Cashless Society by Using Mobile Payment

The term Mobile Payment (also known as M-payment) refers to mobile electronic techniques for initiating, authorization or realization of the payment, for example by means of mobile phones, tablets or smartwatches.[1]

In recent years, there has been a lot of talk about mobile payment methods.

According to an EHI study, payment by cash still predominates in Germany. Coins and notes are the preferred means of payment, especially for small purchases. From the point of view of the retailers surveyed, cash will continue to be the dominant payment method for contributions of less than 30 euros over the next five years. [2]

In contrast to Germany, it is estimated that around 348.9 million Chinese people use their smartphones to pay for products or services, according to forecasts. 60.1 million users rely on Mobile payment in the USA.[3]

In Europe, no one is dropping cash as fast as Sweden. Going cashless is becoming the norm in bigger cities. In Stockholm, most people can’t even remember the last time they had coins jingling in their pockets. Purchases usually happen as digital transactions — by card, online or with Sweden’s most popular mobile payment app, Swish. Some of the biggest stores are testing completely cash free, like Ikea. Buses and trains no longer take bills or change.

In all, most vendors have reacted positively to this new trend, as it saved a lot of time and they don’t need to count cash any more, and so do the customers, only a smartphone needed when they go out.

How different mobile payment is used, is evident from the infographic. Cashless society is no longer a utopia. However, several factors speak for or against it, such as technical options in each country or consumer safety concerns.

[1] Bleyh, M. & Feser, C.: Zukunft des Bezahlens – Mobile Payment; https://jaxenter.de/mobile-payment-technologie-anbieter-ueberblick-83713 (Stand: 01.07.2019)

[2] https://www.ehi.org/de/pressemitteilungen/einzelhandel-jeder-zweite-euro-bargeldlos

[3] https://www.ionos.de/digitalguide/online-marketing/verkaufen-im-internet/mobile-payment/