Playing With Cash ?? That So passe !

American consumers are abandoning cash and paper checks for cards and electronic payments. Between the years 1989 and 2006, the nation’s total credit card transactions increased from about $69 billion a year to more than $1.8 trillion.* According to the Nilson Report, more than half of U.S. consumer purchases are paid for via credit card, compared to 36 percent in 2003.

And now that the U.S. is finally beginning to jump on the bandwagon with mobile banking and payments, this sector is expected to grown exponentially over the next few years- especially among younger, tech savvy consumers. According to a study conducted by Mercatus LLC, a Boston-based consulting firm, more than half of U.S. consumers, and almost 80 percent of those between the ages of 18 and 34, will use mobile financial services within five years.

Could another credit bubble be looming?