Bob Garfield

Why smartphones will soon replace cash

The rise of digital payments is rendering cash extinct. Is your brand ready? Here's how to prepare for this major shift.

Can you imagine a world without cash? The reality is closer than you think. Cash is expensive to produce, collect, and recycle, leaving some to wonder why in this digital world we're still even dealing with it. Also, consider that half of the world population is not banked, but people in those areas still have access to their mobile device.

What opportunity has this perfect storm created? According to the global CMO of MasterCard, our smartphones will soon become the main way we pay for goods and services, and cash will go extinct. Here's what you need to know to prepare for this groundbreaking shift.

Conversation highlights
0:00 — The "Priceless" MasterCard platform
0:30 — Bring the brand closer to personal life
1:00 — Translating the brand philosophy into brand experience
1:30 — What about the customer experience
3:00 — 85% of transactions are still done in cash or checks
3:45 — No bank, no problem
4:30 — Modern infrastructure around the world
5:15 — 2013 will be the year of...
Run time is 6:27

Alfredo Gangotena is chief marketing officer of MasterCard Worldwide, with global responsibility for the company's advertising, sponsorships, promotions, research, insights and digital marketing initiatives.



FEDERICA FATALE March 27, 2013 at 12:49 PM

The use of smartphones as a new payment system is a further proof of the growing importance that the new technologies are acquired for each of us.
Internet, Web, smartphones, new apps are revolutionizing the way we inform, work, study, communicate and relate each other.
Payment by smartphone is therefore important from various points of view. First: technological, as it uses an innovative system to perform transactions effectively transforming every mobile phone in a POS.
Second: economic, because it allows to reduce the problem of the cost and time of traditional payment systems with credit card.
Third, and in my opinion more important, points out a sociological change because highlights the transformation of the "Consumer”, understood as passive subject, in "User” , an active subject who freely chooses when and where do things.
The Technologies, therefore, are becoming increasingly more "personal" and we are moving from the e-commerce (electronic commerce) to the m-commerce (mobile commerce).
As many say, "we have the freedom in the palm of our hands” .

Federica Fatale
Sales manager of Hieroglifs Translations