Economist Mike Walden: Is there a Future for Credit Cards?

For several decades, credit cards encroached on cash as a form of payment.  Now, many experts say the same is happening to credit cards, with new forms of payment – such as mobile apps – pushing credit cards aside.  Does this mean that both cash and credit cards will be fighting for survival as payment methods?

  1. obviously there are pluses and minuses of credit cards vs. other payment types
  2. credit cards – virtually universally accepted; don’t rely on batteries, and will         likely be redesigned to be even smaller and more convenient
  3. mobile payment apps – for generations who live by their phones, payment apps    are a natural extension, and payment apps will be increasingly accepted by          more stores
  4. payment apps also have an advantage of lower fees vs. credit cards
  5. projections by experts indicate credit card use will be stable, but mobile                payment apps will take business away from debit cards
  6. still, all payment methods will likely continue in the near future