If you like carrying cash and sorting through a wad of bills to find the correct change, you're not only a merchant's nightmare, but you could soon be the one being asked to wait while a clerk runs off to make change.
And it's not just cash that's coming under fire, credit and debit cards are too. Industry research shows that the average "plastic" transaction takes close to one minute to process, whereas through mobile payments, you can pay and be on your way in less than 12 seconds.
Consumers also increasingly like the speed and convenience of so-called "contactless payment," says David Hoffman, partner with PwC Financial Services. Hoffman says last year consumers spent over $2 Trillion on small money purchases of under $25. He predicts that 10% of such transactions will go mobile in the next two to three years, while the percentage of cash purchases declines, but not into outright extinction.
Like any technological leap, there are hurdles, such as reaching agreement over which is the best way to pay, and then getting merchants and consumers to agree. Currently, there are at least two major factions that have emerged in this battle for your bucks.Read More »from The Rise of Mobile Banking: Will Cash Become Obsolete?