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…
The camera on this Android phone is confusing, but I love it
The back of the Tecno Camon 30 Premier.

I’m all for a lot of detail, and love to hear about the new technology that’s inside a smartphone I’m about to test, but when I have to search for an explanation of what something means, it’s not a good start. The Tecno Camon 30 Premier suffers from this problem, as it has a lot of cool camera tech that is explained in a mystifying way.

So, I thought the best thing to do was to just ignore the tech speak and find out if it takes great photos the old-fashioned way.
What's the problem?

Read more
The 5 best phones with IR blasters in 2024
The OnePlus 12's camera module.

IR blasters used to be a common component in smartphones, with big products from Samsung, OnePlus, and TCL giving users access to the cool gadget. Phones equipped with IR blasters could be used as a universal remote for your other electronics, making it easy to control your gear without the need for their default controller (which might be clunky and unintuitive to use).

Fast forward today, and attempting to find a smartphone with an IR blaster is shockingly difficult. What was once common technology is now relegated to just a handful of smartphones. You won't find any iPhones or Galaxy phones with IR blasters, but that doesn't mean you have to settle for a poorly reviewed smartphone if you're interested in the tech. You will, however, probably need to settle for either OnePlus or Xiaomi, as they're the two key players still churning out powerful smartphones equipped with IR blasters.

Read more
Why you should buy the iPhone 15 Pro instead of the iPhone 15 Pro Max
Natural Titanium iPhone 15 Pro with Chopper and BD-1 droids around it.

Apple releases multiple iPhones every year, offering folks choice in terms of size and features. In 2024, the iPhone 15 lineup includes four distinct models.

The regular iPhone 15 and iPhone 15 Plus are great for those who don’t need a telephoto lens and don’t care about the Action button or the 1TB of storage. But anyone who wants a more “pro” experience has the iPhone 15 Pro and iPhone 15 Pro Max.

Read more