jump to navigation

Are Credit Cards Outdated? August 18, 2011

Posted by CredZoo - Tame Your Credit in New Credit Information.
Tags: , , , ,
trackback

How long will it be before you’re paying for purchases with a simple swipe or “bump” of your iPhone, or other mobile device? Experts say, not long!

The concept of credit has been around for centuries. Starting in the early 1800s, local merchants allowed trusted customers to make purchases without paying the total cost upfront. This intuitive concept allowed sellers to reach a larger base of customers who could then pay their debt over time. As the Internet emerged as a global marketplace where people can purchase goods and services without ever leaving their homes, the credit card, with its snazzy designs and black stripe on the back, has become outmoded.

Today’s savvy consumer expects a different experience, and the bottom line is the credit card wasn’t designed with the Internet in mind (and certainly not with an Internet-connected mobile device). Using a credit card to complete an online transaction is riddled with functional deficiencies. One of the most basic examples: we can all agree that it’s downright painful to have to repeatedly type in your credit card number and security code every time you go to make a purchase online, right? And from a merchant’s perspective, the cost of accepting credit cards — and the associated hidden fees — can make accepting payments online prohibitively expensive. Clearly it’s easy to see why credit-based products that were designed from the beginning for the online experience are rapidly gaining market share.

When it comes to mobile commerce the differences between credit cards and alternative payment methods are even more pronounced. Sure, a little device that allows you to take credit card transactions via a mobile phone is nice, but it’s far from revolutionary. Meanwhile, so-called alternative payment providers with their digitized, multicurrency networks are enabling consumers to transact by simply swiping a mobile device or even bumping mobile phones together. This is the notion of the “mobile wallet” starting to be realized.

The mobile device holds the key to the future of payments, for both consumers and merchants, because it blurs the lines between online and offline. Many predict it won’t be long before the credit card will be the alternative payment method and services that were designed for the online experience from the start will become the norm.

(Excerpts from an article by Bill Zielke; senior director of Merchant Services at PayPal, which recently announced the initial rollout of Mobile Express Checkout. Bill is responsible for the development and marketing of product strategies related to PayPal, and for counseling merchants with product recommendations.)
Advertisements

Comments»

1. Kai - August 21, 2011

Hell yeah! These inventions are just great! I love my smart phone for that. Not only for that, but I’m glad I can use this option. To be honest, I’ve never been a fan of credit cards and co. It made me feel bad every time I went in overdraft. Moreover, they could get copied so easily, that I’ve even stopped using in online. Luckily, almost each online game I’m playing accepts paysafecard. The same about Skype and some other online services. Unfortunately, I couldn’t use it on ebay because of their stupid PayPal monopoly which I also hate.
Anyways, life is so much better without credit cards!


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: