There are many advantages to taking out a credit card. From purchasing everyday essentials to big-ticket items such as travel or technology, credit cards allow us to earn rewards such as cashback, give us the opportunity to build credit and also help to increase our purchasing power.
Of course, it is important to bear in mind that they are effectively a loan, which means that we need to pay back what we put on them. When individuals pay their credit card bills on time, they can begin to build a healthy credit score, which can come in very handy when they need to make significant purchases in the future, such as a car or house.
It is true that the credit card industry has come on leaps and bounds in the last few years, but just what can we expect from this popular payment method in the future?
Increase in contactless card usage
There were 275 million transactions on credit cards by UK cardholders both in the UK and overseas in February 2020. With such advances in payment technology, it’s a lot easier for people to now pay by card rather than cash. Individuals can purchase their goods with a contactless card in a matter of seconds and receive real-time notifications to show them how much is left in their accounts. In the future, it is predicted that we will see an increase in the use of these cards. Today, you can even use them to pay for your transport as you move around London.
One-click checkout option
A number of banks have recently rolled out a one-click checkout option. Mastercard, Visa, Discover and American Express have created the new option for fast, yet secure, purchases. When individuals pay for certain things online, they don’t have to go through as many steps at the checkout. When this becomes available for more people, we will be able to benefit from a more simplified process.
Innovative security features
Many individuals fear using credit cards for security reasons. As security is one of the main priorities when it comes to banking, potential improvements to this area will help many to feel more at ease when purchasing products. In the future, tokenization will be used to protect sensitive data, replacing it instead with an algorithmically generated number called a token. That token will then allow a payment to be processed without revealing any account details.