The End of Credit/Debit Cards

[Abiky]

Have you ever wondered what the future of credit/debit cards will be once CBDCs (Central Bank Digital Currencies) go public? People will no longer need to use a plastic card to pay for goods and/or services, as everything will be done through a mobile (or desktop) app. This means people will directly interact with the central bank for deposits and/or withdrawals. No need for middlemen like Visa or Mastercard. At least, that's what I think it will happen.

Do you think credit/debit cards will still be a thing after the launch of CBDCs? If not, why? Will payment processors like PayPal, Visa, and Mastercard survive? Your input would be greatly appreciated. Thank you.

[franky1]

yep. thats kinda the point
also its the move to the cashless society as paper/metal coin currency has costs for banks too

however, CBDC is not a process of the fed/central bank processing everything
imagine it like a multisig that a central bank partners with several commercial services and they multisg units of currency into existence managed by mainly the central bank but agreed by the commercial banks(payment services)

these commercial payment services have outputs(fund destinations) where they get certain amount of that signed in input value
they then use those UTXO's as their references to then create their own signed transactions with each other as a child transaction
and then below that use grandchild transactions for their bank branches and then  and then microtransactions of inbound balance for customers of branch.

which get updated at customer payments to change who has inbound value, where balances of the current state of the transaction are updated when payments are routed

the central banks wont do all the KYC/monitoring. they delegate it to the commercial banks(like they do now in normal fiat)
but in general yes its to remove the need of visa/mastercard which costs commercial banks money, rather than they making money from transaction fees, which banks want to start getting

[BlackHatCoiner]

Do you think credit/debit cards will still be a thing after the launch of CBDCs?

Debit cards might eventually become obsolete, but credit cards cannot be replaced by the central bank unless the central bank itself starts issuing retail loans, which doesn't seem likely to happen anytime soon. However, I wouldn't consider it entirely impossible; it would just require a tremendous financial crisis where all retail banks go bankrupt, allowing the central bank to seize the opportunity.

Will payment processors like PayPal, Visa, and Mastercard survive?

Asking about the survival of debit cards differs greatly from asking about the survival of these companies. These companies will likely survive, because they're not directly linked to retail banks, which are the entities that might ultimately fall in terms of economic prosperity, or even cease to exist at some point.

[Fiatless]

Have you ever wondered what the future of credit/debit cards will be once CBDCs (Central Bank Digital Currencies) go public? People will no longer need to use a plastic card to pay for goods and/or services, as everything will be done through a mobile (or desktop) app. This means people will directly interact with the central bank for deposits and/or withdrawals. No need for middlemen like Visa or Mastercard. At least, that's what I think it will happen.

Do you think credit/debit cards will still be a thing after the launch of CBDCs? If not, why? Will payment processors like PayPal, Visa, and Mastercard survive? Your input would be greatly appreciated. Thank you.

I don't think that Credit/Debit cards will become obsolete because of the introduction of CBDCs. People are already using phones and computers for banking transactions without intermediaries and it has not stopped the banks from issuing ATM cards. ATM cards have some special functions that will still make them relevant. In my country, there has been a recent increase in ATM use because POS are now popularly used for banking services.  

ATM cards will be helpful when you don't have access to phones or computers. Sometimes there might not be a power supply to charge phones, ATM cards will be the only option to access funds. Operating an ATM might be simpler than using online transactions, so many people still favour ATM cards, especially in developing nations.

The introduction of CBDCs might gradually start reducing the use of ATMs because people might start migrating to CBDCs to cut transaction costs but it will take some time before it will start affecting them adversely. Many countries have not even adopted the CBDCs policy so there will still be a large market for these intermediaries for a long time.

[Helena Yu]

I quite doubt it.

It's true if CBDC exist, people should able to transact through cell phones without need to use plastic card.

But, considering there are many cases where someone claimed their money disappeared due to malware or getting hacked, so I don't think people will feel safe when their phones are connected to most of their money.

Using plastic card will decrease the chance to get hacked.

[franky1]

I quite doubt it.

It's true if CBDC exist, people should able to transact through cell phones without need to use plastic card.

But, considering there are many cases where someone claimed their money disappeared due to malware or getting hacked, so I don't think people will feel safe when their phones are connected to most of their money.

Using plastic card will decrease the chance to get hacked.

when phones have passcodes and app logins.. but 'tap and pay' debit cards can be tapped by someone simply brushing passed you. cards are more vulnerable
there are also cases of ATM card cloning devices that fit to ATM's in a hidden way which also make cards vulnerable
atm cards can also be stolen via pickpickets

[serveria.com]

Have you ever wondered what the future of credit/debit cards will be once CBDCs (Central Bank Digital Currencies) go public? People will no longer need to use a plastic card to pay for goods and/or services, as everything will be done through a mobile (or desktop) app. This means people will directly interact with the central bank for deposits and/or withdrawals. No need for middlemen like Visa or Mastercard. At least, that's what I think it will happen.

Do you think credit/debit cards will still be a thing after the launch of CBDCs? If not, why? Will payment processors like PayPal, Visa, and Mastercard survive? Your input would be greatly appreciated. Thank you.

That's really bad news if you ask me. Definitely a step towards discontinuation of cash money and a new level of financial slavery. Directly the opposite of what Bitcoin is trying to achieve.

[Cryptoprincess101]

Do you think credit/debit cards will still be a thing after the launch of CBDCs? If not, why? Will payment processors like PayPal, Visa, and Mastercard survive? Your input would be greatly appreciated. Thank you.

Already the use of credit/debit cards have already reduced since mobile apps banking platforms have been put in place such that everyone can use their mobile phones to makes purchases of goods and other items but there are still payments that requires this credit/debit cards to authenticate payments however this medium of payments have a credit and debit limit which can be frustrating when you want to make large payments or withdrawal that is why Bitcoin will be the end of this debit/credit card because it has not credit limit or withdrawal limit.

[Moreno233]

Have you ever wondered what the future of credit/debit cards will be once CBDCs (Central Bank Digital Currencies) go public? People will no longer need to use a plastic card to pay for goods and/or services, as everything will be done through a mobile (or desktop) app. This means people will directly interact with the central bank for deposits and/or withdrawals. No need for middlemen like Visa or Mastercard. At least, that's what I think it will happen.

Do you think credit/debit cards will still be a thing after the launch of CBDCs? If not, why? Will payment processors like PayPal, Visa, and Mastercard survive? Your input would be greatly appreciated. Thank you.

I do not see much difference that CBDCs will do to credit/debit cards because in the end, it will simply boil down to individual preference. Many people feel more comfortable remembering their pins and having their OTC sent to emails or mobile text rather than memorizing private keys or storing/carrying them about in their phones and tablets. My country once launched a digital currency but it died a natural death for reasons I can not completely adduce. People did not just see the need to use the stablecoin pegged to our currency even though government spent huge funds in its marketing. So, like I said before, worldwide adoption of CBDCs will not bring an end to credit/debit cards.

[cryptosize]

Many people have already stopped using plastic/physical cards in favor of virtual ones... they even prefer to pay with smart watches.

I would call this proto-CBDC.

Personally, I prefer plastic cards because they require no electricity/internet from me (unlike smartphones).

What if my phone battery runs out? What if I'm stuck to GPRS? Plastic solves these problems.

Regarding MasterCard and Visa, I think they will evolve towards a new business model (crypto -> CBDC bridge). They're aware of the potential of the emerging crypto market.

MasterCard is affiliated with DCG, so they're not going away.

Hell, these days we even see telcos offering money transmission services (i.e. Cosmote/Payzy).

[Dunamisx]

Do you think credit/debit cards will still be a thing after the launch of CBDCs? If not, why? Will payment processors like PayPal, Visa, and Mastercard survive? Your input would be greatly appreciated. Thank you.

What you will consider as of now is that even the CBDC in consideration is not yet established because the people are not using it as they have so much developed interest with the use of cryptocurrency, master card, visa and many other gateway payment system should not worry as long as fiat currency still remains relevant, they will always have to contend with he use of CBDC over their services except for crypto adoption as a mainstream for making payments.

[Cryptomultiplier]

Unlike the tussle for dominance between fiat and cryptocurrency, credit/debit cards also have to tussle for dominance when CBDC comes into the mix and is vying for more attention from the users.
The CBDC initiative would work well with cryptocurrencies and P2p transactions would become more efficient although it won't be as private and decentralized as the kind of services crypto exchanges do offer, and there might be no much need for credit/debit cards, if cryptocurrencies get accepted or regulated as is the cases for many countries and regions currently using it.

Still, it's an issue of having a means of being connected to the internet and with steady access to the internet that would determine if the idea of CBDC would be as efficient in serving all customers who use credit/debit cards or not.

[Findingnemo]

Do you think credit/debit cards will still be a thing after the launch of CBDCs? If not, why? Will payment processors like PayPal, Visa, and Mastercard survive? Your input would be greatly appreciated. Thank you.

I doubt credit card will cease to exists unless the government demonetized their fiat and only made their CBDC as legal tender then the user will be left with no other option than using CBDC.

Debit cards are rarely used for big purchases while credit cards are by every rich person because they know they get a lot of rewards like cashback, discounts, tickets, coupons, etc.

[DeathAngel]

Debit & Credit Cards are already getting phased out even before any potential CBDC introduction. Apple Pay & similar are already in use, I actually find them useful & often leave my physical wallet at home & use my phone to make payments. I hope we don’t get CBDCs but for reasons other than Debit & Credit Cards getting discontinued.

[kryptqnick]

I don't consider CBDCs a threat to Bitcoin, and I don't think CBDCs are evil per se, but I'm simply sceptical about this whole idea. The idea of CBDCs has been around for years, and it seemed at some point like it was going to get mainstream. But, actually, only a handful of countries are seriously exploring them and have taken any steps to at least conduct pilot testing of them. So, honestly, I don't think they're kicking it off, and I'm sure Visa/Mastercard have a huge lobby to make sure they aren't left out of the game.
For now, I believe that debit and credit cards will remain relevant and widespread simply because CBDCs won't become a big thing.

[iv4n]

...
Do you think credit/debit cards will still be a thing after the launch of CBDCs? If not, why? Will payment processors like PayPal, Visa, and Mastercard survive? Your input would be greatly appreciated. Thank you.

I don't believe there won't be many changes in the way it works, debit/credit cards won't exist, but as you say there will be an application that will do everything the same as the card but much faster and better. I think that the change that is coming is related to stricter monitoring, so goodbye to any kind of privacy.

Debit and credit cards will always exist in some form, people will never stop depending on some services and their loans/credits. It seems to me that many large companies, including the ones you listed, have more users who use the mobile application than the card itself anyway. Modern times, but I still like to feel cash in my pocket, or Bitcoins in my wallet...

[moneystery]

Do you think credit/debit cards will still be a thing after the launch of CBDCs? If not, why? Will payment processors like PayPal, Visa, and Mastercard survive? Your input would be greatly appreciated. Thank you.

as far as i understand, cbdc is just digital money that is issued and its circulation is controlled by the central bank and its function is the same as paper money. so functionally, cbdc and ordinary money are the same, only the form is different. and discussing digital payments, isn't the majority of people using them now? it's just that all these payments still use the conventional system, not yet using cbdc. it is possible that when cbdc is launched this conventional system will be replaced. and that is also not a problem for debit cards or credit cards, because these are banking products, and even though most people use payments via smartphone, there is still a lot of use of debit/credit cards, because they are more compact and do not require internet on the user's side.

and discussing whether visa or mastercard will be threatened, it will not be threatened, because they are just third parties who cover user payments, and that makes it easier for people who want to make transactions in many countries globally which are covered by this service. because not all countries in the world have a cbdc system that works together.

[WillyAp]

cashless society?
About 30% of the population in the 1st World lives with cash and only cash.
In the 3rd world it is about 60 to 80%

The CBDC has about 30 to 60% of acceptance depending on what state we are talking about.
Venezuela: I estimate about 15% would take it. 

[franky1]

debit/credit cards will slowly fizzle out. replaced by apps

but most people think the only option is never die or disappear the day CBDC is released
the real truth is people adapt OVER TIME

for instance governments can introduce charges for banks interacting with visa/mastercard which visa/mastercard then pass onto the customer in the form of charges.. and then banks offer low/no fee for the CBDC spending
and after time just let people choose the cheapest option naturally OVER TIME

banks are not forced by visa/mastercard to interact with visa/mastercard, so banks could once they have their own payment system for people. can start dis-engaging with visa/mastercard, starting with charging visa/mastercard to get access to bank customer details to then offer cards

[GbitG]

Things you are talking about already exist, you can pay for goods and services with your mobile banking app if the seller has a QR code set for it, or you can make direct transactions to their account they will provide right at the time of payment, you can use a fingerprint-enabled ATM to withdraw cash without having a card these days, all you need is your mobile phone where you will receive an OTP that you will enter in the system.

The reason why cards exist and are widely used even when there are other ways and options to get things done is the delays and timings. When you do something without a card, it would consume more time, with a card, it takes less time and you will be free maybe in a minute instead of 5 minutes when not using a card.