Credit card payment is at an all-time high adoption rate. With payment technologies continuing to advance, credit cards are also transforming to keep up the pace. Here is more to it.
FREMONT, CA: The credit card sector has been making strides in the past few years. Credit card issuers continue to take steps in launching more cards with better benefits. Credit cardholders today are enjoying more opportunities when it comes to card design, and retailers have started offering more branded cards. All these are contributing to the increase in credit swiping and spending. A report says that credit card usage is at its peak. To keep up with progress in other payment options, credit cards continue to transform. The way people use credit cards presently may change in few years. What bold changes can one expect to see in the future of credit cards? Here are some ways that paying through a credit card may change in the future.
• Multi-function Cards
A challenge faced by the credit card industry is managing attrition, and diminishing wallet share, mainly as consumers show an increasing preference for debit over credit. To tackle this, credit card issuers are implementing anti-attrition, pro-retention strategies. Multi-function cards are one strategy among them, which have the capability of giving the holder access to multiple accounts on a single card. That is, a standard multi-function card structure offers consumers the ability to access both a debit and credit account through the same card. This functionality can also allow different categories of accounts or different modes of credit to be accessed by the customer. A multi-function card could also permit customers to choose between a personal or business account or credit accou
nts with different repayment terms.
• Mobile Payments
Besides changing the way they use their existing cards, consumers are also increasingly reliant on non-card forms of payment. With the omnipresence of mobile devices capable of managing transactions, credit payment with mobile devices is evolving. Across a variety of handsets and operating systems, with mobile credit payments, consumers are now able to check their account balances, review recent purchases. They perform more complex tasks, potentially allowing them to dispose of traditional card-based payment methods entirely.
• Biometric Credit Cards
Recently, credit card issuers have released biometric credit cards, which utilize the card holder’s fingerprint to verify and complete transactions. With this, the credit cards will begin to store additional sensitive information. The card will look the same, but it will have a small biometric scanner, which can verify the identity of the cardholder. The biometric credit card could serve as a way to consolidate a person’s multiple passwords.
• Improved Fraud Protection
Credit card fraud always remains a material risk. To tackle this, credit card issuers and solution providers are working together to come up with progressive and more advanced security measures. The international success of the EMV chip and PIN initiative is a result of it. However, various other innovations are beginning to address the security gap more effectively.
Undoubtedly, the future of the credit card industry will be free of physical cards—requiring a true convergence of technologies. Several key initiatives of the credit card industry are striving to build a cardless future with improved security in transactions.
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