Thursday, February 16, 2012

A True Cashless Society: 2030


A True Cashless Society: 2030

There has been active conjecture over the past 20 years of what a cashless society would look like. Quite a few virtual currencies have gained steam, with some on the rise. However, what these currencies have not taken advantage of are the possibilities of mobile options. In the last year, a number of businesses have recognized that physical money and even credit cards are no longer essential. Here are just a few examples:

  • Of course we all remember Jonathan Stark, “The Starbucks Guy.” On July 14, 2011, he launched “Jonathan’s Card”, where people could take advantage of Starbucks’ Mobile Card payment program that creates a personalized 2-D barcode to be scanned at the counter. Almost 1,000 people participated in the campaign that Stark conducted because he thought it was “fun.”
  • Developed by Twitter co-founder Jack Dorsey, Square is a service that permits smartphone owners to accept credit card payments on an iPhone, iPad, iPod, or Android phone. Customers with the app attach a card-reading dongle to the unit’s audio input and operate a virtual cash register. Users can also store payment information and purchase histories with merchants, allowing them to pay right away and opt to receive offers via the service.
  • This year, McDonald’s is focusing on equipping 7,000 European restaurants with point–of-sale touch screens and swipe cards, making human cashiers unnecessary and lowering transaction times. Also, a select group of Burger King Restaurants are conducting a trial for the Visa payWave system, which permits customers to wave their card in front of a reader to quickly complete transactions.
  • At American Express Community Stadium at Brighton and Hove in the south east of England, a virtual cash system was inaugurated this past August. Smart cards based on the Oyster card used on the London Underground were issued to fans as they arrived. They could then put credit on the cards based on the number of games they wished to attend as well as pay for refreshments at the venue.
  • The national postal service of Denmark unveiled digital stamps in March 2011 that can be purchased via text message. Customers are delivered a code that can be written on the envelope instead of a typical stamp. Similar services exist in Germany at this time and Sweden may be next.
  • Keeping an eye on the London 2012 Olympic Games, Samsung is working with Visa and Lloyds TSB bank to eventually begin selling smartphones which can handle contactless payments in over 6,000 locations around London.
  • Presented in May 2011, Google Wallet is an Android app that turns a user’s phone into a virtual credit card. Using NFC technology, users can pay by tapping their phone on MasterCard PayPass terminals. Not only can users make payments, they can also receive offers and store loyalty points by using the app.

The Delphi method is a structured communication technique, developed as a systematic, interactive forecasting method which relies on a panel of experts.  A transition to a true cashless will require this type of process because the experts can answer questionnaires in the two or more rounds. A Nominal Group Think approach is not viewed as an attainable goal. Thus, experts are encouraged to revise their earlier answers in light of the replies of other members of their panel. Trying to do this with more than a manageable group of people simply will not work.



The forces that affect the innovation of a cashless society are numerous:

·         Social – This is the biggest concern.  Not all societies will be good candidates.  The more advanced countries and societies will have the most to gain.  The spending and buying behaviors are changing along with technologies.  This combination is a great match for the social force.   

·         Economical – The cost to produce a U.S. coin is more expensive than the coin itself! That pretty much sums up the economical force’s position to support the innovation.

·         Technological – None of this can even be considered without the support and advantages that technology can provide.

·         Legal – About one-third of all $50 and $100 bills are contaminated with traces of cocaine. The legal forces would support the cashless society.  The drug dealers may have a different outlook and wish to impede this innovation.

·         Financial – This force may be another force that may impede the innovation because cash transaction may be needed for some types of transaction. 





Open or closed collaboration in the Delphi or NGT process can affect the results for this innovation. Anonymity does take time, and it may reduce peer pressure or bias.  But this type of innovation will have such a magnificent impact that the marvel of the innovation will always be anonymous. There is no other way to approach it.  For example, society opinion and quirks are difficult, if not impossible, to measure.






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