The concept of credit has at least 5.000 years of history and appeared in ancient Mesopotamia. The history of today’s credit cards dates back to 1014 when Western Union started offering its “Metal Money,” the precursor to the consumer credit card. What should you expect from the future of credit cards? Who can help you with the right merchant services, including a low or high risk merchant account for your online business?
History of Credit Cards
In 1946, banker John Biggins launched the Charg-It card that was being used in a 2-block radius of Biggins Bank. Later, in 1950, Diners Club appeared as the 1st multipurpose charge card and was originally used by businessman Frank McNamara.
In the 1960s, Forrest Parry, an IBM engineer, was the very person to affix a magnetic tape to the back of cards. This is how it became possible to have your information “swiped” at a POS (point-of-sale) terminal.
Since the 1950s, the credit card industry has undergone major changes and developments. This was the time when Bank of America launched the 1st card. Today, the number of open credit card accounts in America makes up approximately 365 million, according to the American Bankers Association.
What current trends are available in space? Well, first of all, credit unions are for offering contactless payment options to cardmembers, otherwise, they’re likely to lose members to credit card programs as there are stronger digital offerings. In addition, rewards trends are on the rise.
What about you? Are your customers content with the payment services you’re offering? One thing is certain: you can’t grow if you’re not providing online payment processing services in today’s increasingly digital world.
All you need is to apply to an expert merchant services provider that guarantees the latest, cheapest and most secure merchant processing services such as a low or high risk merchant account. The future of payments is more and more about digital offerings, so there is no time to keep providing only offline payment processing solutions for your customers.
Future of Credit Cards
As you may already know, alternative payment types such as Buy Now, Pay Later are now quite widespread and are especially popular among Gen Z and Millennials. By the way, P2P payments via Venmo, Zelle, and Square Cash are among the most-rapidly-growing payment options.
As for the younger generation’s paying preferences, 76% of 18- to 24-year-olds have less willingness to turn to their credit cards. Next, come 25- to 40-year-old people with 74%, according to GoCardless.
With the payments industry getting more advanced, blockchain technology is playing a greater role with credit cards. However, according to Cornerstone Advisors’ Ron Shevlin, the predictions that credit cards are going to die or be declined soon are exaggerated.
Some specialists in the field believe the future of credit cards isn’t promising. Others think this is an exaggerated viewpoint. The current evolution of the payments space means you can’t leave online payment processing options in ignorance. So, work with a true payments specialist to build a better future for your business.
Author Bio: Blair Thomas has been a music producer, bouncer, screenwriter and for over a decade has been the proud Co-Founder of eMerchantBroker, the highest rated high risk merchant account processor in the country. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favorite books.