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The Almighty Buck Technology

The Cashless Society? It's Already Coming 375

HughPickens.com writes Damon Darlin writes in the NYT that Apple pay is revolutionary but not for the reason you think. It isn't going to replace the credit card but it's going to replace the wallet — the actual physical thing crammed with cards, cash, photos and receipts. According to Darlin, when you are out shopping, it's the wallet, not the credit card, that is the annoyance. It's bulky. It can be forgotten, or lost. "I've learned while traipsing about buying stuff with my ApplePay that I can whittle down wallet items that I need to carry to three": A single credit card, for places that have not embraced, but soon will, some form of smartphone payment; a driver's license; and about $20 in cash. Analysts at Forrester Research estimate that over the next five years, US mobile payments will grow to $142 billion, from $3.7 billion this year. "If I were to make a bet, I'd say that 10 years from now the most popular answer from young shoppers about how they make small payments would be: thumbprint. And you'll get a dull shrug when you ask what a wallet is."
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The Cashless Society? It's Already Coming

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  • by Anonymous Coward on Monday December 01, 2014 @06:05PM (#48502031)

    > earned while traipsing about buying stuff with my ApplePay that I can whittle down wallet items that I need to carry to three": A single credit card, for places that have not embraced, but soon will, some form of smartphone payment; a driver's license; and about $20 in cash.

    Okay... so why is ApplePay required to get down to those 3 items? Surely he can do with just the 3 and no apple pay....

    • Exactly what I thought.

      • Re: (Score:3, Insightful)

        by rtb61 ( 674572 )

        Apart from of course getting to mind your own business when paying cash as does the seller and of course no credit fraud which is not blamed on the victim, the seller allowing credit but on an innocent party and of course very simple budgeting based upon what you can afford to spend rather than what you can afford to borrow and pay a ton of interest on. There are also all those middle men who inevitably demand more and more of the transaction as they become more essential and more of a monopoly. 1% so beco

        • by msauve ( 701917 )

          Apart from of course getting to mind your own business when paying cash as does the seller and of course no credit fraud which is not blamed on the victim, the seller allowing credit but on an innocent party and of course very simple budgeting based upon what you can afford to spend rather than what you can afford to borrow and pay a ton of interest on...

          --
          Chaos - everything, everywhere, everywhen

          , especially in sentence construction.

        • by Jane Q. Public ( 1010737 ) on Monday December 01, 2014 @11:01PM (#48503841)

          Cash as it turns out is much cheaper especially when cartel monopolies kick in, adding fees, charges, interests and just out and out greed to the cost of doing business. Give me cash any day.

          The moment we become a "cashless society" is the moment you can kiss Freedom's sweet ass goodbye.

          Not only is a cashless society more difficult than most people think, it's about the last thing in the world I'd identify as a worthy goal.

    • Okay... so why is ApplePay required to get down to those 3 items? Surely he can do with just the 3 and no apple pay....

      Exactly! 2 of the 3 things he is still carrying are exactly the things ApplePay is designed to replace, what items were removed that ApplePay replaced?

    • Absolutely. ApplePay adds nothing to the combination of daily-use-debit, identification, and emergency cash for most people.

      Despite being a minimalist, my money clip still has way more in it.

      Daily use debit card.
      Driver's License.
      Blink Network card.
      Big box membership card.
      "Emergency" credit card.
      Cash roughly equal to a full buy-in at my poker table of choice.

      I'm down to a keyless car fob, a mail key, a house key and a sturdy metal flash drive.

      Other than using my big box membership card as my emergency credi

    • And if he keeps his driver's license in the car glove compartment, 90% of the time he doesn't need to carry that, either.
      • Depends on where you live. Drivers licenses are the adhoc age verification for anywhere restricted where I live and at 34 I'm still getting carded 50% of the time. The penalties on the venues are so high they don't let minors in.

      • The problem is knowing exactly when the 10% is, or having it when a merchant wants to verify identity on his Visa or Mastercard branded debit card -- despite the fact that it's expressly not required. I've got better things to do than earning a lifetime ban from Fry's Electronics after successfully completing a no-ID Visa purchase there...

        http://www.mastercard.us/suppo... [mastercard.us]

        A merchant must not refuse to complete a transaction solely because a cardholder refuses to provide additional identification informatio

  • Lost!? (Score:5, Insightful)

    by darkain ( 749283 ) on Monday December 01, 2014 @06:07PM (#48502045) Homepage

    "It's bulky. It can be forgotten, or lost"

    My wallet is on a chain which links to my belt loop on my pants. My wallet will not be lost. However, my phone doesn't have this same protection.

    And seriously, how is a phone any less likely to be lost than a wallet? One of the two is out and about of the pocket a hell of a lot more often than the other.

    • And be prepared for the guy inline in front of you to be messing around with his phone while he is trying to pay.

      "Oh just a second, trying to get a connection."
      "Oh wait, need to reboot phone."
      etc.

      • And be prepared for the guy inline in front of you to be messing around with his phone while he is trying to pay.

        "Oh just a second, trying to get a connection." "Oh wait, need to reboot phone." etc.

        Although I see your point with many smartphones (and users), you don't need a phone connection to make purchases with Apple Pay.

    • Re: (Score:3, Insightful)

      by Jarik C-Bol ( 894741 )
      There are two kinds of people in the world. One of those kinds constantly looses its phone, wallet, keys, iPad, etc. The other kind never does, because it knows better than to put valuable items down in random places.

      Seriously, its the old 'spectacles testicles wallet and watch' only now its more like, 'keys, phone, wallet and X' where X is whatever else you carry. They go back in the same pocket every time, they go back on the same place on the desk when you get home, and you never wonder where they a
      • Re:Lost!? (Score:5, Funny)

        by mythosaz ( 572040 ) on Monday December 01, 2014 @06:24PM (#48502211)

        As an old man, I now have to make sure that my glasses are on my face and that I know the location of my wallet, keys, phone and badge at all times.

        Walking through a door? WKPB?

        You can't imagine the havoc a the keyless ignition on my car has caused me in losing count of my four items.

        • Keyless ignition has made it easier. Now I only remove items from my pockets as needed.

          • Maybe this should be back in the autism spectrum thread, but I hate stuff in my pockets when I'm sitting. I've never, ever, had wallet in my back pocket, and right now, sitting in front of my on my desk are my phone, my money clip card-holder, the fob for my car and a small collection of pens and papers.

            The first thing I do when I get in the car is fill the cup holders with a phone, my wallet, my badge and my fob. :(

      • Whenever I take out my wallet to pay for something I keep my wallet in my hand until I get back whatever credit card, ID, or 'reward card' I take out - since I started doing that I've *never* lost a card or my wallet, three decades and counting.

        BTW, people keep much more in their wallet than just ways to pay for things - ID cards, notes, receipts, etc. - yes, many of those could be turned into notes on a smart phone or handled differently (for example, emailed receipts), but until that happens, a new form o

        • Re: Lost!? (Score:5, Interesting)

          by ShanghaiBill ( 739463 ) on Monday December 01, 2014 @07:40PM (#48502735)

          Whenever I take out my wallet to pay for something I keep my wallet in my hand until I get back whatever credit card, ID, or 'reward card' I take out

          Me too. Another thing I have learned is to never close a locking door unless the key is in my hand. This has led to some arguments:
          "Honey, close the car door."
          "Where is the key?"
          "In my purse."
          "Can I see it?"
          "It is in my purse. Why don't you trust me?"
          "I am not closing the door until I see the key."
          "Okay, okay, just a second. Oh, wait, it is still in the ignition."

        • I do believe you're responding to one of the new fleet of attention deprived individuals. You know, the ones that can't carry on a conversation without allowing it to be disrupted by an incoming call or can't for the life of them *not* make an all important tweet. Focus and memory are inherently difficult for them.
    • Also, if you drop your wallet inthe toilet, the money and cards still work. If the same happens to your phone, you aren't paying for anything.
    • if it ain't in my pocket, it's on top of my videotape machine... a TT-70B the size of a Fiat. /-coot

    • Re:Lost!? (Score:5, Funny)

      by Jahoda ( 2715225 ) on Monday December 01, 2014 @06:41PM (#48502337)
      I know this will shock you, but wallet chains are classless and ugly as shit, particularly in the professional workplace where you'd like to be respected as a grown adult.
    • If you think a wallet is too bulky to carry then would you really want to lug around a smartphone instead?
    • Re: (Score:2, Insightful)

      by labnet ( 457441 )

      The book of Revelation has the ultimate answer for "It's bulky. It can be forgotten, or lost" and "My wallet is on a chain"

      It forced all people, small and great, rich and poor, free and slave, to have a mark on the right hand or forehead.
      Without the mark of the name of the Beast or the number of its name, it was impossible to buy or sell anything.
      Solve a riddle: Put your heads together and figure out the meaning of the number of the Beast. It's a human number: six hundred sixty-six. (Revelation 13:15-18 M

    • Re:Lost!? (Score:5, Insightful)

      by mjwx ( 966435 ) on Monday December 01, 2014 @07:33PM (#48502691)

      "It's bulky. It can be forgotten, or lost"

      Sounds exactly like a phone.

      Society will never go cashless because cash is such a useful medium for trade. If I want to buy an air compressor off the trading post, I'm going to rock up with cash because the guy selling it wont have an EFTPOS machine. If I want to buy a coffee, I'll use cash because merchant fees kill small cafes and force prices up at chain stores.

      People trying to eliminate cash from their life are cutting off their nose in spite of their face. In the end, they pay more because they have to give money to the middle man (Visa/MasterCard/AMEX) via the merchant (he has to pay them to accept your card). Only a fool rejects a form of payment because of a restrictive and misguided ideology, only the heir to the throne of the kingdom of fools rejects all but one form of payment.

  • Less bulky? (Score:5, Insightful)

    by pdhenry ( 671887 ) on Monday December 01, 2014 @06:08PM (#48502057)
    Without a smartphone, it seems that you'd get by with a single credit card, a driver's license; and about $20 in cash.
  • Not totally (Score:5, Funny)

    by Anonymous Coward on Monday December 01, 2014 @06:08PM (#48502059)
    Where are you going to keep your condoms?
    oh yeah... Slashdot, I remember now
    • yeah a lot of us do it bareback with disease free person and other birth control, much more enjoyable than screwing a balloon

  • by Rigel47 ( 2991727 ) on Monday December 01, 2014 @06:11PM (#48502081)
    Let's see.. things that won't be digitized anytime soon:
    - drivers license
    - gym card
    - business card
    - all those proximity reader entry cards for everything from zipcar to work
    - work ID card
    - subway / bus card
    - discount / membership cards


    Not to mention that my wallet never runs out of power or is otherwise rendered inoperable. Nor is my wallet susceptible to malware. As a bonus I can keep a stash of backup meds in my wallet in a little plastic container. It has a pleasant all-natural leather makeup that wears beautifully with time. And frankly it's a lot more dignified to have your amex clatter onto the bill at a fancy restaurant than it is to pull out your phone and beep-boop-beep up some app. As a side bonus at least some part of my life isn't under the NSA's review when I use cash.
    • by mlts ( 1038732 )

      A few others:

      1: A place for a backup house or car key.
      2: A place for cash.
      3: My Car2Go card.
      4: Other ID cards.

      If stopped by the local PD, I don't know any that will accept a photo of a driver's license from a phone.

      I'm not convinced that Apple Pay, or some other system like this is any better than the European Chip And PIN system. With a debit card, I swipe it, enter my PIN, and the transaction is done in seconds flat. I don't have to fumble for my phone, wave it by something, confirm, hope I did it r

      • by Rigel47 ( 2991727 ) on Monday December 01, 2014 @06:31PM (#48502259)
        You're absolutely right. The e-ticket thing for airline travel is a great example. Everyone with a paper ticket just breezes by while those with their tickets on their phones usually have to fiddle around with the size of the image before it can be read.
        • by _merlin ( 160982 )

          So true. I check in at home, then print a boarding pass at the airport because it's so much quicker and more convenient when going through the gate.

      • If stopped by the local PD, I don't know any that will accept a photo of a driver's license from a phone.

        If you're driving, there's little substitute for a driver's license. My state will take photos/scans/apps for Insurance.

        If you're not driving, you're about 50-50 on being compelled by law to identify yourself to police, and in most cases, no presentation of state identification is necessary, only providing your legal name is required. YMMV, IANAL, TINLA.

        http://en.wikipedia.org/wiki/S... [wikipedia.org]

        In my state, police can ask, and I'm required to provide my legal name. Nothing more.

        • id is also good to have for airport TSA, getting carded for alcohol (some places have a policy to card everybody regardless) and other misc things.

      • a benefit of apple pay is that things are charged to your credit card, not your debit card. when it goes to your debit card the money exits your account immediately, whereas on a credit card you haven't paid yet. This puts you in a much stronger position to dispute any charges.

    • by jonwil ( 467024 )

      My wallet has:
      a proof-of-age card (government photo ID card like a drivers license but doesn't let you drive), useful for when I need to show ID for some reason
      a Go Card (payment smart card for the local bus and train system)
      Loyalty cards for stores
      Library card
      VISA Debit/EFTPOS/ATM card
      Cash
      Australian Government Medicare card (for the public health system)
      Private health insurance card

      None of these are likely to be replaced by a smartphone anytime soon (even if I could use my phone to pay for stuff with the V

    • by xaxa ( 988988 )

      Let's see.. things that won't be digitized anytime soon:

      - gym card

      Thumbprint, perhaps?

      - subway / bus card

      Since September you can pay for transport in London with a contactless credit or debit card. (There's no need to pre-register or anything, but foreigners should check their bank won't charge an unreasonable fee on a £1.45 transaction). They claimed to be first to set this up, including some new special kinds of keep-people-moving-and-deal-with-the-fraud-later transaction, so I expect it will catch on elsewhere in the next year or two.

      • Maybe in a decade or so, but for the near future, no. Likewise the four other ID cards I have to carry - two of them US government, one state government and one local government. The chance of them getting their act together to allow some sort of electronic entry is near zero. I would be nice, I will grant you that, but it's unlikely to happen.

        Or if it does, then one of the US government departments will require a Google solution, the other Apple and Alaska will roll it's own totally weird system using X

      • by RussR42 ( 779993 )

        Let's see.. things that won't be digitized anytime soon: - gym card

        Thumbprint, perhaps?

        I've heard of this before... Ah ha! It was The Daily WTF [thedailywtf.com]

      • Thumbprint, perhaps?

        Why would I want to replace a fairly robust piece of plastic with a finky piece of hardware/software. And why would I want my rates to go up to afford the 5-figure (for a good one) piece of hardware?

    • in my wallet:
      * DL
      * personal credit card
      * work credit card (so track work purchases)
      * debit card (to get cash when needed, eg for places where the primary form of payment is $1 bills)
      * health insurance card (for when the ambulance scrapes me up off the road)
      * AAA card (better to have this in my wallet than in my car, because I can use it for any car that I am in).
      * transit RFID card
      * a couple business cards for random people that I meet
      * a place to put receipts so I can expense them later
      * a bit of cash

  • Cash (Score:5, Insightful)

    by Anonymous Coward on Monday December 01, 2014 @06:14PM (#48502105)

    I choose to use cash because most of my transactions are one where I do not wish to enter into a relationship with the other party.

    Since I don't know how they will use my information, where there will upload it, what third party services they use and since nearly all do not have these answers when I ask, the only way for me to OPT OUT is cash.

  • Wallet required (Score:4, Interesting)

    by airos4 ( 82561 ) <changer4.gmail@com> on Monday December 01, 2014 @06:17PM (#48502143) Homepage

    My job, and almost all medical jobs require me to carry my physical certifications on my person. The state and other regulatory agencies can demand my cards at any time for inspection. It's about ten small cards that will likely never leave my wallet, no matter what comes down the line.

  • by anarkhos ( 209172 ) on Monday December 01, 2014 @06:21PM (#48502189)

    At least I OWN this wallet!

    I don't own this phone (and yes, I did pay for it and don't have a contract, but it can be switched off and the NSA can tap it willy nilly). You people want an e-wallet that can be shut off like your phone? Tapped like your phone?

    What this is leading to is anybody politically undesirable will be shut out of the economy at the push of a button.

    Fuck you technophiles

    • by Kjella ( 173770 )

      The tracing part is a fair point, but if I was worried about the government "shutting me out of the economy" I wouldn't worry about my wallet I'd worry about my bank accounts and credit cards where the other 99% of my cash is. My small cash reserve is just there to smooth over an outage or losing my card, I wouldn't last a month. Particularly not if the property registry and car registry claims my apartment and car aren't mine. Anywhere I work here in Norway is legally required to deduct taxes which would t

  • And...? (Score:5, Insightful)

    by fahrbot-bot ( 874524 ) on Monday December 01, 2014 @06:35PM (#48502293)

    According to Darlin, when you are out shopping, it's the wallet, not the credit card, that is the annoyance. It's bulky. It can be forgotten, or lost.

    A cell phone is bulky and can be forgotten or lost. In addition, my wallet isn't big or bulky and contains my ID - which I'm required to carry, at least to drive, and won't be electronic for quite some time, if ever.

    "If I were to make a bet, I'd say that 10 years from now the most popular answer from young shoppers about how they make small payments would be: thumbprint. And you'll get a dull shrug when you ask what a wallet is.

    Merchants can have my thumbprint when they pry it from my cold dead hand. P.S. Cash and CC work even when my cell phone has no bars or is dead - if I carried a cell phone, which I don't.

    Besides, aren't things like Apple Pay simply a credit-card proxy with, you know, Apple (or whoever) watching/tracking in between?

  • Cash (Score:5, Interesting)

    by RJFerret ( 1279530 ) on Monday December 01, 2014 @06:39PM (#48502317)

    You won't be playing badminton at the clubs without cash.

    Most people who pay me don't have bank accounts, it's either cash or money orders.

    Gas for the car? Cheaper via cash. This becomes all the larger when gas prices are higher.

    Car repairs? You'd be a fool to pay electronically, when the discount for cash gives you $20 back for small services, and multiples of that for large.

    Drinks at the bar? Cash means faster service, more value to your tips, less problems/complaints on tabs.

    Meanwhile, every other month I know folks who have dropped phones in the toilet, lost, broken, had their phone stolen, or the person paying for their phone service doesn't, so it gets shut off. Only once in my dozen years of doing my job has a client lost her purse.

    I laugh every time these articles get posted here, as there are entire segments of society for whom this would not function.

  • For me at least a wallet is a necessity. I have various forms of ID and other cards that I need for my job. Furthermore why should payment by phone replace a credit card when it is just as convenient in my opinion? Also let’s not forget the security issues that paying with a phone brings with it. Another thing too is that you can lose a phone as well, so to me it seems more like a preference than something that will make the wallet go away.
  • What if I don't? Is it going to be forced on me? I think not. What about poor people?

    There will always be legal currency issued by your country, it will never be done away with completely, and I'll be DAMNED if I'm going to have every single financial transaction I make, no matter how small, tracked by someone.
  • ... bitcoin articles on Slashdot.

    Have we learned nothing about the inherent risks of centralized banking? Apple pay.... Gah!!

  • by Greyfox ( 87712 ) on Monday December 01, 2014 @07:15PM (#48502573) Homepage Journal
    Oh, we're in the universe of the made-for-TV infomercial, aren't we? You know, that universe where everyone has stupid made-up problems that no one actually has? All that's missing from the summary is the crappy acting of all the D-List wannabe actors having problems with their bulky wallets.
  • We still have large amounts of grocery stores that still have min purchase $10 EFT due to high transaction charges.

    I smell BS lies there from the shop owner being super stingy.

    • by mjwx ( 966435 ) on Monday December 01, 2014 @08:02PM (#48502897)

      We still have large amounts of grocery stores that still have min purchase $10 EFT due to high transaction charges.

      I smell BS lies there from the shop owner being super stingy.

      You'd likely be smelling your own statement then.

      Merchant fees are killers for small businesses. Even at a minimum $10 per transaction a business is likely losing money on every EFTPOS purchase made.

      I used to run a small business, it was not unusual for my EFTPOS costs would dwarf my staff costs. I used to sell computer hardware, so the MSF (Merchant Service Fees) were less of the transaction total costs compared to a cafe but they still hurt. Customers who paid cash or debit were brilliant (and got discounts because of it). MSF's have become a lot better since I was running my business, but they're still big enough to kill a small business.

      Heres what a merchant pays:
      - Monthly fees (services).
      - Monthly fees (terminal).
      - Per transaction fees (for debit, usually between $0.20 and $0.50).
      - Per transaction fees (for credit, 1-6% depending on bank and card).
      - Annual fees (yep, they charge monthly and annual fees).

      So ignoring the monthly and annual fees, if you bought a $4 coffee on your credit card, $0.50 at least disappears to the bank, that's pretty much all the profit gone from the sale (and I bet you wonder why things cost so much in Australia).

      People who try to force small businesses to accept cards without allowing a surcharge or minimum purchase are killing small businesses in Australia. However one of my favourite cafe's has a solution to people like you. The menu price for a coffee is $4.50 but the "secret" cash price is $4.00, it's a win-win for me and the business.

  • by codepigeon ( 1202896 ) on Monday December 01, 2014 @07:19PM (#48502595)

    A single credit card, for places that have not embraced, but soon will

    So do you have a separate card for places that have not embraced and never will?

    Here is a (funny) anecdote, a couple years ago I went to a small comic book store with my son. I hardly ever have cash on hand. When we went to checkout I asked the guy if he took credit cards, and he puffed out "not until they outlaw cash!". ... We ended up going to a nearby ATM so I could by the comics.

  • by dwywit ( 1109409 ) on Monday December 01, 2014 @07:41PM (#48502741)

    I can drop my wallet onto a hard surface, from even higher than 1 metre, and it won't break. Neither will the cash inside it, ditto credit cards.

    If "it's bulky, can be forgotten or lost" renders a wallet+contents unusable, then so does "I dropped my phone and it broke".

  • Drop test (Score:4, Insightful)

    by HockeyPuck ( 141947 ) on Monday December 01, 2014 @07:58PM (#48502859)

    Take your wallet, with whatever it is, and throw it down the stairs. Pick a nice long flight of stairs.

    Now, take your smart phone with whatever protective cover you typically use and toss the phone down the same flight of stairs.

    I'm guessing the wallet is a bit dirty, maybe a tad scuffed up, but the cash inside is still good and worst case a credit card is cracked, but I would bet that all the numbers on it are still perfectly legible.

    I wouldn't make the same bet for the phone.

    Bottom line: Wallets will always do better in a "drop test" than a smart phone.

    • by Kohath ( 38547 )

      This is how I chose my wife. She's a survivor, God love her.

      We're buying a dog next week. What are the heartiest, most durable breeds?

  • by Trax3001BBS ( 2368736 ) on Monday December 01, 2014 @08:22PM (#48503035) Homepage Journal

    Many times I've been refused a purchase as a credit/debit/card or check was required. Hard for me to beleive but I've been there.

    I find a wallet makes my butt hurt so I carry just three cards I find of importance my debit card, drivers license, and library card - nothing else is ever required.

    My debit card pays for everything, everybody is set up to accept it. Cash I give to the kids :)

    As for pictures I always have my cell phone which I would never use for monetary transactions, Just four days ago (Black Friday) I had thought I had lost my cell phone even went back to look for it, was in my freaking back pocket pocket, found when it made one of it's noises; boy was I ever glad - but shows how easy it would be to lose ones ability to purchase or pay for anything if dependent upon a cell phone or such.

  • ISIS Dinar (Score:4, Funny)

    by jfdavis668 ( 1414919 ) on Monday December 01, 2014 @08:52PM (#48503231)
    I'm swapping all my money for some gold and silver dinars.

Happiness is a positive cash flow.

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