Will the wallet soon be replaced by the smartphone?

These days, our wallet and cell phone are arguably the most important items we carry with us on a daily basis. While we use the former only for a very specific purpose, to pay for our purchases, we use the latter whenever the opportunity arises. Why not combine the two options?

Science fiction?

Experts have looked into the matter and concluded that it would be simpler and more economical to do everything with a cell phone. Even better, for example, if the smartphone provided information on how to find the best prices, saving us from having to search all over the city for an item. Once you've made your choice, you could call the store that sells the merchandise in question to ask for it to be held for you while you go there. The purchase and payment could even be made using a smartphone-based mobile reader developed by Verifone. And that's not all: the purchase would incur no transaction costs, or only a minimal amount compared to the fees usually charged for traditional credit cards, since the entire process would be financed by advertising.

The idea is not really new.

Although this market has so far maintained a discreet existence, "Mobile Payment" solutions have already existed for several years. However, the technological solutions offered are not very practical, and therefore not very convincing. However, the situation could soon change. According to a study by the consulting firm Edgar Dunn & Co, mobile phone payments could increase nearly tenfold worldwide; we are talking about an increase from $78 billion currently to $618 billion in 2016.

More and more companies are working on projects of this kind to break into the market. Among others, some of the most well-known web giants such as Google, Apple, and eBay are among the most interested in this idea of transforming smartphones into wallets, as it would represent significant new sources of revenue for them.

Source: https://infocus.credit-suisse.com