Smartphone technology and apps have evolved a lot – and change can happen right away
The smartphone is the greatest ally of the payments industry. It’s already replaced devices such as cameras, GPS and MP3 players – and, presently, seems to be an immediate alternative to traditional card machines. Cell phones already make bank transfers and payments via Pix, in Brazil, so this would be a natural evolution.
“Smartphones may replace card machines. Maybe not completely, at first, but in the long term this trend is irreversible,” says João Vestim Grande, a lawyer specializing in Business Law. “Technology is already starting to dominate this sector. Virtual cards, banking apps, digital wallets, proximity transactions and Pix itself are already a reality in many people's lives. Technological progress is leading to changes in all fields, and it should be no different in terms of the way money circulates and financial transactions are carried out.”
Many defend this idea – after all, cash has been less and less present within financial transactions. “The truth is that the payment industry has been undergoing major transformations. This has been an increasingly significant shift in the way money circulates and is transacted. The volume of cash circulating in the economy has recently been significantly reduced,” argues Wilton Brito, an executive at the Gertec Group.
“In the face of so many transformations and novelties, the end of the machines may be nigh. In my opinion, though, the payments industry has evolved over the last few years towards greater inclusion and complementarity of technologies and forms of payment”, says Brito.
Not everyone agrees with the end of the machines
Despite all the advantages mentioned by experts, determining that card machines will be replaced by smartphones is not an unanimous idea. Some do not believe in a change anytime soon.
“I don't think card machines will be completely replaced. Although much less, cash is still in circulation”, says Mariana Lisboa, specialist in Regulatory Means of Payment at Barcellos Tucunduva Advogados. “Players in the payments industry will be increasingly agile so as to keep up with greater competition, consumption attitudes and technological innovations. This is already happening.”
Changes are in fact occurring, but there will still be many payment options for a while. For small and medium-sized companies, the best cost-benefit alternative will always will prevail. Place your bets, please.
