In ten years, the world will see a major decline in the use of cash, with all forms of payment collapsing into mobile devices, catalyzing the advent of digital currencies and forcing central banks to rethink their monetary policies, according to Dan Schulman, CEO of online payments giant PayPal.
Schulman predicts that the next five to 10 years will introduce more change in the global financial system than we have witnessed over the past one to two decades.
“Credit cards as a form factor will go away, and you will use your phone because a phone can add much more value than just tapping your credit card,” Schulman said in an interview with Time magazine. “And so when all of those things start to happen, then central banks need to rethink monetary policy as well, because you can’t just issue more paper money into the system because people aren’t using paper money.”
The latest statements come as Schulman’s company is accelerating its leap into crypto. Most recently, its peer-to-peer mobile payments app Venmo enabled its users to buy and sell bitcoin (BTC) and other cryptoasets. Last month, the payments giant allowed its users to pay with crypto, expecting the move will “significantly expand the utility of cryptocurrency”.
“Demand on the crypto side has been multiple-fold to what we initially expected. There’s a lot of excitement,” Schulman told Time, without providing any numbers.
Asked about the forms of payment that are likely to dominate the mobile market in the future, PayPal’s CEO forecasts there could be six to 10 superapps that will secure a large customer base across the world, serving as intermediaries to other apps.
“You won’t have 50 apps on your phone, because you can’t remember 50 usernames and passwords; you don’t want to put in your financial information into every single one of them; you can’t remember the [navigation] system on all of them,” the CEO said.
As reported, PayPal is also planning to become a “superapp” – something akin to China’s AliPay, offering interoperability with a range of payment instruments. PayPal aims to almost double its customer base to 750m users by 2025.
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