The way in which consumers currently deal with credit card debt could soon become a thing of the past.
A recent poll of experts found that 65 percent believe mobile wallet technology – in which payments are completed with near-field communications-enabled smartphones – will become so ubiquitous within the next few years that it will have largely supplanted traditional credit card use and even cash by 2020, according to new research from the Pew Internet and American Life Project. However, another 33 percent say that consumer's concerns about the privacy and security of their payment data will prevent this technology from becoming too popular.
Already, a number of companies are developing and pushing their own mobile platforms and it's expected that a larger number of smartphones will come with the necessary NFC technology embedded within the next year or so.
The financial management tools that may come standard with a mobile wallet program – such as the ability to track spending and move funds around with greater ease – may actually be helpful in allowing consumers to avoid borrowing too much, and possibly even help them find some debt relief.