For decades, people pay for their purchases either with cash or charge on credit card. Both methods have become a way of life. When online shopping was made possible, people began using credit card more often. Not too long after, online banking becomes available, making it easier for people to move their money and pay their bills.
In the last few years, smartphones emerged as one of the most important innovations in technology, and all of a sudden millions of people around the world started relying on these devices for online shopping, Internet browsing, bills payment, and so forth.
Now the question is: will smartphone eventually replace cash and credit card payments?
According to an online survey by market research firm Harris Interactive, 66 percent of the 2,383 U.S. adults polled online, between Nov. 14 and 19, think smartphone payments will one day replace card payments. However, only 32 percent think that will happen in the next 5 years.
The Internet Retailer reports that 61 percent of the respondents believe smartphones will one day replace cash payments, but just 26 percent think that will happen in the next five years.
The poll also revealed that despite the increasing number of people who shop and pay bills online using their smartphones, many are still cautious when it comes to providing personal information via their mobile devices. Among the reason why few consumers today pay with mobile phones are:
*52% see no reason to switch from using cards or cash to make payments.
*51% don’t want to store sensitive information on their phone.
*50% do not use a smartphone.
*40% don’t want to transmit sensitive information to a merchant’s device.
*25% worry they will lose their mobile service or data connection and be left unable to make payments.
*15% worry a dead battery will leave them with the same problem.
*8% don’t understand how to use the technology.
*7% don’t know where they could make mobile payments.
*7% cite another reason as hindering their interest in using smartphones to make payments.
