Are Credit Cards Almost History?

Credit cards have been around for generations and they are one of the few methods of payment accepted globally. They are easy to carry and there is no need to go to your local bank, in order to get cash, to make your purchase. There are several types of credit cards, also known as plastic, to cater to everyone’s needs. Students can sign up and get cards that help them build their credit history and adults, once established, can get several types of cards, to justify their status in the society. Plastic is not just for payment, but there are certain privileges attached to them too. Those who are known in the society, with more than average cash flow, can qualify for and receive cards which can only make their lives easier. Certain cards including American Express Company (NYSE:AXP) black card, is reserved for the famous and wealthy and they receive privileges like none other. Due to their membership credit card, they can not only spend a limitless amount of money, but they are able to reserve their private planes, by placing just one call. Regardless of what the use may be for, the truth is these cards have not changed for several years unlike other items in the business industry. However, this is about the change and 2011 is set to see a turning point in the use of actual credit cards.

Analysts feel that customers will find other ways to pay for their purchase as credit cards become obsolete. More financial institutions are offering online payments which no longer require a physical credit card. What is even more surprising is the advancement in technology which now allows customers to pay with their phones. Many customers have begun to use their smartphones to make purchases. With simple apps provided by the bank, their card and account information is now on their phone, and a quick scan at a store is all they require, to complete their purchase. Banks have noticed that, as more of the younger generation gets used to the smartphone, the less of a need they have to carry any other means of payments. Due to this reason alone, the once popular plastic could soon become history. Analysts however feel that this could take a lot more time than one can expect. Even though several stores now allow you to pay using your smartphone, the older generation will still continue to use the plastic cards.