Technology and the Future of Payments: Credit Cards and the Mobile Wallet
There is no denying it. We are currently living in the digital age, where seemingly advanced technologies from the past are slowly being rendered obsolete. One such technology includes those from the payments industry, where advancements in mobile wallets, which takes advantage of Near Field Communication (NFC) technology.
The Age of Credit Cards
Remember the time when people began carrying plastic cards in their wallets instead of cash when they left the house? Credit cards were first used in the 1920s and were popularized in the fifties, when the concept was expanded from automobile gas payments to multiple card consolidation.
People tried hard to get good credit ratings and looked for institutions that offered low interests and convenient payment schemes by comparing credit cards. In a way, credit cards ushered Americans into a culture of spending and debt, as banks began mailing them out unsolicited to, which caused much financial chaos in the 1970s.
The practice was eventually outlawed. Credit cards still remain largely used today, not only for personal use but also for commercial purposes.
What are Mobile Wallets?
Looking to change the payments industry is the mobile wallet. It is seeking to replace not only cash from wallets, but also their credit cards. Most people nowadays carry their mobile phones with them, wherever they go. With this in mind, companies and developers are looking to develop technology that turns the phone into a mobile wallet as well.
This can be done with Near Field Communication technology, which uses established radio connections to allow users to make payments and for retailers to process these payments. They are convenient in the sense that they would be a bit harder to steal--since thieves would have to steal your phone in the process. Aside from that, you would probably notice your phone missing way faster than you might notice a missing credit card.
Weigh In: Credit Cards versus Mobile Payments
A lot of people still prefer credit cards despite this advent in mobile payments technology. Another disadvantage to mobile payments is that, as of the moment, only select banks and institutions provide these services. People would normally scour for different card offers and compare business credit cards before reaching a decision with regards to what card to get. However, you can expect this to change as mobile payments technology is gradually updated and upgraded with further research and development.