Since the invention of the credit card in the early 1900s, the world has seen a revolution in the utility of this financial tool. Historically, credit cards find their origins in the boom economy of the United States during the 1920s, in which consumers used credit to buy new household goods and petrol for their new automobiles. Since this time, credit card usage has spread from America to Britain, and then on to Europe and Asia, increasing in choice and sophistication at ever sky-rocketing levels. Today, the way we use credit cards has changed beyond recognition compared to the innovations of a hundred years ago.
Take, for example, the recent Visa "wave and pay" system. This new scheme, announced by Visa in November has made the noble promise of eliminating loose change in the future. Under the scheme, customers would be required to pass their credit card in front on an electronic reader in order to make small payments, but - conveniently - wouldn’t need to remove the cards from their wallets. Customers would only be able to use the payment system, however, for monetary transactions that amount to less than £10.
According to Visa's financial chiefs, the demand for the wave and pay system is sure to expand in the future, and will help to promote a move away from loose change towards a more efficient way to make low-cash payments. Sandra Alzetta, Visa's Europe spokesperson, stated:
"With over 75 per cent of all cash payments being less than £10, the introduction of contactless payments will play a major role in encouraging the use of cards over cash for low value transactions."
Wave and pay cards will initially be implemented in London by the end of 2007. London residents are expected to find the cards easier to use, as the technology is already in widespread use in the form of Oyster cards on the London transport system.
However, while wave and pay cards may prove popular in the future, their use will be limited by the fact that they can only be used for small payments. Consumers will still need to use regular
credit cards for the foreseeable future. When choosing a credit card make sure that you compare
credit card rates before you make your decision, in order to find a credit card that best meets your needs and requirements.
