It is predicted that two percent of transactions will be in cash by 2022 and many countries will become cashless in the near future. Payment with credit cards and debit cards are very popular and have been an alternative to cash, but recently a new form of payment system has occurred – mobile payment.  

Mobile payment services like Alipay, WeChat Pay, or Apple Pay have increased over the past few years. Especially in China, the number of mobile payment users has reached 500 million. More and more people in the country are getting cashless and use their phones to pay, and the trend is increasing in the West as well.

When I moved to China in 2015, I was surprised by the mobile payment technology. I remember at that time, not every vendor gave the option to pay with WeChat Pay or Alipay, but many people were changing their physical wallets into e-wallets on their phones.

And why not? It is much more convenient, much faster than cash. The vendor just needs to scan a QR-code from your phone. No need to wait for the change, no need to put all the coins into your wallet, and especially you don't have to worry about counterfeit money.

As for the vendors, it has many advantages as well, like fewer transaction fees than credit card companies, no fees and risk of taking the cash to the bank, and the vendors will be less worried about employees or thieves stealing their money. Everyone, vendors or customers will have a better overview of their finances and transactions. Even the government will have a better overview of the transactions and therefore will have better prevention in financial crimes like tax evasion.

I was surprised that in a matter of a few years, almost everyone in China adopted to the mobile payment systems, even the street performers now have a QR-code, which you can scan to transfer money to them. And what is even more fascinating is that transferring money is not the only advantage you have with mobile payment systems.

On the Chinese mobile payment platforms, you can pay your bills, buy plane and train tickets, and even getting a credit is not a problem. They offer many functions and they are increasing with time. Even in other countries, you will be able to use your e-wallet, and you don't need to worry about exchange rates and currencies. Vendors all over the world are adapting to this change and include mobile payment as one of their options to credit card and cash.

Nothing in this world is perfect and mobile payment systems come with some risks and disadvantages as well. In terms of security, it has become a target for hackers and cybercriminals to get access to your account and transfer your money without your consent. Another problem is if you are shopping and the paying system has a glitch or a technical problem, or if your phone has run out of battery, you won't be able to pay for your purchases. Most people tend to overspend with electronic money, as it is much easier to click a button to buy things than actually feeling physical money leaving your wallet.

To summarize, the invention of the mobile payment system has made life much easier for people, especially in China which has become a leader in mobile payment systems, as many Chinese citizens only take their phone with them and leave their physical wallet at home. Countries around the world are adapting to this new trend as well, and imagine being able to pay for everything, everywhere, with just your phone.