How Have Credit Cards Evolved Since the 80s?

How Have Credit Cards Evolved Since the 80s?

Credit cards have come a long way since their inception in the 1950s. However, it was not until the 1980s that credit cards began to evolve rapidly. Today, credit cards are indispensable tools for making purchases, and they offer a range of rewards and benefits to their users. In this article, we will explore how credit cards have evolved since the 80s.

The Advent of Co-Branded Credit Cards

In the 1980s, co-branded credit cards began to emerge. These credit cards were co-branded with airlines, hotels, and retail stores. Co-branded credit cards offered rewards and discounts on products and services offered by the co-branded partner. This was a significant shift from the traditional credit cards that offered only credit as a benefit.

The Introduction of the Annual Fee

In the 1980s, credit card companies began to introduce annual fees. Annual fees were charged to cardholders for the privilege of using the credit card. The annual fee was a significant source of revenue for credit card companies, and it allowed them to offer more benefits to their cardholders.

The Rise of Credit Card Rewards

In the 1990s,credit card rewardsbegan to take center stage. Rewards programs offered cashback, points, and miles for purchases made using the credit card. Rewards programs were a significant draw for customers, and they helped credit card companies attract and retain customers. Today, rewards programs are an integral part of most credit cards.

The Emergence of Contactless Payment

Contactless payment has been around for a while, but it was not until the 2000s that it began to gain significant traction. Contactless payment allows cardholders to make payments using their credit cards without the need to swipe or insert the card. This technology has made it easier and faster for customers to make payments, and it has also reduced the risk of fraud.

The Advent of Mobile Payments

Mobile payments have revolutionized the way we make payments. Withmobile payments, cardholders can make payments using their smartphones, eliminating the need to carry physical cards. Mobile payments are secure, fast, and convenient, and they have become increasingly popular in recent years.

Conclusion

Credit cards have come a long way since the 80s. Today, credit cards offer a range of benefits and rewards, and they have become an indispensable tool for making purchases. However, it is essential to use credit cards responsibly to avoid falling into debt. Make sure to pay your credit card bills on time and in full to avoid late fees and interest charges. Additionally, look for credit cards with no annual fees or low-interest rates to save money. Finally, be aware of the risks associated with credit cards, such as identity theft and fraud. By following these tips, you can make the most of your credit cards while avoiding unnecessary risks and expenses.