We’re already used to carrying plastic credit cards in our wallets, but according to some analysts, their era is getting close to an end. Credit cards, as we know them, could soon become history. But don’t worry, they won’t be replaced by cash either!
Expect big changes soon!
According to a report from CNBC, a new system is in the works, involving digital money transfers, done through smartphones and other devices.
Generally speaking, this is great news, since the current system has some flaws, including fraud, big credit card charges, or security. Not to mention that there are situations in which credit cards aren’t accepted worldwide either.
As for digital transactions, they have several advantages, including the ease of exchanging money between friends or employers and employees. Peer-to-peer payments are now very popular, due to their increased security and reduced fees. Just think of PayPal, which now has more than 218 million active accounts worldwide.
Many people are already going cardless!
Back in 2015, around 24 million Americans were under-bankers, as people didn’t own a credit card or had a bank account. Big companies, like Amazon, contributed to this, through concepts like Amazon Cash. And let’s not forget about cryptocurrency, which is also promoting a cardless society. Bitcoin, for example, has low transaction fees and don’t require any sales tax!
If you’re thinking about other cash back credit cards or rewards cards, don’t worry, they can also be stored in various apps, directly on your smartphones.
Should you ditch your credit card?
No. Or at least not yet. With the quick rise of cryptocurrency and the ability to use smartphones for paying for anything, it’s obvious that those plastic credit cards in your wallet will soon become useless. And by ‘soon’ we mean a couple of years.
After all, consumers are directly interested in enjoying lower fees, alongside improved convenience and increased financial independence from all financial institutions.
What are your thoughts on this? Are you willing to quit using credit cards and rely solely on your smartphone for financial transactions?