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Generation cashless

Google Wallet still lags behind Paypal in terms of brand awareness and use, but smartphone transactions will become the new normal with the younger generation.

By Smart Spending Editor May 21, 2013 5:02PM
This is a post by Quentin Fotrrell from partner site Marketwatch.

MSN Money Partner In an effort to boost the popularity of its mobile payment system, Google this week announced that it is integrating Google Wallet with Gmail. Customers who’ve linked Google Wallet to their bank account or maintain a balance with Google Wallet can simply click the dollar icon on their Gmail to make a payment.

image: Man holding empty wallet ©, Image Source, Getty ImagesIt’s not the first time Google Wallet introduced new features. Last year, it launched a pilot Google AdWords business credit card for small businesses in the U.K. and flirted with the idea of a Google Wallet card for consumers too.

But there are signs that there is untapped demand for mobile payments. Just one-fifth of young Americans ages 18 to 30 always carry cash, according to a new survey by CouponCodes4U, a discount code website. Nearly half said cash would not be used in the future.

“It’s a generational trend,” says Brent Shelton, a spokesman for deal site And some 72% of Gmail users are under the age of 34, according to a survey by, a personalized recommendation site.

“The younger generations are adopting this technology in droves," he said. PayPal and Google Wallet, for example, connect to a bank account or a debit or credit card through a person’s smartphone.

“It’s early days for mobile payments,” says technology analyst Jeff Kagan. “I have children in their early 20s who rarely carry as much as $5 in their wallet.” That’s just enough for tips. “Today, we leave the house with a wallet, car keys and smartphone,” he says. “There will come a time when it will only be our smartphone.”

Google still faces hefty competition. PayPal has an Android and an iPhone app and, on Tuesday, said it would waive fees for the rest of the year for businesses that sign up for its service. Verizon Wireless, one of the country’s major cellphone operators, stopped supporting Google Wallet in 2011. Instead, it’s now part of the rival Isis mobile payment system it launched with AT&T and T-Mobile. Square Wallet, a mobile app for Android and iOS launched by Twitter co-founder Jack Dorsey, last year signed a deal to access some 7,000 Starbucks stores nationwide.

Thus far, PayPal appears to lead. Some 72% of consumers are aware of PayPal, and 48% say they’ve used it, according to a recent survey from ComScore, while only 41% say they’ve heard of Google Wallet, and 8% say they’ve used it.

Since its release in September 2011, Google Wallet has had a bumpy ride. Thousands of merchants are still not set up for mobile payments, making it more difficult for smartphone evangelists to cut up their plastic. What’s more, some consumers are still concerned about security issues of making payments via mobile phone. One U.K. survey found that 44% of people were reluctant to adopt mobile wallets due to fears of phone hacking; only 17% of those surveyed say they would use mobile wallets. (Google did not return requests for comment.)

More from MarketWatch:

May 22, 2013 3:37PM
We found out in June 2012 after the big storm that you need cash.  You could not buy gas or anything without it because power lines and phone lines were down.  No access to ATM's, etc.  It is always good to have a certain amount of cash on hand for emergencies like that.
May 22, 2013 2:53PM

In the late 1960's we as a country began a shift from a manufacturing economy to a financial services economy. This move was orchestrated by the richest families that own the federal reserve. By outsourcing high paying manufacturing jobs that allowed individuals to save and invest, the elitists found they could subsidize those working in lower paying service sector jobs with credit instruments, thus the birth of the credit card. The bondage of credit allowed the richest to prosper and control society like no time before in the history of our great nation. Now the Federal Reserve has an incredible power to manipulate markets and create asset bubbles like the .com, housing, and now stock market bubbles. They control when they pull the plug and make money on the way up and on the way down and they know that all involved in this epic scheme will escape prosecution and be bailed out by the very people they hold in bondage.

May 22, 2013 3:00PM

Mobile payments may be easy, but this technology  will never teach you how to handle money responsibly.  Stick with cash.

May 22, 2013 1:54PM
I can already see the next headline in a few years.

Generation Cashless Loses Wealth in Worlds Largest Cyber Attack.

When will people realize that no matter what you store on a computer can be easily stolen by someone.  That goes for everything personal information, medical records, money etc.  You are never even going to know who stole your money or where they stole it.

May 21, 2013 7:04PM
Moving to a strictly cashless society brings far more trouble than it's worth. We can get rid of pennies at least but not much more at this point. The moment we move to a cashless society, a One World Currency would be next. We all know what that would mean.
May 22, 2013 4:21PM
Maybe I'm getting old, but it seems to me the easier it is to spend money, the less money you have to spend and the more crap you have that you dont need or dont want.
May 22, 2013 2:14PM
I'm continually amazed at the number of dummies who don't realize that fees are being charged on pretty much all electronic payments.   This is all eventually coming out of the consumer's pocket - just more money wasted on a non-essential service.

This is basically another way for a company to skim money from the masses for barely a convenience.  Why do you think the 'big banks' got so darn big?  They're making huge profits off of credit/debit cards, for doing almost nothing. 

The only 'convenience' here is primarily so people have to think less - they don't have to count!  Now, I guess if you want to be so dam dumb that you don't want to count, well....

Really, save me the comments about how 'safe' credit cards are.  How many times have you really used that service relative to what it has cost you?  I've had my credit card number stolen twice, I've never had my cash stolen.
May 22, 2013 3:39PM
The elimination of cash will be the final nail in the coffin for the US. The next generation will have no idea how to balance their budget and the money changers will finally win. How sad.
May 22, 2013 2:36PM
Right on BOG1982 !!!  These morons can't see far enough to know that being cashless will make them WORTHLESS  
May 22, 2013 2:25PM
"Generation Cashless" Bwhahahahahahaaaa! Couldn't have said it better myself. With the way this country is run & the way it manipulates its foolish citizens into supporting terrible ideas that will leave them destitute it's the perfect moniker not only for this generation, but for generations to come.
May 22, 2013 1:53PM
Sounds like bible prophecy coming true.
May 22, 2013 4:19PM

It'll be a cold day in hell before I make a payment through a cellphone. It's bad enough in a store, but at least it's tougher to hack into their networks. A wireless cell?  That anyone can hack? I don't think so.



Besides, it's nobody's business where my money goes, or who it goes to. If it's a legal transaction, it's still nobody's business [especially any government's] and if it's an "illegal" transaction, well anyone engaging in an illegal transaction who doesn't use cash is an idiot, and if he gets caught, has no one to blame but himself.  Besides cash is a lot less easier to track than a credit or debit payment. And I for one, believe in making things HARDER not easier for any government.

May 22, 2013 2:38PM
The easier it is to pay, the more money people spend. Just like the difference between cash and credit cards. People spend more with credit cards than they would with cash. Now, with e-pay, they'll spend more than credit cards...
May 22, 2013 9:31PM
Who owns the largest depository of our confidential information?
The Credit Bureaus! 
Who is the largest reseller of our most confidential information?
The Credit Bureaus!
Who decides what is sold about you and to whom?
The Credit Bureaus!
How do they get away with this?
Because we let them, and like Identity Theft, it doesn't concern us until it is too late!

May 22, 2013 5:42PM
The Google Economy will be as ridiculous as it sounds.
May 22, 2013 5:00PM

As my Mother once said back in early 1990's; "Computers will only cause major problems in the future."  I guess in some ways she was right since all businesses(medical/taxes/employer/etc) 

store everything electronically and even on laptops that are taken home by employees.  I for one am very careful on what I store on my desktop and I never provide personal information online, but we know that does not mean much now-a-days.  I for one have received notifications from the County about a possibility of identity theft due to some employee leaving his/her work laptop in the car and being stolen.  I must be from the old school as I try to pay for everything with cash, where possible anyway.  I also recently met a 30ish man who does not have a bank account.  He gets paid by check and then he turns around and signs the check over to his employer and receives cash.  Yes, his pay is deducted for taxes.  He does not believe in banks.  Just like when I was working back in the 1980's.  Just my opinion.

May 22, 2013 6:15PM
Pay in cash and get paid in cash if you can. Barter goods and services form others
that barter as well. show these people that you are not there pinata.
If you don't they will keep beating every last cent out of your lifeless body.
May 22, 2013 3:44PM
Moving to E-money is not the only reason why many are cashless, it's dam hard to get a job and even harder to get a good job paying at least a living level of income to actually be above poverty.  
May 22, 2013 9:04PM
"Generation cashless" ... because they have no money, cash or otherwise?
May 22, 2013 9:47PM

How ironic. I just received in 2day's mail a replacement debit/credit card from my bank. My old one "might" have been compromised! Huh?!  Thanks for picking up the phone & letting me know!

My Point: If debit/credit cards are STILL being compromised cell phone financial info will be compromised w/out a problem!


The first thing ANYONE tries to get into when they find a phone is that person's financial info on the phone. It's a proven fact.

I'm old school. Cash is fine w/me. I can add & subtract!!!!! If the younger generation's don't have to have this skill it will be forgotten. Third world country here we come! God I'm gad I'm old!

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