'End of Money' Headlines Tech Event

Successes of the Petroleum Convenience Alliance for Technology Standards (PCATS) and the potential demise of bills and coins were discussed Wednesday on the Main Stage of THE Tech EVENT.

May 10, 2013

DALLAS, Texas – PCATS has helped develop critical technology standards for retailers, Gray Taylor, executive director of PCATS told the audience. “We’re the only trade association with a seat at the table with the big retailers,” he said. “We’re the leaders in payment and data security. Other retail associations come up to me and say ‘you are so strong.’ We have the technology leadership role, and we’ve earned it.”

The next major challenge, according to Taylor, is creating standards for mobile technologies, such as shopping, payments, coupons, loyalty, promotions, records, documents, banking and identity.

These new phone applications will “fundamentally change the way the way society exists,” he said. “The future of commerce and power is sitting in a chip in your cell phone.” 

The End of Money

Traveling between Honolulu to Iceland, David Wolman conducted scores of interviews to gather information for his recently released book, The End of Money: Counterfeiters, Preachers, Techies, Dreamers — and the Coming Cashless Society. It was an emotional topic for everyone.

“We’re living in a time of monetary revolution,” he told the IT professionals. “Mobile is enabling new tools for people and business.”

There are many arguments for replacing bills and coins with mobile payments, Wolman said. Cash is expensive to produce, transport, secure and count. In addition, the Secret Service, which protects government officials and investigates counterfeiting, financial fraud and money laundering, spends most of its time chasing counterfeiters. 

“Cash is the blood in the veins of crime,” he said. “Drugs and terrorism are greased by cash.”

New Tools

Already, several online currency tools are available to mobile users. One example is Dwalla, a proprietary payment network that connects to an individual’s bank account and lets the consumer send, request and accept money electronically. Dwalla permits consumers to move $10 or less at no fee, but charges 25 cents for any transaction greater than that amount.

Square Wallet, a mobile application, enables a consumer to pay retailers using a mobile phone or by simply saying his or her name. Last year, Starbucks announced plans to use Square to process the transactions of customers who pay via debit or credit card.

In addition, the Royal Canadian Mint, which stopped producing pennies in 2012, is developing MintChip, a digital currency backed by the government to allow anonymous transactions. 

Dollars and dimes will still be around for a decade or so, Wolman believes, but cash could go the way of the pay phone in 20 to 30 years. “These are powerful tools,” he said of the technology. “But people and behaviors will make the big changes.” 

THE Tech EVENT wraps up today, following two days of PCATS committee meetings and breakout sessions.

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