Tap Paid.

25 Jul Tap Paid.

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The Economic and Social Impact of Virtual Money Transfer Technology

The Story:

It’s interesting to me that, growing up as I did, in the age of hard cold cash (not so long ago) how quickly we have accepted intangible, digital currency. It wasn’t long ago that most people, from my generation (late boomers) were not ready and willing to trust the internet with their credit card number.

Fast forward a few years and now we all shop online, talk online and many of us mostly live online.

We are living through the transition from physical to virtual currency where billions of transactions occur daily in the virtual world of online business. Back in the day, when we bought something you would have to:

  1. take out your wallet/purse
  2. check you had enough money, find the right currency
  3. pay (physically hand the money to to cashier)
  4. verify you got the right change back before you
  5. put it all back in your wallet/purse.

How did we survive?

Now we simply tap our card, scan our phone or click our mouse and boom the transaction is done.

It’s amazing how fast and effortlessly we moved from real money to virtual money. Even the Chinese, who were the first to print paper money are falling out of love with cash. https://next.ft.com/content/e1469cf0-9cf5-11e3-9360-00144feab7de

The Problem:

Losing our physical connection with money can have positive and negative consequences depending which side of the sales transaction you are on. For consumers, using digital money transfer technology makes us less conscience about the value of money and more willing to spend, likely to spend more; and likely to spend more often. The technology however creates the ultimate transaction efficiency and maximizes impulse purchase potential, which is very good for business.

As consumers, this transaction technology presents important questions for all of us to consider. As we become more desensitized to money, by losing the physical connection with it:

  1. How does this change our purchasing behavior?
  2. How do we control and manage our spending?
  3. How do we avoid falling into the deep debt trap? (Woops, too late many of us are already there)
  4. How do we make smart purchasing decisions?

The Solution:

We simply need to become “mindful about money” again. Even though tapping, swiping, clicking is very cool and doesn’t feel like spending real money, it actually is real! So before we tap, click, swipe or scan let’s all take a breath, be in the moment and consider whether this something, is something we really need and can afford.

Joe Markovitch is the co-founder of Solly’s Bagelry, a Vancouver food institution and the founder of JoeCo Business Coaching, a holistic business-coaching practise.

As a successful Vancouver entrepreneur, marketing exec, college instructor and professional musician Joe has more than 25 years of life in business. Over the past 5 years, Joe has coached many business start-ups and expansions in the retail sector, manufacturing industry and professional services field.