Companies have recently begun this new trend towards mobile banking, where we now can use our cell phones as a way to purchase items. I personally feel that this form of mobile banking is unnecessary in the United States and just another ploy to have consumer spending increase. When paying for something it seems like nowadays consumers have too many easy options. Not only does the average consumer have more credit and debit cards than fingers, but every day in the mail we are getting these preapproved offers with deals that in the end only do more harm than good. I feel like mobile banking, although cool, has too many negatives to overcome the conveniences. What happens if you lose your phone? What’s the point of not taking your wallet if you still need a picture ID for approval?
However, I do feel like mobile banking will be extremely beneficial to people who do not have access to bank accounts or credit. In Haiti for example, mobile banking seems to be the only available form of banking for Haitians. Once the concept begins to develop not only will they be able to receive and sends funds via text messages, but they will be able to use their cell phones to purchase necessities such as utilities and food. In addition, this provides citizens for an alternative way of funding in the case of an emergency. After the earthquake devastated Haiti it was clear that the banks were inefficient and that Haiti needed an alternative financial service. As a result, mobile banking in Haiti was able to gain ground and generate millions. I feel that mobile banking will improve economies only in areas where mobile banking is a necessity rather than a luxury, but if you think I’m wrong please let me know why.
Stephen,
ReplyDeleteI agree with your point on the difference between the necessity and utility of mobile payments in the US versus the developing world, I also discussed the trend of mobile money in my Blog Entry.
While I do think that mobile money has tremendous potential in developing economies that have not yet widely adopted other types of electronic payments (credit cards, etc) perhaps you are correct that it is an unnecessary and small advancement here in the U.S where it is unlikely that m-payments will ever replace credit cards. Perhaps the next step for us will be payment via a RFID chip in our thumbs... at least I know I won't drop/leave/lose it like I do phones.