According to the Brazil’s central bank chief, Roberto Campos Net, account to account payment systems are the biggest challengers to credit cards.
Most likely, he is probably referring to the advancements made in the real time (instant) payment system over the last decade, and the mobile wallets which eventually feed from bank accounts.
Even though instant payment systems, mobile wallets have revolutionized the payments landscape in many major economies (India, China etc.), cards have survived and still going strong.
A major argument with mobile wallets, and even instant payments via mobile apps is “convenience” of use and instantaneous settlement for the end consumer (the final settlement may be deferred). Payment initiation through barcode (#qrcode) made these transactions seamless. Perks like cash back and other benefits have been a strong tool for customer acquisitions.
This convenience though is available through cards as well. #applepay , #googlepay and many other provide convenience to be used through mobile wallets, contactless tech has improved things as well and cash backs with credit cards are not unheard of.
“Credit cards” may evolve, but “credit” is going nowhere. Cards may be used more in its digital form (with wallets), and even #cryptocurrencies are being offered via credit cards.
Instant payment will have a major impact on the domestic scene within the countries, international collaboration is still not strong. Cards do play a big role in filling up this gap. Eventually may be things will change.
I believe credit cards will be around for a while, and even when they do go extinct, I do not think account based payments system will be the reason, may be #centralbankdigitalcurrency or one of the #cryptocurrency or may be they evolve to a much better version.
Image credit – BankBazaar
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Credit cards will become extinct … because of account to account payment systems ?
