I watched the following TEDx talk by Adam Carroll this morning. The topic? Money when it’s not “real”.

usa-dollar-billsCash is tangible. You can hold it. If you spend it, you don’t have it anymore.

Credit cards, less so. You swipe, and digitally you have more debt you need to pay off at some point in the future. But, 10 minutes later, you can go to a different store and go farther into debt.

The next iteration is digital payments. Apple Pay. Tap, and be done.

I’ve long worried about what will happen to consumer debt once you can put a $100, or $1000, transaction onto your credit card in less than 1 second by swiping your phone or pressing your finger to a pad.

It’s not shocking at all that corporations (and especially the financial institutions) want this shift to happen. Consumers will spend more money (they don’t have) when it becomes easier to not think about what they’re doing. They will go farther in debt, and rack up more interest payments.

The younger generation, is barely going to understand what cash is. My gut, it’s not going to be pretty for consumer’s finances once anyone can buy anything without even having their wallet/purse on them.