PayPal Working Capital is a merchant cash advance linked directly to your PayPal account.
2016 – The year you ditch your wallet
2016 will be the year you throw your wallet away. That’s the prediction of a new report “Money: The Digital Tipping Point” from PayPal. Cash, cheques and cards will no longer be a necessity, all you’ll need will be your mobile phone and you’ll be good to go, whether online or on the high street.
As well as paying for goods without having to queue, the report reveals shoppers can look forward to being able to carry digital loyalty cards, promotional offers and receipts on their phones – keeping everything in one place creating a virtual shopping hub.
PayPal’s findings are based on Forrester Consulting interviews with 10 senior executives from major UK retailers and other businesses, representing a combined 2010 turnover of £85 billion. 45 million Britons use a mobile phone and over a third of mobile users surveyed by Forrester have used the mobile internet to buy something from a retailer’s website. In the future a whole range of devices will be used to make payments direct to the retailer – regardless of whether you’re in store or shopping online.
This isn’t just wishful thinking – back in June of this year Pizza Express rolled out an iPhone app allowing their customers to pay for meals via PayPal. Mind you there’s still a long way to go. The coffee shop I visited today they don’t even take cards and are still strictly a cash based business. Thankfully they spare you the embarrassment of not being able to pay for your cake and tea by telling every customer up front but you have to wonder how they’ll cope with accepting PayPal or indeed any form of mobile phone payments.
There’s also the tricky problem of security tags and the embarrassment of a security guard accosting you at the door because he didn’t see you pay at the checkout. However those problems aside I’d love to go shopping for Christmas presents and just scan and pay for products with PayPal on my mobile and have them automatically delivered to my home – shopping with no bags to carry has it’s attractions.
Over the years there have been many such predictions. Go back to the 1960’s and the TV programme “Tomorrows World”. This programme regularly made such predictions and ever since every few months a similar prediction has appeared in the media.
In reality while all such devices can and will appear there will still be a place for all of the other methods of payment. Indeed this week it has been announced that the Cheque thought only a couple of months ago to be on its way out is safe again. The cheque card is on its way back.
So rather than being limited to just various digital means of paying in reality all methods are still available. In time it is possible that some methods will continue to decline but it will be many years before cash, cheques and similar conventional means of paying will disappear.
After all the older members of society and indeed small shops and traders are happy with them and trust them. Then we have seen with the chaos in the Royal Mail and stamps electronic systems can go very wrong(especially if operated by idiots). The first time that we see a massive glitch and nobody can pay for anything with high tech digital systems while cash soldiers on with no problems and we will all decide that we should retain at least a finger hold on the conventional means of paying.
Some of us remenber the predictions of the paperless office… yeah right. 🙂
Cash will never die out, not in my lifetime anyway.
I suspect that we’ll never say farewell to cash, and I do hope not. But in the past few weeks I’ve seen people use their phone to pay and contactless cards. The payments landscape is changing fast. A lot of things long predicted are starting to seep through.
The programme Tomorrow’s World ended in 2003, a lifetime ago in technology terms these days. Raymond Baxter left long before that. I think we can discard that lovely old TV archive classic as an augur of what we’ll see.
We didn’t get jet packs either.
My business runs entirely on zero physical money. No cash, no cheques, no exchanging of any physical currency for goods whatsoever.
My husband’s business is the exact opposite. Cash only. It’s unlikely he’ll ever get a card machine or set up any kind of online payment ordering or payment system becuase his customers prefer cash.
No-one ever asks if he accepts cards these days.
There are lots of businesses that are only/mainly cash based.
Most independent corner shops have minimum spend limits for card payment. For them to accept cards for any value the processing fees would have to be far lower.
Non-business transactions would also be difficult without cash. It would not be possible for every car boot sale, village fete to securely take card payments.
As for the use of paypal in real world settings, this seems even more pointless. When shopping online it is more convenient than having to enter credit card details, in a shop/ restaurant it would take far longer than inserting a card into the chip and pin reader. Since most paypal accounts are funded via a credit card there is no significant advantage to using paypal.
A few years ago I used to take my Book Sales Stand to such as Traction Engine Rallies. These of course are invariably in the middle of a field. So I would take Cash or Cheques with a Cheque Card.
There are devices that use mobile phone technology which allow a stall holder to take credit cards but as well as the processing costs there is the very considerable costs of the equipment. The only way it would be economically viable to use at such as a Rally or Car Boot Sale would be if you were taking a lot of money. If it was just for the occassional sale or low value it would just be not worth while.
On occassions I had blokes looking at a book and then saying “Do you take cards?”. But when I replied “No” if they really wanted the Book then they either borrowed the money from a friend or relation or visited the nearest cash point(invariably a couple of miles away)
But I do not ever remember any trader on a Rally Site taking a card. So if you wanted to buy anything even a Burger you needed cash.
Cash means no commission to the banksters, sound good!
in the middle of a field you can easily take paypal
as long as there is a phone signal.
I agree but you need the technology which last time I looked was expensive, especially if you are only expecting to take the occassional Card Payment.
The vast majority of people who go to Traction Engine Rallies, Car Boot Sales etc know that the Stalls only take cash type money. So they take at least some with them. Just occassionally I would hear from a bloke that his wife would not allow him to take money to such events. But even in his case if he wanted the Book he would find the cash somewhere somewhere.
Occassionally somebody would identify himself as a fellow stall holder and would ask me to put the book back for him and he would pay for it when he had taken some money. But by far the vast majority would look at the price and would take the money out of their pocket and pay for it.
its easy peasy all you need is smart phone/iphone/ laptop with mobile internet . then all you need is a paypal account to send money too
Have you ever done a Rally in the middle os a field? I estimated a couple of years ago that I have taken Stalls to 550 over the years. They are not great places to take any form of technology to. Indeed I was always concerned about taking Books to them(and I ran a Book Stall).
Far easier to shrug your shoulders and say “Cash or cheques” when asked “Do you take credit cards”. There is a simple rule on the Rally Field “KISS” – “Keep it Simple Stupid”
simple sounds just about right,
really Simple and Quite stupid
Thank you for confirming that you have never taken a stand to an event. You really do not know the problems of living on a field with a stand for a weekend. Many of the events that I attended I did single handed. So while there may be many things that we could do in an ideal world. If you are single handed you try to keep it simple. After all for a weekend (during the selling day) from about 10 am to 5 pm(plus a bit fore and aft for setting up and putting it all away) you cannot go to the toilet, go and get some food etc. Yet you think that I would have enough time to run a computerised payment system(of any kind). What planet are you on?
not a chance of a cashless society
or at least some method of exchanging value without a paper /data trail,
to many black economy fiddles going on
Ah, back to the goats and chickens then.
Chris could try his luck with rusty steam locos.
If I ever come up on the Lottery(espercially the Euro Lottery) my ambition is to commission the building of a New Steam Railway Locomotive. I always fancied a Bird Series Great Western 4-4-0. I even have a name for it “Whimbrel”(after my second love ex-Royal Navy World War II Warships) H.M.S. Whimbrel is a surviving WWII Warship currently in Egypt(and I have my fingers crossed that the riots do not threaten or even worse destroy her). But I would argue that relatively few of the Preserved Steam Locomotives are “Rusty”.
There is another point about Money. Have you ever actually looked at the money in your pocket. Every coin(and indeed Bank Note) is a minor Work of Art in its own right. Obviously as they wear and become dirty they lose a lot of the artistic value but they retain their intrinsic value.
A Mint Coin, especially a Gold or Silver Coin, is magnificent. Just look at a Maria Theresa Thaler dated 1790(and still being minted dated 1790 until only a year or two ago). Often stated as the Worlds Most Beautiful Coin. How can a tatty bit of platsic or even worse a pulse from a mobile phone possibly compete with that.
If we were to lose money it would be tragic. A bit of the magic would go out of our lives to be replaced by soul less plastic. It would be as tragic as when our mainline trains were no longer hauled by magnificent “Kings”, “Castles”, “Duchesses”, “A4’s” etc and were hauled by tatty oily boxes belching out diesel fumes instead.
I wonder if bullshite has a value
only if you press it flat and put pictures of long dead people on it.
“I wonder if bullshite has a value”
Yes, if you are a banker.
Wonder why the banks are struggling to cover 10% of their loans with assets?
People think that banks loan money that has been loaned to them in the form of deposits from savers, not so, they create it out of thin air! It is the borrower’s promise to pay, the signature on the contract, that creates the money. Many banks created money when they knew the signatory was fraudulent/incapable, now we have to pay for the banks fraud by taxes and inflation.
I hear on the news that we (UK taxpayer) are going to bail out the banks yet again.
Announcement coming that UK Government will ‘guarantee loans’ to small business. And I bet that ‘small’ is not small.
Didn’t I hear that “Small” was a turnover of less than £50million. Hands up all those on Tamebay who have a turnover anywhere near £50million.
Some postings need “Sub Titles” – or is this the sub title?
Some posters need “Shooting”
Now Now Remember it is the Season of Good Cheer. I was only asking a question.
And I was trying to read Tamebay without having to read about bloody trains.
This is a tech blog, I’m interested in articles about tech and I’m also interested in readers comments about tech, but every time I try to read something from start to finish I have to trawl through endless amounts of irrelevant tripe about the bloody railways.
And some of us have to try to avoid the totally unnecessary dubious language.
yep STEAM and TRAIN being high on my list
Steam trains can run on all kind of fuels sources, wood chippings, elephant grass etc. And with advances in engineering TECHNOLOGY the efficiency is vastly improved such that it exceeds fossil fuel sources. That’s good for the environment and combats global warming (if you believe in the fantasy of anthropogenic global warming now renamed climate change because the planet is getting cooler and sea levels are dropping and global warming is clearly not self-evident).
In Cornwall I heard that the Launceston Steam Railway had been(I don’t know if they still are) part of a Cornwall Council Experiment to burn Woodchip on their steam locomotives.
Apparently the Woodchip was produced from wood(pallets, cut down trees etc) that would otherwise have gone to landfill. The idea was that the Council would extract the wood from the rubbish stream, process the wood and then such as L.S.R. would burn it.
As well as saving space in landfill sites(rapidly filling up) it would save on Landfill Taxes.
No doubt somebody would say that they only want to hear about Technology but surely that what this is? Or do they just mean electronic whizz bang technology??
I think the Euro will be gone by 2016, possibly a lot sooner.
Cash will never go away because technology however good is unreliable and sooner or latter makes down, look at what happened recently to Blackberry.
That should read brakes down.
Apparently European Commission President Jose Manuel Barroso has said that the single currency(The Euro) was on the brink of collapse. As he has been a staunch supporter of the Euro and refused to believe any wrong with it. If he is doubting its long term future then we can almost expect that its future is likely to be measured in days or weeks rather than months and years.
So what would happen if the Euro does fail? Well the Pound Sterling will take a substantial hit because even though we are not a part of the Eurozone we are in the EU. However the blow that the UK will suffer will be as nothing compared with the hit the countries in the Eurozone will suffer.
Many moons ago when the Euro was being set up I heard that while most of the countries collected in the old currencies and melted them down I heard that Germany collected in theirs and put it all into store in massive government warehouses. Obviously I cannot confirm that this is what happened. But if the Euro fails the first action of the various Governments will be to mint new coins and print new banknotes.
Obviously they will not be denominated in Euros. Much more likely in the name of their previous currency but with New in front of it(possible confusion in France as they have had all sorts of New Francs over the years).
The next problem is to pick an exchange rate. After all some like Greece are effectively Bankrupt. So they will need to chose a low value for their new currency. This will stimulate their exports and make imports relatively expensive and also make Greece a very attractive country for Holidays.
There will be months, possibly years of turmoil. But those of us who take orders from the ex-Eurozone and receive payment through Paypal should not have a problem because we will receive Pounds Sterling. However if you take currency or cheques or similar payments in one of the new currencies we could find short term currency fluctuations as the money markets are likely to be volatile. Mind you currencies can go up in value as well as go down.
Although the problems of the Euro are new if you look back over the 20th and indeed into the 19th Centuries you will find that turmoil in Nations Currencies on the Continent are nothing New. In the UK our currency has suffered few periods of turmoil. But France and Germany it has almost been a regular occurence over the last 200 years.
The one thing that is certain is that eventually it will be sorted out. There will be a lot of pain. A lot of people will lose all their savings. but at the end of the day sanity will be regained.
Of course the problem was that the Euro was always an instrument of Political European Union. It never had any real justification as a Currency. That was its failing and if Jose Manuel Barroso is now agreeing that its future is limited then he has finally come to accept that point.
I doubt I would reach the level of despair that causes me to you use ‘unnecessary dubious language’ if I could visit this site once in a while and not read about bloody trains.
I think it could be much earlier provided the security and connectivity issues are tackled head on. People will always be reluctant to venture out when they hear about so many scams and malware attacks. so i feel there is still a long way to go but definitely before 2016…regds
Isn’t there a Mayan Theory that the World will end in December 2012. I have heard of this and apparently the ancient Mayans have this in their religion. But, and its a big but, I have no way of knowing if it is accurate or not although come December 2012 we should find out.
When I was much younger a regular sight on most High Streets was a bloke in a sandwich board with “Repent the End of the World is Nigh” on it. As we are still here obviously the blokes in their Sandwich Boards were wrong.
But sometime, maybe, somebody will be right. After all the Dinosaurs probably felt that their kind would live for ever when they awoke on the morning of their kinds extinction!!!
Talking about warnings. I was told that on Friday 25th November the Royal Naval Air Station at Culdrose(Helston in Cornwall) was on Snow Alert. Apparently somebody(the Met Office perhaps) had issued a Snow Alert obviously fearing blizzards. I saw not one single flake of snow. Did anybody anywhere in the Country see one?
Don’t believe weather forecasts any more than rare and perfect descriptions on eBay.
Seeing as they can’t get weather forecasts right baring a few hours how can they proclaim to have millennial weather forecasts right (aka climate change)?
“No doubt somebody would say that they only want to hear about Technology but surely that what this is? Or do they just mean electronic whizz bang technology??”
‘2016 – The year you ditch your wallet’
Despite this being about digital money, you have managed to mention steam engines and traction rallies about a dozen times, you’ve even touched on Mayhan theories.
I can’t bare another minute of having to trawl through endless posts full of drivel and dross just so I can find comments that are on topic.
Farewell Tamebay chums, have a good Xmas and I wish you all a prosperous 2012.
I think its sensible I join you in saying farewell and a merry Christmas to all
as the Asylum has now been taken over
Digital Money? or was it perhaps about Money in general, digital only being one form of money. Everyday when we spend money we spend the form most appropriate to the transaction and also where we are spending it.
As an example you buy a Book from me. On ebay its simple you use Paypal (or perhaps you ask if you can send a cheque) because it is most appropriate.
But when I was taking my Sales Stand to a Traction Engine Rally(Sometimes also known as Vintage Vehicle Rallies etc but while whirly might not like this name I think that as the organisers are happy to call them by this name and every reader of Tamebay knows what I mean it seems silly to suggest that I should try to invent another name for them).
Anyway an event run for the General Public and Enthusiasts anmd invariably organised in a Farmers Field(or two) usually after one crop has been harvested and before the field is ploughed ready for the next crop.
My stall is a conventional Market Stall holders stall with no electrical power. I sell Books. So a bloke(I usually sell to men) comes up to the stall and says that he wants to buy a particular book.
Do I take cash type money or a cheque or some form of high tech money(credit cards, Paypal etc)? After 550 such events I would say Cash or Cheques for simplicity.
Thinking back over 550 events I may have lost a handful of sales because I stuck to Cash or Cheques. But if the potential buyer wanted it and did not have cash he usually went and found it. But as I pointed out on a Rally Field if you did not have cash and to a lesser extent cheques(with a cheque card) you were stuck because every stall took cash or cheques and nothing else.
I am sorry if northumbrian and whirly do not accept this as a fact but while I have not done an outdoor event for some 3 years I doubt if it has changed much.
Will it ever change? Possibly. But on a Rally Field I would guess that in a hundred years time Cash will still be the most usual means of paying for goods of all sorts. But in other environments, such as the High Street, it could very well be differant.
But as we have seen recently High Tech (Stamps systems) have failed and left a lot of sellers with serious problems. Yet I take my post to the Post Office each day and I have had no such problems. So perhaps there will still be a place for conventional systems.
Now if that upself whirly and northumbrian then I am sorry but in the real world I think that it is accurate.
Talking about the practicalities of Stall Holders taking money at an Event I phoned up a mate who still does outdoor events (most weekends of the year). Now he is of a similar age to myself so he may be similarly out of date. However he confirmed that few of the stall holders that he has anything to do with take Credit Cards or Paypal.
Obviously this could mean that there is a Marketing Opportunity for anybody who sells the necessary equipment(for taking Credit Cards) or for Paypal to contact Stall Holders to “sell” them the idea of taking Paypal on a Stall.
However it might help if I explained the technicalities of taking money on a Stall(and this is any form of Stall including at such as Traction Engine Rallies but also at Dog Shows, Agricultural Shows, Horse Shows, Car Book Sales etc)
In my case I have a cash box(for coins) and in my back pocket I have a wallet(empty except for bank notes). I also have a notebook. Somebody comes up to the stall to buy a book I note the book in the notebook and I chuck the coins in the cash box and put the banknotes in my wallet. I also put the book in a bag and hand it to the customer. Transaction over. As I said previously I am usually doing the Stall single handed. So I do not have the time to spend on anything technical.
Obviously if I have a queue and invariably if there is a complication that is going to cost time you can guarantee that I have a queue and that they are all eager to pay and be away.
Its all right northumbrian making out that it is easy to take Paypal on a stall. But I asked my colleague and he confirmed that he has never ever been asked if he takes Paypal and only rarely has he ever been asked if he takes Credit Cards.
So on such as a Stall most potential customers already know that the basic rule is Cash or Cheques(now that Cheque Guarantee Cards are coming back this option is available again). But High Tech Money is really not an option on a Stall(which is a Low Tech Environment).
This I have to see. I’ve heard of news before that cars will be flying by the year 2000 but apparently, cars are still on the ground. It will all depend on how people will take the technology. If they find some real use for it, it just might happen.