Mar 19, 2018

Are Credit Cards Becoming Obsolete?

Thomas W. Miller, Jr. Visiting Scholar

Are credit cards going away in five years in favor of new payment technologies or new ways to transfer funds? Not likely. For most Americans, plastic credit cards are an example of “low tech, good tech.”

Mobile wallets and other forms of digital payments compete with plastic credit cards, but adoption rates in the U.S. have been relatively slow, with 45% of respondents in a recent survey saying it’s just easier to pay with a card. Consumers aren’t clamoring for a way to stop using credit cards because they aren’t bulky, there is no battery to charge and they can survive drops and exposure to water. They also can be given to family members to use or their numbers can be read over the phone.

Read more: Will There be a Need for Credit Cards in Five Years?

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