Are We Heading Toward The End Of Money?

Quick, how many greenbacks do you have in your wallet?

 Now, how many debit and credit cards?

 The Federal Reserve thinks you average $79 in cash in your wallet, but informal polls place the number much lower now that more small ticket items can be purchase with debit and credit cards.

Americans now own about 610 million credit and/or debit cards, that's about 2.2 cards per person over the age of 15.  We're already observing that Starbucks and Dunkin Donuts are already encouraging use of plastic to speed up the transactions at their counters – and you don't have to sign - cash go away.

Also, there are some mega giants looking to change your wallet from looking like that billfold in your purse or back pocket to a totally electronic wallet stored on your cell phone.  With players like Google, PayPal, the cell phone companies like Verizon and AT&T getting into act and perhaps stealth development going on over at Facebook and Apple, it's clear the world of transactions is going to change radically, and soon.

Another interesting story is what's happening in India and Kenya.  You see, the next technological leap may not emanate from Silicon Valley, but from the African Rift Valley.  Third world countries don't have archaic infrastructure holding back the payment model.

 Kenya skipped the landline infrastructure building and went straight to cell phones.  There are also fewer brick and mortar banks and ATM machines.  But what's catching on like wildfire in the Serengeti, is the ability to pay by text.  A lot of 3rd world people are texting minutes as a means of payment, thus bypassing banks. Most don't carry cash at all.

Is it safe? Probably more safe than leaving your wallet full of cash and credit cards in your gym locker.

That text payment technology is still maturing and the US based players are fighting over the proper architecture for mobile wallets, but very soon, you will not have any cash on you at all.