Smart (Phone) Money

1          It’s hard to judge how long it’s going to take before the idea of using virtual cards to pay for your everyday needs to become a reality. I believe that people are usually always skeptical when new products are introduced. In addition, it depends on how well Interact Association as well as other companies pitches this idea to their target market and how well their ability is to predict future problems and to solve them. Therefore, if I were to pin down a time frame in which everyone will go virtual would be some time in the next three decades.

2          I think it depends on each individual as to his or her circumstances regarding the use of a virtual wallet. One demographic, for example, is the older generation that has made it a preference to use cash, as it’s something they already know how to use. Another group of people that would not jump the wagon would be those who simple don’t trust the product as newly release versions usually have faults and are confusing to use at first.

3          Some companies that are going to be negatively affected by the virtual wallet are those that do not support the system. For instance, in Japan the follow companies (Ticketing agency PIA, credit card company JCB, BitWallet, JR East, Japan Airlines, All Nippon Airways, and convenience stores am/pm and Circle-K) have been participating in a joint collaboration to bring the virtual wallet to Japan, but some prominent companies like 7-Eleven and Tokyo Metro have yet to join the party.

4          The mobile phone industry is going to make a huge profit if the virtual wallet becomes a hit. As the main component of the function would be located in the mobile phone, therefore the industry can charge more for a profit. Also, the retailer industry will benefit from it, as now it is a little more convenient to shop and buy goods. Another industry that will make money from the virtual wallet would be the banking industry. This is a result of all the profit that will be made from every transaction and when someone borrows money using the virtual wallet.