Skip to main content

Study: By 2020, smartphones will replace cash and credit cards as the preferred payment method

Starbucks-Mobile-Payment
Image used with permission by copyright holder

Do you already use your smartphone to make daily purchases instead of cash, debit, or credit cards? If so, you’re on your way to contributing to the study that believes by 2020, mobile payment will make all other payment methods obsolete.

Seeking the opinions of 1,021 “Internet experts and other Internet users,” the findings come from the Pew Research Center’s Internet & American Life Project and Elon University’s Imagining the Internet Center. This research concluded that 21 percent of smartphone users say they already use their smartphones to pay the bill and two out of three respondents believe people will begin migrating toward the method by the decade’s end. The survey considers Near Field Communication (NFC) such as the Google Wallet technology and the Square mobile card reader as forms of mobile payment.

“By 2020, most people will have embraced and fully adopted the use of smart-device swiping for purchases they make, nearly eliminating the need for cash or credit cards. People will come to trust and rely on personal hardware and software for handling monetary transactions over the Internet and in stores. Cash and credit cards will have mostly disappeared from many of the transactions that occur in advanced countries,” the survey statement said. About 65 percent of people agreed, though 33 percent noted they do not trust devices using NFC because it will not allow people to physically swipe or enter their information in for maximum safety and reliability. With the recent Google Wallet hack, it’s not surprising why.

The rise of mobile payments is definitely attributed to more smartphones being made and sold, slowing easing out the old days of app-less devices. Paying with a device you already use for everything else consolidates all your belonging in one place so you don’t have to carry around a bunch of items in the future to serve various purposes.

“There is nothing more imaginary than a monetary system,” survey respondent and Harvard University professor Susan Crawford wrote. “The idea that we solemnly hand around printed slips of paper in exchange for food and water shows just how trusting and fond of patterned behavior we human beings are.”

Still, with one third of correspondents still wary of mobile payments overtaking past patterns, there are still some security fears floating about the idea. Especially with NFC devices which can access your personal information through just several taps, perhaps people are not ready to make the complete move toward a smartphone domination. Losing your wallet is traumatic enough, but losing a phone which has your bank accounts and the rest of your life in would be a bigger devastation.

What about you? Would you prefer to use your smartphone as the new way to pay, or do you prefer to stick with cash and cards?

Natt Garun
Former Digital Trends Contributor
An avid gadgets and Internet culture enthusiast, Natt Garun spends her days bringing you the funniest, coolest, and strangest…
HMD’s first phones just leaked, and I’m mighty disappointed
HMD Pulse leaked image in black.

At Mobile World Congress (MWC) 2024, Human Mobile Devices (HMD) – the maker of Nokia-branded mobile phones – announced plans to make “affordable, beautiful, desirable, and repairable” phones. We also got our first look at the new HMD logo for phones, but what truly set the hopes high were the teaser images (like the one shown above).

The visual assets released by the brand showcased phone concepts in yellow, green, and pink, among other colors that brought back the sweet memories of the Lumia-Windows Phone days. The bright colors, flattened edges, and palm-friendly rounded sides had me more excited for these upcoming HMD phones than for some flagships lined up for a 2024 reveal.

Read more
Heineken, the beer company, just launched a phone
HMD, Heineken, and Bodega's Boring Phone.

What happens when Human Mobile Devices (HMD), Heineken beer, and a Boston-based streetwear brand named Bodega meet over some Lithium lager and discuss humanity’s unhealthy digital obsession? They make a phone. And they decide to call it the “Boring Phone.”

Is this just another attempt to capitalize on the latest dumb phone trend that even had The New Yorker spilling digital ink over it? Yes. Is it the most stunning retro-modern gizmo to come out after the Pocket Analogue, and will it make any nerd lose their sleep? Also yes.

Read more
The 6 best tablets for kids in 2024
Fire HD 6 Kids Edition

Tablets, which cater to a wide range of purposes, are also excellent devices for children. Younger kids will be able to access educational and entertainment apps with a tactile experience because of the devices' touchscreens. while older kids can use them for their schoolwork and recreational activities. However, not all tablets in the market are designed for children, so to help you decide what to buy, we've rounded up the best tablets for kids of all ages.

There are no limitations to the learning and creativity of children, and a tablet will help them develop their knowledge and skills like no other gadget can. While it's still necessary for parents to guide their kids in maximizing the use of their tablets, it can't be denied that the device has the potential to be a useful tool for your children as they grow up. Buying them one of our recommended tablets below will make sure that they get an appropriate device for their age, as we took into consideration several factors that prioritize your kid's well-being above all else.
The best tablets for kids in 2024

Read more