Credit cards have always been a great companion for many, especially as they provide a quick and easy way to make transactions. Moreover, they offer a wide range of perks, depending on the type of card and company you choose to work with.
Because of the variety of benefits offered by these cards, many people continue to use one. Some even have multiple cards, one for every type of transaction. Banks and other issuing institutions also push these cards by offering pre-approvals.
With the popularity of credit cards, it is easy to envision them dominating the future. Rapid tech advancements can even give you more than what you can imagine. Here’s what you can expect from these cards in the future.
Full Cashless Transactions
Over the past years, we have been slowly transitioning into cashless transactions, from debit and credit cards to digital payment methods. However, as a society, we are yet to fully become a cashless economy.
This trend is expected to continue over the next years and credit cards will play an important role, especially as they have already been offering such convenience. In addition to this, tap and go transactions and alternative payments can become more popular.
This is possible with the rise of cryptocurrencies and mobile wallets, as well as the need to minimize personal interactions and limited ability to personally transact.
Reign of Mobile Wallets
Speaking of alternative payment methods, one of the most viable ways to make transactions is through mobile wallets. These services allow users to send and receive money in a non-bank account.
These often offer various ways to pay, such as through QR codes, tap and go, mobile transfer, and many others. Such services are popular today and are expected to be widely used in the future.
These services are expected to become more prevalent as people start to show preference toward person-to-person payment methods which apps like Venmo and PayPal allow. Moreover, they are relatively easier to register with making them a preferable choice.
Enhanced Mobile Banking
Aside from making transactions, it is important for consumers to manage their accounts. In the past, one of the most surefire ways to do so is to visit a nearby branch and make the necessary requests, from changing your PIN to checking your balance.
Today, almost all banks have corresponding apps to help in account management. However, they are likely to add more features as new technology emerges.
Many anticipate enhanced account security through mobile apps such as the ability to turn the card on and off to prevent fraudulent transactions. Some banks have implemented such technology today and an improvement can be expected in the future.
Account Management with AI
In line with security and risk management, credit card companies can also deploy artificial intelligence to help protect consumers. Such technology is expected to detect fraud and identity theft, as well as avoid attacks.
AI can also play a role in credit card application, especially with eligibility checks. Instead of using credit scores to see applicants’ creditworthiness, AI can help analyze and predict financial behavior that can lead to the approval or rejection of the application.
This technology can also apply to other types of credit lines such as various kinds of loans and mortgages. Along with this, the industry can consider offering more attractive rates in light of non-bank competitors.
The Bottom Line
The future of credit cards looks bright with various potential technological advancements. However, without significant leaps in the quality of service and offers, the industry can be threatened by alternative payment methods.