It is now widely accepted that payments by cash and cheques could soon be out-of-date. Industry commentators are stating this is good news for credit card companies like MBNA as well as mobile phone companies.
Innovations in technology are making electronic payments more fashionable. Payment experts believe that electronic expenditures may replace cash payments by 2015.
Cards and fashion
Research has shown that people in the UK are more likely to use their mobile phones to make payments instead of check books. Another piece of research has suggested that the UK is moving very fast towards a cashless society.
How will this change affect and be affected by fashion? Clothing designs are expected to change to suit the need for people to carry a mobile phone and plastic cards. Fashion designers say that the increased use of cards and mobile phones could lead to increased use of bags by men just as women. Clothing accessories could also be designed for men in such a way as to provide easy access to and security of their cards.
How soon?
The Payments Council has earmarked 2009 as a planning year to manage the changes that would occur when the cheque is phased-out.
Among other things, the deadline for use of the cheque previously targeted at 2018 will be reviewed. Public education campaigns will be implemented to explain the alternatives to the cheque. A committee will also be set up to look at how people, who depend on cheques, will cope without them.
Changes will affect global business
Another key alternative to the cheque book is the mobile phone. The technology is accessible and allows people to transfer money safely in the same manner as a text message. This technology is available to people everywhere – rich or poor. Hence, a change in payment system will affect people globally.
David Swan
http://www.thinkingmoney.org/
david.u.swan@gmail.com
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