{"id":47013,"date":"2023-01-27T10:21:14","date_gmt":"2023-01-27T15:21:14","guid":{"rendered":"https:\/\/www.kaspersky.com\/blog\/?post_type=emagazine&#038;p=47013"},"modified":"2023-01-27T10:26:16","modified_gmt":"2023-01-27T15:26:16","slug":"is-paper-dead","status":"publish","type":"emagazine","link":"https:\/\/www.kaspersky.com\/blog\/secure-futures-magazine\/is-paper-dead\/47013\/","title":{"rendered":"Is paper dead?"},"content":{"rendered":"<p>For retailers, predicting customers\u2019 future wants and needs is crucial \u2013 especially in this era of disrupted supply chains. I hope you won\u2019t recognize this story as something that might happen in your business, but it demonstrates how soon retailers of all sizes could find themselves in a new future.<\/p>\n<p>I bought a blouse recently from a traveling vintage clothes seller. Picture several racks of bright retro outfits set up under a caravan awning with a changing room crafted from tie-dyed blankets. Incense hangs in the air, as does the ringing of tiny bells attached to the seller\u2019s impossibly long hair, jingling as she wanders around after customers, straightening coat hangers.<\/p>\n<p>To pay, I offer cash, but she instead presents me with a beautifully calligraphed sign showing her bank account details. Given the riskiness of this practice, I offer a moment of security education. She tells me she\u2019s in the habit of giving out her bank details because it means more sales, and keeping enough change around is hard when you\u2019re always on the road.<\/p>\n<p>Even those on the fringes are moving towards electronic payment for its convenience and customer preference, albeit sometimes not in ideal ways. When it comes to meeting customer expectations in how your transactions happen, are you ready for a future where paper money, receipts, plastic cards are a thing of the past? Could your retail business work in a world where all money is changing hands by smartphone?<\/p>\n<p>Among Kaspersky researchers\u2019 <a href=\"https:\/\/securelist.com\/privacy-predictions-2023\/108068\/\" target=\"_blank\" rel=\"noopener\">privacy prediction for 2023<\/a> is that we\u2019ll keep seeing smartphones and other smart devices encroaching on activities once dominated by paper and plastic cards. A future where all we\u2019ll need is a smartphone seems close when we\u2019re paying by near-field communication (NFC) like Apple or Samsung Pay or QR code like Swish, or using apps to show COVID-19 testing and vaccination status.<\/p>\n\t\t\t\t\t<div class=\"c-promo-post\">\n\t\t\t\t\t\t<div class=\"o-row\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"o-col-12@sm\">\n\t\t\t\t\t\t\t<article class=\"c-card c-card--link c-card--hor@xs c-card--small@xs\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"c-card__figure c-card__figure--small@xs c-card__figure--medium@sm\">\n\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/www.kaspersky.com\/blog\/secure-futures-magazine\/trust-global-business\/44755\/\" class=\"c-card__figure-link\">\n\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"500\" height=\"500\" src=\"https:\/\/media.kasperskydaily.com\/wp-content\/uploads\/sites\/92\/2022\/06\/30035343\/324_trust-global-business-header-500x500.jpg\" class=\"attachment-card-default size-card-default wp-post-image\" alt=\"trust global business\" data-src=\"https:\/\/media.kasperskydaily.com\/wp-content\/uploads\/sites\/92\/2022\/06\/30035343\/324_trust-global-business-header-500x500.jpg\" data-srcset=\"\" srcset=\"\">\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"c-card__body  \">\n\t\t\t\t\t\t\t\t\t<header class=\"c-card__header\">\n\t\t\t\t\t\t\t\t\t\t<p class=\"c-card__headline\">Related article<\/p>\n\t\t\t\t\t\t\t\t\t\t<h3 class=\"c-card__title \">\n\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/www.kaspersky.com\/blog\/secure-futures-magazine\/trust-global-business\/44755\/\" class=\"c-card__link\" target=\"_blank\" rel=\"noopener nofollow\">\n\t\t\t\t\t\t\t\t\t\t\t\t<span>New research on how to build trusted business relationships worldwide<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<svg class=\"o-icon o-svg-icon o-svg-right\"><use xmlns:xlink=\"http:\/\/www.w3.org\/1999\/xlink\" xlink:href=\"https:\/\/www.kaspersky.com\/blog\/wp-content\/plugins\/kaspersky-emagazine\/assets\/sprite\/icons.svg#icon-arrow-long\"><\/use><\/svg>\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t<\/h3>\n\t\t\t\t\t\t\t\t\t<\/header>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"c-card__desc \">\n\t\t\t\t\t\t\t\t\t\t\t<p>How should you navigate cultural differences and build trust when doing business or managing teams internationally? Tyree Mitchell\u2019s research could help.<\/p>\n\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<footer class=\"c-card__footer\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"c-card__list\">\n\t\t\t\t\t\t\t\t\t\t\t<ul class=\"c-list-labels js-has-reading-time\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<li>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"c-list-labels__link\" href=\"https:\/\/www.kaspersky.com\/blog\/secure-futures-magazine\/category\/digital-transformation\/\" target=\"_blank\" rel=\"noopener nofollow\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span>Digital transformation<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<li><span class=\"js-reading-time\"><\/span> min read<\/li>\n\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"u-hidden js-reading-content\">\n\t\t\t\t\t\t\t\t\t\t\t\t\tTrust is the building block of all relationships, but the way we build trust in business isn't the same the world over. Tyree Mitchell is assistant professor at Louisiana State University School of Leadership and Human Resource Development. His latest book with Jeanne Brett, Searching for Trust in the Global Economy, shares findings from studying managers in 33 countries, revealing differences in how they nurture trust relationships. It also asks if the pandemic has changed how we make decisions about trust.\r\n\r\nI spoke with Tyree about his research and ideas to improve relationships in virtual and global tech teams.\r\n\r\n\r\n\r\nSusi O'Neill: Why did you focus on international differences in trust for your research?\r\nTyree Mitchell: Global economic development needs new business relationships. Negotiating them is tricky \u2013 there's much uncertainty, vulnerability and unmet expectations. Trust is critical. When negotiators trust each other, businesses use fewer resources to prevent exploitation and have better economic outcomes.\r\n\r\nMost research and theories on trust are from a Western perspective. Data from the World Values Survey shows different responses. For example, the US is higher on trust than Brazil.\r\n\r\nTo build relationships, you must understand how trust varies between cultures. We wanted to explore what that means when negotiating business relationships and understand from managers and executives how trust happens.\r\n\r\n\r\nHow do we decide if we'll trust a business partner?\r\nWe learned from the 82 managers we interviewed four key actions they use to make trust decisions.\r\n\r\nFirst, due diligence \u2013 searching for information about the new partner, including financial status, ratings and reviews and data gathering on social platforms like LinkedIn.\r\n\r\nSecond, brokering \u2013 a special introduction where a third party puts their reputation on the line. We particularly see this in East Asia.\r\n\r\nThird, goodwill building \u2013 interacting socially to get to know the partner, like grabbing a coffee or going to a sports event together.\r\n\r\nFinally, testing \u2013 getting the partner to act or react, like asking a question when you already know the answer. We want to know if they will be upfront about company difficulties or cover up problems. In the West, we use testing to check if you're forthcoming and honest, as the assumption is you can be trusted. In East Asia, testing is about checking competency, as people tend to embellish things, so partners want to know if you can deliver what you promise.\r\n\r\nFrom these actions, we found four standards for determining if someone is trustworthy -- competence, openness, respect and rapport (CORR.) Competence means, are they capable with the knowledge and skills to deliver on their promise? Openness means are you honest and forthcoming? Respect means showing regard for one another, even if you don't have shared values. Rapport refers to building affinity around shared values.\r\nWhat were the main differences you saw between research participants?\r\nWe analyzed the 82 manager interviews using a framework based on regional differences in trust and the tightness of social norms.\r\n\r\nThere is a cultural difference in how people answer the question, can most people be trusted? For example, in India, the answer is more often 'no' and in Sweden, more often 'yes,' so we call India' low-trust' and Sweden' high-trust.' There are also differences in tightness and looseness of social norms and consequences for deviating. For example, China is high-trust and tight, the US is high-trust and loose, India is low-trust and tight, and Mexico is low-trust and loose.\r\n\r\nTo understand cultural differences in trust decisions, you must understand these differences. There are also differences in how different cultures decide to trust. East Asians emphasize testing more than Middle Easterners or Latin Americans. Latin Americans and Middle Easterners emphasize goodwill building more than East Asians.\r\n\r\nLatin America, the Middle East and South Asia are lower trust. But in Latin America, rapport and establishing shared values are more important. Respect for cultural differences is vital in the Middle East and South Asia. This may be because the institutions that monitor and sanction deviance from norms in 'tight,' but more diverse cultures don't cross ethnic boundaries.\r\n\r\n\r\nWhat were the most surprising research findings?\r\nEast Asia and the West focus primarily on the business relationship. If there's a business relationship, the personal connection follows. China and UK's behavior was similar, but social norms are different.\r\n\r\nOn brokering a relationship through a third party, one US manager asked, \"What's in it for the person making the introduction?\" That's not considered in the 'tight' East Asian culture \u2013 if the third party puts their reputation on the line, they're good to deal with. In this culture, someone can be outcast if they bring embarrassment on themselves or their family \u2013 the stakes are higher.\r\nHow can transparency be improved between partners?\r\nShare information openly and honestly. Anticipate being asked questions about past performance and how you see the future relationship. Your potential partner may interpret reluctance to share as hiding, so when you can't share information, explain why.\r\n\r\nSignal you're engaged and want to learn more by asking questions. Trust is a two-way street.\r\nAre there differences in how people build rapport and trust in person versus online?\r\nDuring the pandemic (in the fall of 2020), we went back to the same managers we spoke to before to ask how they developed new relationships and made trust decisions virtually. A manager from Brazil said they found ways of keeping the spirit of face-to-face using technology, as talking to someone online is the same way to make a connection.\r\nCould virtual reality (VR) and the virtual office help bridge the geographic divide?\r\nEngineers and scientists I've interviewed for other research reacted negatively to the idea that VR could replace or substitute for face time. Personally, I'm comfortable using video conferencing, but I've found using a video game character awkward. I like the possibilities, but our ability as humans to get up to speed and be open to it can be a challenge.\r\n\r\nThe reluctance to use virtual technology could be partly generational. When we re-interviewed managers during the pandemic, one manager from Palestine mentioned that his father initially felt the business could survive without using technology. However, when it was time to make a serious business decision, his father would ask: \"Can you send an email or do something?\"\r\nWhat advice can you share for managers of international tech teams?\r\nOther research shows challenges in inter-cultural teams include violations of respect or hierarchy, prejudice and lack of common ground. Communication styles vary \u2013 in East Asia, it's more indirect, but in Latin America and the Middle East, it's more direct.\r\n\r\n\r\n\r\nDon't leave anything to chance. While putting together this charter, your conversations will help define how you'll deliver. If someone doesn't show up to a meeting, what happens next? A shared team mental model about what to expect reduces uncertainty. Nothing is perfect, but the charter negates some pitfalls by getting collective agreement.\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<\/footer>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/article>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\n<p>What does this mean for paper and plastic transactions? And what privacy and security issues should business consider when it comes to doing it all by smartphone?<\/p>\n<h2>Environmental reasons to stop using paper and plastic<\/h2>\n<p>Some might say the sustainability drive to eliminate paper and plastic in business transactions is overplayed.<\/p>\n<p>While both have significant environmental impacts, <a href=\"https:\/\/oceanservice.noaa.gov\/hazards\/marinedebris\/plastics-in-the-ocean.html\" target=\"_blank\" rel=\"noopener nofollow\">business transactions are not a major source<\/a>. Meanwhile, <a href=\"https:\/\/cointelegraph.com\/news\/banking-uses-56-times-more-energy-than-bitcoin-valuechain-report\" target=\"_blank\" rel=\"noopener nofollow\">electronic transactions can be responsible for much energy use<\/a> and the equipment used will ultimately become <a href=\"https:\/\/www.genevaenvironmentnetwork.org\/resources\/updates\/the-growing-environmental-risks-of-e-waste\/\" target=\"_blank\" rel=\"noopener nofollow\">resource-heavy and hard-to-recycle ewaste<\/a>.<\/p>\n<blockquote><p>But perception is everything, and consumers don\u2019t usually compare the highly visible impact of plastic and paper with less visible ewaste and transaction processing energy needs.<\/p>\n<\/blockquote>\n<p><a href=\"https:\/\/www.cnbc.com\/2021\/08\/10\/the-environment-is-gen-zs-no-1-concern-but-beware-of-greenwashing.html\" target=\"_blank\" rel=\"noopener nofollow\">Gen Z, Millennials and those younger will do much to avoid adding more plastic and paper to the world<\/a>. Regardless of environmental impact, consumer demand for more convenient paperless and cardless transactions will only grow.<\/p>\n<h2>Processes likely to move to smartphone apps<\/h2>\n<p>Digitized identity documents look set to be the next big frontier for smartphones. It\u2019s already been a common approach to declaring COVID-19 testing and vaccination status worldwide, but soon passports, driver licenses, student IDs and more will be made available through apps. <a href=\"https:\/\/www.bundesdruckerei.de\/en\/innovation-hub\/smartphone-id-card\" target=\"_blank\" rel=\"noopener nofollow\">Germany started using app-based ID cards in 2021<\/a>. Around the same time, <a href=\"https:\/\/www.apple.com\/newsroom\/2021\/09\/apple-announces-first-states-to-adopt-drivers-licenses-and-state-ids-in-wallet\/\" target=\"_blank\" rel=\"noopener nofollow\">Apple announced several US states would make digital identity cards and driver licenses available using Apple Wallet<\/a>.<\/p>\n<p>ID stored on phones brings convenience and risk. A well-implemented system would let stores verify customers\u2019 age without seeing personal details they don\u2019t need, like home address \u2013 also known as <a href=\"https:\/\/www.kaspersky.com\/blog\/zero-trust-security\/36423\/\" target=\"_blank\" rel=\"noopener nofollow\">\u2018zero trust\u2019 security<\/a>. Digitized IDs could also <a href=\"https:\/\/www.atmmarketplace.com\/articles\/aml-kyc-and-the-smartphone\/\" target=\"_blank\" rel=\"noopener nofollow\">speed up know-your-customer (KYC) procedures<\/a> when applying for a loan with a smartphone.<\/p>\n<p>But using a smartphone to store growing amounts of personal data introduces <a href=\"https:\/\/en.wikipedia.org\/wiki\/Single_point_of_failure\" target=\"_blank\" rel=\"noopener nofollow\">\u2018single point of failure\u2019 security risk<\/a>. Those who develop and commission smartphone software like apps must ensure top-notch device security and privacy-preserving data storage.<\/p>\n<blockquote><p>Other cardless transaction methods using smartphones are being introduced with the intent of better protecting customers from fraud.<\/p>\n<\/blockquote>\n<p><a href=\"https:\/\/www.firstpost.com\/tech\/how-to\/want-to-withdraw-cash-from-atms-using-upi-applications-heres-the-process-11676301.html\" target=\"_blank\" rel=\"noopener nofollow\">Cardless cash withdrawal at ATMs is taking off around the world<\/a>, especially where bankcard fraud is more common, like India. Smartphone apps enable cardless withdrawals, for example, scanning a QR code on the ATM screen with a payment app like Google Pay, or using near-field communication (NFC.)<\/p>\n<p>Again, these transactions aren\u2019t without risk. Speaking to price-comparison service Bankrate, Ricardo Pina, founder of personal finance blog <a href=\"https:\/\/themodestwallet.com\/\" target=\"_blank\" rel=\"noopener nofollow\">The Modest Wallet<\/a>, said, \u201cSince bank cards are being replaced by phones, <a href=\"https:\/\/www.bankrate.com\/banking\/how-do-cardless-atms-work\/\" target=\"_blank\" rel=\"noopener nofollow\">criminals will now be more enticed to target and hack your phone to mine your data<\/a>, information and even change your phone and bank app settings.\u201d<\/p>\n<h2>When will paper and card transactions become history?<\/h2>\n<p>Those who run businesses that experience higher overheads thanks to processing cash, cards and printed receipts may dare to dream of a world where these go the way of the \u2018check.\u2019 Ubiquitous throughout most of the 20th century, many banks have stopped issuing and accepting these. <a href=\"https:\/\/www.waldenu.edu\/programs\/business\/resource\/cancelled-5-reasons-paper-checks-are-disappearing\" target=\"_blank\" rel=\"noopener nofollow\">Check payment is expected to be extinct by 2026<\/a>.<\/p>\n<p>Those old enough to remember when checks were commonplace might think they\u2019d disappeared years ago. But sometimes these methods strongly persist in parts of an economy that need them for specific reasons.<\/p>\n<p>A few years ago, a friend and I hiked the five-day <a href=\"https:\/\/www.southwestcoastpath.org.uk\/\" target=\"_blank\" rel=\"noopener nofollow\">South West Coastal Path in Cornwall, UK<\/a> \u2013 and yes, it was glorious. This part of the UK is far from any major city. We were surprised to notice most <a href=\"https:\/\/en.wikipedia.org\/wiki\/Bed_and_breakfast\" target=\"_blank\" rel=\"noopener nofollow\">bed-and-breakfasts<\/a>\u00a0 accepted only cash or check. Once we understood the area\u2019s geography, we paid by check wherever we could. Traveling on foot and far from towns, it seemed unwise to part with cash we might need. These businesses told us they didn\u2019t take card payments because they only had customers in summer, making point-of-sale machines uneconomic.<\/p>\n<p>Similarly, can smartphones \u2013 and reliable access to affordable data to operate apps \u2013 be all things to all people in all places? While access to mobile technologies has certainly enabled <a href=\"https:\/\/www.kaspersky.com\/blog\/secure-futures-magazine\/technology-access-poverty-development\/39796\/\" target=\"_blank\" rel=\"noopener nofollow\">greater economic participation from marginalized people<\/a>, we can easily overestimate how many can and will use these technologies if we use them or see them used around us often.<\/p>\n<p>Pew Research estimates around <a href=\"https:\/\/www.pewresearch.org\/internet\/fact-sheet\/mobile\/\" target=\"_blank\" rel=\"noopener nofollow\">85 percent of the US population owns a smartphone<\/a>, but in <a href=\"https:\/\/www.statista.com\/statistics\/330695\/number-of-smartphone-users-worldwide\/\" target=\"_blank\" rel=\"noopener nofollow\">China and India, it\u2019s lower at 70 percent<\/a>. While <a href=\"https:\/\/www.statista.com\/chart\/17909\/pos-mobile-payment-user-penetration-rates\/\" target=\"_blank\" rel=\"noopener nofollow\">China leads the world in mobile payment adoption<\/a>, smartphone ownership numbers don\u2019t tell us how many people could use their smartphone for payments \u2013 for example, successfully download and register to use payment apps, and access data when needed.<\/p>\n<p>Cash transactions still account for far more business than many people think \u2013 <a href=\"https:\/\/www.cashmatters.org\/blog\/cash-used-205-global-point-sale-transactions-fis-2021\" target=\"_blank\" rel=\"noopener nofollow\">in 2021, customers used cash for over 20 percent of point-of-sale transactions<\/a> globally, according to the International Currency Association. Many businesses wouldn\u2019t survive losing 20 percent of their sales.<\/p>\n<p>There is also the inevitable <a href=\"https:\/\/www.businessinsider.com\/ben-crudo-gave-up-my-smartphone-2019-5\" target=\"_blank\" rel=\"noopener nofollow\">backlash against smartphones because of negative mental health impacts<\/a>, seeing some choose to quit or radically reduce how much they use them.<\/p>\n<p>It seems paper- and card-based identity and payment options will be with us much longer than we think, if the lifecycle of check payment is anything to go by. For small business, <a href=\"https:\/\/www.forbes.com\/advisor\/business\/software\/best-pos-system-for-small-business\/\" target=\"_blank\" rel=\"noopener nofollow\">alternative point-of-sale card payment providers are fast making accepting cards more affordable<\/a>, making paying by card even more ubiquitous without reducing security.<\/p>\n<p>When it comes to taking payment, it \u2018pays\u2019 to be flexible and listen to what your customers want, rather than focusing on what suits your business. Meanwhile, keep an eye on evolving technology making retail transactions simpler and more affordable.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Smartphone apps take more transaction territory each year, so when will they replace paper and plastic cards?<\/p>\n","protected":false},"author":2552,"featured_media":47016,"template":"","coauthors":[3673],"class_list":{"0":"post-47013","1":"emagazine","2":"type-emagazine","3":"status-publish","4":"has-post-thumbnail","6":"emagazine-category-data-and-privacy","7":"emagazine-category-digital-transformation","8":"emagazine-category-trends","9":"emagazine-tag-customer-service","10":"emagazine-tag-predictions","11":"emagazine-tag-retail"},"hreflang":[{"hreflang":"x-default","url":"https:\/\/www.kaspersky.com\/blog\/secure-futures-magazine\/trust-global-business\/44755\/"},{"hreflang":"en-us","url":"https:\/\/usa.kaspersky.com\/blog\/secure-futures-magazine\/trust-global-business\/26714\/"}],"acf":[],"_links":{"self":[{"href":"https:\/\/www.kaspersky.com\/blog\/wp-json\/wp\/v2\/emagazine\/47013","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.kaspersky.com\/blog\/wp-json\/wp\/v2\/emagazine"}],"about":[{"href":"https:\/\/www.kaspersky.com\/blog\/wp-json\/wp\/v2\/types\/emagazine"}],"author":[{"embeddable":true,"href":"https:\/\/www.kaspersky.com\/blog\/wp-json\/wp\/v2\/users\/2552"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.kaspersky.com\/blog\/wp-json\/wp\/v2\/media\/47016"}],"wp:attachment":[{"href":"https:\/\/www.kaspersky.com\/blog\/wp-json\/wp\/v2\/media?parent=47013"}],"wp:term":[{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.kaspersky.com\/blog\/wp-json\/wp\/v2\/coauthors?post=47013"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}