Can Apple Pay Kill Cash?

With the release of a new phone, and a new series of iPads and iPods coming up Apple is also releasing a new feature that some think might finally be the death of cash. This service is called Apple Pay and allows people to pay for things directly through their phone. All the consumer has to do is wave their phone near a compatible payment terminal and they can buy something. While this idea is not necessarily completely new (Google Wallet was released three years ago) there are some people who think that Apple might be able to bring it into the mainstream, and do it in such a way that it is actually more convenient to use Apple Pay than a credit card. Looking at some statistics, it is predicted that in 2019 Americans will spend 53.1 billion with their phones which is a huge jump from the 0.4 billion spent in 2012. One of the main reasons that systems like this are being pushed by companies is that people tend to spend more when they don’t have to think about it as much. For instance it is much easier to simply take a bottle of water from a Starbucks, and then have that money automatically charged to your account than it is to pay for it with cash when you walk in.

Despite the supposed convenience of Apple Pay, many people are skeptical that it will do what supporters say it will do. One of the main reasons for this is that small businesses will dislike this model as it means they have to have an internet connection to be able to charge stuff, and will have to have something that can charge the phone. This of course means more expense for the small business which may already have low profit margins. Another reason small businesses dislike stuff such as this is because with credit cards they are often charged a percentage of each transaction which further cuts into profit margins. Additionally, it seems that this idea might not take off simply because people like to pay with cash. There is simply something nice about holding physical money that I think will be the main reason people will dislike switching over to a system such as Apple Pay.

                

While there are people on both sides of the issue here I personally do think that a system similar to Apple Pay will eventually become the primary method with which people purchase things. I think this is because as it is people love to use credit and debit cards because of the convenience and all this system is doing is making everything even more convenient. Ultimately, people want the simplest thing and I think a technology will come about that is so simple people will forget about their attachments to cash. I am still skeptical about Apple Pay however because for now I think it more a gimmick than anything serious, however this could easily change in the near future. 

http://www.nbcnews.com/tech/innovation/can-apple-pay-kill-cash-dont-bet-it-n222261