Credit cards play a central role in the payments ecosystem. The credit card market size has grown over recent years, making these cards a prominent in instore transaction method. The credit card industry is also getting better every day, thanks to advancements in technology.
Various trends are evolving this industry and making it better than ever. As a credit card user, it is vital to know the advancements happening in the industry. Also, you should know how changes will shape the industry’s future.
This post will discuss the various technological developments in the credit card industry.
Some of them include:
Table of Contents
1. Credit Card Programming
Card designs have been changing over recent years. Today, it is possible to reprogram your card from anywhere. This has increased flexibility by giving card owners more control. It has also helped boost credit card security by making it difficult for fraudsters to steal data or cash.
Modern card designs allow users to swipe only for a specific duration. There’s a secret PIN code you enter that activates the card for use. It loads it with all the account information needed to transact. After the transaction, the card becomes ‘dead’ unless the owner enters another code.
These programming capabilities have made credit cards more secure. Some companies have also made their credit cards programmable for multi-account usage. It helps users reduce the cards they carry—one card for debit and credit accounts and the redemption of reward points.
2. Use of One-Time Passwords
Authentication is also another aspect that has changed in credit cards. Companies are looking to make authentication more secure to reduce fraud and improve customer experience. The widely used CSV number hasn’t been as excellent as expected to guarantee safety.
This is also the case with static passwords that people can reuse. The inadequacy of these authentication methods has made many companies explore using one-time passwords. You probably have been asked to provide an OTP if you bank online before transacting.
Such a pin gets generated and used only for a single transaction. This means no one can access your account even if they have all your details. They’ll need access to your phone or email to extract the code and use it to log in. This adds an extra security layer to a credit card.
3. Easy Access to Credit Scores
It is an excellent idea for credit card owners to maintain a good credit score. But to do this, you need data that will show you any changes to your credit history. Knowing your credit history will make it easier for you to take the necessary action to improve your credit score.
Every credit card owner today aims at the enviable 850 credit score. You can access your credit information from various credit reporting companies. Your credit report will show you how far you are from the credit score 850. This will help you replan how you spend your credit card.
Ensure that the strategy you adopt leads you to your desired credit score. If your credit score is too low, the best step to take is to have a plan to repair it. You have two options, either credit repair DIY or partnering with a reputable credit repair company. Finding affordable credit repair is no longer a daunting task.
4. Credit Cards Getting Smarter
Smartcards are becoming more popular today, and most companies offer them. They are more modern and embedded with chips that carry all the necessary information about the owner. The primary difference between smart and traditional cards is the contactless aspect of smart cards.
They also come in different designs and do not necessarily look like cards. The shapes and sizes look different from standard cards making stealing them difficult. You can be sure that no one will swipe your credit card because smartcards come with the OTP feature.
Also, you no longer need to worry about damaging your credit card. Modern card designs aren’t easy to tamper with. For instance, they are water-resistant, which makes them less susceptible to external damage. And you can expect more innovation around credit card designs to make them even more innovative.
5. Increasing Popularity of Digital Wallets
Many people prefer not to walk around with credit cards. It is possible to ditch the plastic and still transact anywhere you go. Digital wallets that are becoming popular every day can make this possible. You can now leave your card at home as long as you link it with an app.
When you want to pay, you open your e-wallet on your smartphone. This method can prove helpful if you’re concerned about your security. eWallets come with encryption capabilities that make transacting safer. Besides, e-wallets can use biometrics saving you a lot of stress.
eWallets linked to credit cards are still gaining traction around the world. Once they are available for mass use, they will save many people the hassle of carrying physical cards. One can even have several cards linked to one eWallet. This is one of the best advancements in credit cards.
Conclusion
Those are the significant developments happening in the credit card management system. If you have used credit cards for long enough, you will appreciate the transformation. Advancement in technology has played a critical role. There’s no doubt that the industry is in the right direction.
All you need to do is embrace the changes we’re seeing in this industry. Also, you need to maintain an excellent credit score to benefit from credit cards. If your credit score has declined for some reason, you should consider any options you have to go about repairing it. Or perhaps your credit card has declined when you are looking to purchase something? If that is the case then you can easily look at a soft decline reason for your credit card declining, as it might be something you can easily fix yourself. If this is not something you can do yourself, then it is important you seek advice from a credit agency, or the bank in which you took out the credit card.
Ensure you have a solid credit record that will make it easy to get approval anytime you apply for credit. That’s the only way to experience the tech advancements in credit cards.
Otherwise, it may be tricky to experience what credit cards offer if you have a poor credit record. As said, take steps to do credit repair and develop a strategy that will help you keep making your record better. An 850 credit score will open your doors to more credit opportunities.
