Smartphone Payments to Replace Cash and Credit?

by Holly Shoemaker

A new study conducted by the Pew Internet and American Life Project has found that technology experts and some Internet users think smartphone payments will replace cash and credit card payments by 2020.

Overview of Survey Findings

About 65 percent of respondents agreed with the statement that by 2020 consumers will fully adopt smart-device swiping for purchases. They also agreed that people will trust these devices and that they will replace cash and credit cards in advanced countries.

About 33 percent of respondents agreed with an opposite statement that said people do not trust Near Field Communications technology (NFC). They do not agree that these devices will be secure and have concerns regarding privacy.

The survey tested 1,021 Internet users and experts. It is important to note the survey tested non-random, opt-in people. Respondents were invited to participate via email, Twitter and Facebook from the Pew Research Center’s Internet & American Life Project and the Imagining the Internet Center at Elon University.

Concluding Thoughts

Based on the respondent pool, these results should not surprise anyone. Mobile payments will likely become another way to make payments, as we have seen with Google Wallet, or a preferred method to collect payment. However, the United States has a long way to go before thinking that most people will give up paying via cash, credit cards or debit cards.