2015 The End Of Wallets?- Click here http://bit.ly/jxyxGP for full article

2015 The End Of Wallets?- Click here http://bit.ly/jxyxGP for full article

PayPal, one of the leading e-commerce money transferring companies on the Web, announced recently that it has over 100 million active users. PayPal also included in their announcement a rather unusual prediction. According to them, wallets will be obsolete by 2015. Their reasoning stems from the growing popularity of digital currency for purchases, something PayPal specializes in.

PayPal’s prediction seems unlikely, but their confidence stems from a very successful business founded on digital currency. PayPal payments account for a large portion of all eBay sales, where PayPal takes a portion of the funds transferred from each sale. Purchased by eBay in 2002, the service’s popularity has led to extreme growth in the digital currency and online payment industry. PayPal estimates that nearly $3 billion in mobile transactions will take place using their service just this year.

It’s no secret that cash transactions have become less popular with the advent of credit cards, debit cards and digital currency. A large portion of this is due to the added security and peace of mind that these services bring. Whereas cash is nearly wholly unprotected for private transactions, credit cards and services such as PayPal provide consumer protection against theft and fraud. It also makes transactions easier to keep track of, meaning it is easier to keep tabs on exactly where funds are being spent, or even when a purchase was made.

Though it may not be entirely likely, PayPal’s prediction is important to keep in mind for businesses that are hesitant to shy away from cash-only transactions. For small businesses, the fees that come with credit card and digital currency purchases may be fairly costly. While requiring customers to pay in cash may seem like a wise way to avoid paying such costs, it could cost the business more in the long run. As PayPal’s prediction suggests, fewer people are carrying cash, and not allowing these consumers to purchase items with digital currency means that they will inevitably spend their money elsewhere. Implementing options to take credit cards or digital currency may require some initial investment, but it will likely yield better returns in the long run.

Only time will tell if PayPal’s prediction will come true. Even so, it is important to keep in mind the importance of digital currency. With many worried about the security of their cash, more and more people will switch to these newer methods of payment.