Smart Phone (Money)

Smart Phone (Money)

Article Used

http://business.financialpost.com/2011/04/23/smart-phone-money/

1. How long do you think it's going to take to get to all virtual cards? How many years? (1 point)
Why? (1 point)

I dont believe it will take a very long time to transition from regular wallets to virtual wallets because technology is always changing and people are always getting accustomed to new innovations. For example the previous generation, who grew up with CDs, walkmans, and floppy disks are still using the same devices that teenagers are. It may take a couple of years but I don't believe it will be hard to get used to at all.

2. Who will not be on board with this new virtual wallet? (2 point)

I believe everyone will be on board with this because of my previous point of changing times and adapting to it. However there will still be a large minority of people who prefer to use wallets and other material means of currency over the virtual alternative. An example would be people who feel insecure about the safety of digital means and distrust new trends and technologies.

3. What companies are going to be affected negatively by this? Name 3 (3 points)

Some companies that will be negatively affected are companies like Interact and other Mastercard companies. This is because credit cards and debit cards will be used less as NFC (Near-Field Communications) are used more. If the demand decreases for debit and credit cards the companies that make money from it will not benefit. However, they may switch to an alternative to keep up with the times and minimize their losses.

4. Which industries are going to make money from this? Name 3 (3 points)


A lot of cell phone carriers such a Telus, Fido and internet companies like Shaw will make money because the demand for smartphones would increase dramatically. Other cellphone companies like RIM, Apple, HTC will also benefit from these changes as people flock to purchase these phones for convenience. As long as it becomes widespread and easy to use I believe this new idea will catch on and provide new possibilities for banking and technology.