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Old 05-16-2018, 10:32 PM
 
Location: NYC
11,880 posts, read 7,816,654 times
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China of all places, where cash was always king now everyone there uses digital payment with their mobile devices. Food stands, taxis, even sending bribes using digital payment. Here in the US, a lot of people don't even have credit cards or bank accts. I've used my phone to pay at any vendor that has CC machine but I've only seen maybe 2 people in years that uses their phone to pay...

Yet, crypto-currencies all got started here yet 99% of Americans don't own any crypto or have a digital wallet.
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Old 05-17-2018, 01:30 AM
 
9,201 posts, read 3,819,204 times
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americans have more faith in the dollar... no need for another currency
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Old 05-17-2018, 05:07 AM
 
Location: World
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Cash is still used a lot in Asia, Europe. I would say more then in USA. Digital Payments using Mobile Phones is a new fad among young generation who are a bit lazy to go to nearest ATM / Cash Machine. People have started using Uber but it is still a tiny fraction of the society.
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Old 05-17-2018, 10:52 AM
 
Location: The Triad (NC)
26,971 posts, read 58,392,088 times
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Quote:
Originally Posted by vision33r View Post

Why is America behind Asia & Europe with digital payment?
For the same basic reasons we were behind EU and others with cellular (and 20 other things):
we had/have a perfectly fine system in place that didn't require much 'fixing' or improving.
(opinion of early adopters aside)

These other places don't have that system or are even starting from scratch...
they get the benefit of being able to jump to the front of the line.
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Old 05-17-2018, 11:06 AM
 
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Its really a question of how much the existing "infrastructure" is embedded in how businesses interact. There are very deeply entrenched incentives for banks to continue to rely on physical currency and coins. The retail landscape in the US includes a rather well established pipeline of "money services" firms including armored car companies, audit firms / transaction security, policies that are make a profit from the existing methods.

There are MANY competitors that really could disrupt the whole chain and the fear among all the entrenched firms is that if that were to happen the "new firm" would basically cut everybody else out of the mix.

The funny thing is that in terms of technical security the underlying features of ApplePay really is far superior to the existing methods involved in using debit or credit cards. Instead of embracing this new level of security the banks and credit card companies fear that just as Apple dominates legitimate digital music downloads there is a chance they could take away the payment processing revenue of the established methods.

Asia, especially Japan, has always had very high levels of cooperation between all the banks and they all try to reduce costs together. That, along with the tendency of Japanese people to embrace technology quickly, has made for very rapid adoption.

In Europe the ability to track payments to comply with the Eurozone interoperation of banks gave a big boost to their payment systems. Coupled with moves away from local currency the adoption was timed well.

Americans don't really conformity when it comes to payment systems and even when it comes to things like credit cards the ability to "customize" some of the superficial things like whose logo / picture is on the physical card seems to have more sway than any of the technical details...
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Old 05-17-2018, 12:16 PM
 
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OP, your title says digital payments but the content only focuses on mobile payments and crypto.
Credit cards, debit cards, automated clearing house are all digital payments and USA had them a long before most of Asia had them.

The above poster has good explanation for the rest, except I disagree that bank has an interest in keeping cash alive. Banks would love all cash banned but they want the digital payments to flow though their "system" because then everyone will be forced to keep money in bank and banks will be able to charge fees to keep them, sometimes referred to as negative interest on deposits.
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Old 05-23-2018, 08:35 PM
 
Location: Sector 001
7,170 posts, read 6,020,966 times
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Quote:
Originally Posted by Bp25 View Post
OP, your title says digital payments but the content only focuses on mobile payments and crypto.
Credit cards, debit cards, automated clearing house are all digital payments and USA had them a long before most of Asia had them.

The above poster has good explanation for the rest, except I disagree that bank has an interest in keeping cash alive. Banks would love all cash banned but they want the digital payments to flow though their "system" because then everyone will be forced to keep money in bank and banks will be able to charge fees to keep them, sometimes referred to as negative interest on deposits.

Very few people actually hoard cash and they'd never charge a fee because they make enough money simply lending out our deposits while giving us a .01% interest rate. Plus there's so much competition still among banks... it's the only other business in town you'll have so many of besides auto parts stores. In our town of 25,000 there's something like 10 banks and 3 of them are from the same company. Credit makes the world go around. Throw in internet banks and you've got an endless supply of choices. For this reason I bought Bank of the Internet (BOFI) at 16 a couple years back and it treated me nicely while the Bank of California (BANC) is only up 40% or so and their growth has stalled. There are probably more publically traded banking companies than any other single industry, not just the big banks but smaller regional banks like the Bank of California, Bank of the Ozarks, etc. and this doesn't count brokerage houses and other financial service companies. It's a massive industry.
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Old 05-25-2018, 07:02 AM
 
4,921 posts, read 2,343,683 times
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Quote:
Originally Posted by vision33r View Post
China of all places, where cash was always king now everyone there uses digital payment with their mobile devices. Food stands, taxis, even sending bribes using digital payment. Here in the US, a lot of people don't even have credit cards or bank accts. I've used my phone to pay at any vendor that has CC machine but I've only seen maybe 2 people in years that uses their phone to pay...

Yet, crypto-currencies all got started here yet 99% of Americans don't own any crypto or have a digital wallet.
You're really presenting reality in a slanted way to make a point here by pointing out how advanced China is while lamenting that "a lot" of Americans don't have credit cards. From 2016:

Debit and Credit Card Usage in Asia - Demystify Asia
Such low financial inclusion is furthermore evident in China’s credit card transaction and debit card transaction rates of 13.80% and 17.30% respectively. Less than half of the country’s banked adult population own a debit card.

As of 2016 the number of credit cards per capita:
US 2.9
China 0.33
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Old 05-25-2018, 09:29 AM
 
Location: The analog world
16,072 posts, read 8,938,049 times
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I'll just throw out that not everyone owns or wants a smartphone.
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Old 05-25-2018, 09:29 AM
 
7,089 posts, read 6,714,169 times
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Your observations are influenced by where you go when you're not at home. Locations that cater to tourists tend to offer more convenient methods of payment, including mobile payment systems.

https://tender-retail.acceo.com/blog...ping-abroad-2/

https://www.bloomberg.com/graphics/2...ems-china-usa/
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