What Is The Future of Credit?


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Just as we thought that credit and debit cards were about to completely supersede cash, there are now new payment systems that could take over and make plastic cards obsolete altogether. As mentioned in a post exploring those things that are Likely to Disappear in the Next Ten Years, credit cards may soon be out of circulation, likely within the next ten years.

While everyone will still be able to pay by credit, the rectangular bits of plastic that are used as a mode of payment will likely disappear from our wallets soon. It is actually starting now, as many of us are beginning to rely on our phones, smart watches, and other mobile devices to pay. There may come a time when no device is needed at all. Payment systems will work via facial recognition, as is already happening in China, and soon enough, the rest of the world.

In the US, credit cards are still very prevalent. Data collected by Statista shows that about 83 percent of Americans between 30 and 49 years old own a credit card. This is why most banks and companies still use traditional methods to establish a credit score. A post by Petal Card on building a good credit score outlines how the number is calculated in the US through five main factors:

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