The Wall Street Journal today ran an article that talked about Apple’s proposed new system for people to be able to just tap their phone with another person’s phone in order to transfer money, bypassing having to go online to a bank.
But what others might not see if that this can spell disaster for companies that make wallets. This would mean that people don’t need cash anymore if they can just tap their phone with their friends’ phones to split the bill, etc, the list goes on. And if people don’t need cash anymore, then the need for a wallet dwindles.
Not to mention that you can now pay for things with ApplePay by just tapping your iPhone or other smartphone to the pay-terminal. This gets rid of the need for physical credit cards. This dwindles the need for physical wallets.
Which is why I foresee a future where a majority of people have phone wallets, but this time, mainly only for their driver’s license or other identification. Thus it’s all going mobile.
A proposed solution for companies that make wallets:
Use whatever profits you’re generating now and buy up shares of these tech companies but also reconfigure your factories and anticipate the incoming trend toward cellphone wallets and manufacture those instead. You know what I’m talking about? Those cellphone cases you put on your smartphones and they hold cards and money, etc.
By making cellphone wallets and using those profits, along with profits you’re getting from the current sales of wallets, coupled with buying up shares of the tech companies responsible for your profits and losses, you’re integrating yourself deeper into the chains while diversifying your source of income and ensuring a longer future horizon for your company.
Jack the Dreamer over and out