—Author
Unknown
Everyone
uses money, wants money, and need money in order to live, thrive and survive.
Many articles, books, and novels have been written on money along with a whole slew
of theories that have been formulated about money— some legitimate and some
misleading. Money is a uniform phenomenon and a subject matter of considerable
gravity, especially since it is the life-blood that sustains almost everything
from the price system economies and world markets to the institutions that
drive them.
Money
for that matter is an institution in and of itself. Or more specifically, it is
a well-devised medium of exchange or unit of account that serves as a fundamental
part of culture and a useful expedient for the trade of goods and services. This
is powerful. And money is power. But power corrupts; absolute power corrupts
absolutely, which is why money is considered the root (or the Cause) of all
evil.
Also,
this is the mobile age of digital ubiquity. It has changed the direction of money.
To the extent that, it is becoming more and more prevalent that the advent of
the mobile device and now mobile money is eliminating the need for credit cards
& cash money to transact business, albeit a major security implication
associated with it.
People
far and near are using the Internet and their mobile devices to “transfer
money, purchase goods, and engage in other types of financial transactions everyday
(Pew Research Internet Project).” No longer are the days of strictly
hand-to-hand [money] exchanges using cash or credit cards tucked away neatly in
one’s wallet sleeve or pants pocket.
Today,
there are digital [money] exchanges and virtual wallets via mobile phones
serving people, as a useful expedient for the trade of goods and services. They
are being used as an “all-in-one payment device, identification system, coupon
book and financial planner (Pew Research Internet Project).” This is powerful.
Mobile money is power. But power corrupts; absolute power corrupts absolutely,
which is why mobile money may be considered the root (or the Cause) of all of
tomorrow’s evil.
This
is due to a new technological advancement known as near-field communication
(NFC). NFC facilitates a process that allows “… users to store payment
information in the clouds and pay for goods at participating retailers by
tapping their phone at the point of purchase (Pew Research Internet Project).”
This process is part of a “mobile wallet” system that is being adopted by many
of the major market players in the retail, banking, and financial markets.
According
to a study conducted by the Federal Reserve in March of 2012, it was found
that:
- 21% of mobile phone owners had used mobile
banking services over the course of a year.
- 11% of mobile phone owners had planned to use
such services the following year.
- 90% of mobile phone owners used their devices to
check account balances and transactions.
- 42% of mobile phone owners used their devices to
transfer funds between accounts.
- 12% of mobile phone owners used their devices to
pay bills and make Acct-to-Acct transfers.
Still,
there are some major widespread concerns associated with mobile money, and this
process of mobile payments by way of NFC such as:
·
NFC Hacking
·
Market Fragmentation
·
Lack of Interoperability
·
Lack of Privacy
Nevertheless,
it is this mobile age of digital ubiquity that is forging a new path for the future
generations of this country. Mobile money will arguably be the new money. And
the new medium of exchange will be an “all-digital-all-the-time format” using
the mobile device. By 2020, the plastic credit card and paper currency may very
well be a thing of the past. Everyone instead may be using mobile money, wanting
mobile money, and needing mobile money in order to live, thrive and survive.
It certainly seems like the wave of the future. But, I guess only time will tell— the most Prolific of Financial Times in the Mobile Age.
It certainly seems like the wave of the future. But, I guess only time will tell— the most Prolific of Financial Times in the Mobile Age.