Micro-payments

There are some things in life that have emerged over eons and seem unlikely to change. My two favourites in this category are paper and cash.

In spite of all the hype of the digital age, paper still seems to win over a screen in most practical situations. Have you ever tried reading your laptop in the bath? The convenience of paper makes me think it will be around as a medium for a good few years to come.

With the worldwide take-up of mobile phones, we already have a complete digital platform in our pockets. What smart inventors do with it is only starting. My own prediction is that it is a good contender for a cash replacement. Pre-paid accounts already contain stored-value and those who have contracts have already been granted 'credit' by the celular operators.

There is one major stumbling block and that is to disconnect the cash or stored-value from the banking system. TipJoy is just one example of an onine business trying to do this.

While not related to the mobile industry, they are an example of the need. This service allows you to leave a tip on a website by simply entering your email account. It creates accounts that hold the proceeds of your tips, offset by tips you've left for others. Settlement is via PayPal accounts. When you want to cash out you can receive an Amazon voucher. Neatly, bypassing the monetary system.

Of course, Amazon does not provide, gasoline, schools, hospitals, and so-on. However, the point remains, break the banking link and the economy will change.