The ability to pay for things with a plastic card has allowed the company to reach a level of convenience, speed and flexibility like never before. Paying for large or small amounts can be done from anywhere by simply swiping your card even if you do not have the funds available at that time to pay. The numbers don’t lie; there are 72 million major credit cards in circulation in Canada as of today. However, it seems like doing business in Canada and the reality of credit cards is in times of change.
Credit and debit cards have revolutionized the world as we know it. They are here to stay. The fact remains that the signs suggest that mobile payments via smartphones will be the new revolution; which will cause credit and debit cards to lose popularity, as will video cassettes, video libraries and payphones.
A changing context
The rise of the internet and mobile technologies has led to a revolution in the way we make payments. In the past, checks, bank transfers, cash on delivery and money orders were the most common forms of payment for large amounts or payments made remotely. The economy was limited in terms of distance and geography. This is no longer the case. It’s ironic to think that what credit and debit cards have done to this world, the digital age will do them too. The competitive world of online payment processing includes Paypal, Skrill and Apple, and with digital wallets available on your cell, this means that physical plastic cards have become a more cumbersome method of payment.
Reflect on the difference noted in just a few decades. When cards were first introduced, cash and checks were the main forms of payment. You had to count the money or write a check. The cards were revolutionary at the time. Now the cards take too long to swipe and process. For online payments, you must enter the 16 digits of your card, your name, the expiration date and the security code. A mobile caterer linked to your account via a secure application would mean that payment is completed in less than a second in one movement of your smartphone.
The digital age
The digital age has offered us incredible opportunities. Financial institutions have immediate access to consumer data. We share your location or even your credit score simultaneously. This leads to better quality and treatment services. Banks can now allow customers to make payments instantly from their accounts via an app on their phone. The majority of customers surveyed said they would use their phone to pay if they could. Think about the benefits of secure instant payments, consolidating credit and bank accounts, consolidating loyalty programs, and more, that the digital age has brought us.
It is clear that small Canadian businesses are processing more credit card sales online than ever before. However, it is inevitable. The development of mobile payments that are more convenient, flexible and secure than plastic cards, as well as the push by customers for personalization and convenience demonstrates a trend where credit and debit cards are gradually becoming obsolete. The digital age is not only revolutionary in terms of media, entertainment and social relationships; it is changing the world of finance, small business loans, banking and payment processing too.