Smart (Phone) Money

(1 Point) How long do you think it's going to take to get to all virtual cards? How many years?
I think that it is only a matter of time for this new technology goes viral.  Since they already have the idea, and most likely the technology, it will be within the next decade.  Maybe even within the next 5 years.  This estimate is for how long it will take a majority of the credit and debit companies and banks to get this technology.   Otherwise it will take around 10-15 years for a majority of people to start using this.  The generation most likely to use this technology is the younger generation (under 40 or 50 years of age).


(1point) Why?
Smart phone credit cards will eventually be used, because it is more convenient for the young consumer.  The current young adults are all "tech savvy" and are looking for more convenient ways to shop, talk and communicate.  This new technology will most likely be welcomed by people.  Many other countries have already started to use this technologyy.  In Japan, this technology can be found nearly everywhere.  Another example might be how Girl Scouts are now using smart phones as credit card readers, so people can pay by credit cards now.  This shows us the changes in technology and that technology is moving towards this "virtual wallet".


http://knowledge.wharton.upenn.edu/article.cfm?articleid=2590
http://news.yahoo.com/s/ap/20110325/ap_on_re_us/us_fea_girl_scout_cookies_smartphone_sales_1


(2 points) Who will not be on board with this new virtual wallet?
Retailers and merchants may not be on board with this new "virtual wallet", because they will have to spend a fair amount of money just to upgrade their transaction machines.  This will not only be a large expense to many businesses, but they have to learn how to use it.  Many small business owners may not be able to afford this and many owners may be older and maybe too stubborn to learn how to use this new technology.  Senior citizens will most likely not be on board with this new virtual waller, because many probably won't own a smartphone, let alone know how to use it (Personally, I have problems using them too).  This will cause a lot of confusion for seniors.


(3points) What companies are going to be affected negatively by this? Name 3.
Three companies who will be affected negatively by this will be small business owners, paper companies, wallet making industries/companies and plastic making companies.  Small business owners will be affected, because they won't be able to support this technology or possibly may not be able to afford to install it.  It would be a great inconvenience for their customers, so they may lose a few.  Paper companies will lose a small fraction of their business, because receipts and credit card bills will most likely be sent electronically.  Wallet making companies will be affected, because people won't need to carry a wallet with them everywhere thanks to this new technology.  Plastic making companies, like the paper companies, will lose a small part of their business, because no one will need to use plastic cards anymore.  


(3points) Who is going to make money from this? Name 3 industries.
Phone companies, cellphone making companies, credit card companies, and the electricity companies will benefit from this new technology.  Phone companies will benefit, because people will be paying more for their plans and will most likely use their phones more than they do now.  Cellphone making companies will make more money, because they will have to sell everyone a new phone that is compatible to this new technology.  Credit card companies will make money from this, because they won't have to give people a plastic card, paper bills and will most likely charge people for their app.  Finally, electricity companies will benefit from this new technology, because people will be using their cellphones more than they already do. They will be using for nearly everything, so they will have to charge their phones more frequently.


Bibliography/ Work Cited (for all questions)
http://knowledge.wharton.upenn.edu/article.cfm?articleid=2590
http://business.financialpost.com/2011/04/23/smart-phone-money/
http://www.metro.co.uk/tech/859392-google-to-turn-smartphones-into-credit-cards-with-mobile-payment-app
http://www.networkworld.com/news/2010/080310-smartphone-credit-cards.html
http://www.businessweek.com/magazine/content/10_33/b4191037299913.htm
http://www.guardian.co.uk/technology/2011/apr/25/wifi-security-flaw-smartphones-risk
http://smartphoneprogramming.com/Articles/?p=98