It seems crazy to think of living in a world without any cash or coins, where we use our mobiles as digital wallets for purchasing goods and services…This world is in fact not to far away.
Denmark is set to become the first nation to make cash payments obsolete with the government hoping to get rid of the option to pay by cash in stores by as early as 2016. (Stores can decide that they only want to accept card/mobile transactions as payment)
Currently its estimated that a third of all Danish citizens prefer to use the Danske Bank’s official app, Mobile Pay to pay for services and transactions and thus the governments proposal is set to be met with little opposition.
As for Australia we too are not far behind according Australian National University Professor, Rabee Tourky, who believes that cash could be phased out within a decade, predicting that cash would be replaced by an Australian government issued digital cash app.
BUT WHAT DOES THIS MEAN FOR US AS DIGITAL MARKETERS
Firstly and most obviously is digital marketing strategies for Mobiles will become of paramount importance. Digital cash will coincide with more online shopping so developing engaging, user friendly, informative and functional mobile friendly sites will be an essential part of a digital strategy. A blog post I did a few weeks ago highlighted poorly designed mobile websites were a strong contributing factor for poor conversion rates for online retailers.
Secondly we are going to have a lot more BIG DATA available to us. This is a clear opportunity for companies to analyse mobile data and engage more directly with consumers. Marketers can extract enormous value from as access to personal data (little bit scary) location based information and spending habits. This ultimately leads to highly targeted product and promotional offers. How crazy would it be if you were shopping at Chadstone and retail stores you’d previously bought from could send direct product/promotional messages to your phone when you were in the vicinity.
How do you feel about the potential move to a cashless society?
Do you see any barriers in relying on digital wallets?
How do you feel about privacy?
Cash could be phased out within a decade. (2015, March 3). Retrieved May 28, 2015, from http://www.anu.edu.au/news/all-news/cash-could-be-phased-out-within-a-decade-anu-expert
Zielinksi, C. (2015, May 8). Denmark to become first country in the world to make cash payments obsolete. Retrieved May 28, 2015, from http://www.news.com.au/finance/economy/denmark-is-set-to-become-the-first-country-in-the-world-to-make-cash-payments-obsolete/story-e6frflo9-1227346193452