Are mobile payments set to overtake credit card payments?

Cash or card… or mobile? While a move towards a cashless society seems imminent and is already well under way elsewhere in Europe, it’s predicted that it might not be too long until we go cardless too in favour of mobile payments.

The advances in mobile phones have already reduced many people’s need for things like paper maps, cameras and even computers, so it makes sense that the item we use to do everything else becomes the item we shop with too. But what are the arguments in favour of mobile payments over credit cards?

Less to forget

Phone, wallet, keys — it’s a lot to remember when we’ve got so much else going on in our lives. Using our phone for payment means one less item to pick up as we walk out the door, which is especially convenient for those who often step out while on a phone call or plugged into their music anyway.

As well as freeing up room in our pockets, ditching the credit card gives us fewer things to lose when we’re out and about too. While many of us are glued to our phones, it’s common for people to misplace a wallet or drop a card.

Lower risk of theft

Credit cards might offer a handy way to keep our finances under control, but they have also proved to be open to fraud in the modern world. If one does fall into the wrong hands, authentication signatures at the point of sale can easily be copied and missed by staff at the till, or payments can be made online without the need for a pin number.

While a phone is just as easily stolen, many modern devices require a fingerprint for access, while tracking software makes it possible for owners to hunt down their missing possession.

A new generation

Millennials have grown up at the same time as the smartphone has risen to prominence. They’ve driven its adoption, so it’s logical that they’d be the most interested in mobile payments.

People are easily influenced by their elders, so this changing preference is likely to trickle down to younger generations who come to rely on their smartphones more than any other generation before them.

Technological advances

Think how far smartphone technology has progressed since it first came out. While some scepticism around mobile payment remains, technological advances in security and so on are only likely to make mobile payments more and more attractive to society.

Money is a sensitive subject and big changes are always likely to be met with suspicion. However, the research and investment being put in by tech companies across the globe is highly likely to pay off in the long run.

  

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