How are Credit Cards Evolving?

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How are Credit Cards Evolving?

CFO Tech Outlook | Monday, October 28, 2019

The popularity of credit cards as a means of payment is bound to grow as they get some exciting makeovers, including some much-needed automation.

FREMONT, CA: The last few years have seen the growing use of credit cards for payments. To keep the momentum going, credit card providers continue to take measures that attract users. Credit cardholders today are getting more facilities when it comes to card design, and retailers have started offering more branded cards. All these are giving rise to the increase in credit swiping and spending. A particular report states that credit card usage is at its peak. To keep the leading position, credit cards continue to transform. In a few years from now, there might be numerous changes in the way credit cards are used. Some changes that will mark the evolution of credit cards are discussed in the present article.

• Versatile Cards with Access to Several Accounts

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The trend of increasing preference for debit cards over credit cards is a point of bother for credit card providers. To prevent the attrition and reducing wallet values, credit card issuers are opting for anti-attrition, pro-retention strategies. Multi-function cards are those with which users can have access to more than one accounts using the same card. With this, convenience for card holers can be increased.  A standard multi-function card structure offers consumers the ability to access both a debit and credit account through the same card. This increased functionality enhances the value of each card. A multi-function card could also permit customers to pick between a personal or business account for payment at different places.

• Support for Internet-based Payments

The increasing adoption of online payments also poses a threat to credit cards. The explosion of mobile devices that support payments through the internet can be utilized to increase the functionality of credit cards.  Credit card usage can be monitored, and transactions managed using mobile applications across a variety of smartphones and operating systems. Consumers are now able to check their account balances and examine recent purchases in real-time. They perform more complex tasks, potentially allowing them to dispose off traditional card-based payment methods entirely.

• Credit Cards with Biometric Scanners

Recently, credit card issuers have started testing biometric credit cards, which have inbuilt sensors that can scan the card holder’s fingerprint to verify and complete transactions. With this, credit cards can store biometric information that drives security. The card will look the same, but it will have a small biometric scanner, which can confirm the identity of the cardholder, facilitating risk-free transactions. The biometric credit card could serve as a way to combine a person’s multiple passwords and do away with pins.

• Mitigating Credit Card Frauds with Innovative Measures

The risk of fraud always affects credit card usage. Mitigating the risk requires credit card issuers and solution providers to work together and come up with innovative and more advanced security measures. The success of the EMV chip and PIN initiatives are good examples. However, many other reforms are beginning to address the security gap more effectively.  

Undoubtedly, the future will see a lot of automation in credit card payments, along with several other advancements. Several credit card providers are taking initiatives to create a payment method that is optimized and secure, even in the future.

Check out: Top Payment and Card Solution Companies

See Also: Top Fraud And Breach Protection Solution Companies

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