{"id":29375,"date":"2012-04-21T13:15:47","date_gmt":"2012-04-21T12:15:47","guid":{"rendered":"http:\/\/alienbabeltech.com\/main\/?p=29375"},"modified":"2012-04-22T00:20:54","modified_gmt":"2012-04-21T23:20:54","slug":"replacing-cash-will-be-slow-painful-inevitable","status":"publish","type":"post","link":"http:\/\/alienbabeltech.com\/main\/replacing-cash-will-be-slow-painful-inevitable\/","title":{"rendered":"Replacing Cash Will Be Slow, Painful, Inevitable"},"content":{"rendered":"<p style=\"text-align: left;\"><script type=\"text\/javascript\">\/\/ <![CDATA[\n                                                       google_ad_client = \"pub-7021221536180758\"; \/* 468x60, created 11\/11\/09 *\/ google_ad_slot = \"1949837292\"; google_ad_width = 468; google_ad_height = 60;\n\/\/ ]]><\/script><script type=\"text\/javascript\" src=\"http:\/\/pagead2.googlesyndication.com\/pagead\/show_ads.js\"><\/script><\/p>\n<blockquote>\n<h6><span style=\"color: #00ccff;\">The following is by G. A . &#8220;Andy&#8221; Marken, President of <a href=\"http:\/\/www.markencom.com\/index.htm\" onclick=\"_gaq.push(['_trackEvent', 'outbound-article', 'http:\/\/www.markencom.com\/index.htm', 'Marken Communications']);\" ><span style=\"color: #00ccff;\">Marken Communications<\/span><\/a><span style=\"color: #00ccff;\"> Inc. He has kindly given us permission to republish his thought-provoking article. As with everything that we publish at AlienBabelTech, the opinions expressed are solely those of the individual writer and do not necessarily reflect the views and the <strong>opinions of the rest of the ABT staff.<\/strong><\/span><\/span><strong><span style=\"color: #00ccff;\"><span style=\"color: #00ccff;\"> \u2013Mark Poppin,<\/span> <span style=\"color: #00ccff;\">ABT Senior Editor<\/span><\/span><\/strong><\/h6>\n<\/blockquote>\n<h2 style=\"text-align: center;\"><strong>Invisible Money<\/strong><\/h2>\n<p><strong><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-29376\" title=\"Untitled-1\" src=\"http:\/\/i1.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2012\/04\/Untitled-16.jpg?resize=362%2C252\" alt=\"\" srcset=\"http:\/\/i1.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2012\/04\/Untitled-16.jpg?resize=362%2C252 362w, http:\/\/alienbabeltech.com\/main\/wp-content\/uploads\/2012\/04\/Untitled-16-300x208.jpg 300w\" sizes=\"auto, (max-width: 362px) 100vw, 362px\" data-recalc-dims=\"1\" \/><\/strong><\/p>\n<blockquote><p>\u201cThe whole world&#8217;s frightened to death! So, I see Kemp couldn&#8217;t sleep, he had to go downstairs, he was frightened. I put my trust in Kemp, I told him my secret and he gave me his word of honor.\u201d &#8212; \u201cThe Invisible Man,\u201d Universal Pictures, 1933<\/p><\/blockquote>\n<p>Eons ago, the wife and I were in Carmel and found a metal sculpture of Don Quixote we really wanted, but we didn\u2019t have the cash with us and she hadn\u2019t replaced the checks.<\/p>\n<p>The shop owner reached in a drawer and brought out a counter check \u2013 fill in the bank name, the amount, sign it.<\/p>\n<p>That was it\u2026done.<\/p>\n<p>We were reminded of that instance when an acquaintance in England told us that back in early 1970s Ireland went without a banking system for six and a half months when the bank employees went on strike.<\/p>\n<p>A funny thing happened.<\/p>\n<p>People, companies resorted to IOUs and bartering to settle payments; and according to the Irish Central Bank, the level of economic activity continued to increase.<\/p>\n<p>We doubt that that level of \u201cfaith\u201d in a person\u2019s word will ever return, but weirder things have happened.<\/p>\n<p>Even for a relatively short period, people got along without bank accounts, checks and cash withdrawals from ATMs.<\/p>\n<p>The truth is, the technical aspects of money and banking is limited.<\/p>\n<p>Another acquaintance alerted us to a book by David Wolman, \u201cThe End of Money.\u201d<\/p>\n<p>In researching the book, Wolman lived without cash for a year while circling the globe to research the book.<\/p>\n<p>So your banker, broker, tech toy seller won\u2019t have a heart attack, we should note that the book isn\u2019t about giving up money, but replacing it with electronic payments<\/p>\n<p>Electronic and mobile money is inevitable.<\/p>\n<p><strong>Phone Flood<\/strong><br \/>\nWorldwide, there are more mobile phones than people occupying the planet.<\/p>\n<p>Smartphones are all the buzz because you can do so much with them \u2013 text, check email, watch movies, take\/send pictures, listen to music, surf the web; and oh yeah, make a call.<\/p>\n<p>What\u2019s more logical than to add all your really personal stuff \u2013 ID, PIN numbers, passwords, bank info and contacts?<\/p>\n<p>True, you don\u2019t need all that stuff on your phone to add electronic banking \u2013 cheap feature phones outsell smartphones worldwide.<\/p>\n<p>People in Africa and Asia get along just fine sending\/receiving micropayments, calling\/talking to each other.<\/p>\n<p>There\u2019s even a dwindling population of retro folks who pride themselves on resisting the rush to get an iPhone (not our kids, but) &#8212; so they can figure out what town they are in, what restaurants are around, what the weather is and the need to sling birds at targets.<\/p>\n<p>No one mugs these folks for their phone because fer gawd sake, who wants to steal a flip-phone?<\/p>\n<p>But they do miss out on mobile shopping, which increased from 75 percent to 93 percent last year.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-29377\" title=\"Untitled-2\" src=\"http:\/\/i2.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2012\/04\/Untitled-25.jpg?resize=234%2C223\" alt=\"\" data-recalc-dims=\"1\" \/><\/p>\n<blockquote><p><strong>Swipe, Go<\/strong> \u2013 Mobile shopping has only begun to slowly catch on with Gen Yers, but a few leading-edge retailers such as Starbucks have been successful in getting customers to use their smartphones to pay for goods\/services. Retailers see the advantage of having their specific mobile money application because it brings them closer to the customer to offer coupons, special offers and faster service.<\/p><\/blockquote>\n<p>Of course, completing a purchase in the Americas still isn\u2019t as popular as it is in Finland, Japan and other countries. In those parts of the world, people have used phones as \u2018virtual\u2019 credit cards for years, paying for everything from parking to bottles of soda and gadgets to dinner.<\/p>\n<p>In the Americas, we\u2019re dipping our phones in the water, using the device for electronic boarding passes, going to movies\/concerts, buying a cup of coffee.<\/p>\n<p><strong>Store Visit<\/strong><br \/>\nStill, the most common action according to Ipsos \u2013 55 percent of the respondents \u2013 is to go to a store in person after the smartphone search.<\/p>\n<p>Mobile purchases are the first step toward mobile money, but even that is slow in coming.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-29378\" title=\"Untitled-3\" src=\"http:\/\/i0.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2012\/04\/Untitled-34.jpg?resize=436%2C399\" alt=\"\" srcset=\"http:\/\/i0.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2012\/04\/Untitled-34.jpg?resize=436%2C399 436w, http:\/\/alienbabeltech.com\/main\/wp-content\/uploads\/2012\/04\/Untitled-34-300x274.jpg 300w\" sizes=\"auto, (max-width: 436px) 100vw, 436px\" data-recalc-dims=\"1\" \/><\/p>\n<blockquote><p><strong>Mobile Shopping<\/strong> \u2013 People are increasingly using their mobile devices \u2013 tablets, smartphones \u2013 to do product and outlet research. The predominant solution so far is to find the store\/product\/best price and make the purchase in the store. <strong>Source \u2013 comScore<\/strong><\/p><\/blockquote>\n<p>The Harris poll recently reported:<\/p>\n<p style=\"padding-left: 30px;\">\n&#8211; Only 5% responded that they have scanned their phone for admission to a movie, or to board a plane<br \/>\n&#8211; Only 3% have scanned their phone to pay for retail items, enter a concert, or buy a cup of coffee<br \/>\n&#8211; 40% replied they had never scanned their phone for any purpose<br \/>\n&#8211; 45% said they do not own a smartphone with this capability<br \/>\n&#8211; Just 5% and 10% of so-called \u2018Echo Boomers\u2019 (Gen Y) have ever scanned their phones for transactions<br \/>\n&#8211; 25% were \u2018not at all comfortable\u2018 with the idea of using smartphone as a gift card<br \/>\n&#8211; 39% were comfortable using their smartphone as a gift card<br \/>\n&#8211; 47% said they were not comfortable with the concept<br \/>\n&#8211; 14% weren\u2019t sure<br \/>\n&#8211; 63% said they were not comfortable using a smart phone app that would store credit card information for electronic transactions<br \/>\n&#8211; 47% of respondents were comfortable using a smart phone scan for movie theater and concert admissions<br \/>\n&#8211; Men are more receptive to smartphone commerce apps than women<br \/>\n&#8211; Younger adults (not surprisingly) are more at ease with the process than older adults<\/p>\n<p>And on-phone purchases are only the first step in moving to mobile money.<\/p>\n<p>The biggest hold back is security and privacy.<\/p>\n<p>As the Invisible Man warned, \u201cAll right, you fools. You&#8217;ve brought it on yourselves! Everything would have come right if you&#8217;d only left me alone. You&#8217;ve driven me near madness with your peering through the keyholes and gaping through the curtains. And now you&#8217;ll suffer for it!\u201d<\/p>\n<p>Of course, up until now bad guys\/gals haven\u2019t been much interested in tapping into phones but smartphones \u2013 with iOS, Android OS, Windows \u2013 is a whole different opportunity.<\/p>\n<p>Due to the difficulty of updating software and patching vulnerabilities on mobile phones, malware writers have started to get busy.<\/p>\n<p style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter  wp-image-29379\" title=\"Untitled-4\" src=\"http:\/\/i1.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2012\/04\/Untitled-44.jpg?resize=565%2C298\" alt=\"\" srcset=\"http:\/\/i1.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2012\/04\/Untitled-44.jpg?resize=565%2C298 628w, http:\/\/alienbabeltech.com\/main\/wp-content\/uploads\/2012\/04\/Untitled-44-300x158.jpg 300w\" sizes=\"auto, (max-width: 565px) 100vw, 565px\" data-recalc-dims=\"1\" \/><\/p>\n<blockquote><p><strong>Attacks Just Beginning<\/strong> \u2013 Mobile phone malware and cyber theft is just beginning to appear; and most security analysts say it will rapidly increase as people begin to widely use smartphones as their key personal\/company information on the devices. With the growing use of smartphones for almost everything, consumers will become more vulnerable to attack. <strong>Source \u2013 Lookout<\/strong><\/p><\/blockquote>\n<p>According to Lookout Mobile Security\u2019s Mobile Threat Report, Android smartphone owners are twice as likely to encounter malware as they were six months ago.<br \/>\nLookout notes that botnet networks \u2013 integrating thousands of mobile devices into a network to distribute spam, steal private info, install other malware like DroidDream, Geimini \u2013 are only beginning to scale.<\/p>\n<p><strong><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-29380\" title=\"Untitled-5\" src=\"http:\/\/i1.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2012\/04\/Untitled-54.jpg?resize=198%2C155\" alt=\"\" data-recalc-dims=\"1\" \/><\/strong><\/p>\n<blockquote><p><strong>No Game<\/strong> \u2013 While Grand Theft Auto is an adrenalin-raising, addictive game at home or on the go, its mobile version warns smartphone users they can\u2019t be too careful.<\/p><\/blockquote>\n<p><strong>Cracking the Code<\/strong><\/p>\n<p><strong><\/strong><br \/>\nBut one security analyst said the bad guys\/gals are only just beginning.<br \/>\nIt\u2019s a lot like Willy Sutton\u2019s response when asked \u201cWhy do you rob banks?\u201d<br \/>\nPretty obvious&#8230;\u201cBecause that\u2019s where the money is!\u201d<br \/>\nToday\u2019s cyber criminals are no different\u2026that\u2019s where you are.<br \/>\nMobile Pickpocketing (SMS\/call fraud) \u2013 charging phone bills \u2013 is already racking up millions for these people with things like GGTracker, RuFraud and other creative efforts.<\/p>\n<p>The biggest problem \u2013 cyber crooks think of it as opportunity \u2013 is that all those gazillion mobile apps are developed by folks who have little\/no understanding\/consideration for data privacy or confidentiality.<\/p>\n<p>And trust us; you don\u2019t have a clue on what types of information is collected, how it is used, how it is retained!<\/p>\n<p>Or, as the farmer said, <em>\u201cExcuse me, sir. There&#8217;s breathing in my barn.\u201d<\/em><\/p>\n<p>That\u2019s probably why people like Juniper Research forecast that mobile payments for digital and physical goods, mobile money transfers and NFC-enabled contactless transactions will almost triple from $240 billion in 2011 to $670 billion in 2015.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-29381\" title=\"Untitled-6\" src=\"http:\/\/i0.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2012\/04\/Untitled-64.jpg?resize=430%2C318\" alt=\"\" srcset=\"http:\/\/i0.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2012\/04\/Untitled-64.jpg?resize=430%2C318 430w, http:\/\/alienbabeltech.com\/main\/wp-content\/uploads\/2012\/04\/Untitled-64-300x221.jpg 300w\" sizes=\"auto, (max-width: 430px) 100vw, 430px\" data-recalc-dims=\"1\" \/><\/p>\n<blockquote><p><strong>Testing the Waters<\/strong> \u2013 Almost every retailer is trying to incorporate mobile devices into their customer contact\/sales activity. It includes making mobile devices \u2013 initially iPads, iPod Touches \u2013 as well as mobile configured-websites; and increasingly, they are testing solutions for checkout with the smartphone. Over the next few years, a wide range of options will be available until two or three are tapped by retailers and consumers. <strong>Source &#8211; AisleBuyer<\/strong><\/p><\/blockquote>\n<p>Retailers are already seeing the advantages of on-phone purchases and the data they can acquire when people use their mobile devices for payments.<\/p>\n<p>The service providers, Google, Apple, Microsoft have been educating\/helping them move people to the convenience and \u201cbenefits\u201d of using your all-purpose smartphone for just everything.<\/p>\n<p>On-phone purchases\/electronic cash won\u2019t come quickly; and it will be chaotic between now and then. After all, \u201ceveryone\u201d \u2013 banks, credit card companies, PayPal, stores &#8212; will want a piece of the action.<\/p>\n<p>Of course, there is also the little issue of making you feel totally comfortable with it as well.<\/p>\n<p><strong>False Security<\/strong><\/p>\n<p><strong><\/strong><br \/>\nThere are really smart people like Giovanni Vigna, a professor at the University of California, Santa Barbara, who studies security and malware. He said it\u2019s only a matter of time before mobile security will be as second nature to consumers as computer security.<\/p>\n<p>Yeah, Willy Sutton liked bankers with that attitude.<\/p>\n<p>Consumers are a little more cautious, less optimistic.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-29382\" title=\"Untitled-7\" src=\"http:\/\/i1.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2012\/04\/Untitled-74.jpg?resize=470%2C230\" alt=\"\" srcset=\"http:\/\/i1.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2012\/04\/Untitled-74.jpg?resize=470%2C230 470w, http:\/\/alienbabeltech.com\/main\/wp-content\/uploads\/2012\/04\/Untitled-74-300x146.jpg 300w\" sizes=\"auto, (max-width: 470px) 100vw, 470px\" data-recalc-dims=\"1\" \/><\/p>\n<blockquote><p><strong>Yes But<\/strong> \u2013 While younger consumers who do virtually everything with their smartphone can appreciate the advantage of using the smartphone and tablet as a means of paying for goods\/services, mobile payment is still a work in progress. Security, privacy and payment standards are just a few of the issues standing in the way of widespread usage. <strong>Source \u2013 Prosper Mobile Insights<\/strong><\/p><\/blockquote>\n<p><strong><\/strong><br \/>\nHarris research found that the cashless solution with electronic payments has a ways to go:<\/p>\n<p style=\"padding-left: 30px;\">\n&#8211; 10% think it will happen in one to less than three years<br \/>\n&#8211; 18% think it will take between three and five years<br \/>\n&#8211; 21% stated it will happen in five to less than ten years<br \/>\n&#8211; 15% said the trend will take ten years or more<br \/>\n&#8211; 30% said electronic data stored on phones will never replace cash payments<\/p>\n<p>Wolman was right in his book and cash will disappear globally not to IOUs but to your mobile device.<\/p>\n<p>For most of us, it\u2019s going to take time, lots of time.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter  wp-image-29384\" title=\"Untitled-9\" src=\"http:\/\/i0.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2012\/04\/Untitled-92.jpg?resize=334%2C273\" alt=\"\" srcset=\"http:\/\/i0.wp.com\/alienbabeltech.com\/main\/wp-content\/uploads\/2012\/04\/Untitled-92.jpg?resize=334%2C273 334w, http:\/\/alienbabeltech.com\/main\/wp-content\/uploads\/2012\/04\/Untitled-92-300x245.jpg 300w\" sizes=\"auto, (max-width: 334px) 100vw, 334px\" data-recalc-dims=\"1\" \/><\/p>\n<p>When it does, lots will hear the Invisible Man whisper, \u201cI failed. I meddled in things that man must leave alone.\u201d<br \/>\n# # #<\/p>\n<p style=\"padding-left: 30px;\"><strong>by: G.A. &#8220;Andy&#8221; Marken<\/strong><\/p>\n<p style=\"padding-left: 30px;\"><strong> President<\/strong><\/p>\n<p style=\"padding-left: 30px;\"><strong> Marken Communications Inc.<\/strong><\/p>\n<p style=\"padding-left: 30px;\"><strong> <a href=\"mailto:Andy@markencom.com\">Andy@markencom.com<\/a><\/strong><\/p>\n<blockquote style=\"padding-left: 30px;\"><p>Please join us in our <a href=\"http:\/\/alienbabeltech.com\/abt\/index.php\" target=\"_blank\">Forums<\/a><\/p>\n<p>Become a Fan on <a href=\"http:\/\/www.facebook.com\/pages\/AlienBabelTech\/123268467142\" onclick=\"_gaq.push(['_trackEvent', 'outbound-article', 'http:\/\/www.facebook.com\/pages\/AlienBabelTech\/123268467142', 'Facebook']);\" target=\"_blank\">Facebook<\/a><\/p>\n<p>Follow us on <a href=\"http:\/\/twitter.com\/alienbabeltech\" onclick=\"_gaq.push(['_trackEvent', 'outbound-article', 'http:\/\/twitter.com\/alienbabeltech', 'Twitter']);\" target=\"_blank\">Twitter<\/a><\/p>\n<p>For the latest updates from ABT, please <a href=\"http:\/\/alienbabeltech.com\/main\/?feed=rss2\" target=\"_blank\">join our RSS News Feed<\/a><\/p>\n<p>Join our Distributed Computing teams<\/p>\n<ul>\n<li>Folding@Home &#8211; Team AlienBabelTech &#8211; 164304<\/li>\n<li>SETI@Home &#8211; Team AlienBabelTech &#8211; 138705<\/li>\n<li><a href=\"http:\/\/www.worldcommunitygrid.org\/reg\/viewRegister.do?teamID=3P39R3SRV1\" onclick=\"_gaq.push(['_trackEvent', 'outbound-article', 'http:\/\/www.worldcommunitygrid.org\/reg\/viewRegister.do?teamID=3P39R3SRV1', 'World Community Grid &#8211; Team AlienBabelTech']);\" target=\"_blank\">World Community Grid &#8211; Team AlienBabelTech<\/a><\/li>\n<\/ul>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>The following is by G. A . &#8220;Andy&#8221; Marken, President of Marken Communications Inc. He has kindly given us permission to republish his thought-provoking article. As with everything that we publish at AlienBabelTech, the&#46;&#46;&#46;<\/p>\n","protected":false},"author":396,"featured_media":29384,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2533,7],"tags":[5187,5188,5186,2117,3295],"class_list":["post-29375","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-abt-news","category-technology","tag-mobile-payments","tag-mobile-purchases","tag-replacing-cash","tag-security","tag-smartphones"],"_links":{"self":[{"href":"http:\/\/alienbabeltech.com\/main\/wp-json\/wp\/v2\/posts\/29375","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/alienbabeltech.com\/main\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/alienbabeltech.com\/main\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/alienbabeltech.com\/main\/wp-json\/wp\/v2\/users\/396"}],"replies":[{"embeddable":true,"href":"http:\/\/alienbabeltech.com\/main\/wp-json\/wp\/v2\/comments?post=29375"}],"version-history":[{"count":0,"href":"http:\/\/alienbabeltech.com\/main\/wp-json\/wp\/v2\/posts\/29375\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/alienbabeltech.com\/main\/wp-json\/wp\/v2\/media\/29384"}],"wp:attachment":[{"href":"http:\/\/alienbabeltech.com\/main\/wp-json\/wp\/v2\/media?parent=29375"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/alienbabeltech.com\/main\/wp-json\/wp\/v2\/categories?post=29375"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/alienbabeltech.com\/main\/wp-json\/wp\/v2\/tags?post=29375"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}