of paper. So much easier to de-value. The real money, are commodities of rare metals, oil, etc. These commodities are, even more, in the hands of the worlds richest family.
So long as people have something tangible to trade? The “underground economy” will continue to prosper.
I personally look forward to the integration of mobile devices with the financial world. With direct deposit I never see tangible money. I will usually carry around $20-$40 in case a situation arises where a credit card is not an option. Some people might look at their phone as just a phone. To me it has become a part of me. As weird or creepy as that might sound I’m quite content with that.
I’d like to not have to carry my wallet around with me. The only thing it holds is a credit/debit card, my driver’s license, and that $20 to $40. I only see the importance of mobile devices increasing in our future. Security issues will have to be an integral part along this interesting journey we’re on. I look forward to seeing what the future holds for us.
Just wait til wearable tech takes off. I love this new world of tech we’re living in. I embrace the change.
I forgot to compliment you on your writing. Well done. I look forward to reading more of your articles. Especially anything tech related.
Awesome. Thank you David, looking forward to read more of your thoughts.
I’m all for it, speaking as someone who rarely carries the correct change and uses a debit card for almost every transaction.
What if a friend wants to borrow a small amount of money though? Would you simply transfer between accounts?
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This is a great article. Here is my contribution:
Alls I know is that when I used my debit/credit card in Costa Rica (I live in US), I was charged a processing fee for each transaction.
LOL this stuff is laughable.
More and more banks in Sweden do have any cash what so ever – today … feel sorry for all elderly that don’t have internet and smart phones. We will have a total personal connection free society in a couple of years – everything will be done over internet and smartphone. Glad I’m so old as I’m.
In what seems like a strange step backward in the mobile payment space, Google Wallet is close to launching a physical plastic card, according to Mobile Payments Today . So much for all the oracles predicting the imminent fall of cash and plastic. The card would link to accounts stored within the Google Wallet app and could be used for transactions at retail locations where contactless near-field communication payments (aka “tap and go”) aren’t available. As we noted recently, the slow adoption of wide-spread NFC infrastructure has indeed been a major contributor to the mobile wallet’s immobility .
Oh, I had a research on virtual money. Not many people are used to it, but the trend is comprising. So yes, bubye paper and coin money in the future. 🙂