3 ways digital cash is taking over

When was the last time you paid cash? Have you counted the pennies thrown in the cup holder of your car? Are you being asked to break a $20 bill in line?

Digital money transactions, or “contactless payments”, have taken over – both e-commerce and in-person shopping.

According to a recent Gallup poll, 64% of adults say the US will be cashless in their lifetime.

From mobile wallets to digital currencies, digital transactions are sparking a boom in contactless sales.

And it goes far beyond MasterCard, Visa or AmEx.

This revolutionary financial technology (fintech) represents a huge market. And we expect it to fly away 100% in the next five years.

What do I mean by digital money?

When I say “digital currency” and its payment operations, I mean:

I’m sure you’ve noticed a change in your local restaurants, grocery stores, and retail stores, even that taco truck on the side of the road. There is now less cash and more digital payment transactions.

On a recent trip to the grocery store, I noticed that no customer in front of me was paying cash.

Most paid with their credit card, debit card or, of course, their smartphone.

There are three main tracks digital money has become the future of business and finance. And I’ll also tell you the best way to lock you up real money of digital money takeover.

Here’s how…

  1. Mobile wallets

If you’re unfamiliar with the speed of mobile wallet payments, Shopify, a popular online retailer, puts it this way:

A mobile wallet is a digital wallet that holds credit, debit, ID, gift, membership, and rewards cards on a mobile device.

Mobile wallets allow consumers to make payments using their mobile device, smartwatches or tablet instead of using a physical card.

The use of mobile wallets is on the rise. In the United States, local mobile spending per user will nearly double to reach $7,827 in 2026as customers shift to mobile wallets and away from other payment methods.

us mobile payment spending

With the growing popularity of mobile wallets, this means that in our technological 2.0 world, all you really need is your smartphone to make almost any purchase.

A Statista survey found that 30% of mobile wallet users like to pay with their smartphone all the time.

Mobile payments in the United States in 2022

Wow. 30 % ! It’s a significant number.

And it will only grow from here as tech 2.0 companies like PayPal and Tesla lead a “new money revolution.”

PayPal and Tesla get into digital cash

With Black Friday and Cyber ​​Monday less than 50 days away, overstretched retailers are ready to go all out to offload excess inventory.

High inflation and too much stock in their inventory prompts retailers to offer steep discounts on their products.

Why Digital Money Generates Holiday Discounts

This year, a notable percentage of holiday purchases will be made using mobile wallet digital payments.

But it’s not just during the holidays.

Over the past few years, PayPal has established itself as an Industry 2.0 leader in the digital payment market.

On May 1, 2020, PayPal experienced “the biggest transaction day in company history – bigger than Black Friday and Cyber ​​Monday of 2019”.

Tesla revamps online car sales

And when it comes to car sales, one of our model portfolio favorites – Tesla – is easily a frontrunner adapting to this evolution of e-commerce.

Tesla’s online sales technology and seamless contactless deliveries are paving the way for the future of auto sales.

Tesla buyers have the option of “Express Delivery” or “Tesla Direct”. Both services are contactless and can be completed without direct face-to-face human interaction.

All you need is payment through the Tesla app on your smartphone.

This fast mobile payment technology is growing by leaps and bounds. And that means big profits for us…

  1. Point of sale systems and contactless payments

Also by Shopify: “With contactless payments and tap to pay becoming more popular in a post-pandemic world, mobile wallet payment acceptance has evolved from a bonus payment option to a essential.”

Mobile Digital Money Transactions Point of Sale Market

The transaction value of the global POS mobile payments market is expected to reach $5.8 trillion by 2027, from $2.9 trillion this year. This is a compound annual growth rate of almost 15% and a leap of 100%.

The technology is so popular that the number of people using it worldwide has more than tripled since 2017, from 299 million users to 1.5 billion users.

By 2027, the mobile POS payment market is expected to have 1.9 billion active users:

pos mobile payment market users

And remember: the mobile POS boom has legs to last for years. Millennials, the largest 2.0 cohorts, are using this emerging technology the most.

Mobile POS market users by age

Currently, millennials account for 37.4% of POS mobile wallet transactions, followed closely by Gen Z users at 25.3%.

Our current global situation is accelerating the use and need for fast mobile checkouts and contactless sales transactions.

  1. Cryptocurrency and CBDC

We can’t talk about “digital currency” without talking about a big topic that divides…

Cryptocurrencies like bitcoin, Ethereum and Solana are digital currencies. They are secured on online networks called blockchains.

Cryptos are decentralized, meaning they are not regulated by any government entity or central bank.

This has made cryptos increasingly popular over the past 10 years, both as digital currencies and as investment assets.

On the other hand, central banks do not want to be left out. It’s here that central bank digital currenciesor CBDC, come into play.

difference between cryptos and CBDCs

The basic concept is:

  • Less dependence on paper money.
  • Reduction of bank charges.
  • A government-backed stable digital currency.

Even the US Federal Reserve is exploring the possibility of replacing the US dollar with a CBDC.

The US isn’t the only country taking this idea seriously, but Ian King and I are watching the Fed’s potential CBDC actions closely.

Why?

CBDCs sound like a good idea in theory. But a government-controlled digital currency would benefit the US central bank more than it does us.

According to our research, this would actually give him more control over your finances. And it could pose significant risks to your wealth and assets.

**Special Note: If you want to learn more, Ian is hosting a special webinar on CBDCs this Thursday, October 13 — online for free. It will show you three ways to protect your money from a US central bank digital currency.

If you want to watch this event on Thursday (free!), subscribe to Winner Investor Daily Newsletter today! We’ll send you an email with exclusive online access.

Takeaway: Digital payment technology is here to stay

Companies like PayPal and Tesla see it. They lead America in innovative, contactless sales with new world technology at the forefront.

Right now, China is leading the global mobile wallet movement. But not for long.

With the deployment of Industry 2.0, the United States will gain market share. And companies that fully embrace this technology stand to reap the benefits.

Top 5 Digital Money Transactions in Countries 2020

Want to invest in the digital cash trend?

To be part of this digital revolution, I propose to buy shares in the ARK Fintech Innovation ETF (NYSE: ARKF).

ARKF is an exchange-traded fund (ETF) that invests in domestic and foreign stocks. These companies rely on (or benefit from) the introduction of new technology products or services.

It is these companies that have the potential to revolutionize the functioning of the financial sector.

If you have any other questions about mobile wallets, cryptocurrency, or even CBDCs, let us know in the comments below. Or email us at [email protected]!

Until next time,

Amber Lancaster

Amber Lancaster

Director of Investment Research, Strategic Fortunes

Disclaimer: We will not track any stock in Investor earning every day. We only share our opinions, not advice. If you would like access to our model portfolio stocks with tracking, updates and buy/sell advice, please visit Strategic Fortunes.